FTA boosts Seoul’s role in ASEAN supply chains and secures tariff cuts on electric vehicles, steel and digital services

South Korea and Malaysia on Monday concluded negotiations on a bilateral free trade agreement (FTA) covering goods, services, investment and digital trade during ROK President Lee Jae-myung’s visit to Kuala Lumpur for the ROK-ASEAN Summit. Both governments said the deal will expand trade and cooperation in strategic industries such as artificial intelligence, green technology and smart infrastructure. Malaysia liberalized 92.7% of its tariff lines while Korea liberalized 94.8%, and the agreement includes chapters on the green economy, digital trade and halal-industry collaboration — Malaysia’s first such provision with a non-Muslim country.

Lee and Malaysian Prime Minister Anwar Ibrahim also oversaw the signing of a defense-industry memorandum of understanding and agreed to deepen cooperation in energy transition and supply chain resilience. Lee described the FTA as a milestone in bilateral relations and requested Malaysia’s support for Seoul’s peace and coexistence initiatives on the Korean Peninsula. The deal, South Korea’s 27th FTA, will undergo legal review and legislative ratification before entering into force.

South Korea and Malaysia on Monday concluded negotiations on a bilateral free trade agreement (FTA) covering goods, services, investment and digital trade during ROK President Lee Jae-myung’s visit to Kuala Lumpur for the ROK-ASEAN Summit. Both governments said the deal will expand trade and cooperation in strategic industries such as artificial intelligence, green technology and smart infrastructure. Malaysia liberalized 92.7% of its tariff lines while Korea liberalized 94.8%, and the agreement includes chapters on the green economy, digital trade and halal-industry collaboration — Malaysia’s first such provision with a non-Muslim country.

Lee and Malaysian Prime Minister Anwar Ibrahim also oversaw the signing of a defense-industry memorandum of understanding and agreed to deepen cooperation in energy transition and supply chain resilience. Lee described the FTA as a milestone in bilateral relations and requested Malaysia’s support for Seoul’s peace and coexistence initiatives on the Korean Peninsula. The deal, South Korea’s 27th FTA, will undergo legal review and legislative ratification before entering into force.

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