Ulaanbaatar: South Korea and Mongolia have reached an agreement in principle on a Comprehensive Economic Partnership Agreement (CEPA), paving the way for enhanced economic cooperation, including expanded trade and investment opportunities. This development was announced by Seoul's industry ministry after a summit between South Korean President Lee Jae Myung and Mongolian President Ukhnaa Khurelsukh in Ulaanbaatar.

According to Yonhap News Agency, the Ministry of Trade, Industry and Resources indicated that the two countries have effectively concluded negotiations by agreeing on key provisions of the pact, such as market access for goods and rules of origin. However, certain technical matters will continue to be discussed through working-level consultations.

The ministry anticipates that the CEPA will boost cooperation in critical mineral supply chains and strengthen the retail sector to facilitate the entry of Korean consumer goods into Mongolia. It also aims to diversify bilateral industrial and investment cooperation. The agreement includes South Korea eliminating tariffs of 2 to 5 percent on imports of Mongolian minerals like copper and rare earths, while Mongolia will gradually remove tariffs on South Korean consumer goods, including cosmetics, ramyeon, and dried seaweed, known as "gim."

The CEPA stipulates that both countries will open their markets to over 90 percent of bilateral imports. Additionally, the agreement codifies cooperation in various industries such as infrastructure, finance, and healthcare, beyond just trade in goods. This marks Mongolia's second bilateral free trade agreement following its Economic Partnership Agreement with Japan, which became effective in 2016. The negotiations between Seoul and Ulaanbaatar have been ongoing since December 2023.