The objective of this paper is to attempt to quantify the impact of ASEAN-Korea FTA (AKFTA) on national economy-wide impact and poverty. The study uses a standard Global Trade Analysis Project (GTAP) model for this analysis. The simulation results show that Laos will gain from accession to the AKFTA. The real GDP and welfare will increase, while trade deficit will increase and output in some sectors will be reduced. In addition, income of unskilled labor will increase. Therefore, AKF will increase growth and also improve income distribution for Laos.