ABSTRACT
Korean conservatives and liberals have dissimilar approaches to domestic economic policy. The former emphasize growth at all costs and lower taxes, whereas the latter focus on equitable growth and government-led redistribution. In theory, this should lead to different foreign economic policies, with conservatives favouring openness and liberals showing a preference for protectionism. However, this is not the case in practice. Both conservatives and liberals support openness, free trade agreements and other policies which, they agree, are necessary for Korea’s economy. This is shown by the case of Korea’s economic relations with China. Both conservatives and liberals have actively embraced stronger trade and investment links with Korea’s neighbour since the restoration of bilateral diplomatic relations in 1992. As a result, Seoul and Beijing signed a new bilateral investment treaty in 2007 and a bilateral free trade agreement in 2015; the Bank of Korea and People’s Bank of China have signed and renewed a currency swap arrangement; and Korea has been supportive of Chinese initiatives from which it can benefit, such as the AIIB and the Belt and Road Initiative. The consensus between conservatives and liberals is unlikely to disappear as long as China remains Korea’s largest trading partner.
