Seoul to Seek Assembly Approval of FTA in Sept.
By Ryu Jin
Staff Reporter
South Korea will seek the legislative ratification of the free trade agreement (FTA) it struck with the United States during the National Assembly’s regular session scheduled to begin in September, Minister of Commerce, Industry and Energy Kim Young-ju said Thursday.
``If formally signed by the governments of the two sides by June as scheduled, the free trade agreement would be sent to the National Assembly in September for ratification,’’ he told a luncheon forum hosted by the American Chamber of Commerce in Korea (AMCHAM).
He added the South Korean government, while making its best efforts to minimize expected damage to some industrial sectors, would continue to persuade opponents at home so that the bilateral trade pact can be approved by the legislature smoothly.
South Korea and the U.S. struck a free trade deal in April after 10 months of intensive talks. But the U.S. now wants renegotiation so as to have some provisions of its labor and environmental standards reflected in the pact since a Congress-government agreement on a new trade policy last week.
Kim said in another meeting held earlier in the day at the Federation of Korean Industries that the U.S. has not yet made an ``official’’ request for renegotiations. Officials in Seoul have so far reiterated that the government will not comply with any demand from Washington for renegotiations.
He, in the meantime, stressed in the luncheon meeting with AMCHAM members that Seoul is fully committed to pushing for the ratification of the FTA, which he said could help the South Korean economy adopt global standards.
In a keynote speech titled ``More Opportunities on the Horizon With the South Korea-U.S. FTA,’’ the minister said the opening of markets is vital for South Korea because it could allow the country to sell more products abroad as well as attract foreign investment.
He cited the fact that foreign-owned companies hired 6.1 percent of the local workforce and made up 12.9 percent of domestic production and 16.9 percent of exports as of last year.
Kim added that the government is doing its part to remove unnecessary administrative red tape that has been cited as reasons for foreign investors to be reluctant to enter the South Korean markets.
On labor-management relations, another concern for foreign investors, the minister said the number of labor-management disputes has recently been decreasing as unions now also understand the importance of foreign investment in employment.
He said foreign companies, which want to invest in the inter-Korean industrial complex in the North Korean border town of Kaesong, could apply for business opportunities in the industrial park from next month.