Conglomerate heads urge quick approval of U.S. FTA
Yonhap News, Korea
Conglomerate heads urge quick approval of U.S. FTA
19 May 2011
SEOUL, May 19 (Yonhap) — Leaders of South Korea’s largest business groups urged the nation’s parliament Thursday to quickly ratify a free trade agreement (FTA) with the United States signed four years ago.
The call came at a monthly meeting of the executive board of the Federation of Korean Industries (FKI), whose members include more than 600 of the largest companies in the country.
Thirteen board members, including Huh Chang-soo, head of the FKI and also chairman of the country’s energy and construction giant GS Group, attended the meeting. The board also includes Lee Kun-hee, chairman of South Korean tech giant Samsung Electronics Co., and Chung Mong-koo, chairman of Hyundai Motor Group, but both were absent due to personal commitments.
"Board members expressed hope the National Assembly will quickly ratify the FTA with the United States and said they will make necessary preparations to maximize benefits expected from the implementation of the FTA," the FKI said in a statement.
The Korea-U.S. FTA was signed in 2007 and supplemented last December, but still needs to be ratified by both the U.S. and South Korean legislatures.
"The board also expected the competitiveness of our firms in the world’s largest market, Europe, will improve and that their exports to the EU will increase as the Korea-EU FTA was ratified by the National Assembly on May 4," the statement said.
In addition, the board members reaffirmed their commitment to developing the country’s overall economy by forcing their own firms to practice and also promote cooperation and joint development with smaller companies.
To this end, the heads of the country’s 30 largest conglomerates earlier pledged a combined total of 1 trillion won (US$920 million) this year alone in support for small and medium enterprises (SMEs).
The renewed pledge comes amid growing calls from the government for large businesses to help develop SMEs, or even share what the head of a presidential committee called "excessive profit" with smaller companies.
The business leaders also reaffirmed their commitment to their so-called "Vision 2030," under which they vowed to help dramatically develop the country’s economy by boosting its gross domestic product to over $5 trillion and per capita income to $100,000 by 2030.
"The board members noted Vision 2030 could well be achieved if the country improves its economic structure and conditions and if its people once again exercise their strengths and potential," the FKI statement said.
