According to Yonhap News,
(SEOUL=Yonhap News) A vice president of the European Commission said Thursday that the bilateral free trade pact between Brussels and Seoul has benefited both sides, urging more South Korean companies to make investments in the world's largest economic bloc.
"The Free Trade Agreement (FTA) with South Korea has been successful," Jyrki Tapani Katainen, the European Commission vice-president for Jobs, Growth, Investment and Competitiveness, said in an interview with Yonhap News Agency in Seoul.
The trade deal to abolish tariffs on most industrial goods took effect in July 2011, allowing South Korean firms to tap deeper into the world's single largest economic bloc.
Jyrki Tapani Katainen, the European Commission vice-president for Jobs, Growth, Investment and Competitiveness, speaks to Yonhap News Agency in Seoul on Sept. 22, 2016. (Photo courtesy of the Delegation of the European Union to the Republic of Korea)
"We are very satisfied for the FTA and the ways it's been implemented," the vice president said, adding that both countries have enjoyed increased imports and exports.
Industry data showed that South Korea's trade with the European Union stood at US$105.3 billion last year, up from $92.2 billion in 2010. This represented a 14 percent jump over the past five years since a bilateral free trade pact went into effect.
"There is huge demand for investment in Europe. ... This all leads to a better business environment and also there are lots of opportunities for (South) Korean firms to invest in Europe," the vice president said.
The former prime minister of Finland, who took the post at the European Commission in July 2014, also promised various benefits for South Korean firms.
"South Korean companies investing in Europe can get the same benefit and financial opportunities as European companies. We don't protect our own companies," the policymaker said.
The Finnish politician recommended a new fund called the European Fund for Strategic Investments (EFSI), saying that local companies can get help when starting business in 27 EU member states.
The EFSI is an initiative launched jointly by the European Investment Bank and the European Commission to overcome the current investment gap in the EU by mobilizing private financing for strategic investments.
"(South) Korean companies can use this fund for investment if there is a need," he said noting that the energy, transport and health care sectors need further investment.
"One of the important areas is the health care sector. (South) Korea is aging very fast. In Europe, we have the same type of challenge. So modern health care or other services will play a bigger role in our countries," he said.
The vice president, meanwhile, stayed cautious about the impact and possible fallout of Britain's exit from the EU.
"It's too early to say anything about any effect because we don't have all kind of legal arrangement," he said.
In June, Britons supported the proposal to leave the EU by a small margin, an exit that comes after it joined the block in 1973. Industry data showed that trade with Britain takes about 10 percent of the bilateral trade with the EU.
"Despite the Brexit, the EU will be more integrated and the business environment will be changed into positive direction even though there has been growing populism and anti-internationalism in Europe," he said.
khj@yna.co.kr
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Source: Yonhap News (Sep. 22, 2016)