Narini recently visited Seoul to meet with South Korean Minister of Trade, Resources and Industry Ahn Deok-geun, who expressed interest in negotiating an Economic Partnership Agreement (EPA) between the two countries. Currently, the two countries have only concluded regional trade agreements such as the ASEAN-Korea FTA (AKFTA) and RCEP, and have not yet signed a free trade agreement (FTA).
South Korea’s trade minister also met with Thailand’s trade minister during the APEC meeting in San Francisco, and plans to hold further discussions with the Thai government upon his return. Successful entry into force of the EPA will significantly reduce import and export taxes and trade barriers, as well as improve supply chain integration and product distribution, especially in the automotive industry, which has great potential for both Thailand and South Korea. Movement will be encouraged.
Additionally, Hyundai Motors and Kia Motors are currently expanding their business and are planning to establish electric vehicle production bases in Thailand. South Korea proposes using EPA negotiations to prepare the private sector. Mr. Narinee confirmed that Thailand is willing to work with South Korea to outline terms of reference (TOR) to quickly develop an EPA.
South Korea has previously invested in ASEAN member states, but faced obstacles due to inadequate public infrastructure and energy in some countries. Despite the significant benefits from investment, South Korea’s major industries require considerable energy for production.
Narini pointed out that South Korea recognizes Thailand’s readiness and is considering diversifying its investments to reduce dependence on a single country.