Korea in 17 FTAs with 56 Countries
At present, South Korea is in a total of 17 free trade agreements (FTAs) with 56 countries, including the South Korea-U.K. FTA that took effect on Jan. 1. In 2019, South Korea’s trade with the 56 states accounted for approximately 70 percent of its total international trade. The ratio is expected to rise to 77.1 percent after the Regional Comprehensive Economic Partnership (RCEP) becomes effective in the second half of this year.
According to the Korea International Trade Association (KITA), the South Korean government made continuous efforts last year to expand the scope of its FTAs. The examples include the signing of the Comprehensive Economic Partnership Agreement (CEPA) with Indonesia and the initiation of talks with Cambodia as well as the FTA with the United Kingdom and the RCEP.
“After the Brexit, the U.K. customs authorities’ workload is likely to increase and South Korean companies need to pay heed to the possibility of delayed import clearance,” the KITA explained.
“The CEPA with Indonesia, which was signed last year, is expected to become effective within this year and the RCEP is likely to take effect in the second half after ratification in at least six out of the 10 ASEAN member states and at least three out of the five non-ASEAN members,” the association continued to say, adding, “With FTAs with major economic blocs concluded, South Korea needs to focus on FTAs with emerging economies such as Mercosur this year.”