Korea-Philippines Free Trade Agreement to Take Effect on Dec. 31

The Korea-Philippines Free Trade Agreement (FTA) is set to officially take effect on December 31, 2024, marking a significant milestone in the bilateral relationship between the two nations. The South Korean Embassy in Manila announced the development as part of the 75th anniversary of diplomatic ties and the strategic partnership established in October.

Trade and Investment Opportunities

The FTA provides a comprehensive framework covering 97% of imports, paving the way for expanded trade and investment opportunities across sectors such as agriculture, industry, infrastructure, and energy.

• For the Philippines:
  • Goods like bananas and pineapples are expected to gain improved access to South Korea’s lucrative market.
• For South Korea:
  • Businesses are anticipated to invest heavily in the Philippines, particularly in advanced manufacturing industries, including automobiles, electronics, and renewable energy.

This increased investment is projected to generate high-quality jobs and foster economic growth in the Philippines.

Strategic and Economic Impact

Ambassador Lee Sang-hwa, the Korean Ambassador to the Philippines, underscored the FTA’s strategic importance, calling it “the beginning of a new chapter” in the partnership between the two nations.

Ambassador Lee also noted the swift implementation of the FTA—launched a year earlier than initially planned—was a testament to the dedication of both governments.

Expanding Collaboration

Beyond trade and investment, the FTA is set to strengthen cooperation in emerging fields, including:

• Healthcare
• Carbon reduction
• Electric vehicle initiatives
• Cutting-edge technologies

Ambassador Lee expressed optimism about the agreement’s potential, emphasizing South Korea’s eagerness to work closely with the Philippines to maximize the benefits of the partnership.

The FTA heralds a new era of collaboration, fostering deeper economic ties and aligning with shared goals for sustainable development and technological progress.