Since the Free Trade Agreement (FTA) between China and South Korea took effect at the beginning of this year, around 140 Qingdao enterprises have benefitted, exempting them from paying a total of 9 million yuan ($1.4 million) in customs duty, Qingdao Daily reported on June 22.

According to Qingdao customs authority, South Korea ranked the top among the importing countries for Shandong province during the first five months of this year.

Thanks to the FTA, import duty has declined considerably, significantly reducing the cost of imported commodities from South Korea.

"The FTA between China and South Korea has brought substantial profits to enterprises and vigorously strengthened our confidence," said Li Zaizhen, vice president of Qingdao Pohang Stainless Steel Co.,Ltd.

Li's company experienced a long period of depression since financial crisis in 2008, but has since bounced back after a raft of favorable policies.

His business has especially benefitted from the FTA, seeing a 2 million yuan reduction in tax in the first half of this year alone.

He said that the FTA has greatly helped reduced the costs of raw materials and enhanced the company's international competitiveness.