FedEx Korea President: "RCEP Presents Opportunities for Domestic Companies"

Domestic Economic Slowdown but Full Implementation of RCEP
"Will Also Contribute to Growth in Regional International Trade"

"The Regional Comprehensive Economic Partnership (RCEP) will enable domestic small and medium-sized enterprises (SMEs) to develop in broader international markets. As a result, it will also contribute to the growth of cross-border trade."

Park Won-bin, the head of FedEx Express Korea, stated this, emphasizing that RCEP, which came into effect early last year, will provide growth opportunities for domestic companies. RCEP is Korea's first multilateral free trade agreement (FTA), involving the Association of Southeast Asian Nations (ASEAN), Korea, China, Japan, Australia, and New Zealand. Park said, "It can breathe new hope into the Korean economy, which has entered a slowdown phase."

The Korean economy is currently in a crisis. The 'performance' in the first half of this year declined compared to last year. According to data from the Korea International Trade Association, exports from January to May totaled $253.1 billion, a 13.6% decrease compared to the same period last year. Imports also decreased by 6.9% to $280.5 billion. Last year, export and import volumes were $683.6 billion and $731.4 billion, respectively, marking increases of 6.1% and 18.9% year-on-year.

Wonbin Park, Branch Manager of FedEx Express Korea [Photo by FedEx Express Korea]

With the RCEP coming into effect with the Philippines in June, all member countries except Myanmar are now within the RCEP framework. Park explained that companies now have the opportunity to leverage this for growth. First, member countries are gradually fulfilling commitments such as tariff reductions and market openings, strengthening economic and trade relations within the region. According to data from the Korea Customs Service in February, exports utilizing RCEP amounted to $3.3 billion after its enforcement, while imports reached $5.6 billion. By country, Japan accounted for the largest share of RCEP-utilized exports at 67.3%, followed by China (27.7%) and Thailand (2.4%).

Furthermore, customs procedures are being simplified. Measures such as pre-shipment inspection, pre-arrival processing, and prior review have increased the speed of exports and imports, allowing SMEs to participate efficiently in regional supply chains. Regional tariff concessions (agreements that prohibit tariff increases without special reasons) will also help reduce export and import costs. Under the RCEP agreement, tariffs imposed on imported goods between member countries are expected to be reduced by up to 90% within 20 years. The large consumer market can also be an opportunity. The population, economic scale, and trade volume of the 15 RCEP member countries account for 30% of the global total.

Park said, "FedEx will actively support SMEs to enjoy the benefits of RCEP through our specialized cross-border logistics services," adding, "We will continue to strive to revitalize economic cooperation within the region."

This content was produced with the assistance of AI translation services.