[Seoul YONHAP in English 0257 GMT 9 Mar 92]

[Text] Seoul, March 9 (YONHAP)--The government will encourage enterprises to build a distribution network stretching across the European Common Market and will strengthen economic ties with North American countries to positively cope with the worldwide trend toward economic blocs, Economic Planning Board [EFB] officials said Monday.

EPB officials said the emergence of economic blocs in Europe and North America would have a considerable impact on South Korea's exports and imports.

In Europe, the success of the Maastricht summit and the signing of the Maastricht Treaty in February will bring about the integration of the 12-member European Community and seven-member European Free Trade Association into the European economic area next year.

In North America, the United States, Canada and Mexico agreed on signing the North American Free Trade Agreement (NAFTA) in February last year and it will go into effect early next year.

Korean companies will be encouraged to build Europe-wide distribution networks and make greater investments in Europe, the officials said.

The advancements of banks, securities firms and other financial institutions into Europe will be promoted. In the manufacturing sector, large enterprises will be advised to make inroads into Europe together with small- and mid-sized part suppliers to cope with the European system, under which firms must use parts made there.

The government will strengthen trade diplomacy toward nations in North American to prevent NAFTA from having a disadvantageous impact on Korea regarding certificates of origin and investment conditions.

South Korean companies will be asked to make more investments in Mexico and to seek detour exports to the United States in such fields as textiles, automobiles, electronics and footwear.

The government will hear grievances from Korean firms in Europe and North America and ease restrictions on their overseas investments and acquisitions of real estate, the officials said.