Luxury goods imports from the west into South Korea have surged since the country had entered into a free trade (FTA) with the European Union a year ago.

In the 12 months between July 1st 2011 and June 30th this year, South Korea  imported a total of US$1.24 billion (£0.8 billion) worth of wrist watches, bags, shoes, perfumes and cosmetic products from the EU, according to a local media.

This marks an increase of 21.7 per cent from a year earlier and is well above the 13 per cent overall gain in imports from Europe, showing that the country has a big appetite for luxury brands.

EU trade commissioner Karel De Gucht commented: “This agreement is already proving its worth as an important step on Europe's path to economic recovery."