Korea, Peru agree to start FTA talks in early 2009

LIMA, Nov. 21 (Yonhap) -- South Korea and Peru agreed at a summit Friday to begin negotiations on a two-way free trade agreement in the first half of 2009 and closely cooperate in overall economic fields, including the Peruvian government's massive infrastructure expansion projects.

South Korean President Lee Myung-bak and his Peruvian counterpart, Alan Garcia,
held their first summit talks in Lima and agreed to establish comprehensive
cooperative relations between their countries, Lee's spokesman said.
The two leaders agreed to push for the combination of Korean capital and
technology with Peruvian energy and natural resources, as well as for the
conclusion of a dual taxation prevention accord as soon as possible, said the
spokesman.
Specifically, Lee and Garcia agreed to set up a high-level dialogue channel
between their governments, push for the opening of a direct air service between
their capital cities, deepen exchanges in broadcasting and take a common stance
on the global financial crisis, climate change and other global issues.
In addition, President Lee asked for Garcia's support for Korean companies
seeking to participate in the Peruvian government's plans to build new
petrochemical plants, modernize its military and expand roads, ports, housing and
other infrastructure.
"Unlike the traditional summit talks, bilateral industrial cooperation was the
dominant agenda at the meeting between Lee and Garcia," South Korea's
presidential spokesman Lee Dong-kwan said.
"President Lee asked Garcia to back various Korean-Peruvian industrial
cooperation projects after introducing each of the South Korean companies
interested in the Peruvian market -- SK, Samsung Electronics, LG Electronics,
Doosan Heavy Industries & Construction and Korea Petroleum Development Corp."
President Lee credited SK, which is pushing to take part in the construction of a
Peruvian petrochemical plant, with world-class technologies and experience in the
petrochemical field, while stressing that Samsung Electronics' wireless broadband
Internet technology is ideal for Peru's mountainous terrain.
Lee recommended Doosan Heavy for Peru's first desalination project and Korea
Petroleum Development for various Peruvian petroleum and gas development
projects, the spokesman said, adding the president also expressed a wish for
greater sales of Korean cars in Peru.
Lee arrived in Lima from Brazil on Thursday for a state visit and to attend the
annual Asia-Pacific Economic Cooperation (APEC) forum over the weekend.
Following their summit talks, the Export-Import Bank of Korea and Peru's biggest
commercial bank, the Bank of Credit of Peru, signed an inter-bank export credit
agreement, under which the Korean lender will provide up to US$50 million to the
Peruvian bank to finance Peruvian imports of Korean products and services.
Korea Resources Corp. and the Peruvian Institute of Mining Engineers also signed
an MOU on closer cooperation in resource exploration. In terms of output, Peru is
the world's fifth-largest gold producer and the No. 1 producer of silver. It
ranks second in both bronze and zinc.
After the summit meeting, Garcia decorated Lee with the Grand Cross of the Order
of Sun, the highest Peruvian honor. Peru has awarded the Grand Cross decoration
only to foreign heads of state and global leaders recognized for their
outstanding contributions to friendship with Peru.
The South Korean government on Thursday donated about $620,000 worth of computers
and safety devices to the Peruvian organizers of the upcoming APEC summit. In
August, Seoul donated 100 Hyundai Motor passenger cars, valued at $2 million, to
the APEC organizers for use by Peruvian patrol police.
ycm@yna.co.kr
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