By Kim Tae-gyu
Staff Reporter

A majority of Korean powerhouses are disenchanted with the free trade agreement (FTA) between Korea and the European Union (EU), negotiations for which were concluded Monday.

Samsung Electronics, the country's foremost firm by any measure, said that the corporation already does not pay tariffs for most of its exported items to the EU.

``Out of our three main products ― cell phones, semiconductors and flat-panel displays ― tariffs to the EU are exempted for the first two,'' a Samsung spokesman said.

``In addition, we churn out flat-panel displays and TV monitors in Slovakian and Hungarian factories, which do not generate any duty. Hence, the FTA has little to do with us,'' he said.

Things are almost identical with Samsung's archrival LG Electronics.

``We do not pay tariffs on outbound shipments to Europe _ cell phones are free of duties and TV sets are manufactured in Poland. The effect of the FTA will be minimal,'' an LG Electronics spokesman said.

Although Korean shipbuilders chalked up $10 billion worth exports to Europe last year, Hyundai Heavy Industry, the world's top player, was not upbeat about the bilateral pact, either.

``We already enjoy zero duty. Accordingly, we would not benefit from the FTA immediately, although we see good long-term effects,'' a Hyundai Heavy spokesperson said.

Regarded as the greatest beneficiary of the FTA, Hyundai Motor, the country's primary automaker, expects substantial benefits but less than widely expected.

The EU imposed 10-percent tariffs on imported cars. If the FTA gets enacted, the duties for large passenger cars will be lifted in three years and those for smaller ones will disappear in five years.

``Obviously, it is good news since most automobiles shipped to Europe are manufactured in Korea, thus subject to the high tariffs,'' a Hyundai official said.

``But we have a plant in the Czech Republic that will eventually roll out 300,000 cars a year. Then, the effect of the FTA would be less than generally expected,'' he said.

Market watchers point out that people need to downgrade overly rosy hype for the FTA.

``Most of Korean juggernauts have already found a way to avoid tariffs in Europe. If they are not that smart, they would not be such juggernauts,'' Korea Investment and Securities economist Na Jung-oh said.

``Subsequently, the FTA will not have an immediate effect on them excluding the automobile and car component businesses,'' he said.

voc200@koreatimes.co.kr