Korea-based companies and business organizations welcomed the U.S. legislatures’ decision to approve the Korea-U.S. Free Trade Agreement on Thursday.

Companies and associations of industries with high dependence on exports were among the most vocal in welcoming the deal.

The Korea Automobile Manufacturers Association said that once the tariffs placed on Korean vehicles, between 2.5 percent and 25 percent, are removed, Korean firms will gain an edge over carmakers based in Japan and the EU and other regions that do not have a free trade agreement with the U.S.

Hyundai Motor Group, which operates two plants in the U.S., also said that the company has good expectations for the deal.

Along with Korean automakers, the country’s auto parts makers are considered by industry watchers to benefit most from the pact, with those in the industry expecting the removal of the 4 percent tariff on auto parts allowing local firms to expand dealings with U.S. carmakers.

The U.S. decision to ratify the pact is also being welcomed by the local business community in general.

“The Korea-U.S. FTA will act as the growth engine that will enable Korea to expand international trade in the era of $1 trillion trade,” the Korea International Trade Association said.

“The cooperation between the two countries in economic areas as well as in politics and diplomacy will be strengthened (by the FTA).”

According to businesses’ estimates, the implementation of the Korea-U.S. FTA will have the effect of creating 350,000 new jobs and raising the country’s actual gross domestic product by 5.6 percent in the 10 years following its implementation.

Local businesses also project that once the pact takes effect, Korea’s trade balance with the U.S. will record on average $140 million surplus each year.

While welcoming the developments in the U.S., Korea-based concerns also called for the Korean parliament to quickly process the pact.

In a statement, American Chamber of Commerce chairman Pat Gaines welcomed the U.S. legislatures’ decision and requested the Korean parliament to follow suit in the near future.

The Korea Federation of Industries and the Korea Chamber of Commerce and Industry have also made similar demands.

The FTA Industry Alliance, which comprises of 42 industry groups including the KCCI and the FKI, said in a statement that the Korea-U.S. FTA will play an important role in improving the country’s economy, and said that they hoped for a decision to be made during the regular session of the National Assembly.

By Choi He-suk  (cheesuk@heraldcorp.com)