Thailand plans to hold talks on a free trade agreement (FTA) with South Korea in the middle of this year, with negotiations expected to be concluded by the end of 2025 or early 2026.
The Thai-South Korea economic partnership agreement (EPA) was signed yesterday by Chotima Iemsawasdikul, director-general of the Trade Negotiations Department, and Keonki Roh, deputy minister for trade negotiations in South Korea's Ministry of Trade, Industry and Energy (MOTIE).
Following the signing, Commerce Minister Phumtham Wechayachai said the EPA can serve as a bilateral FTA between Thailand and South Korea.
The upcoming FTA negotiations are considered the first to begin under Prime Minister Srettha Thavisin's administration.
Thailand recently concluded FTA negotiations with Sri Lanka, signing a deal last month.
A new pact would build upon the existing Asean-South Korea FTA and the Regional Comprehensive Economic Partnership, said Mr Phumtham.
The FTA is expected to enhance Thailand's competitiveness and attract more investments from South Korea to Thailand, including in the fields of electric vehicles, auto parts and information technology.
An agreement could also foster cooperation in emerging areas such as digital trade and supply chains, he said.
Products from Thailand expected to benefit from the EPA include frozen and processed chicken, frozen and processed seafood, tropical fruit (such as mangoes, guavas and mangosteens), sauces and seasonings, wood products (such as processed wood, particle board and plywood) and chemical products.
Service segments expected to benefit include transport, warehousing, and hotels and restaurants.
Mr Phumtham said MOTIE informed him South Korea recently announced a new trade strategy, aiming to develop FTAs with key trading partners with vast and complementary economic potential, which includes Thailand.
South Korea is Thailand's 12th-largest trading partner.
Last year the value of trade between Thailand and South Korea totalled US$14.7 billion, divided into exports worth $6.07 billion and imports worth $8.67 billion.
Key Thai exports included raw sugar, refined oil products, rubber products, electronic circuits and aluminium products.
Thai imports included iron and steel products, electronic circuits, chemicals, and machinery and components.