🇰🇷🇨🇳 Korea-China FTA Misses Growth Target

A report submitted by South Korea’s trade ministry to parliament found the Korea-China free trade agreement contributed just 0.13% to South Korea’s GDP growth from 2015 to 2020, around one-quarter of the government’s projected 0.96% cumulative gain over 10 years. The findings were disclosed by lawmaker Choi Soo-jin after reviewing a 2022 government assessment of the deal’s first five years of implementation.

The report also showed South Korea’s share of China’s import market fell from 10.4% in 2015 to 7.3% in 2025, while South Korea recorded trade deficits with China for three consecutive years: $18 billion in 2023, $6.9 billion in 2024, and $11.2 billion in 2025. The bilateral FTA took effect in 2015, and second-phase talks covering services and investment began in 2018 but have yet to produce an agreement, leaving non-tariff barriers and market access issues unresolved.

Choi said the FTA had not delivered a positive domestic growth effect and urged the government to press for an early conclusion to the second-phase negotiations. The issue feeds into broader concerns over South Korea’s trade position in the Chinese market.

#SouthKorea #China

@asianomics