Free trade agreement (FTA) between China and South Korea would give both countries an opportunity to jointly create and develop advanced industries as demand for high- quality products would rise before the bilateral free trade pact is completely implemented.
China and South Korea initialed the bilateral pact Wednesday, about three months after the two sides concluded negotiations on it. The two countries began talks on the deal in May 2012.
"China is turning from the world's factory to the world's ( consumer) market. Chinese consumers want high value-added products based on state-of-the-art technologies, not products simply assembled with parts," Han Jae-Jin, senior research fellow at the Hyundai Research Institute, said in a telephone interview.
Under the accord, South Korea will eliminate tariffs on 92 percent of all products from China within 20 years after the FTA implementation in return for China abolishing tariffs on 91 percent of all South Korean goods.