South Korea published the Korean-language text of its free trade agreement (FTA) with the Gulf Cooperation Council (GCC) on Friday and opened a public consultation period. The FTA, concluded in Dec. 2023, aims to boost South Korean exports to the Middle East while reducing tariffs on energy imports.

South Korea’s trade ministry stated the FTA document will be available on the government’s trade website until March 5, allowing public feedback on translation accuracy and potential revisions. The agreement, covering automobiles, petrochemicals, machinery and digital trade, is expected to be finalized after legal review and a formal signing with GCC member states, which include Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman.

WHY IT MATTERS

The South Korea-GCC FTA offers significant cost savings for key domestic industries by lowering tariffs on crude oil, liquefied natural gas and petrochemical feedstocks — critical inputs for South Korean refineries, semiconductor plants and chemical manufacturers. While this will likely reduce energy costs, it may further deepen Seoul’s vulnerability to Middle Eastern instability.

Beyond energy, the FTA gives South Korean exporters an edge over regional competitors, such as notably Japan and China, neither of which have a GCC trade deal. As the U.S. moves to impose new tariffs on its global trade partners, securing alternative markets in the Middle East may help to cushion the blow. The elimination of tariffs on South Korean automobiles, medical devices and cosmetics could drive export growth.