Launch of Korea-Singapore FTA Improvement Talks... Expanding Energy and Investment Cooperation

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Yeo Han-koo, the Chief Negotiator for Trade at the Ministry of Trade, Industry and Energy, has launched negotiations to improve the Free Trade Agreement (FTA) with Singapore in order to expand cooperation in the fields of energy and investment.

On April 28, Yeo initiated the Korea-Singapore FTA improvement negotiations in Singapore and held a ministerial-level meeting. He was accompanied by Assemblywoman Lee Eonju of the Democratic Party of Korea, who is the head of the Korea-Singapore Parliamentary Friendship Association, and together they participated in a business roundtable and investment promotion activities.

The two countries signed the negotiating terms on this day, officially launching the FTA improvement talks. This is a follow-up measure agreed upon during the summit in March, with the chief negotiators from each side signing to formally begin the negotiation process. In the first round of negotiations, discussions focused on four main areas: supply chains, the green economy, aviation maintenance, repair and overhaul (MRO), and trade facilitation.

Yeo held talks with Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry of Singapore, to discuss ways to accelerate the improvement negotiations for both the Korea-ASEAN FTA and the Korea-Singapore FTA. They also discussed strategies to strengthen cooperation in small group frameworks such as the Free, Inclusive Trade Partnership (FIT-P) and the Green Economy Agreement (GEPA), as well as collaboration on supply chains in the energy and bio-pharmaceutical sectors.

Energy supply and demand checks were conducted in parallel. Yeo met with global energy trading companies Vitol and Trafigura, as well as commodity analysis firm S&P Global, to discuss the outlook for the international energy market and potential response strategies. He also held a roundtable with Korean oil refining and petrochemical companies operating in Singapore to assess the supply situation for crude oil and naphtha, and to address on-site challenges.

Efforts to attract investment and boost exports also continued. Yeo visited Temasek, Singapore’s sovereign wealth fund, where he stressed the need to increase investments in advanced manufacturing sectors such as AI and semiconductors. He also met with Shopee, the largest e-commerce platform in Southeast Asia, to discuss cooperation strategies to expand the local presence of Korean fashion, beauty, and food products.

Additionally, Yeo visited Hyundai Motor Group’s Singapore Global Innovation Center (HMGICS) and the Port of Singapore Authority (PSA) to inspect sites featuring manufacturing AI-based smart factories and port automation technologies, and to explore relevant policy implications.

"We held wide-ranging discussions on key economic cooperation issues, including the launch of the FTA improvement negotiations, supply chain stabilization, investment attraction, and boosting cross-border e-commerce," Yeo said. "I will ensure that this visit translates into tangible results for Korean companies."

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