South Korea and Peru have reached a substantial agreement on competition and telecom sectors at this week's free trade talks held in Seoul, South Korea's trade ministry said Friday.

According to the ministry, both sides made an advance on their negotiations on competition and telecom issues during its five-day meeting, as well as agreeing to hold further talks in the near future.

The exact date for the follow-up meeting was not yet specified, the ministry said.

South Korea and Peru, ever since the two presidents agreed to launch free trade negotiations last November, have worked through reaching a substantial agreement on government procurements, trade subsidies, intellectual property rights, competition policies, and the labor chapter, the foreign ministry added.

The free trade pact between South Korea and Peru, if reached, is expected to boost up bilateral economic ties, as well as provide South Korea with an expanded opportunity to invest in Latin America, according to the ministry.

In 2008, the trade amount of South Korea and Peru topped 1.62 billion U.S. dollars, with South Korea's exports to the country reaching 720 million U.S. dollars.

South Korea reached a free trade agreement with a Chile in 2003, marking the first time to settle a free trade pact with a South American country.

Source: Xinhua