Four years ago, Chile became the first country that Korea ever signed a free trade agreement deal with. Since then, Korea has inked such deals with other nations, including Singapore as well as the EFTA (European Free Trade Association).

And according to figures provided by Korea? Foreign Affairs and Trade Ministry, the country? trade deals with two of the countries, namely Chile and Singapore, are bearing fruit.

First of all, the effects of Korea? four-year-old free-trade agreement with Chile have been impressive.

Compared to before the accord was signed, two-way trade volume last year quadrupled to reach roughly $7 billion.

Korean exports to Chile increased more than four times to $3.93 billion while Chilean exports to Korea have also grown to $3.03 billion in 2007, according to the Central Bank of Chile.

Chile-bound Korean exports have grown by an average of over 60 percent annually. In particular, last year, they grew about 100 percent compared to 2005.

Korea mainly imports copper -- 80 percent of all Korea-bound Chile exports -- fruits, wine and pork from Chile, whereas Chile imports automobiles and electronic appliances.

In particular, the FTA helped Korea? automobile industry to overtake that of Japan in its share of the Chilean domestic market due to lowered tariffs on Korean cars since the implementation of the agreement.

Korean-made cars take up 29.3 percent of the Chilean market, topping the chart.

Meanwhile, the effects of Korea? almost two-year-old free-trade agreement with Singapore have also been noteworthy.

Korea? trade surplus with the Asian city-state has grown more than a whopping 150 percent. From March 2006 to February this year, the trade surplus increased to $5.8 billion from $2.3 billion.

During the same period, the two countries have also seen more than 50-percent growth in two-way trade volume to $20.3 billion.

Specifically, Korea has shown strong exports in ships and petroleum products while Singapore posted a notable rise in shipments of computers and memory chip-related equipment.

In addition, Korea-bound investment from Singapore has also doubled in the last two years, to an annual $540 million.

By Han Aran
Korea.net Staff Writer

SOURCE : Korea.net