South Korea's Finance Minister Koo Yun-cheol said Wednesday that the free trade agreement (FTA) with the US was still valid despite the implementation of a new tariff agreement between the two countries, Yonhap News reported the same day.

Koo's statement follows Seoul and Washington agreeing to a lower tariff rate of 15% on the former's exports to the latter, marking a decline from the previously proposed 25%, in exchange for South Korea's $350 billion investment in the US, the report said.

According to Koo, the new 15% tariff will replace the earlier zero rate.

"With a few exceptions, South Korea continues to benefit from the FTA... In particular, small and mid-sized companies could find new opportunities through investment in shipbuilding equipment and parts," Koo said.

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