South Korea, Malaysia discuss closer bilateral trade ties

South Korea's trade ministry said Monday it has discussed ways to bolster trade cooperation with Malaysia by expediting ongoing negotiations for a bilateral free trade agreement (FTA).

Trade Minister Cheong In-kyo met with his Malaysian counterpart, Tengku Zafrul Aziz, in Seoul to discuss various bilateral trade agendas, according to the Ministry of Trade, Industry and Energy, Yonhap news agency reported.

The meeting took place on the sidelines of Malaysian Prime Minister Anwar Ibrahim's three-day official visit to South Korea, which began Sunday.

Malaysia is South Korea's third-largest trade partner in Southeast Asia, with the countries' bilateral trade volume reaching $25 billion in 2023.

During the meeting, the two countries agreed to work toward concluding the FTA by the end of 2025. Seoul and Kuala Lumpur resumed negotiations for the proposed FTA this year after a five-year hiatus.

The ministry noted that once implemented, the envisioned FTA will help South Korea expand its trade and investment in the Southeast Asian region.

South Korea already has an FTA with the Association of Southeast Asian Nations, better known as ASEAN, but is seeking to deepen economic ties with individual member countries through separate agreements.

The two countries also exchanged views on the latest trends related to the incoming US administration, as well as ways to address challenges faced by South Korean companies operating in Malaysia.

In a separate event, the two nations also signed a memorandum of understanding to enhance cooperation in the carbon capture and storage sector.