Ministry of Trade, Industry and Energy

Effective tariff rate on U.S. imports remains close to 0% under the Korea-U.S. FTA

Regarding the memorandum on reciprocal trade and tariffs announced by the Trump administration on February 14, 2025 (KST), multiple foreign media outlets have reported that Korea's tariff rate on U.S. imports is approximately 13.6%, following Mexico and Canada.   According to the World Tariff Profile (July 2024), Korea's average Most Favored Nation (MFN) tariff rate is approximately 13.4%. However, Korea has established free trade agreements (FTAs) with many of its major trading partners, significantly reducing the effective tariff rates on imports from these countries.   In the case of the United States, Korea signed an FTA in June 2007 (effective March 2012). As of 2024, the average tariff rate on imports from the U.S. is approximately 0.79% based on the effective tariff rate before duty refunds. When duty refunds are considered, the effective rate is even lower and is expected to decline further in 2025 under the scheduled tariff reduction plan. For reference, under the Korea-U.S. FTA, tariffs on manufactured goods imported from the United States are 0%. date2025-02-14

Joint press release on the substantial conclusion of discussions for Costa Rica’s accession to the Digital Economy Partnership Agreement

The Parties to the Digital Economy Partnership Agreement (DEPA) are pleased to announce that substantive discussions for Costa Rica to accede to this world-leading digital trade agreement have substantively concluded.   Digitally signed in 2020 by Chile, New Zealand and Singapore, the DEPA is the world’s first standalone digital trade agreement, representing a leading-edge form of economic engagement and trade in the digital era. It reinforces commercially meaningful trade rules, establishes new approaches and collaborations in digital trade issues, promotes interoperability between different settings, and addresses the new issues brought about by digitalisation. It is designed to be an inclusive framework, open to economies that meet the high standards of the Agreement. The Republic of Korea joined the Agreement on 3 May 2024, the first new member economy to do so.   Costa Rica formally requested accession to the DEPA on 23 December 2022, and an Accession Working Group to assess this request was established on 6 October 2023. This Accession Working Group, chaired by New Zealand, has agreed that Costa Rica has demonstrated the means by which it will comply with the DEPA’s high standards, as well as a commitment to working collaboratively on projects of mutual interest, in areas such as electronic invoicing, consumer protection, and cross border data transfers.   The DEPA Parties will now work with Costa Rica to finalise its accession process in a timely manner consistent with each Party’s domestic procedures and the DEPA Accession Process.   Chile’s Vice Minister of International Economic Relations Claudia Sanhueza said, “We are delighted to announce, together with the other DEPA members, the substantive conclusion of Costa Rica's negotiations for its accession. Chile is pleased with this achievement, which will undoubtedly enhance the agreement's impact by extending its high digital economy standards to new members, this time to a Latin American country. Costa Rica has demonstrated remarkable dedication and commitment throughout this process, and we look forward to collaborating on projects of mutual interest for our countries.”   New Zealand’s Minister for Trade Hon. Todd McClay said, “New Zealand is pleased that Costa Rica is on track to become the DEPA’s next member. Costa Rica shares our commitment to progressive, high-quality digital trade rules and aligns with DEPA’s vision. Their accession will strengthen DEPA as a leading agreement and attract other like-minded economies with similar ambitions in the digital economy."   Singapore’s Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said,  “As the second aspirant economy to accede to the DEPA, Costa Rica will add to the dynamism and diversity of the Agreement, reinforcing the DEPA’s standing as an open, relevant, and inclusive plurilateral agreement for digital trade rules. Singapore, together with DEPA Parties, looks forward to collaborating with Costa Rica to foster an enabling environment for digital trade to thrive. I welcome Costa Rica as the fifth Party to the DEPA and look forward to our continued partnership.”   The Republic of Korea’s Minister for Trade Cheong Inkyo said, “Korea is delighted to see the successful conclusion of substantive discussions for Costa Rica’s accession to the DEPA. This milestone highlights the growing importance of the DEPA in shaping global digital trade rules and enhancing cooperation. We expect that Costa Rica’s accession to the DEPA will unlock new opportunities for digital trade cooperation between DEPA member countries and Costa Rica.”   Costa Rica’s Minister of Foreign Trade Manuel Tovar said, “Costa Rica’s successful conclusion of accession negotiations to the DEPA marks a date2025-01-24

