South Korea is a high-income developed economy located at the northeast of Asia.  Its GDP reached over US$ 1 trillion in 2011, making it among the world’s top 15 economies.  South Korea’s rise to the world radar is boost, among others, by its success stories in the mobile and electronics sectors.

In 2005, ASEAN and Korea signed the Framework Agreement that led to the signing of legal instruments establishing the ASEAN-Korea Free Trade Area (AKFTA). These legal instruments include the following:

• ASEAN-Korea Trade in Goods. Involves tariff reduction and elimination for all tariff lines over a transition period. 
• ASEAN-Korea Trade in Services Agreement.  Seeks to expand market access for service providers in ASEAN and Korea by easing restrictions on a wide range of service sectors. 
• ASEAN-Korea Agreement on Investment. Provides for fair and equitable treatment, full protection and security, and transfer of funds relating to covered investments. Also has provision on compensation in the event of nationalisation or expropriation.