Korean Job Discussion Forums

[thomas pars]

I wonder if I can by oatmeal for under 12 dollars now.

[redaxe]

Silly American, the only purpose of the FTA is to allow Hyundai and Kia to sell their cars even cheaper in the U.S.! Why would this affect the price you pay for oatmeal in Korea? Koreans don't eat oatmeal.

[sojusucks]

This FTA affects very few products.

[Koreadays]

This benefits USA more than Korea..
its really to help USA because they are in serious need of money.
I guess President LEE is throwing out a bone.
funny how the deal got signed right after the Norths attack LOL

[happiness]

[Provence]

[Yaya]

The deal hasn't passed yet because the legislatures of both countries must still ratify it, and that could be the real battle.

[thomas pars]

It looks like it will have an immediate effect on food...not just automobiles.

http://www.fas.usda.gov/info/factsheets/korea.asp

My favorite part.

"Under KORUS, nearly all tariffs for U.S. agricultural products will be eliminated. About $2.8 billion, or 62 percent, of Korea�s imports from the United States will be immediately duty free. Virtually all other tariffs will be reduced in equal annual increments over a phaseout period, with the first tariff cut made upon entry-into-force of the agreement."

Looks like food might get cheaper....that is if they approve it.

[Catfisher]

[pkang0202]

I don't know what you guys are talking about. Flooding the market? Please!

First off, Korean companies control all distribution in Korea. You think Emart, Homeplus, or Department Store grocery areas are going to just kick Korean goods to the curb to make room for cheap American products?

Why do you think 99% of all "foreign products" in Korea have a Korean company attached to it? Its because its damn near impossible to get a product on a Korean grocery shelf without working with a Korean company. If Hidden Valley decides they want to bring Ranch Dressing to Korea, they are gonna have cargo containers of Ranch dressing sitting in Incheon Port because no Korean retailer is going to sell their product unless it goes through a Korean distribution company. That distribution company is going to charge an arm and a leg to put that product in grocery stores.

Foreign good prices will stay high. The only difference after the FTA is that distributors will have a higher margin to make their profits.

[waynehead]

I'm certainly no expert, and I don't expect my local homeplus to start looking like a walmart anytime soon. That said, it seems reasonable to expect some rise in availability of American goods if the FTA goes through. Granted, we'll still be subject to the whims of the Korean consumer, but the American things Koreans like should be cheaper and more plentiful...at least a little bit so. Seems like good news to me.

Of course, as someone else mentioned, this all depends on both legislatures approving it. Given what I know about each, I would put the odds of approval very low in the near term.

[interestedinhanguk]

[Vagabundo]

the 2.5% tariff on Korean cars means NOTHING.

due to the innate crappiness of the Korean won (and the govt's efforts to suppress it), it's 15% plus worse against USD (and far far worse against everyone else) since 2008.

do you think the 2.5% means anything when the Koreans are starting out 15% in front? why are the Korean carmakers so happy?

(what's interesting is that at least 1 US automaker, Ford, is happy too)

and of course, they'll manipulate the exchange rate lower if and when it further suits them.

[ReeseDog]

[jvalmer]