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August 17, 2025Global Economic Review

Multilateral Dimensions of Bilateral Trade of Korea: A Comparative Analysis of Gross, Value-Added, and Income-based Approaches

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Significant misrepresentations arise when relying solely on gross trade measures, particularly in Korea's trade with China and the U.S.
Korea's gross trade balances overstate gains with China while understating them with the United States, revealing inconsistencies in perceptions of trade success.
An analysis applying gross, value-added, and income-based frameworks highlights the complexities of bilateral trade dynamics.
The shift in China-U.S. trade surpluses from 2014 to 2020 indicates evolving economic relationships, calling for a reassessment of trade data interpretation.

Authors

YLYoung-Jae LeeKyungpook National University SLSeung-Hak LeeKorea University

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Implication

This analysis reveals significant misrepresentations in South Korea's trade balances with China and the U.S., suggesting value-added methods may offer clearer insights.

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Lee et al. (2025) studied this question.

synapsesocial.com/papers/68af4cd3ad7bf08b1ead5eb8 https://doi.org/10.1080/1226508x.2025.2532455

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Implication

This analysis reveals significant misrepresentations in South Korea's trade balances with China and the U.S., suggesting value-added methods may offer clearer insights.

Multilateral Dimensions of Bilateral Trade of Korea: A Comparative Analysis of Gross, Value-Added, and Income-based Approaches

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Discussion

Implication

Cite This Study

Multilateral Dimensions of Bilateral Trade of Korea: A Comparative Analysis of Gross, Value-Added, and Income-based Approaches

Key Points

Discussion

Implication

Cite This Study

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