Malaysia expects bilateral trade with South Korea to exceed US$40 billion in 2026, as the two countries deepen economic ties following the conclusion of negotiations on a free trade agreement.
Outgoing South Korean Ambassador to Malaysia Yeo Seung-bae said bilateral trade had grown from about US$20 billion to nearly US$30 billion over five years. He said the volume was expected to surpass US$40 billion this year.
South Korea has moved from Malaysia’s ninth-largest to seventh-largest trading partner. Yeo said the country could become one of Malaysia’s five largest trading partners once their free trade agreement takes effect.
FTA and investment
The two countries concluded negotiations on their free trade agreement, clearing the way for deeper economic cooperation. Yeo said the agreement would strengthen economic ties between the two countries.
He also said South Korean investment in Malaysia has exceeded US$30 billion, with more than 400 companies operating in the country.
Malaysia’s trade with South Korea is expected to cross the US$40 billion threshold in 2026, according to Yeo’s remarks at a farewell event in Kuala Lumpur.
