ASEAN economic ministers and South Korean trade officials met in Pasay City for the 23rd ASEAN Economic Ministers-Republic of Korea Consultation, calling for a closer and more practical economic partnership to counter rising global geopolitical tensions and supply chain disruptions.
Co-chaired by Philippine Trade Secretary Ma. Cristina Roque and South Korean Minister for Trade Park Jung-sung at the Philippine International Convention Centre, the September 20 meeting addressed mounting external pressures on regional commerce. According to a joint statement issued after the talks, the officials reviewed regional and global economic developments, including the West Asia crisis. The ministers stated that rising geopolitical tensions, unilateral trade actions, and regional conflicts collectively threaten the rules-based international order, imposing significant cost burdens on businesses, adding to inflationary pressures, and creating an unpredictable operating environment for micro, small, and medium-sized enterprises.
Upgrading the ASEAN-Korea Free Trade Area
To insulate regional economies from external shocks, the ministers welcomed the commencement of negotiations to upgrade the ASEAN-Korea Free Trade Area (AKFTA). According to the joint statement, the updated agreement aims to be commercially meaningful, modern, and responsive to regional and global developments. New areas under consideration include supply chain connectivity, energy cooperation, raw and intermediate materials, sustainable development, the green economy, and the digital economy. Officials were encouraged to work toward a substantial conclusion of the AKFTA negotiations by 2027.
Preliminary ASEAN statistics show that two-way merchandise trade between ASEAN and South Korea reached $226.1 billion in 2025, while South Korean foreign direct investment into the region totaled $8.9 billion. These figures position South Korea as ASEAN’s sixth-largest trading partner and seventh-largest source of foreign direct investment for that year.
Resilient Supply Chains and Industrial Cooperation
The consultation also focused on structural industrial resilience through new cooperative frameworks. According to meeting notes reported by Bernama, the consultations highlighted South Korea’s proposal for the ASEAN-ROK Partnership for Resilient Industrial Supply Chains and Materials. This initiative is designed to bolster regional industrial competitiveness by covering cooperation in minerals, processing, advanced materials, manufacturing, and circularity.
Furthermore, the meeting welcomed the ongoing implementation of the Technology Advice and Solutions from Korea Programme. Data from the talks indicate that seven ASEAN member states participated in 16 separate projects aimed at strengthening industrial capacity across the region.