S. Korea to increase efforts to expand presence in ASEAN markets

JEJU ISLAND, South Korea, May 31 (Yonhap) -- A free trade deal on merchandise
that South Korea signed with the Association of Southeast Asian Nations (ASEAN)
two years ago has helped pave the way for both sides to expand bilateral trade,
investment and personal exchanges, the Seoul government said Sunday.
The Ministry of Strategy and Finance said in a statement that it will step up
efforts to expand South Korea's market position in the region by supporting local
exporters and providing development aid to ASEAN countries in a bid to enhance
overall ties with each member.
"The FTA with ASEAN countries was the first of its kind that South Korea signed
with one of the world's largest economic blocs," the ministry said. "It helped
lay the groundwork for brisk trade, investment and personal exchanges."
South Korea and ASEAN countries put their FTA on merchandise into effect June 1,
2007. A similar deal took effect in the service sector in May of this year, and
the sides will sign a free trade pact on investment during summit talks here
Tuesday.
In the two years since the merchandise FTA deal was signed, trade between both
sides came to US$138 billion, up 33.8 percent from the two-year period prior to
the agreement, the ministry said.
South Korean exports expanded after the free trade deal went into effect, with
automobiles sent to ASEAN countries surging 77.3 percent the year after the pact
was signed, and steel and petrochemical exports jumping 23.3 percent and 20.8
percent, respectively.
South Korea's relations with the 10-member ASEAN significantly improved after it
established a "dialogue partnership" with the regional body in 1989.
Korean trade with the association nearly tripled to around $90 billion last year
from 2001, according to the ministry. The expanded exchanges made South Korea
ASEAN's third-largest trading partner, while ASEAN is the fifth-largest partner
for South Korea.
The ASEAN member countries are Brunei, Cambodia, Indonesia, Laos, Malaysia,
Myanmar, Singapore, Thailand, the Philippines and Vietnam.
"We assess that the merchandise FTA with ASEAN contributed positively to
expanding trade between the two areas, and trade will likely further increase
down the road," the ministry said. It cited the phasing out of tariffs and
Thailand's participation in the pact, announced earlier this year, as reasons for
optimism.
"ASEAN countries will become an important market, able to help offset a decline
in demand from advanced countries that are suffering from economic recessions,"
the ministry said. "We will intensify efforts to expand market shares there
through diverse policy measures."
The ministry said it will help local exporters better understand how they can
enjoy tariff reductions when they sell products in ASEAN countries, and that it
will strengthen economic cooperation with each member country by providing aid
for development.
South Korea currently has free trade agreements with Chile, Singapore, and the
European Free Trade Association. A free trade deal with the United States is
awaiting parliamentary ratification.
Seoul is also seeking similar trade deals with the European Union, Canada, India
and Mexico.
kokobj@yna.co.kr
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