Focus on Quality Growth
MOCIE Minister Chung calls for stronger economic partnership with the EU

Minister of Commerce, Industry and Energy Chung Sye-kyun, in his speech at a luncheon meeting of the European Chamber of Commerce in Korea, touched on the industrial cooperation between Korea and the European Union and Korea's industrial and foreign investment policies.
In his speech delivered in English at the Regency Hyatt Hotel in downtown Seoul March 30, the minister said the Korea-EU relations have recently reached a new high. Overcoming geographic distance, Korea and the EU have become closer economic partners than ever before.
Trade between Korea and the EU, for example, tripled between 2002 and 2005, to $71 billion last year. And thanks to the EU's economic expansion, it was the second largest market for Korea in 2005 with $43.6 billion in exports, the MOCIE minister said.
The main pillar that supports our economic cooperation is technology-based products, he said, adding that Korea sends to Europe equipment in wireless communication, media and semiconductors as well as automobiles and sea going vessels, while the EU sends to Korea semiconductors, as well, but also manufacturing equipment, auto parts, precision equipment and automobiles.
Investment has also been a two-way street with Korea's investment in the EU reaching $7.2 billion last year while the EU invested $35.4 billion in Korea, which made it the biggest investor here, ahead of the United States and Japan.
Many European companies, including those in banking, insurance, distribution, semiconductors, and automobiles, have come to establish a strong presence in Asia's third largest market, which in turn helped Korea turn around from the 1997 financial crisis and advance its industrial structure, Minister Chung recalled.
Saying that the EU is rich in technological and cultural traditions, he pointed out that the UK possesses advantages in new technologies, Germany is known for excellence in machinery and chemical industries, while France is acknowledged in aerospace and architecture. These European strengths go hand in hand with Korea's strengths in commercialization and competitive and highly-skilled labor force. As you know, he said, Korea's market is an excellent barometer for new high-tech products.
Given our mutually beneficial industrial structures, there are many possible areas for enhancing cooperation between Korea and the EU. To highlight this great latent potential, President Roh Moo-hyun visited the UK, France, and Poland in 2004 and then Germany and Turkey, the following year.
President Roh's successive visits to Europe helped direct attention to the unlimited possibilities of Korea-EU partnerships in trade, investment, industrial and energy technologies and joint advancement into third markets.
Korea is now a sophisticated economy that is the world's 11th largest.
He said Korea not only achieved quantitative growth, but also qualitative growth, adding that its production capacity has taken it to the top in many high-tech, high value-added industries, such as shipbuilding, semiconductors, digital appliances, petrochemical, steel and automobiles.
Last year, despite high oil and raw material prices, Korea shipped abroad $284.4 billion worth of goods, and the volume of its trade was 12th largest overall, exceeding the $500 billion benchmark. Korea's trade surplus recorded $23.2 billion, the main reason for making Korea, the fourth largest holder of foreign reserves with $216 billion.
Foreign direct investment in Korea last year came to $11.6 billion helping the economy to mark 4 percent growth last year, despite the sluggish domestic demand.
The minister said he will push ahead with a policy that focuses on "Qualitative growth,"one that will help the Korea economy overcome the challenge it is facing, and joint eh ranks of the most advanced nations. The government expects the economy will achieve its potential growth rate of 5 percent and create more than 400,000 new jobs.
Korea is actively working to conclude FTAs with its major trading partners and expects to make headway in the Korea-U.S. FTA negotiations. nw

MOCIE Minister Chung Sye-kyun delivers a speech at a luncheon meeting of EUCCK in Seoul March 30.