Korea Capitalizes on Trade Pacts with ASEAN, India to Boost Trade

KOTRA president announces steps to promote trade amid the slumping global economy

Korea Trade-Investment Promotion Agency (KOTRA) has decided to aggressively explore the Association of Southeast Asian Nations (ASEAN) and Indian markets in a strategy to make up for the slumping demand in advanced economies.
KOTRA President Cho Hwan-eik presided over the Asia-Oceania Trade Promotion Strategic Meeting in Ho Chi Minh on Dec. 17 and unveiled a plan to enter the Asian-Oceanian markets.
First of all, KOTRA plans to make the most of the Korean-ASEAN free trade agreement (FTA) in goods that have already taken effect. Now that the FTA deal in goods between Korea and Cambodia came into effect on Nov. 1, all ASEAN nations, except Thailand, have been covered by the FTA pact in goods. Considering the fact that many ASEAN buyers were not aware of the effectuation of the FTA deal, however, KOTRA plans to publicize the FTA between Korea and ASEAN. A Korean delegation made a road show in Malaysia, Indonesia and Thailand during this year in order to publicize the effects of the Korean-ASEAN FTA trade pack. During next year, Korea will make rounds of such countries as the Philippines and Vietnam to conduct publicity activities about the FTA deal.
With the Korean-Indian Comprehensive Economic Partnership Agreement (CEPA), expected to take effect in the first half of next year, KOTRA will organize the "Close Up India 2009" in Seoul in the early 2009 to introduce the Indian market to Korean companies and hold negotiations with invited influential buyers.
Second, the KOTRA president said Korea will beef up collaboration with developing countries in the Asia-Oceania region. Korea will ramp up such projects as economic development collaboration, climate change/environment, an entry into the agricultural sector and Official Development Assistance (ODA) projects while striving to land a package of energy exploration projects, he said. Korea will seek to participate in each country's industrial plant and infrastructure expansion projects as well as bids on an e-Government network buildup project in Bangladesh and its entry into the Indonesian power market. In cooperation of the Korea International Cooperation Agency (KOICA), KOTRA plans to expand ODA projects with Vietnam, Cambodia and Laos.
Third, Cho said KOTRA will beef up its support to help Korean companies enter the Asian-Oceanian region. The region has emerged as the second biggest market following China as 3,214 companies have advanced to the region, accounting for 34 percent of the total Korean companies doing business overseas. KOTRA now has the Korean Company Investment Support Center in Vietnam, Indonesia and the Philippines, and such center will be established in New Delhi and Phnom Penh. KOTRA will hold consultations to help Korean companies expand their presence in the local markets. In an effort to help Korean companies advance to the Vietnamese market, KOTRA will initially hold a negotiation meeting to help Korean companies penetrate the market and attract procurement officials of local large-size distribution firms in the first half of next year and hold a comprehensive meeting of inviting third-country buyers to help Korean companies strengthen their presence in the second half of 2009. KOTRA will open the Korea Business Center next February to help Korean companies advance to the Cambodian market and export goods to the Asian country, which has emerged as the second biggest investment target country following Vietnam.
In addition, Korea will beef up its efforts to explore the culture service sector in ASEAN countries. KOTRA will hold the Vietnam Franchise Exhibition to help Korean companies jump-start in the Vietnamese distribution market, which is to be liberalized next January.
The meeting was attended by the chiefs of 14 KOTRA Korea Business Centers in Singapore, Malaysia, Vietnam, India and Australia and other Asian-Oceanian countries. nw

KOTRA President Cho Hwan-eik