Japan concerned about S. Korea-EU FTA: trade body

SEOUL, July 27 (Yonhap) -- Of South Korea's trading partners, Japan is most
concerned about the free trade deal that Seoul and the European Union (EU)
concluded earlier this month, amid worries that its South Korean rivals may
expand their market share in the European market, a local trade body said Monday.
On July 13, South Korea and the EU concluded their two-year long free trade
negotiations, with the free trade deal is expected to boost bilateral trade by as
much as 20 percent.
"Although the Japanese government is trying to play down the South Korea-EU FTA,
Japanese companies are shocked by the free trade deal," the Korea International
Trade Association (KITA) said.
The association said its overseas offices in Japan, China and other countries
have monitored responses from each country right after the trade deal was
concluded.
According to the association, European carmakers are still opposing the free
trade deal on concerns that their market may be eaten into by South Korean
rivals.
The EU was South Korea's second-largest trading partner after China last year. In
2008, two-way trade totaled US$98.4 billion with South Korea enjoying a surplus
of $18.4 billion.
The EU was the biggest investor for South Korea last year with its accumulated
investment totaling $44.82 billion.
sam@yna.co.kr
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