The UK and South Korea have finalised a free trade deal.
The deal, announced by Trade Minister Chris Bryant and his Korean counterpart Minister Yeo Han-koo at Samsung KX in London, is the fourth trade deal the UK Government has agreed this year following agreements with India, the EU and the US. It follows high-level talks between the UK and South Korean government last week.
Wales already exports over £227 million worth of machinery to South Korea, with power generating machinery exports increasing by over 50% since 2023, the UK Government said.
It added that the automotive industry in Wales was also set to benefit. Exports of road vehicles to South Korea from Wales reached £3.7 million in in 2024, up 57% since 2023.
Across the UK the deal is expected to grow services exports to South Korea – the 2nd largest in the world after the US – by £400 million with new, improved access secured to South Korea’s expanding financial market.
The UK Government said that some £2 billion pounds of UK exports were weeks away from facing costly tariff hikes but will now benefit from the deal thanks to permanent preferential access to South Korea.
The deal will legitimise the use of e-contracts and other digital technology making it quicker, cheaper and easier for Welsh and UK firms to sell to Korea, cementing the UK-South Korea trade partnership as one of the most advanced in the world, it added.
Prime Minister Keir Starmer said:
“This is a huge win for British business and working people and marks our fourth major agreement in 2025 after the EU, India and US.
“From food to TV, music and more, Korean culture is already influential here in the UK. This deal making trade even easier between us will help boost the economy – supporting jobs and growth which will be felt all over the country.”
Trade Minister Chris Bryant said:
“Korean culture has taken off in the UK, with millions of Brits already binge watching great Korean TV like Squid Game and streaming K-pop artists like Blackpink – but this trade deal will take our relationship to the next level and turbo-charge it for businesses who will have hundreds of millions in opportunities unlocked.
“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.”
Secretary of State for Wales Jo Stevens said:
“This is a landmark deal that will enable Welsh exporters to South Korea to grow their businesses and create new jobs.
“It further unlocks the immense potential for growth across Wales’s key industries, including machinery businesses, by providing them with better access to a growing market.
“Following recent trade deals with India, the EU and the US, this is real boost for the UK economy and will put more money back in the pockets of businesses and consumers across Wales.”
The UK Government said the deal will also:
- Secure continued and permanent tariff-free access across 98% of tariff lines – the same terms the EU has with South Korea
- Create opportunities for British businesses of all sizes which stand to benefit from South Korea's growing import market, forecast to grow by 26% by 2035
- Update rules of origin which will simplify tariff-free access and will open doors for greater diversification across supply chains for sectors such as automotive and pharmaceuticals.
- Strengthen UK access to South Korea’s expanding financial market – building on £1.1 billion in financial and insurance exports in 2024.
- Help smaller businesses by streamlining custom processes and reducing non-tariff barriers.
