ISRAEL AND SOUTH KOREA ANNOUNCE OPENING OF NEGOTIATIONS FOR ESTABLISHMENT OF
FREE TRADE ZONE

First Round of Talks to Take Place Next Month in Seoul

JERUSALEM. May 26th, 2016 – Israel and South Korea announced the opening of
negotiations for the establishment of a free trade zone between the two
countries. Korea's Deputy Minister of Trade, Industry and Energy, Mr. Tae
Hee Woo, met on Tuesday with the Director General of the Israeli Ministry of
Economy and Industry, Mr. Amit Lang, and discussed ways to increase the
amount of trade and investments between the two countries. The visit took
place following accelerated preparations between the two sides and
feasibility studies regarding the agreement and trade relations between the
countries.

The two noted in their meeting that the Israeli and Korean economies
complemented one another and that there was great potential for promoting
cooperation in a number of fields, including hi-tech, innovative
technologies, agriculture, industrial R&D, and others. In light of this,
both sides believe that a free trade zone deal will be serve as a good basis
for increasing economic cooperation. Following internal processes necessary
for approving the launch of negotiations, the first meeting will take place
in around one month's time in the South Korean capital of Seoul, with both
sides expressing hope that the process will progress quickly.

Director General of the Israeli Ministry of Economy and Industry, Amit Lang
said: "A free trade zone agreement between Israel and South Korea will
constitute a significant milestone in the two countries' trade relations and
represents significant economic potential for both as well as significance
for the economic relations between Israel and East Asian countries in
general." The opening of negotiations comes following extensive efforts by
the Foreign Trade Administration at the Israeli Ministry of Economy and
Industry in cooperation with the Israeli Embassy in Seoul, headed by
Ambassador Uri Gutman.

Both sides noted in their meeting on Tuesday the importance of establishing
as wide and extensive an agreement as possible, including the removal of
most custom tariffs and the prevention and removal of non-customs trade
obstacles, in accordance with the rules of the World Trade Organization
(WTO). Negotiations on the dea

l will be conducted by the Foreign Trade Administration at the Israeli
Ministry of Economy and Industry along with other government ministries and
will cover, among other issues, trading in goods, trading in services,
investments and economic cooperation.

Ohad Cohen, Head of the Foreign Trade Administration at the Israeli Ministry
of Economy and Industry, said: "South Korea is an important trade partner
for Israel in Asia, with trade reaching $1.7 billion in 2015. Israeli
exports to Korea continue to grow and reached $578 million in 2015 and we
see great potential in this market. With the signing of the free trade zone
agreement between Israel and Korea, we expect these numbers to continue to
grow, for the benefit of both sides."