Biz bodies hail conclusion of Korea-EU FTA talks

SEOUL, July 13 (Yonhap) -- South Korean business organizations welcomed the
wrap-up of two-year negotiations on a bilateral free trade deal between Seoul and
Brussels Monday, saying it will promote bilateral trade and help boost the local
economy.
Concluding about 26 months of negotiations with the European Union, South Korea
is aiming for the accord to go into effect early next year after a legal review,
according to South Korea's Deputy Trade Minister Lee Hye-min.
A civilian committee supporting the conclusion of the free trade agreement (FTA),
led by South Korea's five leading business bodies, said the deal is likely to
increase the country's exports to the EU, its second-largest trading partner
after China.
In 2008, two-way trade totaled US$98.4 billion, while South Korea enjoyed a
surplus of $18.4 billion.
The five business bodies are the Korea Chamber of Commerce and Industry (KCCI),
the Federation of Korean Industries (FKI), the Korea International Trade
Association (KITA), the Korea Federation of Small and Medium Businesses (KFSMB)
and the Korea Employers Federation (KEF).
The committee called on the government and the National Assembly to take
follow-up measures to ratify the South Korea-EU FTA as soon as possible.
In a separate statement, the FKI, the lobby for South Korea's family-run
conglomerates, said the deal is predicted to help sharpen the competitive edge of
South Korea's service industry.
"The deal also will help prevent the spread of protectionism amid the global
economic downturn," the FKI predicted.
The KCCI said the deal is forecast to boost the local economy steadily, as it
will help the country's companies expand their presence in Europe.
"We hope the government will take measures for the national industries that can
be harmed by the deal," the KCCI said.
KITA said the deal is meaningful in that it is expected to create jobs and
strengthen South Korea's international competitiveness.
"The deal is expected to increase exports, so it will be helpful for the recovery
of local economy," KITA said.
The KFSMB, comprised of three million small- and medium-sized companies,
welcomed the deal, saying they will be able to expand their exports to the 27
member countries of the EU on the back of the deal.
Local automakers hailed the conclusion of the South Korea-EU FTA negotiations,
as the deal is forecast to help them tap into the world's largest auto markets,
industry sources said.
However, local clothing manufacturers are concerned that the local garment
market will be eaten into by global fashion brands based in Europe, they said.
ksnam@yna.co.kr
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