Evaluation of FTA between Korea and Chile Fund

  • 2007-11-05
  • 391

  After Free Trade Agreement between Korea and Chile was contracted, Korean government enacted a special law to support domestic pomiculture industry which has been forecasted to be badly damaged. Based on the special law, the Ministry of Agriculture and Forestry has been raising one trillion and two billion won FTA fund for seven years from 2004 to 2010. From 2004 to 2006, 455.3billion won has been used for nine projects such as supporting the cessation of business project.

FTA fund has played an important role in stabilization of pomiculture business, suffered from being petty and old and improvement of its competitive power. However, this research points out several problems of FTA funds such as inappropriateness of objects to be supported, a lack of objectivity and rationality in demanding forecasting and inefficiency caused by overlapped projects. Therefore, there is a necessity to make up the weak points of the FTA fund.