New opportunities for marine companies in Korea as a result of the EU Free Trade Agreement
South Korea is the 4th largest economy in Asia and 13th globally, with a wealthy population. It is home to iconic brands such as Samsung, Hyundai and LG. It is the most connected country on the planet with broadband speeds of 100 MB plus. It leads the world in the production of flat screen televisions and is an innovative maker of mobile telephones.
To date the UK has secured only a modest share of the rich South Korean market. Some of the main reasons have been complex regulation and high tariffs. But those barriers are set to fall away. The EU-South Korea Free Trade Agreement (FTA) will eliminate 97% of all tariffs between the EU and South Korea at the end of year three, many immediately on entry into force. Doing business will become easier too.
When the FTA comes into force (currently expected by the end of 2010) at a stroke this market will become one of the most exciting opportunities for British business overseas. And the FTA will offer UK companies "first to market" opportunity like no other as US, Chinese and Japanese rivals still struggle with the old trade regimes.
Opportunities for marine companies are likely to include:
* Joint Collaboration on Marine Replenishment & Supply Ships Design and Construction
- The UK continues to purchase MARS vessels as it has limited manufacturing capability.
- Thus, there is an opportunity for co-operation whereby UK engineering firms can supply the design and the component supply chain while South Korean shipyards could build the vessels.
- South Korea's major heavy industry companies have climbed the value chain beyond simple hulls and will want to participate in value added production potentially in competition with their UK partner.
* Maritime Shipping Services
- All remaining restrictions on providing and utilising port services will be eliminated.
* Maritime Auxiliary Services
- South Korea has major international shipping ports and currently many services are expensive and inefficient.
- UK companies able to provide the following services competitively would be free to compete.
UK Trade & Investment has produced a new publication: South Korea: Open for Business; 100 opportunities for UK companies in South Korea following the EU - South Korea Free Trade Agreement which is available to download from the following location on the Marine South East website.
http://www.marinesoutheast.co.uk/docs/research/index.php?order=up&id=37&table=main
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