[Dynamic Economic Roadmap] "Expand Export Territory for Sustainable Growth"... Aiming to Become the No.1 FTA Country by 2027

Global Network Expansion
New FTA Agreements & Existing FTA Upgrades
Becoming 3 Major Business Hubs in Asia-Pacific

The government has decided to pursue an active trade policy aiming to become the world's number one in free trade agreements (FTAs) by 2027. While concluding new FTAs, it will also advance existing FTAs. Additionally, it has set a goal to elevate Yongsan as one of the three major business hubs in the Asia-Pacific region.

The 'Dynamic Economy Roadmap' announced by the government on the 3rd includes such plans to expand the global network.

Cargo containers are stacked at Pyeongtaek Port as seen from the air. [Aerial shooting cooperation=Seoul Metropolitan Police Agency Aviation Unit, Pilots: Lieutenant Shin Seung-ho - Lieutenant Park Ji-hwan, Crew: Lieutenant Park Sang-jin] Photo by Kang Jin-hyung aymsdream@

The government's intention to expand its global network stems from the judgment that market expansion is essential for the sustained growth of the Korean economy, which is highly dependent on exports. Korea has realized economies of scale on the global stage and advanced to a country with a per capita income of $30,000 through participation in the General Agreement on Tariffs and Trade (GATT) in 1967, joining the World Trade Organization (WTO) in 1995, and concluding FTAs with major countries. As of last year, exports to countries where FTAs are in effect (a total of 59 countries) accounted for 81.8% of total exports. Expanding the playing field for exports and investment is thus a necessary condition for sustained growth.

However, amid intensifying strategic competition among major countries, the rise of protectionism, and fragmentation and reorganization of global supply chains, there is a risk that failure to respond strategically could undermine growth momentum. Accordingly, the government aims to strengthen growth momentum through the expansion of the global network.

First, the government plans to carry out multi-layered trade cooperation in new areas and emerging regions, including the advancement and expansion of FTAs. This involves bilateral and multilateral cooperation mediated by FTAs, the formation of new trade norms in new fields, and pursuing various cooperation beyond FTAs. It also seeks to expand markets through economic diplomacy by linking exports, orders, investment, and official development assistance (ODA).

The goal is to achieve the world's number one position in FTAs by 2027. As of last year, Singapore ranked first, having FTAs with countries accounting for 87% of the world's gross domestic product (GDP). Korea ranked second with 85%.

To expand FTAs, the government will resume and initiate negotiations with Malaysia and Thailand and accelerate negotiations among Korea, China, and Japan. Specific measures will be announced in the second half of this year through the 'Trade Policy Roadmap.'

Alongside this, the government plans to launch the 'K-Finance Package' in the second half of this year, combining the Economic Development Cooperation Fund (EDCF), supply chain fund, and policy finance. The package will support EDCF, supply chain funds, and Korea Eximbank financing for ODA priority cooperation countries.

Regarding supply chains, support from the supply chain fund (KRW 5 trillion) will begin in the second half of the year, while the Supply Chain Stabilization Committee will be activated to establish a basic plan for supply chain stabilization (2025?2027) and prepare implementation plans by ministries. To establish a hub in the Asia-Pacific region, a technical service will be conducted for the efficient development of the Yongsan International Business District and corporate attraction through a 'Customized Strategy for Attracting the Global Asia-Pacific Regional Headquarters.'