The South Korean government is accelerating negotiations to improve the Korea-ASEAN Free Trade Agreement (FTA), aiming for a substantial agreement by next year. The focus includes a new cooperation project linking key minerals and advanced industry supply chains, as well as expanding economic collaboration through the transition to artificial intelligence (AI) in manufacturing.
The Ministry of Trade, Industry and Energy announced that Park Jeong-sung, head of the Trade Negotiation Headquarters, attended the ASEAN-related Economic Ministers' Meeting held in Manila, Philippines, on September 20-21, where he discussed FTA improvements, supply chain cooperation, and strengthening regional economic collaboration.
On September 20, Park reviewed the progress of the FTA improvement negotiations during the 23rd Korea-ASEAN Economic Ministers' Meeting. The two sides have been negotiating since the official declaration to start talks at last year's summit, focusing on 13 areas including key minerals and supply chains, digital trade, and intellectual property rights. Following the first round of negotiations held in Seoul in June, the second round is scheduled for later this month in Singapore.
Park emphasized the need to modernize regulations in the digital and key mineral supply chain sectors and to introduce higher trade standards than existing agreements such as the Regional Comprehensive Economic Partnership (RCEP). He also proposed cooperation in the transition to AI in manufacturing.
Trade between Korea and ASEAN has tripled since the FTA came into effect, rising from approximately $71.8 billion in 2007 to $204.7 billion last year. During the same period, South Korea's direct investment in ASEAN increased from about $3.4 billion to $9.7 billion. Park suggested that this production and investment network could serve as a foundation for both sides to develop as 'partners in the AI transition for manufacturing.'
As a new cooperation initiative, he introduced the 'Korea-ASEAN Key Minerals and Advanced Industry Supply Chain Partnership (PRISM),' which aims to connect the complementary strengths in key minerals, manufacturing, and technology held by Korea and ASEAN to enhance supply chain stability and industrial advancement.
During the East Asia Summit (EAS) Economic Ministers' Meeting, participants discussed responses to changes in the regional and global trade environment. The ASEAN+3 Economic Ministers' Meeting, which includes ASEAN, South Korea, China, and Japan, reviewed cooperation outcomes in 12 areas, including trade, investment, joint research, and support for small and medium-sized enterprises, and finalized the direction for economic cooperation focusing on future growth areas such as the digital economy and AI for 2027-2028.
At the fifth RCEP Ministerial Meeting, the establishment of a working group for new membership applications was approved, and the general review process for discussing agreement improvements was officially initiated. The countries applying for membership include Hong Kong, Sri Lanka, Chile, Bangladesh, and Uruguay. South Korea stated that as the co-chair of RCEP with ASEAN next year, it will promote the expansion of new memberships and the introduction of norms in supply chains, digital, and green economy sectors, as well as enhance the utilization of the agreement by businesses.
During the meetings, Park also held bilateral talks with representatives from the United States and Singapore. He discussed follow-up plans regarding the U.S. Trade Representative's Section 301 investigation with Deputy USTR Rick Switzer and the implementation plans of the joint statement issued by the leaders of both countries last November.
With Singapore's Deputy Prime Minister and Minister of Trade and Industry Gan Kim Yong, he agreed to reflect changes in the trade environment in the Korea-Singapore and Korea-ASEAN FTA improvement negotiations, and to jointly lead new trade norms through multilateral agreements such as the Digital Economy Partnership Agreement (DEPA) and the Green Economy Agreement (GEPA).
The Ministry of Trade, Industry and Energy stated, 'We plan to strengthen follow-up support for the cooperation projects discussed at this meeting and to identify specific projects through PRISM,' adding that it will continue discussions with ASEAN in preparation for the upcoming ASEAN Summit in November.
* This article has been translated by AI.
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