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S. Korea-Turkey trade up 6.2 pct in 2nd year of FTA

All Headlines 10:05 April 29, 2015

SEJONG, April 29 (Yonhap) -- Trade between South Korea and Turkey rose a solid 6.2 percent in the second year after their free trade pact went into effect, government data showed Wednesday.

Trade volume reached US$6.57 billion in the May 2014 through March 2015 period, compared with $6.19 billion tallied for the proceeding year, according to the data by the Korea Customs Service (KCS).

It marks the second year in a row that two-way trade has increased between the two trading partners. In the first year after the free trade agreement (FTA) went into effect in May 2013, South Korea-Turkey trade soared 33 percent.

During the same two-year period, global trade contracted 1.3 percent.

In the past year, South Korean exports to Turkey rose 7.4 percent to $5.97 billion from $5.55 billion, while imports fell 4.8 percent to $600 million from $630 million.

Thanks to the FTA, exports of South Korea car parts and petrochemical materials surged 21.3 percent and 82.5 percent, respectively. Despite lower tariffs, auto exports fell for two consecutive years as South Korea's top automaker Hyundai Motor Co. rolled out more vehicles in Turkey.

Inbound shipments dropped as a long-term oil product import agreement expired, the KCS said, adding that imports of products like car parts and clothing rose by double digits, excluding oil products.

The KCS said 73.4 percent of all export companies took advantage of the lower tariff rates in the second year of the FTA implementation.


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