UPDATE 1-EU plans to sign $100 bln S.Korea trade pact in '09

* Swedish EU presidency plans to conclude S. Korea pact

* Free-trade agreement estimated to be worth $100 bln

* Diplomats see initialling of deal in September

* EU carmakers remain opposed, BusinessEurope in favour

(Adds details, background)

By Veronica Ek and Darren Ennis

STOCKHOLM/BRUSSELS, July 13 (Reuters) - The European Union plans to finalise a $100 billion trade pact with South Korea by the end of the year, the prime minister of EU president Sweden said on Monday.

"The finalisation of the agreement will follow during the Swedish presidency," Prime Minister Frederik Reinfeldt told a news conference in Stockholm following talks with South Korean President Lee Myung-bak.

The agreement with Seoul to lower barriers to trade and investment would be the EU's first such pact in Asia. The EU is South Korea's second largest export market after China, and South Korea is the EU's fourth largest non-European trade partner with bilateral trade reaching $98.4 billion in 2008.

Trade officials from the 27-nation bloc gave their tentative assent for the European Commission -- which oversees EU trade policy -- to complete negotiations with a view to initialling the deal in September.

The pact is estimated to be worth an additional $100 billion to the two economies.

"We had a breakthrough in the negotiations last week. That's why I signalled I have good hope to finalise this during the presidency," Reinfeldt, whose country assumed the six-month rotating stewardship of the EU this month, said.

Brussels and Seoul began negotiations in 2007 to scrap import duties and other barriers in industries including pharmaceuticals, consumer electronics and cars.

But efforts to clinch the so-called free-trade agreement (FTA) were stymied by some countries concerned that the deal to open EU markets to South Korean producers would severely damage Europe's ailing car industry.

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