SEOUL, November 17 (AJP) - South Korea is seeking to upgrade its free trade agreement with the Association of Southeast Asian Nations (ASEAN) to strengthen digital trade and ease regulatory hurdles for companies operating in the region, a senior government official said Monday.
Yeo Han-koo, South Korea’s chief trade negotiator, said the government plans to prioritize the removal of non-tariff barriers that have slowed South Korean firms’ entry into fast-growing ASEAN markets. He made the comments at the “2025 Mid-sized Enterprises International Cooperation Meet-up Day” in Seoul.
The event, co-hosted by the Federation of Middle Market Enterprises of Korea and the Korea Importers Association, focused on expanding overseas networks for mid-sized companies. While such firms make up just 1.3 percent of all South Korean businesses, they accounted for 21 percent of the nation’s exports to ASEAN last year.
Exports from mid-sized enterprises to ASEAN rose 7.6 percent in 2024, far outpacing the country’s overall export growth of 2.7 percent. Officials say the numbers underscore the sector’s growing role in diversifying South Korea’s export portfolio beyond its traditional dependence on semiconductors and heavy industry.
Yeo also met with ASEAN diplomats attending the event, including Malaysian Ambassador Zamruni Khalid, to discuss follow-up steps from last month’s South Korea–ASEAN summit in Malaysia.
A recent report from the Hyundai Research Institute said deepening business networks in ASEAN will require joint research and development in emerging industries such as artificial intelligence, as well as investments in logistics capabilities and cultural soft power to support long-term growth.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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