The UK and South Korea have signed a free trade agreement designed to boost exports, sustain employment and foster economic growth.

The agreement was announced in London by UK Trade Minister Chris Bryant and Korean counterpart Yeo Han-koo at Samsung KX.

UK services exports to South Korea are projected to rise by £400m ($534.7m), with particular benefits for the pharmaceutical, automotive, food and drink sectors. The agreement also aims to strengthen worldwide supply chains.

The UK Government noted that £2bn worth of exports were close to being affected by increased tariffs. With this agreement, these exports will continue to have preferential access to South Korea.

The South Korea deal is the fourth trade agreement reached by the UK in 2025, following similar deals with the EU, the US and India.

UK Prime Minister Keir Starmer said: “This is a huge win for British business and working people and marks our fourth major agreement in 2025 after the EU, India and US. 

“From food to TV, music and more, Korean culture is already influential here in the UK. 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.”

Products such as Guinness from Runcorn, Bentleys from Crewe and Scottish salmon will maintain their competitiveness in South Korea, where the import market is forecast to grow by 26% by 2035.

The agreement allows for the use of electronic contracts and digital tools, which are expected to make trade faster and less costly for UK companies.

This digital focus is said to align with the UK’s Trade Strategy, which prioritises advanced digital provisions in trade agreements.

Key aspects of the deal include permanent zero-tariff access on 98% of tariff lines, matching the EU’s terms with South Korea.

The agreement also improves UK access to South Korea’s financial sector, building on £1.1bn in financial and insurance exports last year.

Small and medium-sized enterprises, which represent more than 99% of UK businesses, are expected to benefit from simplified customs procedures and reduced non-tariff barriers.

Companies such as Jaguar Land Rover, Bentley Motors, and Guinness owner Diageo have welcomed the announcement of the new trade agreement with South Korea.

According to the October 2025 UK trade and investment factsheet, total trade in goods and services, including imports and exports, between the UK and South Korea reached £15.1bn in the four quarters to the end of the second quarter of 2025 (Q2 2025). This represents a decline of 13.9% or £2.4bn compared to the previous year.

UK exports to South Korea were £8.1bn in the period, down 16.4%, or £1.6bn, while imports from South Korea totalled £7bn, a decrease of 10.8%, or £856m.

South Korea was the UK’s 25th-largest trading partner during this period, accounting for 0.8% of the UK’s total trade.