JAKARTA — The Philippines and South Korea have inked a free trade agreement (FTA) on the sidelines of the 43rd ASEAN Summit in Indonesia, President Ferdinand Marcos Jr. confirmed on Thursday after his bilateral meeting with South Korean President Yoon Suk Yeol.

The FTA, which was being negotiated long before the COVID-19 pandemic, is expected to cut tariffs for select products to zero to boost commerce between the two parties.

“The FTA will strengthen our bilateral trade and investment relations with the Republic of Korea especially as it generates jobs and contributes to the Philippines’ value proposition as an ideal regional hub for smart and sustainable investments,” Marcos Jr. said in a recorded video statement.

“The signing of the FTA is a testament to the realization of the many opportunities for complementation and collaboration between the Philippines and South Korea, and an even greater milestone for our economic friendship,” he said.

The two countries concluded negotiations for the FTA in 2021, but the official signing was held off for several reasons.

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The signing of the FTA between Manila and Seoul “clearly demonstrates the shared commitment of both countries to their mutual economic growth and development,” the Filipino leader said.

Bilateral trade between the Philippines and South Korea amounted to $15.44 billion in 2022 alone, making South Korea the Philippines’ 4th largest trading partner, according to data from the Department of Trade and Industry.

Among the Philippines’ top exports to South Korea are integrated circuits, semiconductors, and bananas, among others.

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