(BRUSSELS) - The EU and South Korea have agreed to speed up talks on a free trade pact in the hope of finalising a deal this year, a European official said Thursday at the end of a fresh round of discussions.

However there were no signs of a significant breakthrough following the four days of negotiations in Brussels, including talks between EU Trade Commissioner Peter Mandelson and the Korean Trade Minister Kim Jong-hoon.

"Both sides are convinced that on the basis of the progress made during this round that it is feasible and desirable to conclude the EU-Korea FTA (Free Trade Agreement) negotiations during the course of 2008," said EU lead negotiator Ignacio Garcia Bercero.

"Both sides agree to accelerate the process so as to reach agreement as early as possible."

The EU's executive arm said Seoul also signalled its readiness to examine "enhanced protection" for geographical indications (GIs) -- special area marques such as Champagne and Parma ham.

On the other hand the Korean delegation raised the the issue of the EU's rules of origin, which govern the import of products into the EU produced in more than one country.

"Both sides have achieved a better understanding of each other's positions, and the EU intends to present a compromise proposal to Korea," the Commission said.

The thorny issues of tariffs for industrial goods, including passenger cars, and the automotive non-tariff barriers were also discussed by the two chief negotiators.

"The gap in the respective positions remains. However, both sides recognise the need to come to a common understanding," the Commission said.

Seoul has said it would remove all tariffs on industrial goods within three years with some exceptions and eliminate tariffs on roughly 68 percent of all EU goods as measured by value in three years.

The EU has complained that Seoul's offer falls short of the accord it signed with the United States last June, which is awaiting ratification by the legislatures of both countries.

A free trade pact with the United States will help South Korea weather tough economic times ahead, the Seoul government said Thursday, as political opponents vowed to block the deal.

In Europe, auto trade is a major issue. South Korea sold 74,000 autos in Europe in 2006 while buying only 15,000. Brussels wants Seoul to apply international technical standards for imports instead of stricter domestic rules.

South Korea, whose manufacturers are outsourcing to China to cut costs, wants the EU to ease country-of-origin rules requiring 60 percent of a finished item to be made in that country.

A free trade pact with the EU, its second largest trading partner after China, would be the largest ever for South Korea. Total trade was worth 89.8 billion dollars last year.

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