Through the KSFTA, Korea will substantively remove tariffs on most of Singapore's exports into Korea. Products which can pose a competitive challenge to the Korean industry will have their tariffs phased out over a period of either five or ten years.

Almost 75% of Singapore's domestic exports to Korea enjoy an immediate tariff elimination which provides them a cost advantage and first mover advantage into the Korea's market.

Products ranging from our freshwater ornamental fish to woven cotton fabrics as well as some of our exports from key sectors like electronics, electrical equipment and chemicals stand to benefit from the KSFTA. Other sectors of importance to Singapore such as consumer electronics, precision engineering, biomedical sciences and chemicals are also covered under the KSFTA. Even though agriculture is a sensitive sector in the Korea, agricultural products are also included, given Singapore's keen interest in the processed food industry. These include three-in-one coffee mixes, chocolate confectionery, flour and tea concentrates will all benefit from the KSFTA.

Korean manufacturers sourcing for intermediate products like IT components from Singapore for their finished goods will also benefit from reduced costs resulting from tariff benefits accruing to these imports into Korea. Intra-company trade between the Korea and Singapore will thus receive a boost from the KSFTA.