The full text of the Korea Australia Free Trade Agreement (KAFTA) was released by Minister for Trade and Investment Andrew Robb yesterday.
FSC chief executive John Brogden said South Korea is one of the most important markets in Asia for the Australian financial services industry, given the country’s ageing population and high average incomes.
KAFKA will allow Australia financial services providers to supply specific financial services for the first time on a ‘corss-border’ basis, said Mr Brogden.
Whilst South Korea is Australia’s third largest export market, financial services has only made up a “small proportion” to date, he said.
“Financial Services is Australia’s largest industry, [and] initiatives like the KAFKA and the Murray [Inquiry] will help deliver outcomes that facilitate Australian financial services exports to Asia and an export-oriented and globally competitive Australian financial services industry,” said Mr Brogden.
Australian financial services providers will benefit from commitments from Korea that will allow Australian institutions to transfer data into and out of Korean territory, he said.
“Trade in financial services requires the free movement of data across borders. This is vital for the Asia Region Funds Passport − which will harmonise funds management regulation across the region – to succeed,” he said.
“We have a highly skilled financial services workforce which will benefit from a cross-cultural transfer of skills and knowledge,” Mr Brogden added.
The FSC produced a joint report with The Trust Company in December that pointed to the “untapped opportunities” that exist for the export of financial services to Asia.
