The USSR was the most important political supporter and economic partner of North Korea during the cold war. The USSR played a leading role in the economic relation between North Korea and the USSR. The USSR contributed to the economic development and the cultivation of industrial infrastructure and human resources in North Korea. Even though the economic relationship between two countries brought a continuous loss to the USSR, the USSR continued its relation with North Korea based on political and security reasons in North East Asia. However, their relationship had twists and turns. For example, North Korea took the economic policy of expanding the economic and trade relations with western countries in the early 1970s. Following this, the economic relation with the USSR diminished sharply.There were some stylized factors in the economic relationship between North Korea and the USSR during the cold war era. First, over 3/4 of trade between two countries was based on the barter system. Second, the companies that were financed by the aid from the USSR continued to export only to the USSR until all debts were paid. Third, the processing trade that was based on the materials imported from the USSR was significant. Fourth, the aid from the USSR was the main trend of the economic relation between two countries during the 1950s and 1960s, whereas the transaction or trade was the main trend after the 1970s. Fifth, scientific and technological cooperation had played the most important role. The economic relationship between the two countries changed in the early 1990s because of the transition to the market economy of the Russia and its requirement of hard money on trade settlement. The two countries agreed to expand their trade volume to 9.5 billion ruble by 1990. This amount was 2.5 times more than that of the 1980s. However, the actual amount of trade between the two countries had consistently decreased. It was 1.617 billion rubles in 1988, 1.4977 billion rubles in 1989, and 1.34 billion rubles in 1990. By 1991, the trade between the two countries had almost broken down and the amount of the trade fell to 400 million rubles. The main reasons for the decrease of the amount of the trade between the two countries were: first, Russia and North Korea were undergoing serious economic crisis. Second, the two countries changed from a trade system of compensation trade to market trade. As the new system of market trade began, the friendly price system was abolished, and the clearing payment system was replaced by a hard cash payment system. Also, the compensation trade system based on the barter system collapsed. An abrupt decrease of economic relations between North Korea and USSR caused tremendous difficulty in North Korean industry, and resulted in serious economic difficulties in the 1990s. However, the new Treaty of Friendship and Cooperation between North Korea and Russia in February 2000 and North Korean-Russian common declaration adapted in the time of president Putin's visit in July, 2000, North Korea and Russia attempted to bolster their relationship.North Korea's key industries have been operated by facility support from USSR. In particular, most key industries such as steel, metallic, chemical, mechanical, shipbuilding and energy industries were constructed by technological and facility support from USSR, and have been operated based on the technology of USSR. In fact, North Korea's biggest dilemma lies in that they can not discuss modernization of present North Korean industrial facilities with any other countries except Russia because their industry is equipped by technology and facilities of former USSR.Recent economic cooperation between North Korea and Russia has resulted from interests in both countries. North Korea wants to have Russia involved in the reconstruction of North Korean industry. Russia wants to interest South Korea through North Korea in Russian industrial development. This situation raises many questions on economic cooperation between South and North Korea. First, if it is presumed that Korea or international societies can not supply financial needs required for the reconstruction of the North Korean economy, the second choice would be to make Russia assume the burden. Second, the economic cooperation between North Korea and Russia is not limited to their own cooperation, but is international. In particular, the scope of cooperation may expand to South Korea. Third, this is a pertinent time to establish an organization of economic cooperation between South Korea, North Korea and Russia in order to solve all the problems mentioned above. It is very important to organize a council in which South Korea, North Korea and Russia participate together in the framework of economic cooperation in North East Asia or of economic cooperation with other countries. This council would adjust each country's interests and supervise performance of projects agreed upon by the participants. Fourth, for the actual realization of economic cooperation between South Korea, North Korea and Russia, we should develop and promote economic cooperation projects that each country is interested in. A railroad connection project and cooperation in energy would be the first such project. In the future, the following is needed to promote economic cooperation between South Korea, North Korea and Russia securely, consistently and effectively: after solving the problem of North Korean nuclear weapons, the three countries should create an institutional organization that will adjust mutual interests and gains, and propose cooperative policy in the overall framework. Each country should promote cooperative projects that will result in the actual realization of policies. In the long run, these three countries should form a close alliance that will make it possible to unite natural resources, capital and labor, and that will make it possible to connect industries directly.

