NZ PM confident of Korean trade pact

New Zealand PM John Key says he expects to secure a free trade agreement with South Korea. Source: AAP

NEW Zealand Prime Minister John Key is confident he'll be able to push a South Korean free trade agreement over the line using the lure of "technology transfer" for farmers.

Mr Key, who is in South Korea to commemorate the 60th anniversary of the Korean War, has made no secret of his visit's double-agenda and is pushing for free trade talks with President Park Geun-hye.

Talks with South Korea have stalled in recent years, with the country's agriculture sector opposed to a deal.

But Mr Key says new leadership under President Park has ignited new hope than an agreement can be reached.

"It's an emotional connection with New Zealand for her (President Park) and I think we'll get it over the line," Mr Key told TVNZ's Q&A programme on Sunday.

The key to securing a deal is pushing the benefit of "technology transfer" for South Korea's farming sector, he says.

"The way to sell this is to get them to understand that this is complementary," he said.

"We're not here to put them out of business."

Mr Key said an FTA had become urgent, with New Zealand companies in the market under pressure from the US and Europe, who have existing trade agreements.

South Korea is New Zealand's fifth largest market, he said.

"Our companies are clinging on at the moment, as every day goes by they are at a bigger and bigger disadvantage to US and European companies," Mr Key said.

"That was the point we made with the president, we were really polite about it but actually quite direct.

"In the end our companies could give up faith and hope in this market if they don't get an FTA."

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