Talks have resumed on a modernised trade deal between the UK and South Korea, with negotiators meeting in Seoul. The move aims to boost the already strong trading relationship, valued at £17 billion in the year ending June 2024
These talks mark the third trade deal to be restarted since the recent election, signalling the UK government’s renewed focus on international trade.
UK-South Korea Trade Deal: A modernised agreement
The existing trade deal, negotiated over a decade ago, lacks a dedicated digital chapter and several other areas ripe for modernisation. The UK’s digital sector, a key driver of economic growth, offers significant potential for expansion in South Korea.
Key benefits of a new deal between the UK and South Korea
- Digital Opportunities:
- Modernised digital provisions could open new markets for UK businesses, driving growth and job creation.
- Simplified Trade:
- Digitalised customs procedures and simplified rules of origin would streamline trade processes and reduce costs for UK exporters.
- Investment Opportunities:
- A strengthened trade relationship could attract more South Korean investment into the UK, particularly in high-tech sectors.
Industry support
Business and Trade Secretary Jonathan Reynolds expressed optimism about the renewed negotiations, emphasising the potential for growth in technology and other sectors. Industry leaders, such as Sabina Ciofu from techUK and Chris Sunghwal from SeAH Wind, also welcomed the move, highlighting the mutual benefits for both nations.
Sabina Ciofu Associate Director for International Policy and Trade techUK, said:
“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.”
Government support
The UK government is committed to securing ambitious free trade agreements with key partners. The continuation of a UK-South Korea trade deal signals a renewed commitment to strengthening economic ties between the two nations.
A modernised trade agreement, particularly one prioritising digital trade, could unlock significant business opportunities on both sides. As both countries strive to maintain economic growth and global competitiveness, this renewed partnership offers a promising avenue for future collaboration.
