The impact of the WTO on South Korea's computer industry

Since its formal establishment in 1995, the World Trade Organization (WTO) has become one of the most important international organizations because it is the only international body that administers the rules of trade among nations. This article examines how Korea's computer industry has benefited from the creation of the WTO. Based on a 2003 survey of fifty of the largest Korean computer firms, the results indicate that the firms experienced higher annual export growth rates in 1995-2002 compared to the period before the WTO was established, that is 1990-1994. Firms attribute the major source of the WTO impact directly to the elimination of tariffs under the Information Technology Agreement that became effective in January 2000. However, the WTO's increased role in non-traditional areas such as the simplification of import procedures, intellectual property rights, trade-related investment measures and the dispute settlement process also underscore firms' favorable assessment of the WTO.