S.K. likely to open financial markets to U.S.

Seoul remains firm about protecting service, legal sectors

South Korea will likely open its financial market to U.S. companies--though not entirely--as top officials from Seoul and Washington reportedly found common ground on the issue during the ongoing negotiations on a proposed free trade agreement (FTA) between the two economies.

"We have reached an agreement [on how to open the financial market]," Seoul’s top negotiator Kim Jong-hoon told reporters.

"The consensus is that to launch new financial products in each country, companies should open a local branch first. Each new product should also receive approval from the financial authorities of each nation." he said.

The two countries launched the second round of negotiations on an FTA in Seoul on July 10, expected to last five days. The first round was completed early June in Washington.

During the second day of talks, the U.S. asked South Korea to open its legal sector as well, allowing American law firms to seek business cooperation with local counterparts and employ South Korean lawyers in running their businesses here.

Another demand by Washington was for Seoul to open its service sector, including areas such as package delivery. Currently, foreign package firms are allowed to make only international deliveries, not within South Korea.

South Korean negotiators, however, remained firm on those issues, saying that a compromise could endanger people’s livelihood.

South Korean officials also held to their stance that the goods produced at the joint North-South Gaeseong (Kaesong) industrial complex should be accepted as made in South Korea. The U.S. still balks at the idea.

"Our basic stance is that we will continue to explain our position about the Kaesong matter," said Kim.