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Korea to move onto next chapter of free trade deals

Over the past 10 years, Korea has strived to secure its position in the global trade circles by signing a variety of Free Trade Agreements and thus becoming a trading hub.

Upon the launch of the new administration here and under the changed global situations, however, its goal from now will be to maintain the delicate balance between economic powers and to act as a regional linchpin, according to trade officials.

The Ministry of Trade, Industry and Energy submitted to the National Assembly a revised blueprint on the nation’s trade policies and directions.

“With the recent government organization reshuffling, we have come to establish a single window for trade, embracing all processes from negotiation, implementation and after-measures,” said Choi Kyung-lim, assistant deputy minister of trade.

The trade sector, which was formerly affiliated with the foreign affairs department, was incorporated into the industry department earlier this year.

“Korea has made visible advancements in the free trade field, by establishing an extensive network with a variety of countries and improving its negotiating skills,” the chief negotiator said.

It has also been blamed, however, for neglecting the actual trading benefits and for lacking communication with the general public and the local industries, he added.

“The world’s trading environments are changing fast, and as a trade-reliant country, it is crucial that we adapt to the flow,” Choi said.

He thus referred to ongoing multilateral negotiations such as the Trans-Pacific Partnership led by the United States and the Regional Comprehensive Economic Partnership led by China.

”Thanks to its simultaneous FTA policy over the past years, Korea is currently the only country which belongs to all of the ongoing major deals,” Choi said.

“While the U.S. and China lock horns over the economic dominance in the Pacific region, we should rise as the clinching factor or linchpin in the big picture.”

The rise of developing countries, especially those with abundant natural resources, is another variable in the free trade field.

“While making our way in the multilateral negotiation forum, we will also actively promote bilateral trade deals with key ASEAN states such as Indonesia and Vietnam,” said the assistant deputy minister.

“These new trade pacts will act as a win-win strategy for both parties, offering development opportunities for them and expanded export channels for us.”

The ministry pledged to implement a so-called Emerging Nations Co-development Program, in an effort to establish a comprehensive long-term blueprint on mutual growth.

“The economic demands of these resource-rich developing states are different from those of leading powers and should thus be approached from another perspective,” Choi said.

Along with all the dynamic action plans, it is also important to communicate closely with the local industries and to maximize their profits, he added.

“The former economic paradigm, which had been focused on conglomerates and the manufacturing sector, is no longer valid,” Choi said.

“Under the new government’s slogan of Creative Economy, we will make sure that the future trade deals and the related policies act in the favor of small and medium-sized companies and of service-related sectors.”

For this purpose, the ministry is to set up a one-stop service channel to help small firms advance into overseas markets and a trade mediation center to support industries which experience FTA-related damages, he added.

Deputy Prime Minister and Finance Minister Hyun Oh-seok, too, had stressed on Thursday that the benefits of free trade should be expanded to smaller companies.

By Bae Hyun-jung (tellme@heraldcorp.com)