This study examines the impact of AI exposure on industries in South Korea and the United States from 2019 to 2022, using the AI Industry Exposure (AIIE) index developed by Felten et al. (2021). In South Korea, AI exposure is positively associated with employment but negatively associated with real labor income per capita, with labor productivity potentially driving the employment gains. Additionally, an analysis of occupational employment in South Korea confirms a positive correlation with AI exposure. For the U.S., AI exposure shows more pronounced labor market influence than in South Korea.

JEL Classification: O33, J24, J23

This study analyzes the drivers of inflation in South Korea using a Dynamic Stochastic General Equilibrium (DSGE) model tailored to the characteristics of Korea as a small open economy. Employing quarterly data from 1999Q2 to 2023Q2, Bayesian estimation is used to estimate Korea-specific parameters. Based on the estimated parameters, impulse response analysis and historical decomposition are conducted. The results indicate that cost-push shocks tied to imported goods pricing have been the primary driver of recent inflation surges in Korea. Accordingly, policymakers need to adopt a comprehensive approach—including not only monetary policy but also macroprudential measures and raw material supply management—to mitigate supply-side inflationary pressures effectively.

JEL Classification: E31, E32, C11, F41

This paper empirically examines the impact of trade facilitation on the trade of intermediate goods in Korea, China, and Japan, along with their trading partner countries, during the period from 2008 to 2017. We particularly focus on the distinct roles of hard and soft environments in trade facilitation. Trade facilitation levels are quantified using principal component analysis, and regression analyses are conducted using the two-way fixed-effects model and the Arellano-Bond estimator. The regression results indicate that overall trade facilitation has the greatest positive impact on Korea’s trade in intermediate goods. The hard environment significantly drives China’s trade growth in intermediate goods, while the soft environment exerts the most substantial influence on Japan’s trade growth in intermediate goods. These findings provide policy implications for regional cooperation and the enhancement of global value chains (GVCs) among Korea, China, and Japan.

JEL Classification: F14, F15, F61