South Korea, Cambodia Increase Trade, Investment Through FTA

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South Korea and Cambodia agreed Friday to boost bilateral trade and investment by maximizing their free trade agreement (FTA), which took effect last month, the South's industry ministry said. Discussions regarding these efforts were carried out in a business and investment forum held in Seoul. The forum brought together South Korean Trade Minister Ahn Duk-geun and Cambodian Trade Minister Pan Sorasak, said the South Korean Ministry of Trade, Investment and Energy. The forum was also attended by government officials and business representatives from the two countries.

Bilateral free trade agreements (FTAs) take effect from December 1, 2022.

The agreement promotes market opening to a higher level compared to the existing South Korea-ASEAN FTA as well as the Regional Comprehensive Economic Partnership (RCEP) multilateral trade pact, the ministry said.

RCEP is a regional trade pact involving 10 ASEAN countries and their dialogue partners, namely South Korea, China, Japan, Australia and New Zealand.

"The bilateral agreement provides the foundation for the expansion of bilateral trade in various sectors from textiles and clothing to automobiles and machinery, as well as from agro to food from fisheries," Ahn told the forum.

"The two countries will be able to further strengthen cooperation in the areas of digital economy, clean energy, and various other sectors to help advance Cambodia's industrial structure, and jointly achieve net-zero goals," he said, adding.

Ahn also said South Korea would support Cambodia's technological development through official development assistance programs.

Bilateral trade between South Korea and Cambodia will reach US$1.05 billion (around Rp.15.7 trillion) in 2022.

This figure represents a drastic increase from US$54 million (around Rp.809.4 billion) in 1997, when the two countries re-established diplomatic relations in 1997, according to government data.

South Korea and Cambodia initially established diplomatic relations in 1970, but ties were severed in 1975 when Cambodia turned to communism.