Korean Trade Minister Bark Tae-ho, second from left, and Zafer Caglayan, Turkish minister of economy, sign a free trade agreement in Ankara on Aug. 1. / Courtesy of the Turkish Embassy

By Kim Se-jeong

For Turkey and Korea, the year 2012 is an eventful year.

In February, President Lee Myung-bak visited Turkey. During this visit, President Lee and Turkish President Abdullah Guel elevated bilateral relations between the two nations to become strategic partners.

In April, Turkish Prime Minister Recep Tayyip Erdogan came to Seoul for the Nuclear Security Summit.

Early this month, another defining event happened: the signing of a free trade agreement (FTA).

On Aug. 1, Korean Trade Minister Bark Tae-ho met with Minister of Economy, Zafer Caglayan, in Ankara to ink the deal, signing the agreement after almost two-years of negotiations.

Now, with the ratification process left to the legislative bodies of each country, Turkish Ambassador to Korea Naci Saribas told The Korea Times Monday, “I hope to see the FTA enter into force by the end of this year.”

Given that it’s an election year in Korea, it’s hard to predict how long the ratification will take, but most people think the agreement will be a win-win situation for both consumers and industries in both countries.

A look into the economies of both countries would catch many by surprise because of their similar features.

Both economies are heavily dependent on trade.

Like Korea, automotive and shipbuilding are very strong sectors in Turkey. Hyundai, Toyota and Honda have production plants in the country. Turkey’s shipbuilding industry is only after China, Korea and Japan. Made-in Turkey TVs have been successfully exported to the European Union, with which it has had a customs union since 1996.

The number of FTAs shows the openness and competitiveness of the Turkish economy.

The Turkish government has signed FTAs with 16 countries. It’s currently negotiating with an additional 13 countries.

Kong Tae-won, manager at the Korea Trade-Investment Promotion Agency (KOTRA) in Istanbul, said although the two look similar “the two economies have more differences than similarities,” creating a win-win scenario.

When implemented, the free trade agreement is expected to strengthen the existing trade pattern in terms of trading goods. Top trading commodities now are automobiles, automobile parts, plastics and textiles.

In 2011, South Korea exported $5 billion worth goods to Turkey, whereas the import from Turkey was at $804 million. Turkey wishes to
overcome the trade deficit through the accord.

The ambassador projected trade volume to reach $10 billion within two or three years into the implementation. Current trade volume is at $7 billion.

He hoped the FTA would pave the way for a joint construction projects in a third country.

KOTRA’s recent report showed Turkish companies have had a robust presence in the CIS countries, Middle East and Africa.

Construction in these areas account for nearly 90 percent of overseas construction projects.

“Turkey has always had economic, historical ties and experiences with these regions. We could bring our experiences together,” Saribas said.

Turkey and Korea opened diplomatic relations 55 years ago. The outbreak of the Korean War served to set the tone of bilateral relations. Turkey dispatched 14,936 soldiers to fight. It was the fourth largest contribution after the United States the United Kingdom and Canada, and lost 741 soldiers.

The term “blood brotherhood,” describing the bond between the two countries, was born out of this war, and according to accounts by travelers to Turkey, the “blood brotherhood” is still felt among people.

Once called “the sick man of Europe” during the Ottoman Empire era in the 19th century, Turkey is now the world’s 16th largest economy. It has strong service, tourism and transport sectors.

Agricultural sector is relatively small, compared to the growing service and tourism sectors, yet still employs almost 30 percent of its workforce.

Turkey is the world’s largest producer of hazelnuts, cherries, figs, apricots, quinces and pomegranates, the second largest producer of watermelons, cucumbers and chickpeas, and the third largest producer of sugar beet.

The import of Turkish agricultural products to Korea is minimal due to the high tariffs, but is expected to increase with the FTA.