FTA Motives in South Korea: is an FTA a way to increase general welfare or to meet political interest?

ABSTRACT This study aims to investigate South Korea’s free trade agreement (FTA) initiative with priority given to the government’s motives under the institutional structure. Two broad approaches have elaborated political leaders’ motives for making a particular trade policy. The social concerns approach assumes that trade policy reflects political leaders’ welfare concerns for the general public and its desire to achieve various national and international goals. In contrast, the self-interest approach presumes that political leaders tend to support a particular trade policy depending on whether the policy increases or decreases their real political incentives. By investigating structural changes of the FTA agency in South Korea, this study found that FTA motives work in different ways under different institutional structures.