South Korea’s free trade agreements with China, Vietnam and New Zealand went into effect on Sunday.
 
The government said that under the trade deals, the three nations will lower tariffs on goods traded as of Sunday and once again on January 1 next year.
 
The government estimates that under the FTA with China, South Korea will witness an increase of one-point-35 billion U.S. dollars in exports of manufacturing goods in the first year of the deal.
 
The government also projected that South Korean companies will save about five-point-44 billion U.S. dollars a year due to the tariff reduction.
 
Under the FTA with Vietnam, South Korea will open up its market for 499 more items including Vietnamese tropical fruits and garlic, while Vietnam will remove its duties on an additional 272 South Korean products.
 
Regarding the FTA with New Zealand, South Korea will likely witness an increase in exports of consumer goods such as processed foods, office supplies and small home appliances.