Korea is expected to export a record number of cars next year on the back of reduced tariffs under to the Korea-EU free trade agreement.
According to the Ministry of Trade, Industry and Energy on Monday, car exports are likely to increase 3.2 percent on-year to 3.2 million units next year, posting a 4.5 percent rise in money terms to a new record of US$51 billion.
Trade between Korea and the EU enters a new phase next year as car exports are subject to additional tariff cuts in July. Duties on cars with engines greater than 1,500 cc, currently subject to a two-percent tariff, will be completely abolished, while those for cars under 1,500 cc engines will fall from the current 5 percent to 3.3 percent.
Also, a free trade agreement between Korea and Colombia signed last year will go into effect next year. Korea shipped more than 47,000 cars to the Latin American country in 2012.
Total car exports to the global market are forecast to increase 4.8 percent on-year to 90.34 million units next year.