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New free trade deal between South Korea, Turkey to go into effect this week

Staff Writer |
A new free trade pact covering the services and investment sectors between South Korea and Turkey will go into effect this week, the government in Seoul said Tuesday.

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South Korea and Turkey implemented a free trade agreement (FTA) that eliminated trade barriers for goods in 2013, and the new deal covering services and investment sectors was signed in early 2015.

Since then, the two sides have held talks to finalize the expanded FTA.

When the updated agreement goes into force Wednesday, it will help South Korean firms make inroads into Turkey's movie and construction markets, according to the Ministry of Trade, Industry and Energy.

The new agreement is also expected to help protect South Korean firms doing business in the country that straddles Asia and Europe.

Trade volume between the two nations stood at US$6.12 billion in 2017, up 17.2 percent from 2012, according to the trade ministry.

South Korea's exports to Turkey rose 18.2 percent from 2012 to $5.38 billion in 2017, thanks to growth in auto parts, chemical products and machinery, data showed.

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