Preliminary negotiations are building up to formal meetings between the two sides, which may begin by as early as next month, according to Kim Han-Soo, head of the Korean free trade bureau.

"The two sides are now taking their final steps ... and I think talks will begin during the first 10 days of next month," Kim told Forbes, a US business magazine.

Further talks on free trade are likely to receive mixed reaction in the country's food industry, which remains divided over the benefits of opening its sensitive markets to global competition, particularly in sectors like rice production.

Kim's comments comes just a month after the controversial signing of a free trade pact with the US, which met with violent protests from farmers over concerns for safety and domestic production.

The farmers were particularly concerned that an abolition of tariffs on US goods would lead to a glut of agricultural produce on the market, resulting in vastly reduced prices for their products.

However, the South Korean government appears keen to expand trade links to lucrative new markets like the EU, which according to the state-funded Korea Institute for International Economic Policy could lead to an initial rise in gross domestic product by two per cent.

Leonid Petrov, chair of Korean studies for French-based Sciences Po Asia Centre, believes that though the country's food industry may have less to gain from the EU than the US, the talks are likely to be much easier.

"Competition between the two parties over previous sticking points like rice markets is unlikely," Petrov told AP-Foodtechnology.com. "Korea is also growing a taste for Europe's wine and alcoholic products as well as raw ingredients and additives for food production."

Though the food trade may not be as contentious an issue for Korea and the EU as it was between the US, Petrov added that the talks may still face setbacks over some technological issues.

"I suspect talks over food trade can be concluded quite easily, though the issue of technology transfer and automotive products could yet hamper agreements made regarding agriculture and processing," he said.

Nonetheless, Korea's apparent desire to increase its participation within global trade could be vitally important for domestic food production in the country.

The US Department of Agriculture (USDA) estimated last year that South Korea now imports 60 per cent to 70 per cent of its total agricultural needs.

"Suppliers have a strong opportunity to export raw materials and ingredients for food processing in South Korea," the USDA stated in a report. "...Imports are necessary because domestic production cannot meet demand."

This demand is in part being driven by growing consumer expenditure on food products.

South Korea is expected to spend $54bn (€41bn) on food products in 2007, from $52bn (€39bn) in 2006, estimates Euromonitor.