Korean exporters report positive results from FTAs

Korea on the export front is benefiting from free trade agreements signed with the U.S. and European countries though the latter`s domestic markets show no signs of recovery, according to a survey conducted by the Korea Chamber of Commerce and Industry released Wednesday.

Based on its survey of 600 Korean companies that export goods to both the U.S. and the European Union, the chamber said the majority of those polled said the accords with the two regions helped them to overcome unfavorable export conditions.

On if they feel the positive effects of the agreements, including more foreign companies contacting them, 67.5 percent said “yes” about the deal with the EU and 58.8 percent said the same of the accord with the U.S. On changes in export volume after effectuation of the pacts, 18.6 percent reported more exports to European countries and 5.2 percent said exports to the U.S. rose.

The free trade agreements have also helped Korean companies expand in overseas markets. More than two-fifths (42.1 percent) of companies that sell goods in the U.S. market said the accord enabled them to expand their sales networks in the U.S. Thirty percent said they cut sales prices there.

In the EU market, 45.9 percent of Korean companies cut prices of their goods and 35.6 percent expanded their sales networks, according to the survey.

The commerce chamber said, “Growth of exports to the U.S. has been relatively slow because it`s been only two months since the effectuation of the accord, while the one with the EU took effect 11 months ago,” adding, “The effects of the former will be similar to those of the latter over the long term, however.”

mint4a@donga.com