South Korea and Thailand held their first official negotiation for their Economic Partnership Agreement (EPA) in Bangkok from Tuesday to Wednesday. The agreement aims to enhance market access and cooperation between the two countries, with discussions covering various sectors, including goods, services, investment, digital, government procurement, intellectual property rights and cooperation.

The South Korean delegation, led by Roh Keon-ki, deputy minister for free trade agreement (FTA) negotiations, sees the EPA as an opportunity to boost the competitiveness of Korean exporters and small and medium-sized businesses (SMEs) in the Association of Southeast Asian Nations (ASEAN) region, particularly in Thailand, which is the second-largest economy and largest manufacturing hub in the region. The two countries, already part of the ROK-ASEAN FTA and the Regional Comprehensive Economic Partnership (RCEP), seek to further improve trade and economic cooperation through this customized agreement.

WHY IT MATTERS

The EPA negotiation is the latest step in South Korea’s efforts to strengthen ties with ASEAN countries, aligning with President Yoon Suk-yeol’s Indo-Pacific Strategy. The agreement could serve as a gateway for Korean SMEs to expand their presence in the region. This follows South Korea’s successful FTA with Vietnam in 2015 and the elevation of their relationship to a “comprehensive strategic partnership” in Dec. 2022.

The EPA may ease labor movement between the two countries, addressing labor shortages faced by South Korean shipbuilding companies. The South Korean and Thai labor ministries discussed increasing the quota for Thai workers in the ROK, highlighting the potential benefits of the agreement.

Additionally, the negotiations may help reinvigorate cultural and people-to-people exchanges, which have been strained due to Thai tourists boycotting visiting South Korea amid reports that South Korean customs officials denied entry to Thai nationals at the border.