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South Korea and Uzbekistan will launch official negotiations for a bilateral free trade agreement, with plans to hold the first round of talks within the first quarter.
According to the Ministry of Trade, Industry and Energy, the free trade pact will be officially known as the Agreement for Sustainable Trade and Economic Partnership (STEP) and will mark South Korea's first free trade deal signed with a Central Asian nation.
Trade between the two countries reached US$1.72 billion in 2020, down 27 percent from 2019.
Last year, South Korea exported $1.7 billion worth of goods to Uzbekistan, making the Central Asian nation its 36th-largest export destination.
South Korea mostly shipped auto parts and cars to Uzbekistan, while major imports included pulp and fruits.
The deal would allow South Korean exporters to penetrate Central Asia deeper. Uzbekistan boasts the largest population in the region.
The move is in line with South Korea's efforts to diversify its export portfolio and reduce its reliance on China and the United States, which take up roughly 40 percent of annual exports.
