A Business Perspective on the EU-Korea FTA and EU-Korea Trade as presented by Sangwoo Kim, President of Corporate Affairs Europe, Samsung at The Seventh EU Asia Top Economist Round Table on 10 July as part of Asia Business Week Ireland 2015, hosted by Asia Matters

1. Seventh EU Asia Top Economist
Round Table
10 July 2015
@asiamatters_biz #TERT @asiabusinessweek
‘A New Era in EU Asia Economic Partnership’

2. 10 July 2015
Radisson Blu Royal Hotel, Dublin
A Business Perspective on the
EU-Korea FTA and EU-Korea Trade
Sangwoo Kim
President of Corporate Affairs Europe, Samsung

3. EU-Korea Trade
Sangwoo Kim
President, Corporate Affairs Europe
Samsung Electronics

4. 77 Years old
USD 318 Billion Revenue (‘14)
USD 28 Billion Net income
67 Affiliated Companies
- Electronics Industries
- Machinery & Heavy Industries
- Chemical Industries
- Financial Services
- Services and Others
673 Offices &
489,000 Employees
In 90 countries
Since
1938
46 Years old
USD 188 Billion Revenue (‘14)
KRW 23 Trillion Net income
220 Global Base &
330,000 Employees
In 84 countries
3 Business Units
-ConsumerElectronics
- Mobile Communications
- Semiconductors
Since
1969
Samsung at a Glance
SAMSUNG SAMSUNG ELECTRONICS
4

5. Seoul in 1948
5

6. Korean War in 1950
6

7. Seoul today
7

8. Last year, South Korea GDP was USD 1410.38bn – all time high so far
8

9. 9

10. Innovation Union Scoreboard 2015
10

11. 11
EU exports to Korea on the rise
Over the last dozen of years, EU28 exports to South Korea more than doubled
 The overall progress in the country and the steadily growing buying power may be
amongst the reasons for that growth

12. 12
EU – Korea FTA
The FTA entered into force in July 2011; it:
 is the first of a new generation FTAs that goes further than any
previous agreements in lifting trade barriers
 is the EU's first trade deal with an Asian country
 eliminates duties for industrial and agricultural goods in a
progressive, step-by-step approach
 on 1 July 2016, will eliminate import duties on all products except for
a limited number of agricultural products
 also addresses non-tariff barriers to trade with particular focus on
the automotive, pharma, medical devices and electronics sectors

13. 13
EU – Korea FTA: several years later
Pretty
good
Not so
great
Not so
bad

14. 14
EU – Korea FTA: not so bad
 BUT since the 12-month period before the FTA took effect:
– EU exports of goods to Korea increased by 35%
– EU exports to Korea of fully or partially liberalised products grew more
than the overall exports – by 46% and 37% respectively
– EU exports of motor vehicles to Korea increased by 90%
– EU exports of transport equipment increased by over 56%
– Had the FTA not been in force, the current level of EU exports to Korea
would have led to duty payments of EUR 1.6bn
– Overall, the EUR 7.6bn trade deficit with Korea turned into a trade
surplus of EUR 3.6bn in the EU's favour
FTA faced fears over anticipated adverse effect on the EU economy,
especially in light of the financial crisis

15. 15
EU – Korea FTA: not so great
In 2014, EU imports from Korea totalled EUR 37.9bn – roughly
equal to the 12-month period before the FTA took effect

16. 16
EU – Korea FTA: pretty good
 In 2014, Korean imports of goods to EU increased by 6% compared to the
previous year
Since the FTA took effect
 Significant increases were noted in EU imports of:
− plastics 50%
− mineral products 112%
− chemical products 48%
 EU imports from Korea of motor vehicles grew by 53%
– EU imports of passenger cars from the rest of the world declined by 7%
 EU imports from Korea of car parts increased by over 20%
– respective imports from the rest of the world increased by merely 3%
 While imports of electronics decreased by 13% in the second year of FTA
implementation, in the third year they increased by 31%

17. 17
EU – Korea FTA: pretty good

18. Thank you!