South Korea saw a sharp expansion of its economic territory in 2011 after its free trade agreement (FTA) with the European Union (EU) took effect and its trade pact with the United States was ratified.

On July first, the South Korea-EU FTA was tentatively put into effect. Although the trade deal is still subject to parliamentary ratification in each EU member country, 99 percent of the trade pact, excluding clauses on intellectual property rights, took effect from July first.

With the effectuation of the trade deal, the EU will abolish tariffs on 99 percent of South Korean industrial goods, and South Korea will eliminate tariffs on 96 percent of EU products within three years with such tariffs ultimately set to phase out within five years. South Korea will phase out tariffs on sensitive products over seven years.

The EU, which is the world’s largest economic bloc, comprises 27 countries that have a combined population of roughly 500 million.

Meanwhile, the South Korea-U.S. FTA was ratified at the National Assembly on November 22nd. Such a move came after the U.S. Congress concluded efforts to ratify the trade deal on October 12th.

State-run think tanks have projected that with the trade deal, South Korea’s exports will jump one-point-three billion dollars and the trade surplus will expand 140 million dollars over the next 15 years. The institutes also forecast that the trade pact will lead to the creation of 350-thousand jobs.

The National Assembly saw clashes between ruling and opposition parties over the South Korea-U.S. FTA ratification bill after the ruling Grand National Party unilaterally ratified the trade pact in the face of strong protests from opposition parties.

1. N.Korea Stages Multiple Provocations Against S. Korea

2. Oct. 26th By-elections Marks Emergence of New Political Forces

3. KORUS FTA Ratified, Korea-EU FTA Effectuated

4. South Korea Tops $1 Tln in Annual Trade Volume

5. Pyeongchang Selected to Host 2018 Winter Olympics

6. Rescue Operation for Korean Freighter Ends Successfully

7. Financial Sector Rattled by Savings Banks Corruption

8. Looted Cultural Assets Return Home

9. K-Pop Takes World by Storm

10. Comprehensive Programming TV Channels Go on the Air