Prime Minister Kevin Rudd met with South Korean President Lee Myung-bak yesterday, with the pair agreeing to start negotiations despite strong grassroots opposition to FTAs from within Korea.

Consumers have held several major protests on the streets of Seoul against the FTA between Korea and the United States, although that deal was overshadowed by lingering food safety concerns relating to US beef.

However, if a deal is successfully negotiated between Australian and Korea, a feasibility study has estimated gains of up to $25 billion for the two economies over the next 12 years.

Mr Rudd said the economic and trade relationship with Korea is strong and growing, "but I think we should be looking for ways to push it to an even higher level".

"I am very keen for our governments to look very closely at the question of an FTA. I think we would have a lot to gain from one."

The Australian beef industry has been pushing hard for an FTA with Korea to ensure that its product is not at a price disadvantage to US beef.

Under its FTA with Korea, US beef will have the 40pc beef import tariff removed over time, potentially putting it at a distinct advantage in the market place.

But Mr Rudd said that the quality of Australian beef was the key to its success in international markets.

"Aussie beef will always succeed because Aussie beef is better," he told Korean reporters.

"I'm pretty confident we are going to be able to compete and compete effectively on that score."