The agreement that aims to slash tariffs on goods to stimulate trade include Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand and Peru as its members. The countries represent 13.5 percent of global gross domestic product equal to some $10 trillion.

South Korea also has been in talks with members of the Pacific Alliance for associate membership in the Latin American trade bloc. The PA members are Mexico, Chile, Colombia and Peru.

South Korea has already signed free trade agreements with three countries in the trading bloc although not with Mexico. Its PA membership would be tantamount to a similar trade deal with Mexico, the largest economy within the alliance.

"External conditions surrounding us are not good. ... We will actively deal with the protectionism," Finance Minister Kim Dong-yeon said in a economy-related ministers meeting.

The minister said downside risks to the global economy are growing due to trade conflicts, and the trade war between China and the United States is feared to become a drawn-out affair.

"We need to utilize changes in external conditions, which could become a risky factor but also serve as an opportunity for us." (Yonhap)