The UK has secured a vital trade pact with South Korea to protect £2 billion in exports and boost jobs in pharmaceuticals, cars, spirits, and finance, despite recent declines in bilateral trade.
Trade Minister Chris Bryant announced the agreement on Monday at Samsung’s London store alongside counterpart Yeo Han-koo. The deal extends the post-Brexit arrangement—due to expire in January 2026—and maintains 98% tariff-free trade, matching EU terms.
Prime Minister Keir Starmer called it “a huge win for British business”. He added, “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.”
Bryant said it provides “cast-iron protections to our key industries to speed up economic growth as part of our Plan for Change”.
South Korea ranks 25th among UK partners according to DBT data to June 2025, representing 0.8% of trade. Exports fell 16.4% while imports dropped 10.8% amid global supply chain strains.
Han-koo told the BBC the economies “are complimentary”. He emphasised easing non-tariff barriers, digital protections, and mutual market access, adding, “so these two economies can win by cooperating closer through this kind of framework.”
Booming K-culture supports ties, with soaring popularity in K-pop, cosmetics, and food.
This marks Labour’s fourth deal after EU, U.S., and India pacts. The OBR sees minimal GDP impact by 2030, similar to India’s projected 0.11-0.14% lift despite job concerns.
Business leaders welcomed the news. “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,” Bentley CEO Frank-Steffen Walliser said.
Diageo’s Nik Jhangiani noted it will “help satisfy the growing demand from South Korean consumers” for Cheshire-canned Guinness.
“The reduction of trade barriers in the Republic of Korea will further enhance Scotch Whisky’s access to an important market, especially for single malts,” Scotch Whisky Association’s Emily Weaver Roads stated.