Invest KOREA

South Korea's commerce minister called on U.S. companies Tuesday to increase their investments in the country, saying the free trade pact between Seoul and Washington set to take effect soon will provide new business opportunities for them.

"The free trade deal will reduce trade barriers, and increase accessibility and transparency as well," Commerce Minister Hong Suk-woo said in a luncheon meeting with businessmen hosted by the American Chamber of Commerce in Korea (AMCHAM). "The free trade agreement will provide new business opportunities to companies in both countries."

The free trade accord, known as the KORUS FTA, was supplemented in late 2010 with minor modifications that mostly dealt with the auto industry.

South Korea's parliament approved the free trade pact in November last year. The deal was approved by the U.S. Congress in October. The two countries are working to finalize the date for the implementation of the accord.

The minister said his country will help smaller firms benefit from the trade pact through a variety of policies.

Hong also said business conditions in South Korea have improved over the past few years urging U.S. firms to invest more in Asia's fourth-largest economy.

Two-way trade between South Korea and the U.S. reached some US$90 billion in 2010, according to the Seoul government.

The KORUS FTA will help the Asian country's economy expand more than 5 percent in the long term as it will lead to more exports by reducing trade barriers, a study showed. The deal will also create about 350,000 jobs, helping to ease tightened labor market conditions here, according to the report compiled by 10 local think tanks.

The report predicted that South Korea will see its trade surplus with the U.S. increase by $140 million annually over the next 15 years after the FTA goes into effect. The nation's total global trade surplus will expand by an annual average of $2.77 billion, the report showed.


Source Text

Source: Yonhap News (Jan. 31, 2012)