Korea, Peru strike free trade deal

Korea struck a free trade deal with Peru on Monday, the latest trade pact that could pave the way for Asia's fourth-largest economy to tap deeper into the South American region, Seoul officials said.

Under the deal, both countries will eliminate all tariffs within 10 years after the deal takes effect.

Tariffs on Korean vehicles with engine displacements of 3,000cc or more and color television sets will be abolished right after the accord takes effect.

Tariffs on automobiles with engine displacement of less than 3,000cc will be scrapped in five years, according to a joint statement.

Tariffs on Peruvian coffee will be abolished right after the deal comes into effect, the statement said.

Peru marks the second South American country with which Korea has sealed such a trade pact. In 2003, Korea signed a free trade agreement (FTA) with Chile, Seoul's first free trade partner.