That has given Korean exports in Japan a price advantage of 10 to 25 percent over local products.

Korean exports soared 31 percent in 2004, but grew 7.3 percent in the first six months of this year.

In the first three months of this year, Korean exports were 36 percent higher than in the corresponding period last year.

Another factor was the competitiveness of Korean exports as a result of the drop in value of the won against major foreign currencies.

But Korean exports are finally breaking into the Japanese market.

"Korean exports still have some breathing room," he said.

Stemming the steep slide of the won, for example, would make Korean exports less competitive.

South Korean exports to France during the same period were worth €4.1 billion.

South Korean exports to Denmark in 2009, was $479 million.

On the other hand, with this agreement, we risk introducing subsidies for Korean exports.