South Korea and China hold 12th round of FTA Phase II negotiations in Seoul from June 23-27.

South Korea and China hold 12th round of FTA Phase II negotiations in Seoul from June 23-27.

Seoul, June 19, 2025 -- South Korea and China have commenced the 12th round of follow-up negotiations to expand their bilateral free trade agreement (FTA) to include services and investment. The talks, scheduled to run from June 23 to June 27 in Seoul, aim to broaden market access in these sectors and facilitate trade and investment between the two countries [1].

The current FTA, implemented in December 2015, has significantly reduced tariffs on products. Since 2018, the two nations have held 11 follow-up meetings to expand the scope of the trade agreement to the investment and service sectors [1].

This week's negotiations will focus on expanding market access in services, investment, and finance, as part of efforts to promote trade and investment between South Korea and China [1]. The discussions are crucial for both countries, as they seek to strengthen their economic ties and foster mutual growth.

Meanwhile, Alibaba Cloud, a subsidiary of the Chinese e-commerce giant Alibaba, has confirmed plans to open its second data center in South Korea by the end of June 2025. The new facility is expected to enhance the company's capacity to provide cloud computing and artificial intelligence (AI) services to local businesses [2].

The second data center will address the rising demand for AI and cloud services in South Korea, as businesses increasingly adopt these technologies. Alibaba Cloud's recent investment of around $52.7 billion in building out its global cloud infrastructure underscores the company's commitment to expanding its digital ecosystem [2].

The negotiations and Alibaba Cloud's expansion in South Korea come at a time of heightened geopolitical tensions, particularly around AI hardware. The U.S. has imposed restrictions on the export of advanced chips to China, prompting Alibaba Cloud to accelerate its global expansion strategy [2].

As the talks progress, both South Korea and China will be looking to secure favorable terms that can boost their respective economies. The success of these negotiations could have significant implications for the global tech and trade landscape.

References:
[1] https://en.yna.co.kr/view/AEN20250625001300320
[2] https://www.rcrwireless.com/20250623/ai-infrastructure/alibaba-data-center