A trade deal between the UK and South Korea has been finalised following talks between the two governments. In an announcement on 15 December, the UK government said the agreement would, among other things, secure tariff-free access across 98% of tariff lines.
“The deal with South Korea, the 12th largest economy in the world, is expected to grow UK services exports by £400mn including improved access to South Korea’s expanding financial market,” it added. “Vital automotive, pharmaceutical and food and drink industries have also been protected and global supply chains secured.”
Other aspects of the deal aimed at helping SMEs keen to expand their international presence include an increase in the number of South Korean regulations published in English, as well as the utilisation of e-invoices and e-contracts.
Rules of origin will be updated in a bid to simplify tariff-free access, while the deal will also include what the UK government called “dedicated provisions to promote smooth customs procedures.” These provisions range from more clarity on export and import licensing requirements to increased transparency when import checks at the border are carried out.
The announcement of the deal between the two countries is timely. If no agreement had been reached, around £2bn of UK exports would have been hit with tariff increases in the next few weeks.
“Today’s agreement secures the UK as a global leader in digital trade and innovation while boosting our world class services sector, supporting iconic brands, and giving cast-iron protections to our key industries to speed up economic growth as part of our Plan for Change,” Chris Bryant, the UK’s trade minister, said in a statement.
Yeo Han-koo, South Korea’s trade minister, was also optimistic about the implications of the deal, describing it as “an opportunity to enhance economic cooperation ties with the UK, a key partner in Europe.”
News of the agreement was welcomed by a number of trade bodies, including Salmon Scotland. “This deal will increase support in accessing the market and provide the opportunity for our exporters to deliver fish in pristine condition, with confidence, to consumers in South Korea,” Tavish Scott, the organisation’s CEO, said.
Elsewhere, Nicola Bates, CEO of WineGB, said the agreement marked “an important step in deepening our trade ties with one of Asia’s most dynamic markets.”
“The inclusion of dedicated provisions to promote smooth customs procedures will help remove barriers and create a more efficient pathway for our wines to reach Korean consumers,” Bates added.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, was also positive. “South Korea remains a crucial market for UK automotive exports, with South Korean car marques being some of the most popular in Britain so there is great potential to boost jobs and growth in both countries,” he said.
“Maintaining permanent tariff-free access, introducing workable rules of origin and cooperating across the supply chain are all positive steps and we look forward to seeing these key provisions ratified,” he added.
In the four quarters ending Q2 2025, UK exports to South Korea were £8.1bn, while imports came in at £7bn, declines of 16.4% and 10.8% compared to the four quarters ending Q2 2024.