South Korea will remove duties on 93 percent of products from India during the same period.

Although the tariff-removal rate is slower than the provision under most other free trade agreements, the deal with India is still expected to boost bilateral trade by up to $3.3 billion, up from the 2008 total of $15.6 billion, the state-run Korea Institute for International Economic Policy forecast.

The agreement is forecast to benefit South Korean shipment of auto parts, while it benefits Indian service sector and service workers to work for South Korean companies.

The CEPA enables the duty-free export of 108 items that are made in the jointly-operated industrial park of Kaesong in North Korea.

Both countries agreed to set aside the farm and forestry sector as a 'low-level' of market opening to protect vulnerable farmers and forestry operators.

'Among 1,466 duty items of farm and fishery items, we excluded 714 items from the CEPA coverage. Excluded items are rice, pork, chicken and most tropical fruit items,' the ministry director said.