Joungho Park
Published: 2019
Total Pages: 194
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English Abstract: In July 2017, the Moon Jae-In administration announced its New Northern Policy, aimed to create a new northern economic space and strengthen connectivity between Korea and the Eurasian continent. Vitalizing Korea-Russia economic cooperation is an important factor in realizing the policy. In this regard, Korea needs to come up with new economic cooperation measures which correspond to Russia's socio-economic conditions, industrial policy and regional development plans. This study focuses on Russia's Far East development policies and Korea's measures to cooperate in the region. The Russian Far East has abundant natural resources and is situated relatively close to Korea. However, high living costs and poor housing and transport infrastructure conditions deteriorate the quality of life in the Far East, resulting in chronic depopulation. Moreover, the commodity-dependent industrial structure has to be improved and diversified for sustainable economic growth. Considering all these factors, this study suggests to seek cooperation in the Far East's key and growing industries such as the mining, transport, fishery sectors. In addition, Korea can foster new cooperation projects in the high technology and services sectors.The Far East development policy carried out in Putin's third term was targeted mainly at regional development and investment promotion. The major achievements of the policy can be summarized as the establishment of an institutional base, such as with the advanced development zones, Vladivostok free ports and the Far East Hectares. The challenges in the coming years will be to specify development plans and investment projects, improve the business climate, and raise the quality of life, among others. The policy will continue in a similar manner during Putin's fourth term as well, but with more focus on increasing the quality of life. Whether the ultimate goal of the policy will be successfully achieved is now up to whether the authorities can find appropriate ways to distribute benefits from development while efficiently managing the institutions that have been adopted.