By Kim Hyun-binChilean Ambassador to Korea Mathias Francke has commemorated the significant milestone of the 20th anniversary of the free trade agreement (FTA) between Korea and Chile that has yielded mutual benefits for both nations.
"First and foremost, my congratulations for the successful path that Korea took 20 years ago, starting with Chile," Francke said during the Korea Customs FTA 2.0 Seminar held at a hotel in Seoul, Tuesday.
Embarking on a journey through history, Francke outlined three pivotal points underscoring Chile's trajectory towards trade liberalization and its enduring partnership with Korea. He recounted Chile's proactive steps in the 1980s toward liberalizing trade, which laid the foundation for subsequent bilateral and regional efforts aimed at enhancing economic integration. Notably, Chile's accession to the Asia-Pacific Economic Cooperation (APEC) in 1994 marked a significant milestone, positioning the nation as a key player in the dynamic Asia-Pacific region.
“Before the FTA, trade between both countries was already significant, reaching $1.5 billion in 2003. Twenty months after the entry into force of the agreement, trade had more than doubled and by the end of 2007, it exceeded $7 billion. In these 20 years, bilateral trade has grown on average around 6 percent per year, consolidating Korea as our fifth trading partner and fourth destination of Chilean exports to the world,” Francke said.
“Trade liberalization has helped to boost our economy, diversifying our production matrix, lifting people from poverty and increasing Chileans wellbeing. It has also been decisive to foster Chilean competitiveness.”
The ambassador highlighted the important increase in the exports of Chilean lithium, pork meat particularly samgyeopsal (pork belly), wine and grapes and Korean exports to Chile of vehicles, mechanical machinery and iron and steel products, among others.
Looking ahead with optimism, Francke outlined Chile's aspirations for the future trajectory of the FTA. He highlighted ongoing negotiations aimed at modernizing the agreement to address emerging economic realities and enhance market access, underscoring Chile's commitment to fostering continued economic cooperation with Korea.
"We are looking forward to finalizing the negotiations this year as a commemoration of the past 20 years, setting the framework for another two decades of economic cooperation," he said.
In conclusion, the ambassador reiterated Chile's eagerness to collaborate with Korea on regional and global platforms, while also encouraging greater Korean investment in critical sectors such as infrastructure, green hydrogen and lithium.
"Despite the impressive results of the FTA, we still don't see a corresponding flow of Korean investment in Chile, compared to other trading partners. We shall continue promoting and supporting Korean companies who want to invest in sectors such as infrastructure, green hydrogen and lithium, critical for our countries’ economic security and for Korea's transition to a carbon-free economy," he said.