Seoul, May 26 (IANS): Leaders of South Korea and China, on Sunday, agreed to establish a diplomatic security dialogue and resume negotiations to upgrade the bilateral free trade agreement (FTA) to boost economic ties between the two countries.
President Yoon Suk Yeol and Chinese Premier Li Qiang reached the agreement during their meeting in Seoul to boost trade, investment and cooperation on the supply chains of key industries, Principal Deputy National Security Adviser Kim Tae-hyo said in a press briefing, reports Yonhap news agency.
Yoon and Li agreed to establish the diplomatic security dialogue, a 2+2 dialogue consultative body between the foreign and defence ministries, and hold the first meeting in mid-June.
The two sides also agreed to resume the second phase of negotiations for the bilateral FTA to boost service trade and investment. The first phase of the FTA, which took effect in December 2015, removed tariffs on major goods.
"The discussions will go beyond market opening in the trade of goods to include sectors such as services, culture, tourism and legal services to expand exchanges and openness between the two countries," Kim said.
In addition, a bilateral investment cooperation committee will resume later this year after a 13-year hiatus, and a senior-level dialogue involving the two countries' trade ministries will also be launched to discuss ways to stabilise the supply chains of key industries.
China is South Korea's largest trading partner, but bilateral relations have been strained amid Seoul's closer alignment with Washington under the Yoon administration.
Their meeting comes at a time when China is facing intensifying competition with the United States in cutting-edge technologies, including semiconductors and artificial intelligence, among others.
Li made his first visit to South Korea since taking office in March 2023 to attend a trilateral summit with Yoon and Japanese Prime Minister Fumio Kishida set for Monday.
Yoon and Li held their first meeting in September 2023 in Indonesia on the sidelines of a summit of the 10-member Association of Southeast Asian Nations.