1.      The Free Trade Agreement between the Republic of Korea and the Republic of Chile enters into force 
on April 1st.

ㅇ Since the Korean National Assembly passed the FTA ratification bill on February  6th, the governments of 
both countries have exchanged written notifications certifying the completion of necessary domestic 
procedures on March 2nd. The Korea-Chile FTA is thus entering into force 30 days after the exchange of 
notifications, on April 1st.

2.      The successful effectuation of Korea’s first FTA has demonstrated Korea’s commitment to trade 
liberalization and market opening, and established international credibility that will buttress Korea’s pursuit 
of FTAs with other countries.  It has also opened doors for Korea to advance into the era of FTAs, by making 
smooth progress in the on-going intergovernmental negotiations with Japan and Singapore, and the joint 
study with ASEAN.

3.      On a more practical note, the entry into force of the Korea-Chile FTA is expected to lead to a rapid 
increase in the exportation of Korean industrial products to Chile.

ㅇ The removal of tariffs from major Korean export items to Chile, such as automobiles and cellular phones, 
is expected to restore the market occupancy of such Korean products, which had decreased due to the 
delayed ratification of the FTA.

   -     Korean automobiles exporters will receive preferential tariff treatment   following the entry into force of 
the FTA, which will revive the price competitiveness of automobiles and is expected to lead to a 20% increase 
in sales.

  -       It is also expected that the increase of exports by home appliances sellers and general merchants will 
amount to more than 30% for cellular phones, and over 20% for electronic appliances such as color TVs, 
microwave ovens and VTRs.

ㅇ Also, by concluding an FTA with Chile, Korea has secured a gateway into the Latin American market, 
which accounts for half of Korea's trade surplus.

   * In 2003, Korea’s trade surplus from Central and Latin America reached $4.2 billion, out of a total of $15 
billion.

4.     The Korean government will be actively cooperating with Chile for the effective implementation of the 
Korea-Chile FTA, and is planning to convene a regular session of the Ministerial-level Free Trade 
Commission within 6 months after the entry into force of the Agreement to review items for cooperation and 
issues relating to the implementation of the FTA.

5.      Korea and Chile will be holding receptions to celebrate the effectuation of the FTA, in Santiago at the 
Embassy of Korea in Chile, and in Seoul at the Embassy of Chile in Korea on April 1st, respectively.

ㅇ The reception hosted by the Embassy of Chile in Korea will take place April 1st, 12:00-13:30 at 
Samcheonggak Garden. The Speaker of the National Assembly, the Minister of Foreign Affairs and Trade, 
the diplomatic corps in Korea, and leading figures in the Korean economy will be present as guests.

ㅇ The reception hosted by the Embassy of Korea in Chile will take place at the Embassy on April 1st, with 
the Senate President and the President of the Chamber of Deputies, the Minister of Foreign Affairs and 
leading figures in the Chilean economy as guests.

                                                                   Spokesperson for MOFAT

* unofficial translation