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South Korean Trade Minister Cheong In-kyo said Thursday that South Korea's bilateral free trade agreement (FTA) with the Philippines, set for implementation next week, will help the country further bolster its trade portfolio and contribute to maintaining a stable supply chain. 

Cheong made the remark during a conference with business representatives, aimed at briefing them on ways to utilize the bilateral FTA, which is set to take effect Tuesday, according to the Ministry of Trade, Industry and Energy.

"As the multilateral trade regime under the World Trade Organization weakens, the significance of FTAs continues to grow," Cheong said. "Accordingly, an FTA with the Philippines, our key trade partner, will help South Korea bolster its trade portfolio."

Cheong added that the two countries are expected to achieve a high level of market liberalisation under the FTA, which will also foster investment and business exchanges, ultimately contributing to the stabilisation of the supply chain, Yonhap news agency reported.

Under the FTA, South Korea and the Philippines will eliminate tariffs on 94.8 per cent and 96.5 per cent of products, respectively, effective immediately.

The ministry said the FTA will also support South Korea in expanding automobile exports, as the 5 per cent tariff on cargo trucks and passenger vehicles will be eliminated immediately, while tariffs on eco-friendly vehicles will be phased out within five years.

The FTA with the Philippines, meanwhile, is South Korea's fifth bilateral free trade deal with a member of the Association of Southeast Asian Nations (ASEAN), following agreements with Singapore, Vietnam, Malaysia and Cambodia.

South Korea already has an FTA with ASEAN as a whole but has been pursuing separate deals with individual member nations to deepen diplomatic and economic cooperation with these emerging economies.