Theoretical study on Chinese export insurance system with regard to the conclusion of the FTA between South Korea and China

The conclusion of South Korea-China FTA has been ratified by the National Assembly. Compared to the other FTAs concluded so far, this Korea-China FTA has low level of freedom in general. It considers that future relationship between two countries will change the situation of Korean economy. This agreement brings closer cooperation between the countries while taking impacts from the Chinese economy more strongly. Due to the influence of lowered growth of China, the South Korea’s export growth rate to China marked lower position than the overall export rates. China’s transition toward “new normal” is desirable for the country’s continuing growth but it also gives “China shock” to South Korea. This study aims to analyze the export insurance systems in South Korea and China, indicate the problems and suggest counterplans in order to encourage Korean enterprises aggressive advance to China on the basis of South Korea-China FTA. Based on the existing literature, the two countries’ export insurance system were compared and, the results led to offer expansion of policy funds, flexible insurance policy, local-centered confrontational strategy, preparations for various conflicts, product development, etc.