Pasay city: The economic ministers of the Association of Southeast Asian Nations (ASEAN) members and South Korea have advocated for a 'closer and more practical' trade partnership, highlighting the rising geopolitical tensions worldwide. The ministers gathered at the Philippine International Convention Center in Pasay City for the 23rd ASEAN Economic Ministers-Republic of Korea (ROK) Consultation, co-chaired by Trade Secretary Ma. Cristina Roque and Korean Minister for Trade Park Jung-sung.
According to Philippines News Agency, in a joint statement following the meeting, the ministers discussed regional and global economic developments, including the Middle East crisis. They noted that rising geopolitical tensions, such as unilateral trade actions and regional conflicts, pose threats to the rules-based international order. These developments have increased cost burdens on businesses, added to inflationary pressures, and created an unpredictable operating environment, particularly affecting micro, small, and medium enterprises.
In response to these challenges, the ministers emphasized the urgency of a closer and practical economic partnership between ASEAN and ROK. They reaffirmed their commitment to strengthening trade and investment ties and advancing deeper and more resilient supply chain integration.
The meeting also welcomed the initiation of negotiations to upgrade the ASEAN-Korea Free Trade Area (AKFTA). These negotiations aim to make the AKFTA commercially meaningful and responsive to regional and global developments, with new areas of focus including supply chain connectivity, energy cooperation, raw and intermediate materials, sustainable development, the green economy, and the digital economy. These initiatives are intended to enhance regional resilience and competitiveness while addressing challenges such as climate change and digital transformation.
ASEAN and the ROK are encouraging officials to work towards a substantial conclusion of the AKFTA upgrade negotiations by 2027. ASEAN preliminary statistics indicate that two-way merchandise trade between ASEAN and the ROK reached USD226.1 billion in 2025, while ROK foreign direct investment (FDI) into ASEAN totaled USD8.9 billion. These figures position the ROK as ASEAN's sixth-largest trading partner and seventh-largest source of FDI.
The meeting also acknowledged the ROK's proposal for the ASEAN-ROK Partnership for Resilient Industrial Supply Chains and Materials, which aims to strengthen regional industrial supply chains' resilience and competitiveness. This initiative focuses on cooperation in minerals, processing and advanced materials, manufacturing, and circularity.
Additionally, the meeting welcomed the ongoing implementation of the Technology Advice and Solutions from Korea Programme. This program has seen participation from seven ASEAN member states in 16 projects aimed at bolstering industrial capacity.
