Seoul, April 9:

South Korea said today that a free trade agreement (FTA) covering goods with nine of the ten members of Association of Southeast Asian Nations (ASEAN) will take effect from June 1.

Thailand, the world’s top rice exporter, refused to join the agreement to protest Seoul’s insistence on excluding rice. South Korea’s National Assembly ratified the agreement, reached in August, last week, the ministry of foreign affairs and trade said.

Under the agreement, 97 per cent of South Korean products sold in ASEAN countries will be exempt from tariffs or will face tariffs lower than five per cent by 2010.

The South Korean government estimates its trade surplus with the countries will likely increase by $1.5 billion as a result. The trade surplus with ASEAN last year was $2.32 billion. South Korea will hold separate talks with Thailand for a FTA.