- South Korea plans stronger economic ties with Thailand, boosting regional trade.
- CEPA negotiations aim to cover digital trade, supply chains, and sustainable commerce.
- Thailand serves as a key production hub for Korean firms’ regional operations.
Officials and business leaders from South Korea have presented an ambitious plan to strengthen economic connections with Thailand, considering the nation as an essential entry point for increased trade and investment in Southeast Asia.
At the IGNITE Thailand-Korea Business Forum in Bangkok, Kwon Hye-jin, Deputy Minister for Trade and Negotiations at South Korea’s Trade Ministry, highlighted Thailand's crucial position in the economic framework of the region.
Thailand ranks as the third-largest economy in ASEAN by GDP and is a vital production center for automobiles and electronics in Southeast Asia, currently accommodating around 400 Korean firms. Although a strong economic relationship exists, Korean officials think there is significant potential for growth.
The key element of this strategic initiative is the Korea-Thailand Comprehensive Economic Partnership Agreement (CEPA), which has finalized seven rounds of discussions since July 2024, encompassing a total of 24 chapters.
Kwon stated that the objective is to conclude a "high-level comprehensive agreement worthy of the name Comprehensive Economic Partnership Agreement, covering digital trade, supply chains, and sustainable trade".
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The accord seeks to expand upon current multilateral arrangements such as the ASEAN-Korea Free Trade Agreement and the Regional Comprehensive Economic Partnership. Korean authorities are especially concentrating on obtaining market liberalization for essential export goods, improving access to service markets, and creating more robust investment protection frameworks.
The trading connection is defined by complementary frameworks, as Korea mainly sends intermediate goods such as steel, machinery components, and chemicals, which Thailand subsequently employs to produce finished items. Aside from trade agreements, South Korean firms are establishing Thailand as a vital location for major development initiatives.