This paper intends to explore Australia-South Korea FTA negotiations under the premise that the converging foreign policy orientations focusing on Asian regionalism under Australian Labor Party Governments and South Korean President Lee Myung-bak have brought about the inauguration of their bilateral FTA negotiations. It begins with examining each other’s approaches to rising China and the acceleration of Asian economic integration, then highlighting their perceptions of each other and current economic interactions as well as identifying their converging national interests, goals and regional diplomatic demarches, and finally exploring the possibility of institutionalizing Australia-South Korea economic relations by signing a FTA and its challenges.