Israel and South Korea concluded three years of negotiations on a free trade agreement on Wednesday, hoping to build on a more than 15% jump in bilateral trade last year to $2.5 billion.
Prime Minister Benjamin Netanyahu and Economy and Industry Minister Eli Cohen signed the agreement with Republic of Korea Trade Minister Yoo Myung-hee, who is visiting Israel.
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Netanyahu hailed the agreement, Israel's first with an Asian country, and praised South Korea as a "global leader, a vibrant, advanced economy."
"We've had free trade agreements with other parts of the world, with the United States, with Europe and elsewhere but this is the first free trade agreement we have with an Asian economy, and what an economy – a global leader, a vibrant, advanced economy," he said.
"Israel is a vibrant, advanced economy and I think our partnership will do tremendous good for both our economies. ... Technological exchanges will give us a great advantage for the future. The people of Israel are delighted with this increased cooperation between our two countries. Welcome," Netanyahu said.
Yoo replied, "As you mentioned this is a very significant and historic agreement. Both countries, South Korea and Israel, we have a lot of similarities and also we have a complementary economic structure. Based on this FTA I'm sure that it will further promote our trade and investment as well as further promote our technology cooperation."
"Both countries, South Korea and Israel, we have a lot of similarities and also we have complementary economic structure," Yoo said. "Based on this free trade agreement I'm sure that it will further promote our trade and investment as well as further promote our technology cooperation."
Speaking exclusively with Israel Hayom on Wednesday, Yoo noted that "Israel isn't a small country but a powerful startup nation and an inspiration for innovation around the world."
"There is a lot of resemblance between South Korea and Israel. We are the winning couple of worldwide innovation," she added.
Commenting on the new FTA, Yoo predicted that it will foster "a host of new and highly productive collaborations in the fields of artificial intelligence, big data, biotechnology and more. We Koreans are known for our high production capabilities and Israelis are known for innovations. The potential for collaboration is enormous."
Under the deal, more than 95% of Israeli exports will be exempt from customs duties while importers and consumers will save some 100 million shekels ($28 million) a year, the Economy Ministry said.
Nearly half of Israeli exports to South Korea are machinery, electrical and medical equipment. They also include fertilizers, cosmetics, and juices.
Customs duties will be eliminated on imports from South Korea, the world's 11th largest economy, including cars and auto parts, toys, appliances, and electronic components.
The Economy Ministry said South Korea currently has 15 free trade agreements with various countries and trading blocs, including the US, the EU, India, and China. The free trade agreement between Israel and South Korea, it said, will assist in "equalizing Israel's trade terms" with those countries.
