Seoul, South Korea – South Korea and the Philippines are set to bolster their economic relationship as the Korea-Philippines Free Trade Agreement (FTA) is set to take effect on December 31. The agreement, which was ratified by the South Korean National Assembly on November 14, will significantly reduce tariffs on various goods traded between the two nations.

A key highlight of the FTA is the immediate elimination of tariffs on South Korean-made internal combustion engine vehicles exported to the Philippines. Previously, these vehicles faced a 5% tariff. This move is expected to provide a significant boost to South Korean automakers seeking to expand their market share in the Philippines.

Furthermore, the FTA includes provisions for the gradual reduction of tariffs on electric and hybrid vehicles over a five-year period, aligning with both countries' commitments to promote sustainable transportation.

On the other hand, Filipino consumers can anticipate lower prices for bananas, a popular fruit imported from the Philippines. The FTA stipulates a gradual reduction of tariffs on Philippine bananas, with the goal of eliminating them entirely within five years.

"The Korea-Philippines FTA represents a significant step forward in strengthening our economic ties with the Philippines," said [Name], [Title] at the Ministry of Trade, Industry, and Energy. "By eliminating tariffs on a wide range of goods, we expect to see increased trade and investment between our two countries."

The Philippines is South Korea's fifth-largest trading partner within the Association of Southeast Asian Nations (ASEAN). This FTA marks the fifth bilateral FTA that South Korea has signed with an ASEAN member state.