Public and private sectors join hands in preparations for APEC 2025

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea attended the launching ceremony of the private steering committee (“Committee”) for the Asia-Pacific Economic Cooperation (APEC) CEO Summit Korea 2025 to take stock of preparations and Committee plans and encouraged business leaders’ active cooperation for Korea’s successful hosting of this year’s APEC Economic Leaders' Meeting (AELM). The Korea Chamber of Commerce and Industry (KCCI) plans to establish a private support system for the successful hosting of the APEC CEO Summit and other AELM events held on the margins of the 2025 APEC Summit in Gyeongju. The Committee is led by KCCI Chairman Chey Tae-won and composed of Korea’s leading CEOs representing the country’s major industries. Committee members will be leveraging the networking capacity of their overseas supply chain businesses to promote the participation of promising global business leaders. To increase the participation of global business leaders in AELM events this year, MOTIE plans to carry out promotion activities at home and abroad through related organizations such as overseas missions and the Korea Trade-Investment Promotion Agency (KOTRA). With Korea resuming the APEC chairmanship in 20 years, MOTIE aims to make use of the opportunity to facilitate discussions for cooperation in new trade areas like sustainable development, supply chains, artificial intelligence (AI), and digital, while also furthering the existing discourse on trade cooperation including ways to strengthen the multilateral trade system and free trade.   date2025-01-23

Experts discuss future Korea-ASEAN cooperation at Indo-Pacific policy forum

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea held an Indo-Pacific policy forum today in Seoul to discuss measures for Korea-ASEAN cooperation in light of the newly inaugurated U.S. administration by forecasting overall impact on ASEAN, which is not only a key region in the Global South but also home to approximately 40 percent of all Korean companies operating in overseas markets. Hosted by MOTIE and organized by the Korea University ASEAN Center (KUAC), today’s forum was launched with the participation of ASEAN experts from academia and research institutes to take stock of the Korea-ASEAN economic cooperation outcomes and discuss future cooperation. They also touched on issues like global oversupply and strategic response measures against trade risks. On launching the ASEAN-ROK Think Tank Dialogue on Economic & Trade Policy (AKTD) during the first quarter of 2025, MOTIE will be utilizing the dialogue as a new Korea-ASEAN trade and economic cooperation channel, while continuing to support the stable business activities of Korean firms in the ASEAN market by closely communicating with relevant governments and industries.   date2025-01-23

10th subsequent negotiating round of Korea-China FTA for services and investment

Director General for FTA Negotiations Kwon Hye-jin at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea led the Korean delegation in the 10th subsequent negotiating round of the Korea-China Free Trade Agreement (FTA) for services and investment through January 15–17 in Seoul. date2025-01-21

Korea and China hold 10th round of subsequent negotiations on bilateral FTA for services and investment

Director General for FTA Negotiations Kwon Hye-jin at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea is leading the Korean delegation in the 10th subsequent negotiating round of the Korea-China Free Trade Agreement (FTA) for services and investment through January 15–17 in Seoul. Chen Zhiyang, Deputy Division Director of the Department of International Trade and Economic Affairs at China’s Ministry of Commerce, is the chief delegate for the Chinese delegation. A total of 40 delegates from both countries are participating in the negotiations. Following the bilateral FTA’s entry into force in 2015, Korea and China launched subsequent negotiations on services and investment in March 2018 in accordance with the FTA guideline and have maintained discussions through official negotiating rounds as well as intersessional and chief delegate meetings. The 10th round is the first official round to take place since the ninth official negotiating round convened in 2020. In this round, the Korean government aims to accelerate discussions for upgrading the bilateral FTA in areas like service, investment, and finance.   date2025-01-16

