Minister of Trade, Industry and Energy (MOTIE) Yoon Sang-jick gave a lecture on management and government policies for utilization of FTAs to an audience of 300 at a CEO forum organized by the Korea Standards Association (KSA) at the Grand InterContinential Hotel in Seoul on Oct. 24.
MOTIE Minister Yoon said companies’ success or failure will hinge on how they can make the most of the benefits of the FTAs signed by Korea.
Yoon stressed the need for dominating markets in advance, since Korea has already concluded a Free Trade Agreement (FTA) with the United States and EU ahead of other competitors, such as Japan and China. In particular, he emphasized the need to offer second and third-tier cooperative companies, who are less willing to make the most of the benefits of the FTAs since they receive no direct benefits, but they have to shoulder the costs of issuing certificates of country of origin (COO), and they are worried about the revelation of corporate information.
The minister said his ministry’s ongoing pilot program, third party COO certification, will be expanded to all parts of the nation next year.
Yoon called for exporters to aggressively provide support such as educating personnel in charge of COO management, consulting services, and the establishment of a COO system the to their cooperative SMEs so that the latter can make the most of the benefits of FTAs.
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An audience of 300 CEOs of the KSA CEO Forum, including KSA
Chairman Kim Chang-ryong, listens to MOTIE Minister Yoon Sang-jick's lecture. (photos: KSA)
He said his ministry plans to continue to make concerted efforts to utilize the benefits of FTAs. Citing CEOs’ concerns and determination as keys to the utilization of FTAs, the ministry will continuously expand the education of CEOs by encouraging CEOs to participate in CEOs’ forums on how to utilize FTAs in consideration of their tight business schedules. The number of CEOs participating in the CEOs’ forums will likely increase from 2,400 in 2013 to some 4,000 in 2014.
KSA Chairman Kim Chang-ryong delivered his speech at the CEO’s forum sponsored by the KSA as part of efforts to inform CEOs of the FTAs’ opportunities and benefits and enhance their awareness toward the utilization of FTAs. KSA has so far hosted such a breakfast CEO forum on more than 305 occassions since 1988.
The FTA Information & Business Center (FTA-IBC), located on the 17th floor of COEX, is charged with offering consultative services on the utilization of the KORUS FTA and other FTAs, including the requirements of issuing COOs. It is manned by officials from MOTIE; the Ministry of Strategy and Finance; the Ministry of Agriculture, Food and Rural Affairs; the Small and Medium Business Administration; the Korea Customs Service; KOTRA; the Korea Industrial Complex Corp.; Small & Medium Business Corp.; and the Korea International Trade Association, as well as experts from areas such as customs.
“Exporters and makers of finished products as well as cooperative firms supplying materials and parts are responsible for certifying COOs, and SMEs with a lack of experts find it difficult to have a COO management system since they have few officials in charge of COOs,” said an official of the FTA-IBC.
In an effort to extend a helping hand to SMEs, each company now receives 10.8 million won in a government subsidy for hiring an official in charge of managing COOs, and distributes “FTA Korea,” a free COO management program for assisting SMEs. FTA-IBC in Seoul and 16 regional FTA support centers across the nation have customs specialists and COO management officers to step up assistance to SMEs, he said.
Any queries can be made to the FTA Call Center by dialing #1380. Consultations from experts are referred to the FTA-IBC.
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An audience of 300 CEOs of the KSA CEO Forum, including KSA
Chairman Kim Chang-ryong, listens to MOTIE Minister Yoon Sang-jick's lecture. (photos: KSA)
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