Australian Embassy
Republic of Korea
Embassy address: 11th Fl, Kyobo Building, 1 Jongno 1-Ga, Jongno-Gu, Seoul - Telephone: 02 2003 0100
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Korea and Australia Growing Together
Good news for Gyeongsang Region
Australia and Korea share an important and mutually beneficial partnership. For decades, Australian raw materials have fuelled Korean heavy industry and underpinned the growth of companies like Posco and Korea Zinc.
An FTA with Australia would boost key trade linkages between Australia and Gyeongsang. It would also promote Australian investment in the Gyeongsang provinces, boost Busan’s status as a trade and logistics hub, increase Busan’s profile as a major Asian city, and raise and improve market access for Korean companies in Australia. Gyeongsang’s key agricultural industries would not be threatened.
Securing Cheaper Resources
In the era of increasing global demand for resources, an FTA with Australia would further deepen the strong linkages between Australian resource companies and Korea. It would also save major Korean companies in the Gyeongsang provinces millions of dollars in tariff duties such as Posco and Korea Zinc. POSCO alone imported around $US1.5 billion of natural resources from Australia in 2004. An FTA would save around US$15 million on this import bill. POSCO employs around 10,000 workers at Pohang.
Promoting Investment
An FTA with Australia would boost Australian investment in the Gyeongsang provinces. Already, one of Busan’s major tourist attractions, the Busan Aquarium, is Australian owned and operated. And Australia’s Macquarie Bank is providing finance for major projects such as the Daegu-Busan expressway, Daegu 4th Beltway, Hwangrungsan Tunnel, Baekyang Tunnel, Soojungsan Tunnel, and Machang Bridge.
Busan Aquarium
The Busan Aquarium is Korea’s largest aquarium and flagship of the Australian owned Oceanis Group. Opened in 2001, the project cost US$30m and is located adjacent to Haeundae Beach. Samsung Engineering constructed the complex. Visitors average around 1.3m per annum.
Source: Unlocking the Secrets to Business in Korea, ANZCCK, 2004.
The increased two-way trade flowing from an FTA would promote Busan as a trade and logistics hub. More Australian companies could use Busan for trans-shipment to Japan.
Improved Market Access
Tariff reductions under an FTA would give Gyeongsang exporters a competitive advantage in Australia. Australia’s existing FTAs substantially reduce or eliminate tariffs on almost all items. Currently, steel and metal exports from Gyeongsang face tariffs of up to 5 per cent.
The textile industries of Gyeongsan, Gimcheon, Gumi and Chilgok would benefit from reduced textile tariffs in Australia. Australia currently has textile tariffs of up to 18 per cent. Gyeongsang’s textile industry employs more than 32,000 people.
Car and car part exports attract tariff rates of 10 per cent in Australia. The Hyundai car plant in Ulsan and car part manufacturers such as Dongwon Metals and Kunhwa in Gyeongsan, or Hae-Doo in Busan would benefit from reduced Australian tariffs. Tariff concessions have been made on cars and car parts in Australia’s FTAs.
Home appliances face tariffs of up to 5 per cent in Australia, and air-conditioner producers such as Shilla in Gyeongsan would directly benefit.
Australia does not threaten Gyeongsang’s agriculture sector
An FTA with Australia would not threaten agriculture in the Gyeongsang provinces. Australia accounts for only 0.2 per cent of world rice production and under the Minimum Market Access arrangement, Australia has been allocated an annual quota of 9,040 tonnes of rice from 2005 (less than one full shipload). The MMA arrangement will remain in place until 2014.
An FTA with Australia would not threaten Gyeongsang’s rice, apple, grape, melon, peach or onion producers. Given Australia is in the southern hemisphere, it is counter-seasonal to Korea. Under an FTA, Australian fruit and vegetables would complement, rather than compete with, Gyeongsang’s products.
Good news for Gyeongsang Region
Australia and Korea share an important and mutually beneficial partnership. For decades, Australian raw materials have fuelled Korean heavy industry and underpinned the growth of companies like Posco and Korea Zinc.
An FTA with Australia would boost key trade linkages between Australia and Gyeongsang. It would also promote Australian investment in the Gyeongsang provinces, boost Busan’s status as a trade and logistics hub, increase Busan’s profile as a major Asian city, and raise and improve market access for Korean companies in Australia. Gyeongsang’s key agricultural industries would not be threatened.
Securing Cheaper Resources
In the era of increasing global demand for resources, an FTA with Australia would further deepen the strong linkages between Australian resource companies and Korea. It would also save major Korean companies in the Gyeongsang provinces millions of dollars in tariff duties such as Posco and Korea Zinc. POSCO alone imported around $US1.5 billion of natural resources from Australia in 2004. An FTA would save around US$15 million on this import bill. POSCO employs around 10,000 workers at Pohang.
Promoting Investment
An FTA with Australia would boost Australian investment in the Gyeongsang provinces. Already, one of Busan’s major tourist attractions, the Busan Aquarium, is Australian owned and operated. And Australia’s Macquarie Bank is providing finance for major projects such as the Daegu-Busan expressway, Daegu 4th Beltway, Hwangrungsan Tunnel, Baekyang Tunnel, Soojungsan Tunnel, and Machang Bridge.
Busan Aquarium
The Busan Aquarium is Korea’s largest aquarium and flagship of the Australian owned Oceanis Group. Opened in 2001, the project cost US$30m and is located adjacent to Haeundae Beach. Samsung Engineering constructed the complex. Visitors average around 1.3m per annum.
Source: Unlocking the Secrets to Business in Korea, ANZCCK, 2004.
The increased two-way trade flowing from an FTA would promote Busan as a trade and logistics hub. More Australian companies could use Busan for trans-shipment to Japan.
Improved Market Access
Tariff reductions under an FTA would give Gyeongsang exporters a competitive advantage in Australia. Australia’s existing FTAs substantially reduce or eliminate tariffs on almost all items. Currently, steel and metal exports from Gyeongsang face tariffs of up to 5 per cent.
The textile industries of Gyeongsan, Gimcheon, Gumi and Chilgok would benefit from reduced textile tariffs in Australia. Australia currently has textile tariffs of up to 18 per cent. Gyeongsang’s textile industry employs more than 32,000 people.
Car and car part exports attract tariff rates of 10 per cent in Australia. The Hyundai car plant in Ulsan and car part manufacturers such as Dongwon Metals and Kunhwa in Gyeongsan, or Hae-Doo in Busan would benefit from reduced Australian tariffs. Tariff concessions have been made on cars and car parts in Australia’s FTAs.
Home appliances face tariffs of up to 5 per cent in Australia, and air-conditioner producers such as Shilla in Gyeongsan would directly benefit.
Australia does not threaten Gyeongsang’s agriculture sector
An FTA with Australia would not threaten agriculture in the Gyeongsang provinces. Australia accounts for only 0.2 per cent of world rice production and under the Minimum Market Access arrangement, Australia has been allocated an annual quota of 9,040 tonnes of rice from 2005 (less than one full shipload). The MMA arrangement will remain in place until 2014.
An FTA with Australia would not threaten Gyeongsang’s rice, apple, grape, melon, peach or onion producers. Given Australia is in the southern hemisphere, it is counter-seasonal to Korea. Under an FTA, Australian fruit and vegetables would complement, rather than compete with, Gyeongsang’s products.