The government has committed itself to pursuing a trade deal
which unlocks big opportunities for UK businesses as negotiators
have flown to Seoul to meet with counterparts in South Korea
today as talks restart on a modern trade deal.
The UK is making the most of South Korea's booming import demand,
45 million middle class consumers, and high-tech industries such
as biotechnology and future vehicles.
The UK and the Republic of Korea share a long-standing diplomatic
relationship, reaching back more than 140 years. Our trade
relationship is equally strong but the existing trade deal,
negotiated more than a decade ago, has no digital chapter and
several other areas which stand to benefit from
modernisation.
The UK's digital sector is a huge driver of domestic economic
growth - this government's core mission – and was worth £158.3
billion to the UK economy in 2022. Modern digital provisions in a
trade deal could establish new opportunities for businesses to
export to Korea, delivering growth and supporting jobs across the
country.
Business and Trade Secretary said:
Both the UK and South Korea are renowned as global leaders in
technology. Our high-tech economies have so much more we can do
together once our trade deal is upgraded.
Trade deals with partners like South Korea mean UK businesses
will have more opportunities to sell their excellent goods and
services around the world. I'm pleased that negotiators are now
able to get back to this important work, helping us build a
stronger economy.
Sabina Ciofu Associate Director for International Policy
and Trade techUK, said:
techUK welcomes the UK government's renewed commitment to resume
negotiations on an enhanced Free Trade Agreement with South
Korea. We see significant opportunity in expanding trade in
digital services and technology, where British expertise and
innovation are world-leading.
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.
Chris Sunghwal CEO of SeAH Wind, said:
It brings both myself, and that of SeAH Wind great comfort and
pride to see enhanced relations between our two great nations.
Our new XXXL Monopile foundation factory in the UK is a world
class leading facility, bringing together the best of both
cultures from South Korea and the UK.
This is the start of a long and fruitful relationship for SeAH in
the UK, and we firmly believe our journey and experience can be
replicated by other South Korean companies considering the UK as
their next investment destination.
Almost 7,000 UK businesses already export goods to Korea, 85% of
which are SMEs. Under a new deal, digitalised customs procedures
would help grow this figure. Simplified Rules of Origin will
provide long-term certainty, with reduced or zero tariffs making
South Korea an attractive destination for businesses to sell
into.
The Business and Trade Secretary announced in July his intention
to deliver an ambitious Free Trade Agreement (FTA) programme. The
UK has restarted talks with the GCC and Switzerland and is
coordinating with other FTA partners to get negotiators back in
the room as soon as possible.
