Global value chains and liberalization of trade in services Implications for the Republic of Korea

Purpose - The purpose of this paper is to address the importance of establishing global value chains (GVCs) through the liberalization of trade in services, with the Republic of Korea comprising part of these value chains. Design/methodology/approach - The construction of a database has revealed rather disconnected policy arrangements across Asia-Pacific Economic Cooperation (APEC) members in terms of service trade liberalization. Findings - Although the economic benefits arising from harmonized and liberalized policies across APEC members are widely recognized in the business sector, the relevant policy coordination seems to be missing. Research limitations/implications - With this status quo in mind, APEC could work on establishing its own harmonized "service trade commitment table" centering on simple foreign capital participation criteria. This would surely contribute to forming an APEC-wide GVC surrounding Korea, which actively aims to expand its economic ties in the Asia-Pacific region. Originality/value - The comparison of WTO-based and free trade agreement-based service trade commitments by APEC members (including Korea) and Association of Southeast Asian Nations ten members is an original research area, with many policy implications for Korea in the Asia-Pacific Region.