South Korea happens to be one of two major competitors

South Korea happens to be one of two major competitors Kevlar and fabrics like it are made of the same tough fibers, called aramids. DuPont (DD, Fortune 500) is the main manufacturer of Kevlar worldwide, but South Korea happens to be one of two major competitors in the aramids sector-the other is Japan. As the KORUS-FTA stands, South Korea could gain more share of the market for Kevlar-style materials.

IThe agreement, years in the making, must now be approved by both countries' legislatures. If it gets the O.K., South Korean purchasers will face taxes on foreign goods that will phase out over five years. U.S. purchasers of aramids, in contrast, will face no duties on foreign-made aramids as soon as the agreement is signed. That could prompt U.S. buyers to eschew domestic aramids and purchase Korean-spun fibers instead.

"The potential impact on new investment in the U.S. by DuPont during the next five years is substantial," writes Cass Johnson, the President of the National Council of Textile Organizations. He notes that South Korea has many companies that make aramids, while Dupont is the only aramid manufacturer in the U.S.