South Korea to revive FTA pitch

South Korea said today it would pursue its earlier proposal for a free trade agreement (FTA) with India when the leaders of the two countries meet over the next two days.

"We had earlier proposed an FTA with India. When the leaders of the two countries meet, the issue will figure in the talks," Korea's commerce, industry and energy minister Hee-Beom Lee said on the sidelines of the Korea-India economic summit organised by the Confederation of Indian Industries (CII).

In order to discuss the modalities of arriving at the FTA between the two countries a study group would have to be set up, he said.

"The proposal to initiate the process of setting up of the study group would be discussed during the talks," Hee-Beom said.

South Korean President Roh Moo-Hyun, who started his visit to India today, has brought with him a high-level business delegation and his ministers of foreign affairs, trade, commerce, industry and energy and information and communication.

Trade and economic cooperation between the two countries are likely to dominate the talks during the first visit of a Korean President to India in eight years.

Earlier, addressing a meeting of businessmen from India and South Korea the minister asked them to explore the merits of an FTA between the two countries.

He said the FTA would increase the volume of trade and investment opportunities.

"India-Korea trade will cross five billion dollars in 2004-05, up from 4.1 billion dollars in 2003-04. In the next three to four years the trade between India and Korea can touch 10 billion dollars," Lee said.

"To further the trade ties between two countries", the minister said, "by combining India's competitive edge in the software sector with Korea's competitive edge in hardware, we could work together to enhance the national interest of both the nations as well as help close the growing digital divide in the world."