Korea seeks FTAs with EU, Japan, India
Korea will seek to strike free trade agreements (FTA) with China, Japan, India, the EU and Russia on top of its current negotiations with the United States, the nation’s top economic policymaker said.
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Korea Times
Korea Seeks FTAs With EU, Japan, India
Minister Han Hints at Taking Preemptive Measures to Curb Property Prices By Yoon Ja-young, Staff Reporter
19 June 2006
Korea will seek to strike free trade agreements (FTA) with China, Japan, India, the EU and Russia on top of its current negotiations with the United States, the nation’s top economic policymaker said.
“We will undertake FTA negotiations not only with the United States, but also with Japan and China. Also, there are three preliminary FTA talks scheduled with the EU for this year,’’ said Finance and Economy Minister Han Duck-soo in a lecture Monday morning.
Han added that Korea is discussing an FTA with India, and will be talking with Russia as well in the long term.
Han asserted the need for an FTA with the United States, which could enhance the productivity and competitiveness of the service and manufacturing sectors.
He said the government would set up complementary measures for the agricultural sector Korea wants to protect from the FTA.
Regarding the effect of a Korea-U.S. FTA on the financial sector, Han said there are few fatal factors as the industry has already gone through innovative financial reforms since the 1997 currency crisis.
“We will be careful in coping with cross-border capital transactions or in opening new financial services,’’ Han said.
The minister also pointed out that Korea’s financial sector is not weaker than its U.S. counterpart. “Korea is more advanced than the United States. in some financial sectors such as Internet banking, mobile banking and electronic currency. Korean financial firms should make use of this as an opportunity to advance into the U.S. market,’’ he said.
Han stressed that anti-foreign capital sentiment does not go along with the era of globalization and market opening.
“I don’t think anti-foreign capital sentiment is prevailing in Korea, but we should never succumb to such sentiment that partially exists. “We will punish if there are wrongs and clarify tax problems, but there should not be unconditional expulsion of foreign capital.’’
Regarding real estate price, he said the government may take preemptive measures.
“We’ll closely monitor the real estate market and take preemptive measures, if necessary,’’ Han said. He fell short of disclosing what preemptive steps the government could take.
Han expected Korea to attain its potential economic growth rate this year, in spite of a number of negative outside factors. “The Korean economy has greatly increased its ability to absorb shocks such as high oil prices, a weak dollar and interest rate hikes.’’