English Abstract: Up until recently, Korea has maintained a trade surplus vis-a-vis its trade with Latin America. The area accounted for a mere 7% of Korea's total exports but the surplus with Latin America stood at USD 18 billion, or about 41% of Korea's total trade surplus. However, exports to Latin America has been declining since 2011 by 4.9% annually, which is 5 times higher than Korea's average rate of export drop during the same period. Meanwhile, export to the region from other major exporters, such as the Unites States, China and Japan, have increased and Latin America's import from the world also grew by 4%. This study analyzes the factors causing drops in Korea's exports and suggests some measures to regain Korea's export competitiveness in Latin America. Chapter 5 suggests measures to restore Korea's export competitiveness in Latin America. First, Korea needs to diversify its export markets and exporting goods. There is potential to expand exports to other countries including Argentina, Bolivia, the Dominican Republic, El Salvador, Costa Rica, Paraguay and Venezuela. As the middle class grows and many governments expand investment for the development of industry and infrastructure, Korea can find export opportunities in education, health care, transportation equipment, machinery, industrial equipment and construction equipment. Cooperation in distribution with Latin American multinationals can also facilitate export activity. Second, measures to alleviate trade imbalance between Korea and Latin America should be adopted to avoid future trade conflicts. Third, free trade agreements with more countries and upgrading the current agreements and can contribute to additional export growth. Fourth, Korea can facilitate trade with the region by lowering non-tariff barriers. The successful measures that are implemented in several Latin America nations can be extended to other countries, such as the Korean e-clearance system and authorized economic operator
