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This paper intends to analyze the impacts of an FTA with European Union(EU) on major industries in Daegu-Gyeongbuk region and derive policy measures for the regional governments and those industries. The study begins with a comprehensive analysis on the development and outcomes of a Korea-EU FTA negotiation as well as the trade relations between EU and Daegu-Gyeongbuk region. Then this study investigates how the Korea-EU FTA affects the regional economy and major industries in Daegu-Gyeongbuk. The industrial structures of Korea and EU are complementary, implying that the cost of structural reform due to the FTA would not be so high, while the industrial effects of a Korea-EU FTA would be also very beneficial for Daegu-Gyeongbuk region. Especially, an FTA with EU would have positive impacts on major industries such as textile/clothing, electronics, steel/metal, and automobile components in the region. However, the Korea-EU FTA would adversely affects major products such as livestock/fruits/dairy products, precision machinery, precision chemical products in the region. Therefore, the regional government and industries should derive policy measures to make use of the FTA with EU as well as to minimize material injuries on the agriculture/livestock and machinery industries in Daegu-Gyeongbuk region.