ASEAN economic ministers and South Korea called for a closer and more practical trade partnership during the 23rd ASEAN Economic Ministers-Republic of Korea Consultation in Pasay City, according to reports from the Philippine News Agency and Bernama. Co-chaired by Philippine Trade Secretary Ma. Cristina Roque and South Korean Minister for Trade Park Jung-sung, the meeting addressed mounting cost burdens, inflation, and regional conflicts threatening the rules-based international order.
Geopolitical Pressures and Economic Impact
According to the joint statement issued after the Sunday meeting at the Philippine International Convention Centre, delegates exchanged views on global economic developments, including the West Asia crisis. The ministers noted that rising geopolitical tensions, unilateral trade actions, and regional conflicts collectively threaten the rules-based international order.
These developments have imposed significant cost burdens on businesses and added to inflationary pressures. The unpredictable operating environment creates particular vulnerabilities for micro, small, and medium-sized enterprises across the region. In response to these headwinds, the ministers stated that a closer and more practical economic partnership is both essential and urgent.
Upgrading the ASEAN-Korea Free Trade Area
To combat these economic pressures, the ministers welcomed the commencement of negotiations to upgrade the ASEAN-Korea Free Trade Area. According to official reports, the talks aim to make the trade agreement commercially meaningful, modern, trade-facilitative, and responsive to regional and global developments.
New areas under consideration include supply chain connectivity, energy cooperation, raw and intermediate materials, sustainable development, the green economy, and the digital economy. Officials have been encouraged to work toward a substantial conclusion of these negotiations by 2027 to help strengthen regional resilience against climate change and digital transformation challenges.
Trade Figures and Investment Data
Preliminary ASEAN statistics show that two-way merchandise trade between ASEAN and South Korea reached $226.1 billion in 2025. During the same period, South Korean foreign direct investment into ASEAN totaled $8.9 billion.
These figures position South Korea as ASEAN’s sixth-largest trading partner and its seventh-largest source of foreign direct investment for 2025. Building on these numbers, the meeting noted a proposal from South Korea for the ASEAN-ROK Partnership for Resilient Industrial Supply Chains and Materials. This initiative covers cooperation in minerals, processing, advanced materials, manufacturing, and circularity.
Did you know? Seven ASEAN member states participated in 16 projects under the Technology Advice and Solutions from Korea Programme, which aims to strengthen industrial capacity across the region.
Frequently Asked Questions
Who co-chaired the 23rd ASEAN Economic Ministers-Republic of Korea Consultation?
The meeting was co-chaired by Philippine Trade Secretary Ma. Cristina Roque and South Korean Minister for Trade Park Jung-sung.
What is the target date for concluding the AKFTA upgrade negotiations?
ASEAN and South Korea have encouraged officials to work toward a substantial conclusion of the upgraded free trade agreement negotiations by 2027.
Where did the consultation meeting take place?
The 23rd consultation was held at the Philippine International Convention Centre in Pasay City.
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