Amidst rapidly changing global and regional economies, South Korea has strongly affirmed ASEAN's role as a key partner in its economic and trade strategy. This connection extends beyond traditional sectors to future industries, particularly with the milestone of launching negotiations to upgrade the ASEAN-Korea Free Trade Agreement (AKFTA).

ASEAN as a Key Partner in Global Supply Chains

On May 18, 2026, South Korean Minister of Trade, Industry and Energy, Yeo Han-koo, met with ASEAN Ambassadors in Seoul to discuss directions for promoting cooperation. During the meeting, South Korea reaffirmed its desire to promote substantive and mutually beneficial relations, especially in ensuring supply chain security.

Vietnamese Ambassador to South Korea Vu Ho emphasized that ASEAN is not merely a trading partner but also a leading strategic cooperation space for South Korea. He offered a striking analogy: “Koreans cannot do without kimchi, and Korean trade cannot do without ASEAN.” This demonstrates the complementary nature and close ties between the two economies in the context of restructuring global supply chains.

New impetus from upgrading the AKFTA Agreement

One of the most important steps to realize these strategic commitments is the upgrading of the AKFTA Agreement. Following discussions that began in 2021, at the 26th ASEAN-Korea Summit (October 2025), Leaders of 2 sides officially announced the launch of negotiations to upgrade the AKFTA in early 2026.

The upgrading of AKFTA is expected to create a modern legal framework, consistent with the new realities of trade. Currently, member countries, including Viet Nam, are actively preparing to participate in this process, aiming to further facilitate trade in goods and services while addressing newly emerging technical barriers.

Towards High-Tech and Green Economy Sectors

Beyond traditional FTA issues, South Korea and ASEAN are focusing on expanding cooperation into new, promising areas such as semiconductors, artificial intelligence (AI), clean energy, and the digital economy. These are key areas that will help the region achieve sustainable digital and green transformation.

The combination of Korea's technological strengths and ASEAN's market potential and resources is expected to elevate the ASEAN-Korea Comprehensive Strategic Partnership to a new, more substantive and effective level in the new era./.

Source: Compiled by the Multilateral Trade Policy Department, Ministry of Industry and Trade of Viet Nam