South Korea and Mongolia Reach Agreement in Principle on Economic Partnership Pact

South Korea and Mongolia reached an agreement in principle on a Comprehensive Economic Partnership Agreement on July 9, Yonhap reported. President Lee Jae Myung and Mongolian President Ukhnaa Khurelsukh announced the step during a summit in Ulaanbaatar.

The Ministry of Trade, Industry and Resources said the two sides have effectively concluded negotiations after settling core provisions on market access for goods and rules of origin.

Working-level talks will continue on remaining technical matters. Under the pact South Korea will remove tariffs of 2 to 5 percent on Mongolian minerals including copper and rare earths. Mongolia will phase out duties on South Korean consumer goods such as cosmetics, ramyeon and dried seaweed known as gim.

Both countries will open their markets to more than 90 percent of bilateral imports. The ministry said the agreement is expected to speed cooperation on critical mineral supply chains, ease entry of Korean consumer goods into Mongolia and broaden industrial and investment ties. The countries also recorded cooperation in infrastructure, finance and healthcare.

The CEPA is Mongolia's second bilateral free trade agreement after its Economic Partnership Agreement with Japan that took effect in 2016. Negotiations between Seoul and Ulaanbaatar began in December 2023. During the same visit the two presidents signed a memorandum of understanding on distribution and logistics.