Wellington  - New Zealand and South Korea will start negotiations on a free trade pact as soon as possible, leaders of the two countries announced Tuesday after a summit meeting in Auckland.

The announcement came following talks between New Zealand Prime Minister John Key and the South Korean President Lee Myung-Bak, who is on a two-day visit to the South Pacific nation.

"Our relationship with Korea is strong and vibrant, and we would like to further strengthen this relationship, building on extensive bilateral cooperation in recent years," Key said.

A joint statement said the leaders emphasised the importance of maintaining open markets and shared concerns for the deepening economic crisis.

The announcement was hailed by New Zealand's main exporter of kiwifruit, Zespri Group, which currently pays duty of 45 per cent - the highest in the world - on the 24,000 tons of fruit it sells to South Korea annually.

Chairman John Loughlin said abolition of this tariff under a free trade agreement would be worth more than 33 million New Zealand dollars (16 million US dollars) a year to the kiwifruit industry. (dpa)