South Korea seeks comprehensive economic deal with Morocco

South Korea is aiming to conclude a comprehensive economic partnership agreement with Morocco by mid-2027, its trade minister said, citing the need to improve competitiveness for Korean firms operating in the North African market.

Current tariff structures put Korean companies at a disadvantage, limiting their ability to use Morocco as a manufacturing base for exports to Europe, particularly in sectors such as automotive and batteries, Trade Minister Yoo Han-koo told Hespress.

“Korean firms are not able to compete under current conditions,” Yoo said, noting that tariffs on imported components from Korea raise production costs, while competitors benefit from duty-free access under existing free trade agreements with Morocco.

A broad economic partnership agreement would be key to levelling the playing field and boosting Korean participation in Morocco’s industrial ecosystem, he said.

Morocco remains a strategic market, particularly as it prepares for major infrastructure investments linked to hosting the 2030 FIFA World Cup, he said, citing South Korean firm Hyundai Rotem’s $1.5 billion contract in 2025 to supply trains to Morocco’s national rail operator as an example of potential opportunities for Korean companies.

Looking ahead, Yoo said LG Energy Solution is in advanced talks to build a lithium refinery in Morocco, describing the country as a “strategic location” for serving European, American and regional markets.

According to UN trade data, Morocco exported $61 million worth of goods to South Korea in 2024, while imports totaled $908 million, resulting in a trade deficit of $847 million in Korea’s favor.