Thailand has joined negotiations to upgrade the ASEAN-South Korea Free Trade Agreement, with ASEAN member states and Seoul aiming for a substantially concluded deal by 2027, according to Thailand's Department of Trade Negotiations.
The ASEAN-Korea Free Trade Agreement (AKFTA) Upgrade Joint Committee meeting, which Thailand attended as a participating member state, agreed on a work plan to drive negotiations toward a conclusion within that timeframe, said Aumaporn Rattanaporn, Director-General of Thailand's Department of Trade Negotiations.
The upgrade aims to modernise the existing pact, which has applied to Thailand for more than 17 years, to reflect changes in the global economic landscape, she said following the meeting.
South Korea is ASEAN's fifth-largest trading partner. Bilateral trade between Thailand and South Korea was valued at US$15.57 billion in 2025, up 1.74 percent from the previous year, according to Thai trade data. Thailand's exports to South Korea stood at US$1.99 billion while imports reached US$4.57 billion, resulting in a trade deficit of US$2.57 billion.
Scope of talks
Thailand proposed that the economic cooperation working group and the micro, small and medium enterprise (MSME) working group coordinate closely to expand opportunities for ASEAN MSMEs to benefit from cooperation with South Korea, particularly in sectors where the country has strong potential.
The AKFTA was signed in 2006 and entered into force in 2007. While the agreement has boosted trade between ASEAN and South Korea over nearly two decades, both sides have acknowledged the need to update the pact to cover new areas of economic activity, including digital trade, supply chain resilience, and services liberalisation, according to trade officials.
The upgraded agreement is expected to address rules of origin, customs procedures, and trade facilitation, alongside expanded coverage of services and investment. The negotiations also come as ASEAN pursues similar upgrade talks with several other dialogue partners, including Canada and the European Union.
Timeline and next steps
The third AKFTA Upgrade Joint Committee meeting is scheduled for September 2026, where member states will review progress on the work plan and discuss outstanding negotiating areas. The timeline targets a substantial conclusion by 2027, though the pace of negotiations will depend on how quickly member states can reach consensus on more sensitive sectors, including agriculture and services market access.
For Thailand, the upgrade represents an opportunity to address its persistent trade deficit with South Korea. Thailand's key exports to South Korea include rubber products, aluminium products, sugar, printed circuit boards, and refined oil, while major imports include printed circuit boards, iron and steel products, chemicals, machinery and parts, and electrical machinery and components.
The negotiations come at a time when global supply chains are undergoing significant reconfiguration following recent trade disruptions. Both ASEAN and South Korea have identified supply chain connectivity as a priority area in the upgraded agreement, as manufacturers across the region seek to diversify sourcing and reduce dependence on single markets.
ASEAN and South Korea have also been exploring ways to link the upgraded FTA with broader regional economic frameworks, including the Regional Comprehensive Economic Partnership, under which both sides are already party. The upgraded AKFTA would operate alongside RCEP provisions, potentially offering deeper liberalisation in specific sectors where RCEP's commitments are less extensive.
Sources: Nation Thailand, Thailand's Department of Trade Negotiations
