Officials said the agreement would boost South Korea's competitiveness in the service sector and expand Singaporean companies' investment here.

Under the agreement, almost 75 percent of Singapore's exports to South Korea, worth more than three billion dollars, will enjoy immediate tariff elimination.

Companies in Singapore will be also granted tariff concessions on consumer electronics, precision engineering, biomedical sciences, chemicals and agricultural products.

Singapore's service industries will also benefit from enhanced access to the South Korean services market in areas such as education, logistics and environmental services.