The United Kingdom and South Korea have finalized a free trade agreement aimed at boosting exports, supporting thousands of jobs, and strengthening economic growth, UK officials said.
The deal was announced in London by UK Trade Minister Chris Bryant and South Korean Trade Minister Yeo Han-koo following high-level talks between the two governments last week. It marks the fourth trade agreement concluded by the UK government this year, after deals with India, the European Union, and the United States.
The agreement with South Korea, the world’s 12th largest economy, is expected to increase UK services exports by £400 million, including expanded access to South Korea’s growing financial market. Key UK industries such as automotive, pharmaceuticals, and food and drink are set to benefit, while global supply chains will be strengthened.
Officials said around £2 billion worth of UK exports that were close to facing higher tariffs will now retain permanent preferential access to one of Asia’s most advanced economies. The agreement secures tariff-free access across 98% of tariff lines, matching the terms South Korea currently offers the EU.
British exports, including Guinness canned in Runcorn, Bentley vehicles manufactured in Crewe, and Scottish salmon, are expected to remain competitive in South Korea’s import market, which is forecast to grow by 26% by 2035.
The agreement also introduces advanced digital trade provisions, including the recognition of e-contracts and digital documentation, aimed at making trade faster, cheaper, and more efficient for UK businesses. The UK government said these measures position the UK–South Korea partnership among the most advanced trade relationships globally.
Prime Minister Keir Starmer said the agreement would support jobs and growth across the UK, adding that stronger trade ties reflect the growing cultural and economic links between the two countries.
Trade Minister Chris Bryant said the deal unlocks significant opportunities for UK businesses, strengthens digital trade leadership, and provides firm protections for key domestic industries as part of the government’s broader economic strategy.
South Korean Trade Minister Yeo Han-koo said the upgraded agreement reinforces free-market principles at a time of global uncertainty and enhances cooperation in areas including market liberalization, digital trade, and supply chain stability.
The agreement updates rules of origin to simplify tariff-free access and encourage more diversified supply chains, particularly in the automotive and pharmaceutical sectors.
It also strengthens UK access to South Korea’s financial market, building on £1.1 billion in UK financial and insurance exports recorded in 2024. Measures to streamline customs procedures and reduce non-tariff barriers are expected to benefit smaller firms, which make up more than 99% of UK businesses.
Industry leaders welcomed the deal, highlighting its importance for sectors ranging from automotive manufacturing and luxury vehicles to food, beverages, and insurance services.
Companies including Bentley Motors, Diageo, Jaguar Land Rover, and major UK insurers said the agreement would provide greater certainty, improved market access, and long-term growth opportunities in South Korea.
The deal is expected to further deepen bilateral ties, with officials pointing to developments such as Virgin Atlantic’s planned launch of daily flights between London and Seoul in 2026 as a sign of closer economic and commercial engagement.
The agreement follows recent UK trade accords that the government says could add billions of pounds to the economy over the coming decades, reinforcing its push to expand global trade relationships.
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