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Korea-China FTA: Evaluation and the Way Forward

The Korea-China FTA is a comprehensive one, consisting of 22 chapters in total. The FTAs liberalization rate, which signifies the percentage of tariff lines subject to tariff elimination, will be 91% for China and 92% for Korea over the next 20 years. In services and investment, legal services, architecture, construction, distribution and entertainment were included in the concessions made for a segment of the service sector. ISD (investor-state dispute) settlement clauses were included to protect investors, and contact points in the central government and in each province are set to be designated to help solve the difficulties faced by Korean companies operating in China. It has been agreed that liberalization for the rest of the services and investment sector will be discussed in follow-up negotiations which will commence two years after this FTA takes effect. Since the true value of an FTA lies in its implementation rather than its conclusion, we are now at the stage for seeking measures that encourage the full utilization of the Korea-China FTA. At the same time, the Korean government should prepare mid- to long-term measures for smaller Korean SMEs and the agriculture and fisheries industries.
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