A free trade agreement (FTA) eliminates tariffs and alleviates non-tariff barriers (NTBs), stimulating trade for member nations while limiting imports from non-member nations at the same time. In an effort to avoid the negative effects of exclusion from such agreements, to maintain economic reform and an open policy, and to actively cope with proliferating regionalism, the Korean government has decided to pursue FTAs with other nations. Forming FTAs will enable Korea to create political allies, attract foreign investment, and establish overseas footholds, as well as allow Korean companies to secure foreign export markets and overcome discriminatory practices under other FTAs. (The rest is omitted.)

Executive Summary

I. Introduction

II. Background of Korea's FTA Policy

III. Current Progress of Korea's FTAs
1. Korea-Chile FTA
2. Korea-Japan FTA
3. FTAs with Other Nations

IV. A Korea-Chile FTA: Korea's First FTA?

V. Expected Effects of a Korea-Japan FTA

VI. Conclusion

References