International trade & investment Prof. Jasper KIM 092SIS88 AEO HYE JUNG

 The Korean government declared the revision of the plan to construct Sejong City  it has triggered some national conflicts  “amendment of Sejong City is inevitable” ⇒ Prime Minister Jeong, Woon-Chan  This has been very controversial and three main issues have been discussed among the governmental parties and citizens.

 the whole Sejong City project ⇒ to move capital city from Seoul to Chung-nam, Yunki-Gun  the former president Roh, Mu-Hyun as a pledge to gather voters in Chung-cheong-Do area.  He tried to carry out the Sejong City project by introducing and passing the new bill ⇒ the Constitutional Court rejected this bill.

 Democratic Party, Democratic Labor Party, the people in Chung-nam area  Supporters of the Sejong City project argue that the former government’s pledge must be kept even after its years had passed.  Sejong City project’s benefits ⇒ the rural area, equally distributing people to all the cities, preventing overcrowding of a city.  they would be considered as untrustworthy for violating the promise they made in the past between the government and the people.

 Grand National Party, conservative groups, the people outside of Chung-nam area  They do not see the necessity of passing the Sejong City project.  question moving the capital city from Seoul to Gong-ju area.  this plan to move the capital city should be re-considered without the hostility between two major confronting parties.

 Each party needed more votes and their interests were concentrated in Chung-Cheong area.  In Chung-Cheong area, the competition was extraordinarily harsh.  the politicians could neither calculate the profits ⇒ city might bring, or the loss

 between people in Chung-cheong area and people outside of Chung-cheong area.  The idea of moving the capital city ⇒ sharing equality between cities provinces ⇒ developing rural areas to the extent of meeting equilibrium with well-developed areas

 many advocates assert initial Sejong City project ⇒ concentrating on Seoul’s economical and financial growth distracts other developing cities from improving  some opponents ⇒ another excuse for rebelling against the governing party without a definite explanation

 this issue of Sejong City project as just a game and analyzing it.  at the decision-making process of the two parties  If one party did not talk about Sejong City while the other was talking about it in public ⇒ the voters would have gone for the other party creating the worst outcome to the other who did not talk about it.

 if both parties, Democratic Party and Grand National Party, made a deal and had agreed to be silent on this subject.  the whole issue would have been in a better shape  both would not have had huge deficits on their reputations.  Correlation and cooperation are needed in solving the problem in the suggested issue.

 the government makes a change in the project.  a strategic advantage about the compensation or related law through the commitment.  threats and promise ⇒ being able to carry out the promise instead of threatening.  the government providing compensations to cooperating people in Sejong City.

 If Korean government cannot reach the agreement between two parties.  another alternative plan ‘BETNA’ is on the list  BETNA stands for ‘Best Alternative to Negotiated Agreement,”  Korean government actually have a very good example of it.

 BETNA of Cheongye-Cheon  Seoul set a plan to renovate Cheongye-Cheon area.  Many merchants around the area were objected to this plan  the government did suggest an alternative place  Seoul used BETNA in this case which was redeveloping the Cheongye-Cheon area only for two years ⇒ then Chungye merchants could not work as well.

 Chinese military strategist Sun Tzu wrote; When you surround an enemy, leave an outlet frees.”  if Korean government do not see an outlet to escape., they will fight with the courage of desperation.  Korea government can make them worse off if chung-nam area’s people do not cooperate.

 Thinking strategically: avinash k. dixit and barry j, nalebuff chapter 2,5,9  Getting to yes negotiating agreement without giving in: roger fisher and William ury and bruce patton second edition  Study about problem of Multifunctional Administrative City: Jeong, myeong-hoon, seong kyun kwan graduate school, 2008  MACCA:

Thank you!