Thailand and South Korea Race to Seal Major Free Trade Deal Amid Global Uncertainty
The Comprehensive Economic Partnership Agreement (CEPA) is set for completion at the APEC Summit, promising a huge boost to Thai GDP and agricultural exports
- Thailand and South Korea are accelerating negotiations on a Comprehensive Economic Partnership Agreement (CEPA), aiming to finalize the deal and announce it at the APEC summit in October 2025.
- The agreement is projected to be a significant economic boon for Thailand, potentially increasing its GDP by up to 0.44% and boosting the value of its exports to South Korea by up to 77%.
- This accelerated push for a free trade deal is driven by a strategy to counter global economic uncertainty and protectionist measures by securing new trade opportunities for Thai goods and services.
Thailand and South Korea are rushing to finalise a Comprehensive Economic Partnership Agreement (CEPA), with negotiators targeting a successful conclusion to be announced during the APEC Economic Leaders’ Meeting in Seoul in October 2025.
The talks have progressed rapidly, with 19 out of 24 chapters already agreed upon. However, crucial areas remain, including detailed negotiations on trade in goods, services, investment, and digital commerce.
Should the deal be successful, it is projected to be a significant windfall for Thailand, with preliminary studies indicating a rise in GDP of 0.32 to 0.44%.
Crucially, it could see the value of Thai exports to South Korea skyrocket by 40 to 77%, with agricultural and food products expected to be the main beneficiaries.
The Thai government is accelerating its push for new Free Trade Agreements (FTAs) to counter global trade risks, including the impact of protectionist measures like the 'Trump tariff' in the US.
The Department of Trade Negotiations, under the Ministry of Commerce, has prioritised the conclusion of three major deals this year: the FTAs with the European Union and South Korea, and the ASEAN-Canada agreement.
"This drive is in line with the government's policy to create new trade opportunities for Thailand," said Chotima Iemsawasdikul, Director-General of the Department of Trade Negotiations. "In the face of geopolitical and economic uncertainty, not only is Thailand viewing FTAs as an essential solution for market access, but our negotiating partners are, too."
The intensive negotiations for the Thailand-South Korea CEPA—also referred to as the bilateral FTA—have seen six rounds of official talks since their formal launch in March 2024.
The seventh and likely final round took place in Seoul from 22-25 September 2025.
Chotima confirmed that both sides have committed to concluding the remaining chapters, including those on cross-border services and investment, during the current meeting to ensure they can make the joint announcement at the APEC summit.
Aside from the major GDP boost (equivalent to a rise of up to $1.788 billion), the deal is expected to deliver a significant surge in Thai exports to South Korea, estimated to increase by up to $4.654 billion.
Products that stand to gain include tropical fruit (such as mangoes, guavas, and mangosteens), frozen and processed seafood, sauces, tapioca flour, and wood products.
Furthermore, Thai service industries, including transport, warehousing, and hospitality (hotels and restaurants), are expected to benefit from increased market access.
The CEPA will complement the two existing regional trade agreements between the nations: the ASEAN-Korea FTA (AKFTA) and the Regional Comprehensive Economic Partnership (RCEP).
It is seen as a key step in strengthening supply chain links and boosting confidence for private sectors in both countries.
As Thailand’s 13th largest trading partner in 2024, bilateral trade with South Korea was valued at $15.281 billion.
In the first half of 2025, trade stood at $7.774 billion, with Thailand exporting $3.016 billion worth of goods, including rubber, aluminium, and sugar products.
