Possible Korea-Japan FTA could hurt conglomerates
Daily Chosun Ilbo, Korea
Possible Korea-Japan FTA Could Hurt Conglomerates
27 March 2006
Even big Korean conglomerates may feel the blow if Seoul and Tokyo ink a free trade agreement, according to a report by the Korea Institute for International Economic Policy. The report presents tasks that lie ahead for big Korean companies in the face of a possible FTA. It says local conglomerates in the electronics sector could face up to W2.7 trillion (US$2.7 billion) in losses every year. As for the automobile industry, Korean carmakers may see their sales decline by more than 225,000 units annually.
On the flip side, the report says there will be advantages for Korean companies, especially those leading new technology development. It adds a free-trade between Korea and Japan could be beneficial for companies in both countries that wish to jointly make inroads in a third.
Arirang News
