South Korean discounters said Thursday that they will increase imports of food and products from European countries to capitalize on a bilateral free trade deal with the European Union (EU).

   The free trade agreement (FTA) takes effect on July 1, removing or phasing out tariffs on 96 percent of EU goods and 99 percent of South Korean goods within three years. Tariffs on pasta and wines will be abolished in July, while tariffs on pork, cheese, vodka and whiskey will be phased out within three to 10 years.

   "Following the implementation of the FTA, we are planning to increase European imported products by over 40 percent," said Kim Tae-woo from E-Mart, the nation's largest discount store chain.

   E-Mart said that it has increased pasta from Italy and Turkey by some 10 fold in their stores for the second half and it will supply Belgian pork from mid July.

   The discount chain said it is also considering importing British cheese, some 20 percent cheaper than popular French cheese, and oranges from Spain.

   Homeplus Co., the South Korean discount unit of British retail giant Tesco Plc., said it has a plan to increase imports of European products to US$22 million won this year, nearly double last year's $10 million.

   Homeplus said it is considering bringing in Danish bread and cookies, British cheese and cereal, and Italian and French coffee.

   "We know that each item has a different tariff phase-out schedule," said Choi Hee-jun from the second-largest discount store chain. "But prices of European products that have been on sale here will be reduced by as much as tariff cuts right after the FTA takes effect."

   Lotte Mart Co., South Korea's third-largest discount store chain, said it will focus on European seafood such as king crabs and whelk from Scotland, Denmark and Iceland, offering a wider range of choices to South Korean consumers.

Source: Yonhap News (June 30, 2011)