A free trade framework agreement has been signed between
Turkey and South Korea during Turkish Prime Minister Recep Tayyip Erdogan's trip to South Korea for the Nuclear Security Summit. The agreement, which will be
Turkey's first free trade agreement with a Far Eastern country, will be finalized in June at the latest.
Prime Minister Erdogan underlined that the trade volume between
Turkey and South Korea amounted to $7 billion and that this did not reflect the potential, while he emphasized the significance of the agreement in terms of improving the goods trade. Erdogan also stated that the agreement is of importance regarding the investments of major South Korean companies
Hyundai and
POSCO in
Turkey.
Namık Ekinci, chairman of
Turkey's Steel Exporters' Association (CIB), spoke to SteelOrbis about the possible impact of the free trade agreement on the Turkish steel industry, stating that some high value-added flat steel products from South Korea might challenge Turkish flat steel producers, though adding he did not believe this situation will pose a serious threat.
Ekinci continued, "When we compare the South Korean and Turkish steel industries, the Turkish facilities are observed to be equipped with state-of-the-art technologies. We are capable of competing with South Korea in terms of production costs as well. Meanwhile, since neither country is self-sufficient in terms of raw material, I do not expect South Korea to be a threat to the Turkish steel industry. In addition, I believe that this agreement will clear the way for joint ventures with South Korea in the steel industry."