The United Kingdom and South Korea have signed a new trade agreement designed to strengthen economic links and safeguard key British exports. Officials say the deal will generate jobs, boost growth, and provide long-term stability for industries including pharmaceuticals, automotive, alcohol, and financial services.
Trade Minister Chris Bryant unveiled the agreement at Samsung’s London flagship store alongside South Korea’s Yeo Han-koo. Under the new arrangement, 98% of trade will remain free of tariffs, continuing the post-Brexit terms the UK had temporarily preserved.
The previous deal was set to end in January 2026, but the updated agreement now protects £2 billion of UK exports from possible tariff hikes.
Prime Minister Keir Starmer called the deal “a huge win for British business,” adding that it would make trade easier, support jobs, and encourage growth across the country.
Bryant said the agreement provides “cast-iron protections to our key industries to speed up economic growth as part of our Plan for Change.”
Although South Korea ranks 25th among the UK’s trading partners, its role remains strategic. In the year ending June, UK exports to South Korea fell 16.4%, while imports from the country dropped 10.8%.
Addressing concerns about trade declines, Han-koo described the two economies as “complimentary” and said the agreement focuses on reducing non-tariff obstacles, easing product origin rules, and providing new digital and investment protections.
Han-koo also highlighted the strategic advantage for both nations: “Britain can serve as a gateway for South Korea in its trade with Europe, while South Korea can serve as a gateway to Asia for British companies.”
The UK has signed a series of post-Brexit trade agreements, but independent assessments suggest that deals with larger partners like the EU, US, and India have had limited economic impact so far.
Government assessments indicate these agreements will create jobs and simplify trade processes for small businesses, although critics argue some deals, such as with India, could undercut domestic workers.
British firms welcomed the South Korean deal. Bentley Motors’ CEO Frank-Steffen Walliser said, “To secure immediate ongoing access to South Korea and a positive long-term trade deal, is great news. Smooth international trade is vital to UK automotive business growth.” Diageo’s Nik Jhangiani added it will “help satisfy the growing demand from South Korean consumers” for Guinness.
Emily Weaver Roads from the Scotch Whisky Association noted that Asia-Pacific is the largest regional market for whisky and the deal “enhances Scotch Whisky’s access to an important market, especially for single malts.”
