South Korea's major business organizations on Tuesday welcomed the parliamentary ratification of the free trade agreement (FTA) with the United States, saying it will usher in a new era for the country's trade and contribute to economic growth.

Defying strong protests from opposition parties, lawmakers, mostly from the ruling Grand National Party, railroaded the bill on the FTA earlier in the day. On Oct. 12, U.S. lawmakers approved the deal signed in June 2007 with both countries pushing to implement the deal on Jan. 1, 2012.

The Korea International Trade Association (KITA) said that the open trade pact marks a turning point for the export-oriented South Korean economy.

"The FTA will allow South Korean companies to gain an important edge in the vast U.S. market that can be a boon as global competition to win market share intensifies in the face of economic uncertainties," said the association representing 70,000 member businesses.

It added that the free trade deal, also called the KORUS FTA, may fuel service sector growth that can help create more jobs and make it easier to control inflationary pressure.

The Federation of Korean Industries echoed the view, saying the FTA will help bolster the local job market that is vital for the economy.

The lobbying group of large businesses said that it is now time to pool the country's resources to ensure that the deal benefits all sides.

The Korea Chamber of Commerce and Industry and the Korea Federation of Small and Medium Business said the KORUS FTA could enable the country to deal more effectively with the global economic slowdown and bolster the country's export competitiveness.

They said that policymakers should take steps to reduce any fallout from the open trade deal and support industries that may be hard hit by U.S.-made products and services.

Economists said that while autos parts, textiles, electronics sectors will benefit, medical equipment, cosmetics, pharmaceuticals and service-oriented businesses may be hurt. (Yonhap News)