South Korea's free trade agreement with a group of Central American countries will go into effect, starting with Honduras and Nicaragua.

The Ministry of Trade, Industry and Energy said on Monday that free trade deals with the two countries whose ratification procedures are completed will first take effect on Tuesday.

A ministry official expects that the FTA with Central America will help expand trade volume and diversify Korea's export market amid the challenging environment with the U.S.- China trade war and Japan's export restrictions against South Korea.

Under the deal, Central American markets will be open to Korean imports in automotives, steel, cosmetics and pharmaceutical goods.

The FTA also includes the opening of the region's government procurement market, allowing South Korean firms to participate in local energy, infrastructure and construction projects.

The comprehensive FTA also includes three other countries - Costa Rica, El Salvador and Panama.