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South Korea is conducting the second round of free trade negotiations with Cambodia this week to expand its export portfolio to cushion the economic fallout from the pandemic.
According to the Ministry of Trade, Industry, and Energy, Seoul and Phnom Penh will exchange opinions on setting the scope of products, as well as other ways to enhance their bilateral economic ties during the 4-day virtual meetings.
The first round of negotiations was held in late July.
Cambodian Prime Minister Hun Sen proposed making preparations for the bilateral free trade pact during his summit with South Korean President Moon Jae-in in Phnom Penh in March 2019.
South Korea holds an FTA with ASEAN but wants separate deals with each member to customize the pact.
South Korea wants to lessen its heavy dependence on the US and China for its exports, with the two countries taking up 40 percent of its overall outbound shipments.
Cambodia is the 58th-largest export destination for South Korea.
The trade volume between South Korea and Cambodia went up 6 percent on-year to reach an all-time high of US$1 billion in 2019.
South Korea's shipped $697 million worth of goods to Cambodia in 2019, up 5.5 percent on-year.
It primarily exports cargo trucks, knitted textiles, and beverages to Cambodia while importing shoes and clothes.
