South Korea on Tuesday wrapped up its one-and-a-half-year-long free trade negotiations with Peru and agreed to sign a deal.

Holding a ministerial-level meeting in Lima, South Korean Trade Minister Kim Jong-hoon and his Peruvian counterpart Martin Perez reached an agreement on a bilateral free trade pact and announced a joint statement.

"The (South) Korea-Peru FTA is mutually beneficial to both sides," the countries said in the statement, calling the agreement "a comprehensive and high-quality FTA."

"The deal will further contribute to promoting the prosperity and development of both countries," the statement said.