South Korea, ASEAN reach agreement on investment

SEOUL: South Korea and the Association of Southeast Asian Nations (ASEAN) reached an agreement on bilateral investments, an issue that has hampered progress on a free trade deal.

South Korea and ASEAN have been in negotiations to complete free trade talks on four accords, pertaining to merchandise, services, investment and dispute settlement.

Officials said both sides will proceed with related procedures to conclude the deal soon.

An agreement on merchandise took effect last year, and the deal on services will be enforced from May.

In February this year, Thailand, an ASEAN member, joined the free trade deal after being left out of the process due to disagreements. ASEAN is South Korea's fifth-largest trading partner, with bilateral trade reaching $ 53.5 billion in 2005.

South Korea currently has free trade agreements with Chile, Singapore, and the European Free Trade Association. A free trade deal with the United States is awaiting parliamentary ratification.

Seoul is also seeking similar trade deals with the European Union, Canada, India and Mexico.