Tariffs hit hi-tech exports to Korea

Daniel Kim says a 20pc tariff on the NZ bike he imports makes it expensive.

New Zealand's primary-industry exports to South Korea such as dairy, meat and wine are being squeezed by tariffs imposed in the absence of a free trade agreement, but high-tech exports are also affected.

Daniel Kim, chief executive of Wooriel Korea which imports New Zealand's YikeBike, says the folding electric bikes sell for 3 million won ($3300), expensive because Wooriel pays tariffs of almost 20 per cent. He wants to sell 1000 bikes in the next year.

A free trade agreement and the resulting removal or reduction in tariffs would change all that.

"If it decreases 18 per cent I can sell it at a cheaper price and sell more bikes in Korea."