Seoul: South Korea's trade ministry announced on Monday that it is exploring avenues to strengthen trade relations with Malaysia by fast-tracking negotiations for a bilateral free trade agreement (FTA). Trade Minister Cheong In-kyo engaged in discussions with Malaysian Trade Minister Tengku Zafrul Aziz in Seoul, during which various bilateral trade agendas were addressed.According to Yonhap News Agency, the meeting was held concurrent to Malaysian Prime Minister Anwar Ibrahim's three-day official visit to South Korea, which commenced on Sunday. Malaysia ranks as South Korea's third-largest trade partner in Southeast Asia, with bilateral trade reaching a volume of US$25 billion in 2023.During their discussions, both nations expressed a commitment to finalizing the FTA by the close of 2025. The negotiations for this agreement were resumed this year after a five-year pause. The Ministry of Trade, Industry and Energy highlighted that the proposed FTA, once in effect, would bolster South Korea's trade and inve stment activities in the Southeast Asian region.Although South Korea currently has an existing FTA with the Association of Southeast Asian Nations (ASEAN), it is striving to enhance economic connections with individual ASEAN member countries through separate agreements. Furthermore, the two countries exchanged insights on the latest developments concerning the incoming U.S. administration and deliberated on solutions to challenges faced by South Korean businesses in Malaysia.In addition to the trade discussions, the two countries signed a memorandum of understanding aimed at enhancing cooperation in the carbon capture and storage sector.
- October 12, 2026
