Overview of PKFTA Agenda
The Philippines-Korea Free Trade Agreement (FTA) aims to strengthen economic ties, promote trade and investment, and enhance mutual cooperation between the two countries. As strategic partners in East and Southeast Asia, both nations recognize the importance of economic integration in achieving inclusive growth and sustainable development.
Trade in Goods
Eliminate or reduce tariffs on a substantial number of goods.
Define sensitive and highly sensitive product categories.
Establish flexible rules for special agricultural and industrial items.
Gradual tariff elimination on electronics, automotive parts, industrial goods, and processed food products.
Protection of sensitive sectors such as rice, sugar and meat through extended phase-out periods or exclusions.
Special treatment for strategic products like bananas and petrochemicals.
Trade in Services
Expand market access for service providers in sectors like finance, telecommunications, healthcare, tourism, and ICT.
Ensure transparency in domestic regulations.
Encourage recognition of professional qualifications across borders
Commitments to liberalize cross-border trade in service.
Establishment of a framework for mutual recognition agreements (MRAs).
Technical cooperation on regulatory reform and digital services.
Strengthening ASEAN’s External Economic Network
With Korea being one of ASEAN’s key trading partners, the Philippines-Korea FTA reinforces regional integration strategy by deepening bilateral trade ties. It contributes to expanding the Philippines’ role in the broader ASEAN–Korea FTA network and supports the country’s efforts to diversify external economic partnerships.
Future-Oriented Cooperation in Key Growth Sectors
Enhancing Export Competitiveness and Administrative Efficiency
The FTA improves trade conditions for Philippines exporters through
Clear Product-Specific Rules of Origin (PSR) across all tariff lines
Simplified and business-friendly procedures for origin certification
reater predictability in customs and documentation, especially for MSMEs
This reduces non-tariff barriers and strengthens the Philippines’ ability to participate in region and global value chains.
Enhanced Market Access Compared to ASEAN and RCEP
The Philippines-Korea FTA opens significantly more market access than previous agreements—an additional 2,070 tariff lines liberalized by the Philippines, accounting for 12.9% more in import value, compared to the ASEAN–Korea FTA.
(by items)
76.5%
89.2%
94.9%
(by items)
89.9%
94.2%
93.5%
(combined basis)
97.6% PHILIPPINES
96.8% REPUBLIC OF KOREA
Sector-Specific Gains for the Philippines
Korean tariffs removed on copper wires, adhesives, poly carbonates, rubber parts.
Philippines gains from expanded market for EVs, machinery, semiconductors.
Compared to the ASEAN-Korea FTA, the Philippines-Korea FTA has added 492 new products to the list of items eligible for reduced or eliminated tariffs.
Key exports like banana and pineapple gain predictable schedules with safeguard options.
The Philippines-Korea FTA has added 132 new fishery products to the list of items with lower or no tariffs, boosting the trade value covered by 60.6%
Korea eliminated tariff on seaweed, dried fish, and other niche exports.
Investment Promotion and Business Environment
In April 2025, the Philippines conducted a high-level investment Promotion Roadshow in Korea, selecting Seoul as the first stop.
Over 150 business leaders gathered at the Philippines-Korea Business Forum to discuss cooperation in nuclear energy, critical materials and agrifood value chains.
MOU implementation in Bataan nuclear feasibility and critical mineral supply chains was reaffirmed
Both countries committed to deeper public-private partnerships through trade platforms, including this FTA.