South Korean Business Groups Hail US FTA Deal

Apr 02, 05:09 AM

Current Headlines: Text of report in English by South Korean news agency Yonhap

Seoul, April 2 (Yonhap) - Domestic business organizations welcomed a South Korea-US free trade deal reached on Monday, saying it would promote bilateral trade and help local companies gain a wider foothold in the world's largest market.

Concluding about 10 months of tough negotiations, the two countries adopted a free trade agreement (FTA) that could expand their annual US$72 billion worth of trade by more than $20 billion.

The Federation of Korean Industries, the lobby for South Korea's family-run conglomerates, said the deal is likely to further boost trade between the two sides and cement bilateral relations.

"We positively welcome the agreement in that it will not only promote the two countries' economic interests, but also move bilateral friendly relations a step further," the federation predicted.

The landmark agreement is also expected to help South Korean companies increase their share of the world's largest market as well as increase bilateral trade, it said.

The Korea International Trade Association (KITA) said the deal is likely to help South Korean companies increase their exports to the world's largest economy drastically.

"South Korean exports to the US are expected to increase sharply as the deal is likely to boost South Korean companies' competitive edge in the US market," the KITA said in a statement.

Increased exports will lead to a rise in national income and employment that could globalize the Korean economy and serve as a springboard for the country to join the ranks of advanced economies, it said.

KITA Chairman Yi Hu'i-po'm [Lee Hee-beom], who doubles as co- chairman of a private task force on the South Korea-US FTA, said now is the time to make efforts to further develop the Korean economy as the two countries seal the free trade deal.

"The government should take measures to minimize the impact on industrial sectors that could be damaged by market opening," the former commerce minister said. "The National Assembly should lose no time in approving the deal."

The Korea Chamber of Commerce and Industry said all economic units should join hands to help the Korean economy move a step closer into the club of advanced countries and make another leap following the FTA's conclusion.

"All economic players should leave behind their own interests and pool forces to promote the national interest and help the Korean economy become an advanced one," the chamber said in a statement.

The Korea Federation of Small and Medium Businesses said it expects the free trade pact to increase South Korean exports to the US and thus invigorate small and medium enterprises, which have been suffering sluggish sales both at home and abroad.

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