Korea and Pakistan jointly declare launch of negotiations for bilateral EPA

Trade Minister Inkyo Cheong of the Republic of Korea and Pakistan’s Federal Minister of Commerce Jam Kamal Khan jointly declared the launch of negotiations for the bilateral Korea-Pakistan Economic Partnership Agreement (EPA) on January 9 in Seoul. date2025-01-13

Korea and Pakistan to launch negotiations for bilateral EPA

The negotiations for an Economic Partnership Agreement (EPA) with Pakistan, South Asia's second-largest market, officially commenced, marking the start of efforts in 2025 to further expand Korea's export base through strengthened trade networks. Minister for Trade Inkyo Cheong of the Republic of Korea and Pakistan’s Federal Minister of Commerce Jam Kamal Khan formally announced the initiation of the Korea-Pakistan EPA negotiations on the morning of January 9 in Seoul. Pakistan, the world’s fifth most populous country, boasts abundant labor resources (population of 250 million, 30% youth demographic) and natural resources (coal, natural gas, copper). Strategically located in South Asia, it serves as a key potential market with borders connecting to major Asian economies like China and India. Expanding trade and investment through the Korea-Pakistan EPA is expected to yield mutual benefits, securing an export growth market for Korea and contributing to Pakistan's stable economic development. Furthermore, as the Pakistani government actively promotes policies to foster its digital, IT, and automotive industries for economic growth, opportunities for collaboration in these sectors—where Korea excels—are anticipated to expand significantly. Trade Minister Cheong remarked, “Amid heightened uncertainties due to the rapid shifts in the trade environment following the inauguration of the new administration and the weakening of the multilateral trade system under the WTO, the importance of FTAs is growing even more significant.” He added, “Starting with Pakistan, we aim to broaden our trade networks this year, focusing on emerging markets in the Global South.” Following the commencement of negotiations for an EPA with Bangladesh in November last year, today’s launch of negotiations with Pakistan is expected to lay the groundwork for long-term partnerships with key South Asian nations that demonstrate significant growth potential.   date2025-01-09

Korea-Nepal TIPF MOU signing ceremony

Minister for Trade Inkyo Cheong of the Republic of Korea attended the Korea-Nepal Trade and Investment Promotion Framework (TIPF) MOU signing ceremony on December 19 in Seoul at KCCI in Seoul with Nepalese Minister of Industry, Commerce and Supplies Damodar Bhandari. date2024-12-20

Korea and Nepal sign TIPF & launch business forum marking half-century of diplomatic relations

Minister for Trade Inkyo Cheong of the Republic of Korea attended the Korea-Nepal Business Forum and the Korea-Nepal Trade and Investment Promotion Framework (TIPF) MOU signing ceremony today in Seoul at the Korea Chamber of Commerce and Industry (KCCI) in Seoul, held on the occasion of Nepalese Minister of Industry, Commerce and Supplies Damodar Bhandari’s visit to Korea. Co-hosted by Korea’s Ministry of Trade, Industry and Energy (MOTIE) and Nepal’s Ministry of Industry, Commerce and Supplies through joint organization by the KCCI and the Embassy of Nepal in Korea, today’s events were held with the participation of approximately 80 business leaders of both countries and served as a venue for discussions on the investment environment in Nepal, market entrance strategies, and bilateral cooperation measures. In his congratulatory message, Trade Minister Cheong stated that this year is a prime time to advance the bilateral economic cooperation a step further as it marks the 50th anniversary of the two countries’ establishment of diplomatic ties, proposing that Korea and Nepal step up exchanges for trade and investment expansion as well as the diversification of industrial collaboration based on the TIPF signed today. The TIPF with Nepal is Korea’s 29th in total and second with a Southwest Asian country following the one with Bangladesh, and is believed to help widen investment and trade with the Global South countries. Today’s Korea-Nepal Business Forum is significant in that both countries can secure fresh momentum for economic cooperation in commemoration of the 50th anniversary of diplomatic relations. Going forward, MOTIE plans to leverage various government channels to help Korean firms engage in stable business activities in Nepal.   date2024-12-19