A government research institute says the nation’s gross domestic product could grow as much as seven percent after free trade agreements with both the US and the EU take effect.

In a report published by the Korea Institute for International Economic Policy, the economic benefits from the two trade pacts would bring a seven-point-six percent GDP growth, with the consumer benefits increasing by 22.7 billion dollars.

It also predicted 110-thousand jobs to emerge in the short-term, and 550-thousand in the long run.

The institute said with the two pacts, competition between the US, Japan and the EU to supply machinery to South Korea will increase, which could reduce Korea's dependency on imports from Japan and other countries.

In the agricultural sector, the report predicted that sensitive items for Korea will probably be excluded from the talks, but that there could be negative effects on the pork, chicken, and cheese markets.

The report also said Korean exports of larger automobiles to the US, and smaller cars to the EU will grow, but that imports of luxury automobiles from Europe are likely to replace many Japanese cars in the Korean market.

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