Free trade pact to make 95% of Israel's exports to S. Korea customs-free

South Korea and Israel will sign a free trade agreement this week, marking the first such arrangement for Israel with an Asian market.

The deal is meant to cut out customs duties while offering safety nets on investments.

Under the pact, over 95 percent of Israeli exports to South Korea will be customs-free.

Israel is working on similar arrangements with India, China, and Vietnam.

According to Israel's economic ministry, bilateral trade with South Korea reached about $2.4 billion in 2020, which is around two-thirds of the goods and services imported into Israel.

The free trade pact will be signed this week in Seoul during a visit by Israel's foreign affairs and economy ministers.