Bermuda has concluded negotiations on a tax information exchange agreement (TIEA) with Korea, also known as South Korea, Finance Minister Paula Cox announced yesterday.

The TIEA will be signed upon completion of Korea's internal processes.

When the TIEA is signed, Bermuda will be exempt from any proposed counter-measures initiated by Korea against those jurisdictions which do not meet international standards in relation to tax transparency.

Minister Cox said there were currently 32 entities in Bermuda with Korean interests.

"As an example, one, a global investment management group headquartered in Bermuda, has an office in Seoul which was opened in 2004," Ms Cox added. On behalf of their clients they are significant investors in Korean securities and as of today seven of their mutual funds invest in Korea. Their aggregate Korean investments are approximately $1 billion and they remain currently bullish on investment opportunities in Korea, as do I.

"In fact, I see this agreement as enhancing opportunities for further foreign direct investment between our two countries and a great step forward in cementing the relationship between Bermuda and Korea.

David Ezekiel, chairman of the Association of Bermuda International Companies, said: "Korea is fast becoming an economic powerhouse in the global economic landscape and the signing of the TIEA with Korea represents substantial progress."

Cheryl Packwood, chief executive officer of the Bermuda International Business Association, added: "We have tremendous respect for Korea and its business community and are hopeful that this agreement establishes a foundation for additional cooperation and economic progress."

Yesterday's statement from the Ministry of Finance said the proposed TIEA with Korea includes all standard means to ensure due process is followed in tax information requests to Bermuda, including, for example, provisions to protect the confidentiality of information provided, as well as adhering to public policy, provisions related to protecting legal privilege, and "anti-fishing" provisions to ensure that requests for information from Korea are relevant to ongoing tax investigations being conducted by Korean authorities.