The purpose of this paper is to discuss the options for Korea's mid-term economic recovery from the financial crisis based on regional cooperation, especially through a Japan-Korea FTA and related possible changes. First, the paper will examine reform efforts undertaken by other MEs after the financial crisis, with a clear focus on intraregional division of labor. The second part will explore what strategies ROK will be able to pursue if she wishes to establish competitive advantage like other NEs in the region. The Japan-Korea FTA (JKFTA here) will be proposed as one option with potential dynamic gains for ROK's development. Thirdly, the strategic character of JKFTA to maximize mutual advantage will be discussed with some political implications.
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