South Korean exports' market share in Chile has more than doubled since the countries implemented a free trade agreement (FTA) seven years ago, offering a glimpse into potential benefits from additional trade deals with other countries, a report said Tuesday.
Exports to the South American nation have been surging at an annual average of 33.9 percent since the Korea-Chile FTA took effect in July 2004, with imports from Chile jumping 26.8 percent, according to the report by the Korea Trade-Investment Promotion Agency (KOTRA).
The spike in exports came as Chile's duties on South Korean products were reduced from an average 6 percent to 0.54 percent while Chile's tariffs still remain at around 6 percent for products originating from other countries that have no free trade deal.
The price competitiveness of South Korean products in Chile has also helped increase the market share of South Korean goods there from 2.98 percent in 2003 to 6.41 percent in 2010, the report said.
The number of South Korean companies exporting goods to Chile jumped 43.1 percent from 873 in 2003 to 1,249 last year, with that of importers from Chile rising 144.3 percent to 574 from seven years ago.
The report urged the government to seek additional FTAs with other countries.
"For our companies to make more strenuous inroads into the South American market, the government must continue to improve its deal with Chile while working to conclude its ongoing FTA negotiations with other countries and implement them as early as possible," it said.
South Korea recently signed a free trade deal with Peru. It has also signed FTAs with the United States and the European Union, which await parliamentary approval.