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 the Greater Seoul Region
Australia and Korea share an important and mutually beneficial partnership. The Greater Seoul region is at the heart of this relationship, with the greatest concentrations of Australian investment and Australians.
An FTA with Australia would further boost key trade linkages between Australia and the greater Seoul region by improving market access for Korean companies in Australia. It would also promote Australian investment in the area, and help underpin Seoul’s vision to become a world-class city and a leading business hub for Northeast Asia.
A Special Place for Australia
Gapyeong, just north of Seoul, was the site of a fierce engagement involving Australian troops on April 23 1951. It is now the site of the official memorial for Australian soldiers who served in the Korean war. Each year the Korean Veterans Association sponsors a group of Australians who served in the Korean War to commemorate Gapyeong Day. Many Australian expatriates also attend the moving ceremony.
Promoting Investment
Australian investment is concentrated in Seoul. The Australia New Zealand Chamber of Commerce in Korea (ANZCCK), currently boasts over 250 members and is the fourth largest foreign chamber of commerce in Seoul. Macquarie Bank, ANZ Bank, the Australian owned CocaCola franchise in Korea and a range of energy and resource companies all have an on-the-ground presence.
Macquarie Bank in Seoul
In the greater Seoul region, Macquarie Bank alone provides 260 high wage, high skill jobs in Seoul, is providing finance for major projects such as Seoul Subway No.9, the new airport highway, and the Seoul Chunchon Expressway. It is also bringing new products and expertise to Seoul’s financial markets.
Korea’s GM Daewoo and Australia’s GM Holden also have a close commercial relationship, with the GM investment in GM Daewoo being channelled through GM Holden. Since July 2005, GM Daewoo has been exporting rebadged 'Lacetti' and 'Kalos' vehicles to Australia, with exports of around 2,000 vehicles in 2006.
By attracting more Australian investment to Korea an FTA with Australia would enhance Seoul’s status as a regional financial and business hub. The increased trade that an FTA would stimulate would also boost Incheon’s role as a regional shipping hub and more air linkages should also be stimulated overtime.
Improved Market Access
Tariff reductions under an FTA would give exporters from the greater Seoul region a competitive advantage in Australia, as Australia’s existing FTAs have substantially reduced or eliminated tariffs on almost all items. This is of particular benefit to the region’s electronics, automobiles, and machinery exporters.
Car and car part exports attract tariff rates of 10 per cent in Australia. Both Hyundai/Kia and GM-Daewoo, as well as associated part manufacturers, would directly benefit from reduced Australian tariffs.
Home appliance imports face tariffs of up to 5 per cent in Australia, and key local producers such as LG and Samsung would directly benefit. The region’s textile producers would also benefit from reduced textile tariffs in Australia, which are currently up to 18 per cent.
Australia does not threaten Korean agriculture
While an FTA with Australia would bring many benefits to the Greater Seoul region it need not threaten the future of Korean agriculture. 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.
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 the region’s products.
Good news for the Greater Seoul Region
Australia and Korea share an important and mutually beneficial partnership. The Greater Seoul region is at the heart of this relationship, with the greatest concentrations of Australian investment and Australians.
An FTA with Australia would further boost key trade linkages between Australia and the greater Seoul region by improving market access for Korean companies in Australia. It would also promote Australian investment in the area, and help underpin Seoul’s vision to become a world-class city and a leading business hub for Northeast Asia.
A Special Place for Australia
Gapyeong, just north of Seoul, was the site of a fierce engagement involving Australian troops on April 23 1951. It is now the site of the official memorial for Australian soldiers who served in the Korean war. Each year the Korean Veterans Association sponsors a group of Australians who served in the Korean War to commemorate Gapyeong Day. Many Australian expatriates also attend the moving ceremony.
Promoting Investment
Australian investment is concentrated in Seoul. The Australia New Zealand Chamber of Commerce in Korea (ANZCCK), currently boasts over 250 members and is the fourth largest foreign chamber of commerce in Seoul. Macquarie Bank, ANZ Bank, the Australian owned CocaCola franchise in Korea and a range of energy and resource companies all have an on-the-ground presence.
Macquarie Bank in Seoul
In the greater Seoul region, Macquarie Bank alone provides 260 high wage, high skill jobs in Seoul, is providing finance for major projects such as Seoul Subway No.9, the new airport highway, and the Seoul Chunchon Expressway. It is also bringing new products and expertise to Seoul’s financial markets.
Korea’s GM Daewoo and Australia’s GM Holden also have a close commercial relationship, with the GM investment in GM Daewoo being channelled through GM Holden. Since July 2005, GM Daewoo has been exporting rebadged 'Lacetti' and 'Kalos' vehicles to Australia, with exports of around 2,000 vehicles in 2006.
By attracting more Australian investment to Korea an FTA with Australia would enhance Seoul’s status as a regional financial and business hub. The increased trade that an FTA would stimulate would also boost Incheon’s role as a regional shipping hub and more air linkages should also be stimulated overtime.
Improved Market Access
Tariff reductions under an FTA would give exporters from the greater Seoul region a competitive advantage in Australia, as Australia’s existing FTAs have substantially reduced or eliminated tariffs on almost all items. This is of particular benefit to the region’s electronics, automobiles, and machinery exporters.
Car and car part exports attract tariff rates of 10 per cent in Australia. Both Hyundai/Kia and GM-Daewoo, as well as associated part manufacturers, would directly benefit from reduced Australian tariffs.
Home appliance imports face tariffs of up to 5 per cent in Australia, and key local producers such as LG and Samsung would directly benefit. The region’s textile producers would also benefit from reduced textile tariffs in Australia, which are currently up to 18 per cent.
Australia does not threaten Korean agriculture
While an FTA with Australia would bring many benefits to the Greater Seoul region it need not threaten the future of Korean agriculture. 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.
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 the region’s products.