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BEIJING, CHINA - THE leaders of China and South Korea agreed to 'actively consider' beginning talks for a free trade deal at their summit meeting on Tuesday.
'We decided to actively consider the question of pursuing a free trade agreement based on a joint industry, government and academic study,' South Korean President Lee Myung Bak said at a joint press conference with Chinese President Hu Jintao.
That study has been ongoing since last year. China is the South Korea's biggest trading partner. Its two-way trade with South Korea, Asia's fourth-largest economy, was US$145 billion (S$197 billion) last year.
Mr Lee headed to Beijing accompanied by a large delegation of corporate executives, underscoring his determination to raise two-way trade.
South Korean firms are eyeing a greater share of the Chinese market in sectors ranging from telecommunications and autos to construction and retail sales.
A free trade deal could create a market for South Korean exporters four times the size of their domestic market, according to some studies.
However, officials say it could cost some US$9.6 billion in lost business if there was a surge in cheap farm imports and with the country's powerful farm lobby, it would be a risky route for the increasingly unpopular Mr Lee to take just three months into his job.
Mr Hu said he accepted Mr Lee's invitation to visit South Korea later this year. -- REUTERS
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