Korean FTAs in Effect
The Korea–Chile Free Trade Agreement (FTA) went into effect on April 01, 2004.
The Korea–Chile FTA, which was concluded on October 25, 2002, was the first FTA that Korea has ever entered into and that has been concluded between two countries having the Pacific Ocean in between them. The Agreement is also meaningful as it will serve as an opportunity for Korea to expand grounds for our companies and to build the infrastructure needed to diversify our export market into the promising Central and South Americas, which are on the opposite side of the world. With this, we finally joined the ranks of FTA countries.
1. Significance of the Agreement
- Korea’s first FTA (the starting point of our promotion of FTA) and the diversification of trade policy instruments (adoption of the free trade method appropriately reflecting our actual trade circumstances, separately from the trade liberalization under the World Trade Organization (WTO))
- The first FTA between two trans-Pacific countries (the first successful case among the Asian countries pursuing FTAs with Latin American countries)
- Reflecting the most of the mutual benefits of the two countries (the first successful case among the Asian countries pursuing FTAs with Latin American countries)
- Improvement of our international creditworthiness (enhancing our credibility in the international community by showing off our willingness for openness and internal reform)
2. Importance of the Chilean Market
- Chile is a medium-sized economy with which we can pursue a certain level of economic effect and can manage properly the impacts of the bilateral trade liberalization on our industry.
- Chile is a market of great potentials as it has established open, transparent (ranked 21st in the World Corruption Index (as of 2010)), and stable economic institutions through drastic reforms and has achieved remarkable economic performances.
- The country is currently transitioning into a digital economy to be a promising market of our IT industries (computers, telephones, cell phones, the Internet, etc.).
- Chile is important not only in itself, but also as a bridgehead in the Latin American market.