8/12/2011

Investments on the way as Turkish-South Korean free trade deal nears

Zaman - Turkey’s blip on South Korean investment radars is blinking more rapidly as a long-awaited free trade deal between the two countries draws near. The free trade agreement (FTA) envisioning gradual exemption of taxes in Turkish-South Korean trade is the key to the realization of at least three large-scale investments in Turkey.

On an official visit to South Korea’s capital Seoul, Turkey’s Minister of Economy Zafer Caglayan said that Turkey and South Korea are now close to signing an FTA to bring down trade barriers.

“The major obstacles before the FTA have been cleared. The FTA is expected to boost bilateral trade, correct the trade imbalance in Turkey’s favor and pave the way for new South Korean investments in Turkey,” Caglayan told the press after holding talks with South Korean Minister of Trade.

Among the first companies to benefit from the anticipated FTA, automotive giant Hyundai’s USD 400 million investment to its existing plant in Turkey and steel maker POSCO’s USD 350 million investment. POSCO is said to be considering tripling the size of its investment in Turkey, increasing the investment total to nearly USD 1 billion. Another South Korean company is expected to announce its USD 1.5 billion investment in Turkey shortly, said Minister Caglayan without disclosing the company’s name.
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Turkey; south korea; turkish-korean trade; turkey korea fta; turkey free trade deal; hyundai; posco; zafer caglayan