About ASEAN-KOREA FTA
Korea is the second Dialogue Partner with whom ASEAN has forged a free trade agreement. In 2005, ASEAN and Korea signed the Framework Agreement on Comprehensive Economic Cooperation (Framework Agreement), and subsequently, signed four (4) more agreements that form the legal instruments for establishing the ASEAN-Korea Free Trade Area (AKFTA).
The establishment of the AKFTA creates an opportunity for the 670 million people of ASEAN and Korea with a combined GDP of USD 2.9 trillion through a more liberal, facilitative market access, and investment regimes among the Parties of the AKFTA.
Seven Important Facts of ASEAN-Korea Economic Relations
- ASEAN and Korea first initiated sectoral Dialogue relations in 1989 and Korea became full Dialogue Partner of ASEAN in 1991
- ASEAN and Korea maintain close political cooperation on bilateral, regional, and international issues through existing mechanisms such as, among others, the ASEAN Regional Forum (ARF), ASEAN Plus Three (APT), East-Asia Summit (EAS), ASEAN-ROK Summit, and Ministerial Meetings
- ASEAN and Korea are also members of organizations such as the Asia-Pacific Economic Cooperation (APEC), East Asia-Latin America Cooperation (EALAF) and the Asia-Europe Meeting (AEM)
- Bilateral trade volume between Korea and ASEAN nearly tripled from 2001-2010 from US$32 billion to US$98.1 billion
- In the first year period of ASEAN Korea Trade in Goods implementation, trade volume increased over 23%
- In 2010, Korea remains as ASEAN's fifth largest trading partner, while ASEAN was the second largest trading partner of Korea
- Korean visitors to ASEAN countries increased several folds from 1.1 million in 1995 to 3.285 million in 2010.
Parties to the ASEAN-Korea FTA are Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, The Philippines, Singapore, Thailand, Vietnam and Korea.
Entry into Force
Three major Agreements under the ASEAN-Korea FTA have been entered into force and implemented by ASEAN andKorea.
- The ASEAN-Korea Trade in Goods Agreement entered into force in June 2007
- The ASEAN-Korea Trade in Services Agreement entered into force in May 2009
- The ASEAN-Korea Investment Agreement entered into force in June 2009