Ministry of Trade, Industry and Energy

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.