The UK and South Korea have finalized a trade deal designed to boost exports of goods including luxury Bentley cars, Scottish salmon, and Guinness canned in Britain. The agreement extends the current tariff-free access for most goods and services traded between the two countries, with the government stating it will support UK jobs and economic growth.
South Korea Trade Deal Finalized
The government said the deal will protect £2 billion of UK exports from increased tariffs. It marks the fourth trade agreement secured since Labour took office, following deals with the European Union, the US and India.
However, UK economic growth remains sluggish, and aspects of the US agreement, particularly regarding technology, have reportedly stalled. The so-called “Tech Prosperity Deal,” signed by US President Donald Trump and Prime Minister Sir Keir Starmer in September, aimed to secure £150 billion in US investment and create 7,600 jobs through commitments from firms like Microsoft and Google.
K-pop Culture and Trade
Under the agreement with South Korea, 98% of trade will continue to be tariff-free, mirroring the terms the EU has with the country and which the UK maintained temporarily after Brexit. Parts of the UK’s trade agreement with South Korea were set to expire in January 2026, but the new deal will prevent tariff increases.
South Korean culture, including music, cosmetics, and food, has gained popularity in the UK in recent years. Trade minister Chris Bryant announced the deal at Samsung’s London flagship store alongside his Korean counterpart Yeo Han-koo. Prime Minister Sir Keir said the deal was “a huge win for British business,” and would support jobs and growth.
Bryant added the deal would provide “cast-iron protections to our key industries to speed up economic growth.” South Korea is the UK’s 25th largest trading partner, accounting for 0.8% of the UK’s total trade. However, UK exports to South Korea fell 16.4% and South Korean exports to the UK fell 10.8% in the 12 months to the end of June.
South Korea’s trade minister stated that the economies of South Korea and Britain are “complementary” and denied that the decline in trade indicated a diminished relationship.
The South Korean deal focuses on reducing non-tariff barriers and establishing new digital and investment protections. Han-koo said the agreement would allow both economies to benefit from closer cooperation.
‘Great News’ for UK Businesses
UK companies including Bentley Motors, Jaguar Land Rover (JLR), and Guinness owner Diageo welcomed the news. Frank-Steffen Walliser, chairman and chief executive of Bentley Motors, said South Korea is a key market for luxury vehicles and that the deal secures ongoing access and positive long-term trade. Diageo’s interim chief executive Nik Jhangiani said the deal would help meet growing consumer demand for Guinness, which is canned in Runcorn, Cheshire.
Emily Weaver Roads, interim international director at the Scotch Whisky Association, noted the Asia-Pacific region is the largest market by value for Scotch whisky. William Bain, the head of trade policy at the British Chamber of Commerce, said South Korea’s expanding middle class presents opportunities for British companies. He added the deal would expedite the movement of goods through ports.
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