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Proliferating FTAs to Broaden Consumer Choices 게시글 상세보기 - 등록일, 조회수, 첨부파일, 상세내용, 이전글, 다음글 제공
Proliferating FTAs to Broaden Consumer Choices
Date 2015-11-12 Hit 1610

 

Proliferating FTAs to Broaden Consumer Choices

 

  Ahead of the Korea-China Free Trade Agreement (FTA) taking effect, the Korea Consumer Agency (www.kca.go.kr) conducted a consumer awareness survey* on the proliferation of FTAs and found that consumers believed that it had a positive impact on the overall market.

  * Online survey (5-point scale) conducted in June 2015 among 1,350 people aged between 25~59 residing in metropolitan cities.

 

Perceived that FTAs had a positive impact on the market

 

  Survey respondents felt that the overall market was positively affected following a free trade agreement (3.3 points out of 5). Of the positive effects, "broader consumer choices" received the highest score (3.9 points) followed by "quality improvement" (3.4 points) and "price decline" (3.0 points).

 

Pointed out that FTAs increased consumer problems

 

  While the survey respondents believed that consumer information became more accessible following a free trade agreement (3.5 points), there were negative impacts such as "rise in consumer problems" (3.6 points) and "more difficulty in receiving compensation" (2.7 points).

 

Top-10 consumer goods purchased following FTAs were mostly from the US

 

  Among the six product items (cheese, small home appliances, nuts, snacks, cosmetics, and multi-vitamins) mostly purchased by consumers after free trade agreements took effect, most were imported from the US. Consumers mostly purchased Australian beef (71.1%) and European wine, beer, and cars.

 

<Top-10 Items Purchased by Origin>

Item

No. of respondents (person)

Percentage (%)

US

EU

Australia

Canada

Others

Beef(in the past 2 months)

422

24.2

0

71.1

3.3

0.5

Wine(in the past 2 months)

402

15.9

53.0

10.2

5.2

15.7

Beer(in the past 2 months)

426

25.1

47.9

4.5

3.1

19.5

Cheese(in the past 2 months)

416

45.0

30.8

17.3

5.8

1.2

Small home appliances(in the past 2 months)

432

48.4

42.6

0.7

2.6

6.7

Automobile(in the past 3 months)

84

36.9

48.8

1.2

1.2

11.9

Nuts(in the past 3 months)

428

78.0

3.0

7.5

10.7

0.7

Snacks(in the past 3 months)

422

57.1

23.5

5.0

6.2

8.3

Cosmetics(in the past 3 months)

421

46.3

39.7

3.3

2.1

8.6

Multi-vitamins(in the past 3 months)

421

65.8

8.8

8.8

15.4

1.2

 

Consumers who had purchased European/US products gave high scores in cost-effectiveness and consumer satisfaction

 

  Survey respondents who had purchased products from Europe and the US gave high scores (above 3.4 points) in all 10 product categories in terms of cost-effectiveness (including quality and function compared to price), consumer satisfaction, and repurchase intention. This implies that the above items possess competiveness in the market.

 

Expectations and concerns co-exist as to the Korea-China FTA

 

  As to positives expected from the Korea-China FTA, survey respondents said "broader consumer choices" (85.1%) and "lower prices" (48.5%). On the other hand, negatives related to product safety and consumer redress issues.

Based on the survey result, the KCA will propose to relevant government bodies on developing a system to continuously study and share information on impacts of FTAs from a consumer welfare standpoint.

 

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