Negotiations on UK-South Korea trade deal resume under new government
Talks resume on a trade deal with South Korea as negotiators meet today in Seoul.
- Upgraded, modern agreement expected to boost our trading relationship, worth £17 billion in the year ending June 2024
- Trade deal is the third to be restarted since the election as UK’s trade agenda steps up a gear
- Negotiators from both countries meet to recommence discussions for first time under new UK government
The government has committed itself to pursuing a trade deal which unlocks big opportunities for UK businesses as negotiators have flown to Seoul to meet with counterparts in South Korea today as talks restart on a modern trade deal.
The UK is making the most of South Korea’s booming import demand, 45 million middle class consumers, and high-tech industries such as biotechnology and future vehicles.
The UK and the Republic of Korea share a long-standing diplomatic relationship, reaching back more than 140 years. Our trade relationship is equally strong but the existing trade deal, negotiated more than a decade ago, has no digital chapter and several other areas which stand to benefit from modernisation.
The UK’s digital sector is a huge driver of domestic economic growth - this government’s core mission – and was worth £158.3 billion to the UK economy in 2022. Modern digital provisions in a trade deal could establish new opportunities for businesses to export to Korea, delivering growth and supporting jobs across the country.
Business and Trade Secretary Jonathan Reynolds said:
Both the UK and South Korea are renowned as global leaders in technology. Our high-tech economies have so much more we can do together once our trade deal is upgraded.
Trade deals with partners like South Korea mean UK businesses will have more opportunities to sell their excellent goods and services around the world. I’m pleased that negotiators are now able to get back to this important work, helping us build a stronger economy.
Sabina Ciofu Associate Director for International Policy and Trade techUK, said:
techUK welcomes the UK government’s renewed commitment to resume negotiations on an enhanced Free Trade Agreement with South Korea. We see significant opportunity in expanding trade in digital services and technology, where British expertise and innovation are world-leading.
With South Korea’s strong focus on research and development in key technologies, including semiconductors, 6G, and ICT infrastructure, this collaboration offers a unique chance to drive forward high-tech advancements and strengthen our global digital capabilities. We look forward to supporting the work towards an ambitious outcome for the benefit of both our nations and industries.
Chris Sunghwal CEO of SeAH Wind, said:
It brings both myself, and that of SeAH Wind great comfort and pride to see enhanced relations between our two great nations. Our new XXXL Monopile foundation factory in the UK is a world class leading facility, bringing together the best of both cultures from South Korea and the UK.
This is the start of a long and fruitful relationship for SeAH in the UK, and we firmly believe our journey and experience can be replicated by other South Korean companies considering the UK as their next investment destination.
Almost 7,000 UK businesses already export goods to Korea, 85% of which are SMEs. Under a new deal, digitalised customs procedures would help grow this figure. Simplified Rules of Origin will provide long-term certainty, with reduced or zero tariffs making South Korea an attractive destination for businesses to sell into.
The Business and Trade Secretary announced in July his intention to deliver an ambitious Free Trade Agreement (FTA) programme. The UK has restarted talks with the GCC and Switzerland and is coordinating with other FTA partners to get negotiators back in the room as soon as possible.