The agreement, which comes after about two years of negotiations, was signed in Belgrade by South Korean Trade Minister Yeo Han-koo and his Serbian counterpart Jagoda Lazarević.
The broader deal goes beyond tariff reductions to include economic and supply-chain cooperation, opening new opportunities for exports and access to critical minerals used in batteries and other strategic industries.
Despite its relatively small population of seven million, Serbia has become an increasingly important manufacturing hub in Southeast Europe. It also holds significant reserves of lithium, copper, zinc and other minerals used in batteries and other high-tech industries.
Under the agreement, the two countries will eliminate tariffs on more than 90 percent of traded goods, covering over 96 percent of import value.
It is expected to particularly benefit South Korean technology exporters, as Serbia, which is not part of the World Trade Organization's Information Technology Agreement (ITA), has agreed to eliminate tariffs of up to 25 percent on semiconductors and electronic products.
South Korean automakers are also set to benefit, with tariffs on all automotive parts to be removed immediately and market access expanded for electric and hybrid vehicles.
Broader access to the Serbian market will be available, with tariffs to be removed on South Korean exports including instant noodles, roasted seaweed, ginseng, cosmetics, pharmaceuticals and defense-related goods.
Beyond trade, the agreement is expected to strengthen supply chains for advanced industries. Tariffs on Serbian raw materials, including lithium, cobalt, nickel, graphite and rare-earth elements, will be eliminated either immediately or phased out within five years, supporting South Korea's battery and advanced manufacturing sectors.
It would improve business efficiency, with imported goods cleared within 48 hours of arrival and express shipments processed within six hours. It also includes measures to strengthen intellectual property protection, including efforts to curb online infringement.
"The agreement marks a major step forward in economic cooperation between South Korea and Serbia," Yeo said. "It creates a platform for collaboration not only in trade but also in supply chains, energy, critical minerals and future industries such as AI and biotechnology."
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