In the wake of the Cold War, a distinct trend toward regionalism emerged. Countries like the Republic of Korea, which have pursued export-led growth, found themselves facing a different international economic environment than in the past. Korea has mostly traded with advanced countries - the United States, Japan and the European Union.

This has often caused friction over trade imbalances. As Korea has gradually increased its trade with developing countries, however, the share of its trade with advanced countries has steadily declined.

The Republic of Korea's trade with developing countries and the nations of Eastern Europe will continue to expand as long as Korea's economy and trade continue to grow and the nation's industrial structure continues to focus on technology-intensive activities. Once Korea has completed its industrial restructuring, it will be able to make a greater contribution to international economic development by accelerating cooperation with developing countries on the basis of its comparative advantages and complementing sectors.

To the extent that advanced countries remain key to trade and crucial as partners in industrial science and technology, Korea will have to endeavor to minimize friction by opening its markets to a similar extent as developed countries, starting with industrial goods and agricultural products and including services as well.

Global environmental issues, such as depletion of the ozone layer, global warming and deforestatio have emerged as new challenges to people throughout the world.

The June 1992 United Nations Conference on Environment and Development (UNCED) - known as the Earth Summit - drove home to Korea the message that continuous economic development must not be allowed to harm the environment that sustains us all. Koreans were particularly proud of their contribution to the adoption of the Rio Declaration and Agenda 21. The aim of the new policy is to seek reconciliation between the environment and economic development, a balance between trade and the environment, and active participation in global efforts for environmental protection.

The Uruguay Round basically provided for a comprehensive reduction in tariffs and a general removal of non-tariff trade barriers, a crucial step in the global movement toward free trade. The Republic of Korea proactively opens its market to support a global free trade system.