PH-Korea free trade deal to take effect on Dec. 31

Metro Manila, Philippines— The landmark Philippines-Korea Free Trade Agreement (FTA) is set to come into force on Dec. 31, marking a significant milestone in the strategic partnership between the two countries.

The trade deal will kick off a year earlier than scheduled, said the Korean embassy on Monday, Dec.23.

The FTA, which covers 97% of imports, aims to strengthen trade and investment across key sectors such as agriculture, industry, infrastructure, and energy.

Philippine agricultural exports, including bananas and pineapples, will gain enhanced market access in Korea.

Meanwhile, Korean investments are anticipated to bolster the Philippines’ economic growth through expanded ventures in advanced manufacturing sectors, such as automobiles, electronics, and energy.

Beyond trade, the agreement seeks to drive collaboration in future-forward industries like healthcare, carbon reduction, innovative technologies, and electric vehicles.

Korean Ambassador to the Philippine Lee Sang-hwa said the FTA represents the evolving bilateral partnership.

“The entry into force of the Korea-Philippines FTA marks the dawn of a new era in our strategic partnership,” he said.

“The Korean government will actively collaborate with the Philippine government to ensure that the FTA realizes its maximum potential in strengthening economic ties and fostering deeper cooperation between our two nations,” he added.