Korea's FDI in China has been the major impetus for the rapid growth of bilateral economic linkage. Korean investment in China has contributed to Korea's trade growth and competitiveness improvement, and it has benefit the Korean trade surplus and decreases Korean trade conflicts with other countries.
In the meantime, Korean investment also has had a positive effect on employment, tax revenue, trade with other countries and industrial competitiveness in China. Since 2002, China has replaced the U.S. to become the largest investment destination for Korean FDI. Therefore, Korea's FDI will play more and more important role in bilateral economic linkage. (The rest is omitted.)

June-Dong Kim et al.
The Ministerial Declaration of the 4th WTO Ministerial Meeting at Doha in November 2001 announced the launch of the Doha Development Agenda(DDA) to be completed by January 1st, 2005. This study seeks to analyze major issues on medical services in DDA negotiations and recommend future policy directions. Medical services are those sectors where foreign providers have not been allowed to freely operate in Korea and thus the DDA negotiations have significant implications for the Korean economy. In order to prepare for the external liberalization in medical services, it is imperative to establish a system for the recognition of competence of foreign medical professionals. It is required to provide a objective evaluation mechanism for the education and training of the foreign license holders. Furthermore, the government needs to upgrade the domestic licensing system by introducing a continuing education for license holders. (The rest is omitted.)

The proceedings are made based on the materials presented in the international conference under the joint auspices of Korea Institute for International Economic Policy (KIEP) and Korean Economic Development Association (KEDA) in Sept. 26. 2003. It aimed at sharing the experiences of economic reform performed by Korea, Japan and China during the long stagnation in the wake of financial crisis and lessening unnecessary errors, which occur not infrequently in the actual reform processes. Most of all, in the process of the discussion, it is assured it paved way of more deepening economic cooperation among them.

In this paper, we examine changes in patterns of specialization and geographical concentration in East Asia. We found that relative specialization, on average, has decreased in East Asia, implying that the economic structures of East Asian countries have been converging. Investigating changes in the industrial characteristics, it is shown that the differences in economies of scale between East Asian countries have been greatly reduced over time. In addition, we also identified that geographical concentration has increased. (The rest is omitted.)

During the second half of the 1980s, the Japanese economy experienced severe asset price bubbles while overall economic activities became overheated. Stock prices rose sharply by more than three times and commercial land prices skyrocketed more than four times. The main reason for the asset price rise was that the Bank of Japan lowered its interest rates significantly in response to a possible decrease of external demand due to the sharp appreciation of the yen following the Plaza Agreement of September 1985, while financial liberalization had been progressed rapidly. (The rest is omitted.)

An international financial center means the specific area which functions as a center for borrowing and lending of funds. With London and New York at the top, many cities or countries such as Frankfurt, Paris, Chicago, Tokyo, Hong Kong, and Singapore have been competing against one another to play a central role in international financial market. Given the situation, it is not enough for Korea to just put emphasis on its potentials as one; rather clear visions, accurate analysis of present conditions, and action plans are in need for Korea to build an international financial center. (The rest is omitted.)

The Mekong River, the 12th longest river in the world (flowing from Yunnan province, Southern China, to Vietnam) has been both an important resource and an obstacle to the development of infrastructure in the region. With programs to construct roads and railroads as well as energy and communication facilities, the region could seek to achieve sustainable economic growth and attract foreign direct investment, narrowing the economic gap between rural and urban areas. (The rest is omitted.)

Prior to China's entry to the WTO, its service industries were highly protected due to the legacies of its traditional socialist economic system. However, since its admission to the WTO, China has been undertaking radical reform and the opening of its service industries.It is anticipated that service industries will face drastic and tremendous transformation in the WTO-era in China. Opening of service industries in China will also provide a new horizon for foreign firms and foreign investors in China in terms of business opportunities. Furthermore, the opening of service industries in China will bring about significant changes in structures and the basic framework of the Chinese economy, the economic relationships in East Asia and the entire world economy. (The rest is omitted.)