South Korea and Malaysia have agreed to resume negotiations for a Free Trade Agreement (FTA).
The Ministry of Trade, Industry, and Energy announced on March 26 that Jung In-gyo, chief trade negotiator of the Ministry, met with Tengku Zafrul Aziz, the Minister of Investment, Trade, and Industry of Malaysia, in Malaysia to hold talks and declare the resumption of FTA negotiations between the two countries.
This declaration of resumption comes 4 years and 6 months after the 3rd official negotiation in September 2019. Both parties have agreed to conduct comprehensive negotiations by adding service, investment, digital, green, and bio sectors to the previously ongoing negotiations on goods.
Malaysia is ranked as the third-largest trading and fourth-largest investment partner among ASEAN countries for South Korea. The trade structure between the two countries is mutually complementary, with South Korea importing natural gas, semiconductors, and petroleum products from Malaysia, and exporting precision chemical materials, among others. The conclusion of an FTA between the two countries is expected to significantly strengthen South Korea’s trade and investment base with ASEAN.
Furthermore, the ministers of both countries agreed to establish a new platform for enhancing economic cooperation, named the South Korea-Malaysia Trade Ministerial Dialogue.
Following the agreement, Jung Ing-yo, chief trade negotiator, held a meeting with representatives from about 10 local companies to discuss investment incentives and customs clearance issues, thereby listening to the voices from the field.