He said it is necessary for South Korean companies to become more competitive and capable of overcoming China's trade barriers and to adapt themselves to the world's second-largest economy, which is still developing at a fast pace.

To deal with another trade issue with the United States, South Korea's top negotiator said he is looking into every scenario that the US side can come up with.

In last month's meeting to discuss a possible amendment to the Seoul-Washington free trade agreement, South Korea called for a joint study of the agreement's impact on the two economies.

US President Donald Trump has blamed the pact for bringing in the massive trade deficit with South Korea and even mentioned a possible withdrawal of the FTA, which came into effect in 2012.

"We are waiting for an answer from the US side," said Kim. "After understanding their needs, we will go to the negotiation table."

The trade volume between the two countries increased to $109.6 billion in 2016 from $100.8 billion in 2011, with South Korea's trade surplus reaching some $27 billion last year, up from $11.6 billion tallied five years earlier.

Partly in line with the FTA issues, South Korea has been making efforts to reduce its trade surplus with the US by increasing imports from the world's biggest economy.

The size of the surplus has been on a steady decline since last year, as the cumulative excess in goods traded decreased 31.5 percent on-year in the first eight months of 2017. (Yonhap)