Prime Minister Han Duck-soo speaks during a policy coordination meeting on Aug. 22 at the Government Complex-Seoul in the Jongno-gu District of the capital. (Yonhap News)

By Koh Hyunjeong

The number of partners signing free trade agreements (FTA) with Korea will increase to 77, which generate 90% of the world’s gross domestic product (GDP), within President Yoon Suk Yeol’s term.

The government announced on Aug. 22 the implementation of trade policy measures by stages at a policy coordination meeting in Seoul. This is a blueprint for the country to expand its horizon for economic cooperation to countries in "global south" regions such as members of the Association of Southeast Asian Nations (ASEAN), and nations in Africa, Central and South America, and Central Asia.

As of last year, Korea had signed FTAs with 59 countries that generate 85% of global GDP. If the government’s plan is implemented, the country will be able to outperform Singapore whose top FTA network comprises countries generating 87%, as a relay trade country.

Some of the target regions are Mongolia, Pakistan, Bangladesh, Tanzania and Morocco. These countries are considered partners for the Economic Partnership Agreement because they can serve as strategic bases for production and exports, while diversifying Korea’s supply chain for core minerals.

Prime Minister Han Duck-soo said, "The role of trade is crucial as the economy has a relatively small domestic market," urging related ministries to take proactive actions to deal with changes in the trade environment.

On Aug. 23, the Ministry of Trade, Industry and Energy signed a Trade and Investment Promotion Framework (TIPF) with its Paraguayan counterpart in Seoul. Right after the signing ceremony, the countries’ trade ministers held a summit to exchange views on using the TIPF to widen bilateral cooperation in the economic, industrial and energy sectors, and making progress in the Korea-MERCOSUR (Southern Common Market) Trade Agreement (TA) talks.

hjkoh@korea.kr