Korea-EU FTA, Shows High Level of Consumer Welfare Benefits

- Launch of『Korea·EU FTA marks 5^th year anniversary, measures to improve consumer benefits』 seminar –

    Korea-EU FTA marks 5^th anniversary and consumers’ welfare benefits are gaining attention. Against this backdrop, KCA(www.kca.go.kr) launched a 『Korea·EU FTA marks 5^th year anniversary, measures to improve consumer benefits ^*』 seminar.

* Conducted online survey on 1500 adults, ages from 20 to 59 in 2016, on a scale of 1 to 5.

□ Consumer welfare benefits scored high across 10 different categories 

     The research shows that consumer benefits that consumers actually felt were relatively high scoring 4.12. In detailed categories, ‘broadened choices’ (4.44points), increased shopping opportunity (4.30 points), and emotional satisfaction (4.26 points) recorded high while consumers’ sense of price discount (3.49 points) were relatively low.

    Consumer welfare benefits of 10 different categories of EU products are as follow. ‘Beer’ (4.43 points), was the highest followed by ‘Wine’ (4.23 points), and ‘Car’ (4.22 points). However, kitchen wares (3.95 points), small-sized home appliances (3.99 points), and cosmetic products (3.99 points) scored relatively low.

□ EU products were highly valued, compare to products from other major countries

     Compare to major countries (U.S, China and Korea), EU products were highly appreciated in various sectors including quality (125), design (119), brand (132) and others, by scoring 120 points on average. (Assuming that Korean products score 100, U.S and China scored 109 and 71 respectively)

 □ To maximize FTA consumer welfare benefit, improving distribution channel is imperative

    89.3% of consumers responded that ‘improving distribution channel is imperative for maximizing FTA consumer welfare benefits’. Consumers are well aware of the fact that improving distribution channel is necessary to make consumers actually feel consumer welfare benefits of decreased tariff after Korea-EU FTA took effect.

    According to KCA, “Consumers’ positive view on Korea-EU FTA holds significance as a consumer confidence indicator in implementing and vitalizing FTA in the future”. Also, based on the recent survey, we will report possible ways to boost consumer welfare to the governing authority including ▲improving major imported goods channel ▲developing monitoring and analysis system.

    In addition, to have experts’ discussion on consumer welfare benefits analysis result and its implications of FTA, KCA plans to hold a seminar on the upcoming July 5^th in L Tower (Yang-je dong, Seoul).