By Chung Hyun-chae
Korea's exports to Turkey jumped 48 percent after a bilateral Free Trade Agreement (FTA) went into effect on May 1, 2013, according to the Ministry of Trade, Industry and Energy, Wednesday.
The total amount of exports to Turkey this year reached $4 billion as of September, a 16.6 percent rise from a year ago. Exports to Turkey have been showing double-digit growth every month since the FTA," said Song Jeong-hun, a ministry official.
According to a report from the Korea Trade Investment Promotion Agency (KOTRA), tariffs have been lifted on more than 80 percent of Korean products and 65 percent of Turkish products since the FTA was implemented.
"In particular, synthetic resin exports to Turkey saw a 144 percent increase during the five months from May," said Myoung Jin-ho, a researcher from KOTRA.
The tariff rate for synthetic resin was previously 6.5 percent.
Turkey is regarded as a gateway to European markets, not only by Korean companies but also by many global enterprises.
As many companies have entered and run their factories in Turkey, the country needs more intermediate materials, such as synthetic resin, to manufacture finished goods, a ministry official said.
Korea's leading automaker Hyundai Motor Group also has local factories in Turkey, and accounts for 9 percent of Turkey's auto market.
"Removing tariffs helped Hyundai cut production costs. In light of this, the Korea-Turkey FTA is also good news for other Korean firms running factories in Turkey," said Myoung.
Besides synthetic resin, LCD, auto parts and steel makers have benefited from the accord.
According to the KOTRA report, local buyers and companies in Turkey expect demand for Korean products to rise, thanks to their price competitiveness.
Bilateral trade between Korea and Turkey is expected to steadily grow in the future.
Korea is the 20th country to sign an FTA with Turkey.
"Turkey has great potential as an emerging market for Korean firms," said Myoung.
Korea's exports to Turkey jumped 48 percent after a bilateral Free Trade Agreement (FTA) went into effect on May 1, 2013, according to the Ministry of Trade, Industry and Energy, Wednesday.
The total amount of exports to Turkey this year reached $4 billion as of September, a 16.6 percent rise from a year ago. Exports to Turkey have been showing double-digit growth every month since the FTA," said Song Jeong-hun, a ministry official.
According to a report from the Korea Trade Investment Promotion Agency (KOTRA), tariffs have been lifted on more than 80 percent of Korean products and 65 percent of Turkish products since the FTA was implemented.
"In particular, synthetic resin exports to Turkey saw a 144 percent increase during the five months from May," said Myoung Jin-ho, a researcher from KOTRA.
The tariff rate for synthetic resin was previously 6.5 percent.
Turkey is regarded as a gateway to European markets, not only by Korean companies but also by many global enterprises.
As many companies have entered and run their factories in Turkey, the country needs more intermediate materials, such as synthetic resin, to manufacture finished goods, a ministry official said.
Korea's leading automaker Hyundai Motor Group also has local factories in Turkey, and accounts for 9 percent of Turkey's auto market.
"Removing tariffs helped Hyundai cut production costs. In light of this, the Korea-Turkey FTA is also good news for other Korean firms running factories in Turkey," said Myoung.
Besides synthetic resin, LCD, auto parts and steel makers have benefited from the accord.
According to the KOTRA report, local buyers and companies in Turkey expect demand for Korean products to rise, thanks to their price competitiveness.
Bilateral trade between Korea and Turkey is expected to steadily grow in the future.
Korea is the 20th country to sign an FTA with Turkey.
"Turkey has great potential as an emerging market for Korean firms," said Myoung.
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