SEOUL, Oct. 23 (Xinhua) -- South Korea and Peru have reached an agreement on key issues, including rules of origin, during this week's free trade talks, South Korea's trade ministry said Friday.

    According to the ministry, the five-day-long negotiations between the two sides concluded with an agreement on various issues, such as dispute settlement, government procurement and other thorny issues.

    Despite of the achievements, the two countries failed to narrow differences on tariff concessions, the ministry added.

    The recent talks were held in Lima, the Peruvian capital city, starting from Monday.

    South Korea and Peru, ever since the two presidents agreed to launch free trade negotiations last November, have worked toward reaching a substantial agreement on government procurements, trade subsidies, intellectual property rights, competition policies, and the labor chapter, the foreign ministry added.

    The free trade pact between South Korea and Peru, if reached, is expected to boost bilateral economic ties, as well as provide South Korea with an expanded opportunity to invest in Latin America, according to the ministry.

    In 2008, bilateral trade topped 1.62 billion U.S. dollars, with South Korea's exports to the country reaching 720 million U.S. dollars.

    South Korea reached a free trade agreement with a Chile in 2003,marking the first time to settle a free trade pact with a South American country.