According to Thailand's world daily, Thailand's Ministry of Commerce, director of the international conference hall, said that Thailand will sign an ASEAN Korea free trade agreement with South Korea in May.

After the signing of the FTA, from August, goods exported to Thailand will receive tax relief, and most of the commodities, including computers and accessories, jewellery and accessories, will fall to zero before 2010.

At the same time, South Korea also enjoys zero tariff treatment for most of the raw materials and commodities exported to Thailand, including clothing, toys, minerals, plastic granules and other commodities.

Thailand's domestic production cost is expected to decline, but steel, leather processing and other industries are likely to be hit.