Policies

Korea – Singapore Free Trade Agreement (KSFTA)

Last updated: 13 June 2024

The Korea – Singapore Free Trade Agreement (KSFTA) eliminates tariffs for 91.6% of the goods traded between both countries. 

The Agreement notably provides for the elimination of tariffs for the following goods:

  • Electric generation equipment 
  • Mechanical equipment including pumps, appliances, engines, and other advanced machinery
  • Electric motors, transformers, batteries, and capacitors
  • Motor vehicles
  • Mineral ore and processed products including graphite, manganese, copper, aluminum, and nickel
  • Various products manufactured using above minerals and metals such as sheets, powders, bars, wires, and plates
  • Photovoltaic cells.


The Agreement also includes rules of origin. Goods are counted as originating from one of the signatory countries if:

  • wholly produced or obtained in the country (applicable to minerals, raw materials, and waste and scrap materials)
  • meeting the requirements established in the Agreement, mainly linked to them having undergone manufacturing processes that warrant a change in the HS code or meeting regional value content requirements (for manufactured goods)


The  Agreement forbids the investment pre-conditions, export quotas, domestic content quotas, technology transfer, and other non-tariff barriers. the Agreement also has national treatment and most-favoured nation treatment provisions that require investors from either Party to be treated equally to both domestic investors or those from any other nations.

However, it does allow either party to provide additional benefits or advantages tied to such conditions. The Agreement also allows either party to provide additional benefits or advantages tied to the following conditions: 

  • Location of production in its territory
  • Supply of a specific service
  • Training and employment of workers
  • Construction or expansion of certain facilities
  • R&D activities


The Agreement however does not prevent Parties from taking temporary safeguard measures in the event of serious financial difficulties, threats, or other exceptional circumstances.

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