UK-South Korea Trade Deal Set to Boost Jobs and Exports
16th Dec. 2025
The UK and South Korea have finalized a new trade agreement on December 15, 2025. According to the British officials, the deal will protect billions of pounds in exports and support thousands of British jobs. The UK government is continuing to strengthen post-Brexit trade ties.
Under the deal, 98% of trade between the two countries will remain tariff-free. It matches the terms of the EU that it shares with South Korea. Crucially, the agreement replaces a temporary post-Brexit arrangement that was due to expire in January 2026. At the same time, it will also safeguard around £2bn worth of UK exports from higher tariffs.
Prime Minister Keir Starmer described the agreement as “a huge win for British business”. He further 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.”
Trade minister Chris Bryant announced the agreement at Samsung’s flagship store in London, alongside his South Korean counterpart, Yeo Han-koo. It marks the fourth trade deal secured by the Labour government this year, following agreements with the EU, the US, and India.
Industries that are expected to benefit from the UK-South Korea Deal
British sectors expected to benefit that includes pharmaceuticals, car manufacturing, alcohol, and financial services. While talking about the deal, Ministers also point out the growing popularity of South Korean culture in the UK. It includes music, cosmetics, and food, which creates a strong opportunity to deepen the commercial links.
However, official figures show trade between the two countries has declined recently. In the last 12 months, UK exports to South Korea has fallen 16.4%, while South Korean exports to the UK dropped by 10.8%. South Korea currently ranks as the UK’s 25th-largest trading partner, accounting for 0.8% of total trade.
Han-koo rejected suggestions that the falling numbers reflected a weakening relationship. Instead, he said the new framework will focus on cutting non-tariff barriers, simplifying rules of origin, and strengthening digital and investment protections. “So, these two economies can win by cooperating more closely through this kind of framework,” he said.
UK-South Korea Deal got Praise from other Businesses
UK companies, including Bentley Motors, Jaguar Land Rover, and Diageo, welcomed the announcement. Bentley’s chairman and chief executive, Frank-Steffen Walliser, said: “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.”
Diageo said the deal would help meet rising South Korean demand for Guinness, canned in Runcorn, while the Scotch Whisky Association highlighted Asia-Pacific as its largest regional market by value. Despite the optimism, the Office for Budget Responsibility has previously said recent trade deals are unlikely to have a measurable impact on the UK economy by 2030. Even so, ministers insist the agreement will reduce red tape, support small businesses, and strengthen Britain’s role as a gateway between Europe and Asia.
Web Resources on the UK-South Korea Trade Deal
1. Reuters.com: Britain clinches upgraded South Korea trade deal
2. FinancialTimes.com: UK agrees trade deal with South Korea just weeks ahead of deadline
3. BBC.com: UK and South Korea strike trade deal
4. AcademicBlock.com: The Role of Trade and Tariffs in Economic Policy.