GDP projected to grow 0.38 pct over 10 years following CPTPP membership

South Korea's economy is expected to grow by 0.38 percent over the next decade if the country joins the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), according to a projection by the Ministry of Trade, Industry and Resources (MOTIR). The analysis, which included input from various government agencies and research institutes, showed that the country's GDP would be 0.38 percentage points higher on a cumulative basis compared to if it did not join the trade pact.

The manufacturing sector is projected to benefit from an annual increase of 6.3 trillion won ($4.6 billion) to 6.7 trillion won, while agricultural production is estimated to decline by 710 billion won. Despite the potential economic gains, South Korea has not formally applied for CPTPP membership due to opposition from certain sectors and strained relations with Japan.

The government is currently reviewing the decision and will consider the benefits and interests for ordinary citizens before making a final decision.