Korea and the EU, the world's largest single economic bloc, also officially sealed the Korea-EU free trade agreement (FTA) the same day.
The President also said the EU leaders expressed their strong agreement with the UN Security Council Statement on the Cheonan Attack, which stressed the importance of preventing the future incidents.
The leaders agreed that North Korean nuclear and missile programs pose serious threats to the peace and security of the world. They also urged Pyongyang to dismantle its nuclear weapons program and faithfully fulfill the UN Security Council Resolution, while reaffirming the importance of resuming the six-party talks.
Meanwhile, at a joint press conference following the summit talks, the President said the Korea-EU FTA will bring huge economic benefits to both Korea and the EU. Lee added that the trade pact will mark a turning point, strengthening exchanges and cooperation on a wide range of issues, including education, culture, human exchanges, tourism, and sports.
Before the Korea-EU FTA takes effect on July 1, 2011, the Korean government will thoroughly review the effects and influences the free trade pact will have on Korea’s local industries and set up preparation measures, the President said.
The President also said that Seoul is always ready to have an open dialogue with Pyongyang, as long as Pyongyang ceases provocation actions and is fully engaged in the talks in a peaceful manner.
After the joint press interview, the President attended the official signing ceremony for the Korea-EU FTA with the EU President and the European Commission President.
Korean Trade Minister Kim Jong-hoon and Belgian Foreign Minister Steven Vanackere officially signed the free trade deal in Brussles on Oct. 6.
It took more than three years for Korea and the European Union to sign a free trade agreement, which had been under negotiation since May 2007.
Thanks to the latest pact, Korea is the first country in East Asia to sign the free trade agreement with the EU. Korea has now free trade agreements with Europe, several nations in East Asia, and the United States.
Once the Korea-EU free trade pact takes effect, Korea's real GDP is expected to grow 5.6 percent, and its exports in manufacturing sectors, including automobiles, electronics, and textiles, is predicted to increase considerably.
Both sides agreed to lift all tariffs on automobiles with engines larger than 1500 cc in the next three years, and all tariffs on cars with engines smaller than 1500 cc will be removed within five years. However, rice was not included in the tariff removal list, since it was regarded as a sensitive agricultural item.
Composed of 27 European countries, the EU is the world's largest single economic bloc, with a GDP of more than $16.4 trillion last year. EU is Korea's second largest trading partner after China. Its trade volume with Korea was $78.8 billion in 2009.
Thanks to the Korea-EU free trade agreement, Korea has secured a place as an East Asian hub of free trade linking Europe, East Asia, and the United States.
source: Cheongwadae
