• Trade News
  
  KOREA-CHINA
  FTA MARK FIRST
  ANNIVERSARYS
•    The Korea-China FTA marked its first anniversary on December 20. This year’s export volume between the two countries increased 11.4 percent compared to last year. Most notably, the export of fishery products increased 24.9 percent, while textile products increased 17.1 percent. The export of agricultural products also saw an increase of 2.8 percent.
     In the investment sector, China’s investment towards Korea increase
• 8.5 percent, while countries wishing to enter the Chinese market through the Korea- China FTA also increased their investment to Korea. According to the Ministry of Trade Industry and Energy (MOTIE), these investments previously centered on the real estate and finance industries, but the scope of investment expanded to include cultural content, entertainment, electric vehicles and aerospace technologies.

• KOREA-VIETNAM FTA
  BOOSTS IMAGE OF
  KOREAN COSMETICS
•    On the occasion of the first anniversary of the Korea-Vietnam FTA, KOTRA’s Ho Chi Minh Business Center conducted a survey about Korea’s image. On December 18, the center reported that 46 percent of respondents in Vietnam said Korea is the first country that came to their mind when thinking about cosmetics. The United States and Japan followed with 16 percent and 13 percent, respectively.
     Thanks to the FTA, import tariffs on
• Korean cosmetics, which once stood between 10 to 15 percent, have disappeared. As a result, the export volume of beauty products is expected to increase significantly.
     Vietnam is the third largest exporter to Korea, following China and the United States. Although the global export market has been seeing slow growth, Korean exports to Vietnam in 2016 increased 13 percent compared to the previous year thanks to the FTA.

• AUTOMOBILES AND
  TELEVISIONS BENEFIT
  FROM THE
  KOREA-AUSTRALIA FTA
•    According to MOTIE, automobiles and televisions benefitted the most from the Korea-Australia FTA, especially as tariffs on automobiles were reduced or abolished in the third year of the trade agreement. Moreover, Australia’s reliance on foreign cars will increase in 2017 and the demand for Korean auto parts, batteries and tires will further increase.
• Demand for trucks and heavy construction equipment also increased because of various large-scale infrastructure projects in Australia.
     In addition, the demand for televisions made in Korea is quickly increasing thanks to the abolishment of tariffs on televisions after the ratification of the Korea-Australia FTA.

• Government & Policy
  
  COMPETITIVENESS OF
  KOREAN CIVILIAN
  AIRCRAFT PARTS TO
  BOOST THANKS TO
  NEW COMPLIANCE
  STANDARDS
•    To boost the competitiveness of electrical appliances in Korean civilian aircrafts, new electromagnetic compliance standards will be implemented starting this year. According to the National Radio Research Agency, the standards were updated at the request of Korea Aerospace Industries and have adopted the same standards as those of the United
• States and Europe.
     The standards include regulations to prevent the malfunction of aircraft parts and will ensure the safety of aircraft appliances against lightening and electromagnetic waves. Experts also expect that the new standards will significantly save costs and time used for certification.

• KOREA AND FRANCE
  SEEK TO EXPAND
  COOPERATION IN
  AEROSPACE INDUSTRYS
•    On Dec. 12, the Ministry of Science, ICT and Future Planning held the ‘Korea-France Space Forum’ to support the strengthening of ties between the two countries in the aerospace industry.
     The forum covered the latest aerospace policies, the impact of climate change and the fostering of professionals in the field. Officials from aerospace and
• defense companies also discussed ways to strengthen partnerships with their South Korean counterparts.
     At the event, Minister Choi Yang-hee stated, “France is one of South Korea’s biggest partners in the aerospace sector. I hope this event will further strengthen ties between the governments and research institutions from both sides.”