South Korea-NZ free trade deal tipped to be imminent

South Korea is New Zealand's fifth-largest trading partner. Photo / AP

A long-awaited free trade agreement between New Zealand and South Korea appears close to being inked following talks in Seoul last week.

Officials concluded the ninth round of talks on Friday.

Comments by New Zealand and Korean diplomatic sources suggest the deal is imminent, with people close to the talks saying there were no thorny issues outstanding, with both sides in substantial agreement.

The New Zealand Ministry of Foreign Affairs and Trade said New Zealand was optimistic about reaching an agreement with Korea, and our negotiators made considerable progress last week in Seoul.

South Korean Prime Minister Chung Hong-won last week signalled the country would push to conclude free-trade agreements with China, Vietnam and New Zealand before the end of the year as it seeks to expand its presence overseas.

New Zealand Prime Minister John Key said before the election that encouraging free trade for New Zealand's goods gave the country access to big international markets, and the conclusion of a Korean FTA was close.

South Korea is New Zealand's fifth-largest trading partner, with total trade last year worth $3.59 billion, according to MFAT.

It is the country's fourth-largest source of foreign students and seventh-largest source of overseas visitors.

New Zealand exporters pay about $229 million in Korean tariffs each year, and the talks begun in 2009 have previously stalled amid Korean concern about the impact of New Zealand agricultural exports, says MFAT.

Australia and Canada, who both compete with New Zealand to export agricultural products to Korea, have recently concluded FTAs with Seoul.

Tariff elimination on agricultural products remains a challenge with New Zealand arguing that it doesn't compete with sensitive Korean production.