韩化妆品品牌对自由贸易协议虎视眈眈

China and South Korea began discussions on a free trade pact in May 2012. Since then, there have been 11 rounds of talks. And the visit of Chinese President Xi Jinping to South Korea has provided a greater momentum for the 12th round later this month.

Whether it’s eye serums, powders, moisturizers, or BB cream—South Korean cosmetics might be the next big thing to hit China. Cosmetics firms like Amore Pacific, which markets brands such as Laneige and Mamonde, are closely watching Chinese President Xi Jinping’s visit to South Korea this week for signs of progress on a pending bilateral free trade deal. Under current customs regulations, Korean cosmetic products face tariffs as high as 130% when exported to China, but a trade deal could lower that to virtually zero.

"Invisible barriers may have existed for South Korea's companies in a protectionist Chinese market, but I anticipate a major easing to those obstacles if the Korea-China FTA is signed," Hong Chang-Pyo, director of S. Korea Trade-Investment Promotion Agency, said.

Last year, more than 4.3 million Chinese tourists visited South Korea, and many of them purchased cosmetics at stores like this one here in the heart of Seoul. Many Korean businesses see the potential in offering goods at competitive prices directly to Chinese consumers. That’s why a trade deal would be welcome news for cosmetic brands looking to expand in the Chinese market.

"We can anticipate positive effects from the results of Korea-China FTA negotiations, but currently we will continue to focus on expanding our business in China by offering optimal products and services to our Chinese customers," Amore Pacific’s senior vice president Kim Seung-Hwan said.

China is South Korea’s largest trading partner, while South Korea is the third-largest export market for Chinese goods.
Experts say a free trade deal would also demonstrate how closely relations have developed beyond simple economics.

"I think there’s political symbolism to the FTA and some ways it might outweigh the economic significance. Both sides are negotiating to make sure that their vulnerabilities are protected. So in the end, the trade agreement itself may not have a huge impact but again, the trade investment flow is going to continue to grow between the two countries regardless," Professor John Delury with Yonsei University said.

But until a free trade deal goes into effect, Chinese consumers will have to wait to enjoy Korean cosmetic and other products at "face" value.