1. The free trade agreement (FTA) concluded between Korea and the European Free Trade Association 
(EFTA), which consists of four Western European countries (Switzerland, Norway, Iceland, and 
Liechtenstein), is expected to come into force on September 1, 2006.  

- The Korea-EFTA FTA is the third FTA concluded by Korea, following the Korea-Chile and Korea-Singapore 
FTAs, and is the first FTA Korea has established with a regional economic bloc. The Korea-EFTA FTA carries 
significance in that it has established a bridgehead for Korea’s entry into the European market.


2. In particular, as EFTA’s tariffs on all Korean exports of industrial and marine products will be completely 
and immediately eliminated with the entry into force of the Korea-EFTA FTA, it can be expected that exports 
of major Korean products, such as electronic, automotive, and textile products, to the EFTA market will 
increase. 

- While the two parties, taking into consideration the sensitive nature of agricultural goods on both sides, 
concluded bilateral agreements stipulating only limited liberalization for agricultural products and food items, 
Korean exports of traditional liquor items (soju, makgulri) and processed agricultural products (kimchi, 
ramyun) have been assessed to possibly increase with the entry into force of the FTA.

- Furthermore, as products from the Gaeseong Industrial Complex have been accorded equally preferential 
treatment as Korean products under this free trade deal, the upcoming entry into force of the agreement can 
be expected to help companies in the Gaeseong Industrial Complex find overseas markets for their goods.


3. The Korea-EFTA FTA stipulates a high level of liberalization in a wide range of areas in addition to goods, 
such as trade in services, investment, government procurement, competition, and broadcasting services. 
Thus, the entry into force of this agreement is expected to substantially contribute to increasing trade and 
investment and expanding overall economic cooperation between the two sides.

                                                         Spokesperson for MOFAT

* unofficial translation