South Korea has put pen to paper on a free trade agreement with five Central American nations to expand its business reach into the region.
The FTA is expected to bring positive effects into the Korean economy as well as pave a new trade route to North America.
Cha Sang-mi reports.
South Korea is expanding its trade relations with the Central American market.
Korea's Trade Ministry officially signed a free trade agreement with five Central American countries on Wednesday to reduce tariffs and eliminate barriers to increased business partnerships.
Trade Minister Kim Hyun-jong said the trade pact with Costa Rica, El Salvador, Honduras, Nicaragua, and Panama will help create a comprehensive, strategic partnership with the Central American nations.
The signing of the deal comes after nearly 3 years of negotiations, which began in 2015. The negotiations touched upon goods, services and investment, non-tariff barriers, trade remedies and a dispute settlement system.

The ministry said once the deal is implemented, duties on over 95 percent of goods will be scrapped, either immediately or in phases, boosting exports to Central America.
Korea's state-run Institute for International Economic Policy said Korea's real GDP growth will see an additional point-02 percent growth over the next 10 years, with consumer benefits worth nearly 7-hundred million U.S. dollars.
Over 2-thousand-500 new jobs will be created by the FTA, and Korea's automobile and steel industries in particular are likely to benefit from the trade deal.

Minister Kim underscored that South Korea is the first Asian country to strike such a deal with the countries in Central America, paving the way for Korean firms to expand their presence in the region ahead of their Chinese and Japanese rivals.
There's also speculation that pact could serve as "a third route" into the North American market, amid the United States' growing trade protection moves.
The FTA will likely go into effect in the first half of this year after the National Assembly approves it.
Cha Sang-mi, Arirang News.