Ministry of Trade Industry and Resources

Minister for Trade Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and Jagoda Lazarević, Serbia’s Minister of Domestic and Foreign Trade, officially declared the conclusion of negotiations for the Korea–Serbia Comprehensive Economic Partnership Agreement (CEPA) and signed a joint declaration in Belgrade on June 5, 2026.

The two countries began pursuing CEPA negotiations following a meeting between their prime ministers in 2023. After launching negotiations in September 2024, they reached an agreement through the first formal round and a series of intersessional discussions. The agreement covers 12 chapters, including Trade in Goods, Rules of Origin, Customs and Trade Facilitation, Intellectual Property, Technical Barriers to Trade (TBT), and Economic Cooperation.

Serbia is a key economy in the Western Balkans, with a manufacturing base in sectors such as automobiles and machinery, strong human resources, a location adjacent to the EU, and an extensive FTA network. As rising costs at major production hubs in Eastern Europe have recently drawn attention to Serbia as a new partner for manufacturing and investment, the need has grown for an institutional foundation to expand bilateral trade and investment and to strengthen economic cooperation.

The Korea–Serbia CEPA is Korea’s first free trade agreement with a Balkan country. The agreement secures market access for major Korean exports, including semiconductors, electric vehicles, and automotive parts, while creating a stable and predictable business environment for companies from both countries. It eliminates tariffs on more than 90 percent of tariff lines, covering 96 percent of import value for both sides, exceeding the level of liberalization achieved under the China–Serbia FTA, which entered into force in 2024.

Trade Minister Yeo Han-koo stated, “The conclusion of the Korea–Serbia CEPA will serve as an opportunity to elevate economic cooperation with Serbia, our key partner in the Western Balkans, to a new level. At a time of rapidly changing global trade conditions marked by the spread of protectionism and the restructuring of global supply chains, this agreement is significant not only because it opens markets, but also because it establishes a platform for cooperation in future industries, including supply chains, energy and minerals, and AI and biotechnology. We will move forward with the necessary follow-up procedures without delay so that businesses and citizens in both countries can begin to experience the benefits of the agreement as soon as possible.”

Serbia agreed to eliminate tariffs on semiconductors and electronic products, which had previously been subject to duties of up to 25 percent due to Serbia’s non-participation in the WTO Information Technology Agreement. The CEPA also secures market access for electric and hybrid vehicles and immediately eliminates tariffs on all automotive parts. Tariffs on Korean consumer products, including food and beauty products, will also be eliminated. In addition, improved market access was secured for medical devices, pharmaceuticals, and defense products.

The agreement is also expected to strengthen Korea’s supply chain resilience by eliminating tariffs immediately or within five years on key Serbian exports such as lithium, cobalt, nickel, graphite, and rare earth elements, which are essential inputs for advanced industries, including rechargeable batteries and semiconductors. Meanwhile, in exchange for conceding tariffs on corn for feed and processing—which accounts for more than 40 percent of Serbia's exports to Korea—through immediate and 10-year elimination respectively, Korea minimized market liberalization for sensitive agricultural and livestock products, such as rice, natural honey, fruits including strawberries and other berries, meat, and dairy, thereby achieving a mutual balance of interests.

The two sides introduced rules of origin that broadly allow the use of non-originating materials for major items such as automobiles, petroleum and chemical products, electronic and electrical equipment, machinery, and processed foods, taking into account the diversification of supply chains for parts and materials. However, reflecting the sensitivity of the industries concerned, strict criteria such as the wholly-obtained rule are applied to fresh agricultural and fishery products, while for gim (seasoned laver) and ginseng drinks, originating content requirements for key materials were set so that export is linked to domestic production.

The two countries also agreed to permit both authorized and self-certification systems for origin certification and established multiple verification mechanisms to ensure the credibility of the system.

The CEPA introduces rules on expedited customs clearance, requiring the release of general imports within 48 hours of arrival and express shipments within six hours. It also strengthens protections for copyrights, trademarks, and industrial designs, including new provisions to address intellectual property infringement in online environments through measures such as website blocking and mechanisms to prevent repeated violations.

For technical barriers to trade, the two sides agreed to apply the WTO TBT Agreement as the governing framework for bilateral relations, despite Serbia not being a WTO member, and introduced transparency rules such as prior notification of new or revised technical regulations and a six-month grace period before implementation.

For sanitary and phytosanitary measures, the two sides agreed to apply the WTO SPS Agreement as the governing framework and establish information-sharing and notification mechanisms.

The agreement also establishes a framework for cooperation in supply chains, energy, minerals, and economic security. In particular, by establishing a cooperation channel with Serbia, which holds critical minerals such as lithium, copper, and zinc, the agreement is expected to contribute to diversifying critical mineral supply chains and securing a foundation for stable procurement.

The two sides also agreed to expand cooperation in future industries, including AI, healthcare, and biotechnology, as well as manufacturing, transportation and logistics, SMEs, and tourism.

The government will promptly proceed with follow-up procedures for formal signature, including legal review and Korean translation of the agreement text, and with entry-into-force steps after signature, including the economic impact assessment and National Assembly ratification consent.

During his visit, Trade Minister Yeo also met with Serbian Deputy Prime Minister Adrijana Mesarović and Serbian Chamber of Commerce President Marko Čadež. The two sides shared the view that the CEPA creates a foundation for expanding bilateral trade and investment and agreed to further strengthen their strategic partnership. In addition, a roundtable was held with Korean companies operating in Serbia to introduce the expected export-expansion effects for major items such as automotive parts, electric and hybrid vehicles, and cosmetics following the conclusion of the CEPA, and to hear about their on-the-ground difficulties.