Hyun Zu (Yonni) Kim

A free trade agreement between Korea and the United States is likely to be ratified more quickly in the U.S. than in Korea, according to local attorney Hyun Zu (Yonni) Kim, who cited Korean presidential elections, lobby group interests and a Democratic-controlled U.S. Congress as potential impediments to its implementation.

In an email interview with GlobalAtlanta, Ms. Kim detailed the benefits and potential hurdles to implementing the free trade agreement between the U.S. and Korea that was negotiated between the two governments in April.

Should the agreement be approved by the legislatures of both countries, she said that it could possibly boost the U.S.-Korea trading relationship by $20 billion, up from $79 billion in 2006.

Ninety-five percent of consumer and industrial product trade between the two nations would become duty-free within three years of the agreement’s implementation, she said in the interview.

Ms. Kim is of counsel with the Birmingham, Ala., office of law firm Haskell Slaughter Young & Rediker LLC where she advises clients on international business transactions and economic development.

She also serves as director of regional development for the Korea-Southeast U.S. Chamber of Commerce that is based in Atlanta and works with the Consulate General of the Republic of Korea to coordinate development activities in six Southeastern states, including Georgia.

An important aspect of the agreement, she said, is that tariff reductions and eliminations also apply to the trade of automobiles, which carmakers such as Ford Motor Corp. and General Motors Corp. oppose. 

The U.S. agreed to eliminate its 2.5 percent tariff on small Korean-made cars and phase out tariffs on larger automobiles over the next three years.  It will also phase out its 25 percent tariff on light truck imports over 10 years.  In turn, Korea eliminated its 8 percent tariffs on auto imports and revised its engine displacement taxes so that they operate more like the United States’ taxes, said Ms. Kim.

Opposition from auto-related lobby and labor groups and an increasingly protectionist Democratic Congress may slow down passage of the agreement on the U.S. side, although it will likely get ratified more quickly in the U.S. than in Korea, Ms. Kim said.

She said that a December 2007 presidential election in Korea would slow down the FTA’s ratification, since incumbent President Roh Moo-hyun, who supported the agreement, will not be able to run for another term in office. 

She also said that the Korean legislators representing rural constituencies, who see U.S. agricultural imports as a threat to their own agricultural industries, would likely oppose the agreement, and she estimated that there were about 80 such representatives in the 299-person National Assembly.

Georgia imported almost $3 billion in goods from Korea through the Savannah Customs District last year, ranking it the 5th largest exporter to the state, according to the Georgia Department of Economic Development.

The country is Georgia’s 12th largest export destination, receiving more than $382 million in goods from the state in 2006, the department said.

Seoul, Korea-based Kia Motors Corp. also announced last year that it would invest $1.2 billion in West Georgia to build an automotive assembly plant there.

Click here for the full GlobalAtlanta interview that was conducted by Phil Bolton.