South Korea and 15 other countries are set to launch negotiations on a regional free trade pact next month, which could bring huge economic impact to Asia’s fourth-largest economy, Seoul’s Trade Ministry said Wednesday.

According to the ministry, the so-called Regional Comprehensive Economic Partnership involves the 16 countries ― the 10 ASEAN members plus China, Japan, South Korea, India, Australia and New Zealand, and aims to liberalize trade in goods, services and investment in the Asian region.

Leaders from the nations are expected to officially announce the launch of RCEP talks in late November when they meet in Cambodia, according to the ministry.

The proposed regional free trade pact is similar to a U.S.-led free trade pact in the Asia-Pacific region.

According to the state-run Korea Institute for International Economic Policy, the 16 countries have a combined gross domestic product of $19.7 trillion won, and their trade volume reaches $10.1 trillion with their combined population amounting to some 3.4 billion.

The regional free trade pact would bring about up to $19.46 billion worth of economic benefits to South Korea, and raise the country's economic growth by 1.76 percent in 10 years after the deal takes effect. The projection is based on the assumption that tariffs on all products, excluding rice, are removed. (Yonhap News)