The deal, announced yesterday in London by British Trade Minister Chris Bryant and his Korean counterpart Yeo Han-koo, followed high-level talks between both sides last week.
It is the fourth trade deal the UK government has finalised this year following agreements with India, the European Union (EU) and the United States.
The deal is expected to grow UK services exports by £400 million, including improved access to South Korea’s expanding financial market.
Some £2 billion worth 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, according to a UK government release.
The deal will legitimise the use of e-contracts and other digital technology making it quicker, cheaper and easier for UK firms to sell to South Korea, cementing the UK-South Korea trade partnership as one of the most advanced in the world.
Key benefits of the deal include locking in permanent tariff-free access for British exports; new opportunities for top UK services firms; reduced administrative burden and costs for UK businesses; smoother customs processes; modernised rules for digital trade and artificial intelligence; unprecedented opportunities to win government contracts in South Korea; and bolstered strategic ties for long-term economic opportunities in the Asia-Pacific, a separate press release said.
The deal will secure continued and permanent tariff-free access across 98 per cent of tariff lines—the same terms the European Union has with South Korea.
ALCHEMPro News Desk (DS)
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