The South Korean economy – Economic relations with the EU
- The Free Trade Agreement (FTA) with the EU has been in force since 1 July 2011. Among other things, it provides for the gradual elimination of virtually all tariff barriers between the parties, many non-tariff barriers, as well as mutually enhanced market access for investment and the provision of services. 70% of the tariffs in reciprocal trade between the EU and the Republic of Korea on goods originating in the territories have been eliminated.
- In the case of trade between Poland and the Republic of Korea, the average effective tariff, i.e. a volume-weighted tariff on individual commodity groups, on imports from South Korea to Poland is around 2.0%, while on exports from Poland to Korea it is over 7%. According to the FTA schedule, tariffs in trade between Poland and South Korea were reduced to 0% in 2020.
- South Korea is the eighth largest destination for goods to the EU and the EU is South Korea’s third largest export market.
- The most important EU exports (products) to South Korea are machinery and equipment, transport equipment and chemical products.
- The EU is South Korea’s largest foreign direct investor.