Kim Jong-hoon, Korean trade minister, and his ASEAN counterparts signed an agreement on investment while President Lee Myung-bak and the leaders of the ten member states of the ASEAN nations watched. The event took place during the ASEAN-Republic of Korea Commemorative Summit in Jeju Island, Korea.
The investment agreement includes provisions and regulations that deal with fair and sufficient protections with safety, transparency, the right to use investment and dispute settlement procedures (ISD).
The Korean Ministry of Foreign Affairs and Trade expected that the agreement could expand bilateral trade and investments. “We expect the agreement to lay a better legal framework to provide protection for investments and investors than the ASEAN Comprehensive Investment Agreement (ACIA),” Korean ministry officials said. “This is very meaningful, given that the agreement laid the foundation for building a basic FTA structure for Korea and ASEAN nations.”
Meanwhile, an agreement on merchandise took effect on June 1, 2007, and another on services came into effect in May of this year.
