South Korea and China have initially agreed in principle the contents of the Free Trade Agreement (FTA) between the two countries, bringing the two a step closer to the actual signing of the accord.

The agreement, which is considered a very important trade deal for South Korea, is currently drafted in English and will be translated to South Korean and Chinese languages before they are officially signed.

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It has taken over two years for South Korea and China to come up with the deal.

The Korean Ministry of Trade, Industry and Energy says the two countries' governments have agreed to work for the official signing of the Korea-China FTA within the first half of 2015.

Before any agreement can be formally signed, the legislators of both countries will need to approve the document and its procedures for implementation.

"The Korean government will do its utmost to have the agreement ratified by the National Assembly without disruption, so that our companies can start benefiting from the Korea-China FTA at an early date," the Ministry says.

South Korean Deputy Trade Minister Woo Tae-hee reports some new items have been included in the deal since the negotiations ended in November 10 last year.

In the deal, China agrees to either cut or remove the import tariffs on 310 products that are manufactured in the Inter-Korean joint industrial complex in Kaesong, North Korea.

The FTA will also prohibit South Korea and China from increasing or revising new customs duties on any products or services.

The two countries also guarantee to provide non-discriminatory access to communication networks by companies entering each other's markets and will give preferential treatment of each other's financial companies.

A joint committee will be formed to handle any business problems that the firms may encounter.

Woo says, "I believe we have in our hands a well-balanced agreement that reflects the interests of both parties in the negotiations."

TagsChina-Korea Deal, China Korea Free Trade Pact