By Lee Hyo-sik
Korea is seeking to expand its economic ties with the 10-member Association of Southeast Asian Nations (ASEAN) to capitalize on the latter's rapidly growing consumer market.
Korea already signed a free trade agreement (FTA) with the Southeast Asia economic bloc, which went into effect in June 2007. But the extent of trade liberalization under the pact is not as wide as those of other free trade accords Asia's fourth-largest economy has signed with other countries.
The country has been negotiating separately with ASEAN member economies to sign more comprehensive FTAs and expand its presence in the increasingly affluent region. Korea has completed a free trade deal with Vietnam and plans to negotiate with Cambodia, Myanmar and Laos to reach broader trade liberalization accords with them.
On Wednesday, Korea signed the FTA with Vietnam, concluding two-and-a-half years of negotiations, which began in August 2012.
The Southeast Asian nation became Korea's 15th FTA partner and the fifth country to complete talks this year after Australia, Canada, China and New Zealand.
Under the deal, Korea and Vietnam will remove import tariffs on more than 90 percent of industrial and agricultural products once the pact goes into effect.
According to the Ministry of Trade, Industry and Energy, Vietnam is Korea's ninth-largest trading partner. Korea exported goods worth $21 billion to the Southeast Asian nation in 2013, and imports reached $7.1 billion. It is also the world's fourth-largest destination for Korean investment, attracting some $1.46 billion from Korea last year.
"Korea and ASEAN signed an FTA in 2007, but it is not as comprehensive as the Korea-US FTA or other free trade pacts Korea has signed with other countries," said Kim Wan-ki, head of the ministry's FTA policy planning. "So, we have been seeking to reach a bilateral FTA with each of ASEAN member states."
Kim said Vietnam, Cambodia, Myanmar and Laos were exempted largely from trade liberalization when Korea signed an FTA with ASEAN because they were viewed as underdeveloped.
''But the four countries have achieved remarkable growth over the past decade and we would like to forge closer economic ties with them," he said, indicating that the government will likely soon initiate FTA negotiations with the remaining three nations.
Kim said the Korea-Vietnam FTA will largely benefit small- and medium-sized enterprises (SMEs) here as Vietnam reduces import tariffs on cosmetics, auto parts, household appliances and other items manufactured mostly by small firms.
Korea is seeking to expand its economic ties with the 10-member Association of Southeast Asian Nations (ASEAN) to capitalize on the latter's rapidly growing consumer market.
Korea already signed a free trade agreement (FTA) with the Southeast Asia economic bloc, which went into effect in June 2007. But the extent of trade liberalization under the pact is not as wide as those of other free trade accords Asia's fourth-largest economy has signed with other countries.
The country has been negotiating separately with ASEAN member economies to sign more comprehensive FTAs and expand its presence in the increasingly affluent region. Korea has completed a free trade deal with Vietnam and plans to negotiate with Cambodia, Myanmar and Laos to reach broader trade liberalization accords with them.
On Wednesday, Korea signed the FTA with Vietnam, concluding two-and-a-half years of negotiations, which began in August 2012.
The Southeast Asian nation became Korea's 15th FTA partner and the fifth country to complete talks this year after Australia, Canada, China and New Zealand.
Under the deal, Korea and Vietnam will remove import tariffs on more than 90 percent of industrial and agricultural products once the pact goes into effect.
According to the Ministry of Trade, Industry and Energy, Vietnam is Korea's ninth-largest trading partner. Korea exported goods worth $21 billion to the Southeast Asian nation in 2013, and imports reached $7.1 billion. It is also the world's fourth-largest destination for Korean investment, attracting some $1.46 billion from Korea last year.
"Korea and ASEAN signed an FTA in 2007, but it is not as comprehensive as the Korea-US FTA or other free trade pacts Korea has signed with other countries," said Kim Wan-ki, head of the ministry's FTA policy planning. "So, we have been seeking to reach a bilateral FTA with each of ASEAN member states."
Kim said Vietnam, Cambodia, Myanmar and Laos were exempted largely from trade liberalization when Korea signed an FTA with ASEAN because they were viewed as underdeveloped.
''But the four countries have achieved remarkable growth over the past decade and we would like to forge closer economic ties with them," he said, indicating that the government will likely soon initiate FTA negotiations with the remaining three nations.
Kim said the Korea-Vietnam FTA will largely benefit small- and medium-sized enterprises (SMEs) here as Vietnam reduces import tariffs on cosmetics, auto parts, household appliances and other items manufactured mostly by small firms.
![[ANALYSIS] Tesla, BYD's price cuts unnerve LGES, Samsung, SK](https://img.koreatimes.co.kr/upload/thumbnailV2/b1cf8ba68d474cb69352bfe7ea9d14f0.jpg/dims/resize/178/optimize)
![[INTERVIEW] How ATEEZ achieved worldwide success](https://img.koreatimes.co.kr/upload/thumbnailV2/c7723b56dde94eb4b260950d368fe8fb.jpg/dims/resize/178/optimize)
