Korea and Turkey signed a free trade agreement on Wednesday. The deal calls for an elimination of tariffs on most goods within 10 years after the deal goes into effect. Tariffs on Korean cars and auto parts, the country's key exports to Turkey, will be scrapped in seven years and five years.

More than 85 percent of Turkish shipments to Korea will be tariff-free once the trade pact goes into effect. Bilateral trade volume reached US$5.9 billion last year, with Korea's trade surplus continuously rising. Turkey hopes to redress the imbalance.

The deal only covers agreements on trade in goods, and the two sides will settle on agreements on services and investment by next year.