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UK services firms eye £400 million boost thanks to deal that also locks in tariff-free access across 98% of tariff lines.
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Bentley, Scottish Salmon and Guinness among iconic exports to benefit
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Deal follows landmark trade agreements with EU, US, and India which together will add billions of pounds and thousands of jobs to UK economy.
The UK and South Korea have finalised a free trade deal which will boost exports, support thousands of UK jobs and grow the economy.
The deal, announced by Trade Minister Chris Bryant and his Korean counterpart Minister Yeo Han-koo at Samsung KX in London on Monday [December 15] is the fourth trade deal the UK government has agreed this year following agreements with India, the EU and the US. It follows high-level talks between the UK and South Korean governments last week.
The deal with South Korea, the 12th largest economy in the world, is expected to grow UK services exports by £400 million including improved access to South Korea’s expanding financial market.
Vital automotive, pharmaceutical and food and drink industries have also been protected and global supply chains secured. Some £2 billion of UK exports were weeks away from facing costly tariff hikes but will now benefit from the deal thanks to permanent preferential access to one of Asia’s most advanced economies.
Iconic goods from across the country such as Guinness canned in Runcorn, Bentleys manufactured in Crewe, and salmon from Scotland will remain competitive in South Korea’s fast-growing import market, which is expected to grow by 26% by 2035.
The deal will legitimise the use of e-contracts and other digital technology making it quicker, cheaper and easier for UK firms to sell to Korea, cementing the UK-South Korea trade partnership as one of the most advanced in the world.
Prime Minister Keir Starmer said
This is a huge win for British business and working people and marks our 4th 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.
Trade Minister Chris Bryant said
Korean culture has taken off in the UK, with millions of Brits already binge watching great Korean TV like Squid Game and streaming K-pop artists like Blackpink – but this trade deal will take our relationship to the next level, with hundreds of millions of pounds and vast opportunities unlocked for businesses.
Today’s agreement secures the UK as a global leader in digital trade and innovation while boosting our world class services sector, supporting iconic brands, and giving cast-iron protections to our key industries to speed up economic growth as part of our Plan for Change.
Korean Trade Minister Yeo Han-koo said
The upgraded Korea-UK FTA will strengthen the free-market system in a trade environment with heightened uncertainty. In particular, it will be an opportunity to enhance economic cooperation ties with the UK, a key partner in Europe.
The upgraded Korea-UK FTA has established a considerable number of comprehensive cooperation norms, including market liberalisation, digital trade, and cooperation for supply chains stabilisation, to strengthen the Korea – UK trading relationship.
The advanced digital wins align with the UK’s flagship Trade Strategy which emphasises going further on digital provisions in trade agreements than ever before.
The deal will also
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Secure continued and permanent tariff-free access across 98% of tariff lines – the same terms the EU has with South Korea
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Create opportunities for British businesses of all sizes which stand to benefit from South Korea’s growing import market, forecast to grow by 26% by 2035
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Update rules of origin which will simplify tariff-free access and will open doors for greater diversification across supply chains for sectors such as automotive and pharmaceuticals.
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Strengthen UK access to South Korea’s expanding financial market – building on £1.1 billion in financial and insurance exports in 2024.
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Help smaller businesses, which make up over 99% of UK businesses, by streamlining custom processes and reducing non-tariff barriers.
Frank-Steffen Walliser, Chairman and CEO of Bentley Motors, said
South Korea is a key market for Bentley and the luxury vehicle market. 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. So, securing trading relations with South Korea and with other partners across the 60 plus markets in which we operate is business critical. We welcome this collaborative approach from the UK Government and look forward to future trade discussions.
Nik Jhangiani, Interim Chief Executive, Diageo, said
I commend Sir Chris Bryant and his South Korean counterpart Jung-Kwan Kim in securing a new trade agreement between the UK and South Korea.
The deal will support export growth for Guinness, canned in Runcorn, and help satisfy the growing demand from South Korean consumers for the world’s number one stout.
Hannah Gurga, Director General for the Association of British Insurers, said
We welcome the UK-South Korea Free Trade Agreement, which will enable UK non-life insurers to continue providing cover directly into the South Korean market. We support South Korea’s pledge to publish clear guidance on cross-border data rules and limit further data localisation restrictions for UK financial services. These measures will help insurers and reinsurers operate with greater certainty and continue serving customers effectively.
South Korea is a growing financial hub and an important market for the UK insurance sector, offering significant opportunities for future collaboration.
Richard Molyneux, Chief Finance Officer at Jaguar Land Rover (JLR), which is one of the UK companies that will benefit, said
We welcome this free trade agreement and the benefits it will provide our clients in South Korea, which is an important market for JLR.
It signals a new golden age of UK-South Korea relations, epitomised by Virgin Atlantic launching daily flights from London to Seoul in 2026.
The agreement follows a string of huge trade wins the FTA signed with India in July could add £4.8 billion to the UK economy, the state visit following the US deal agreed in May secured £150 billion in investment commitments from US companies and the EU deal could add nearly £9 billion to the UK economy by 2040.
Notes to editors
The government is committed to transparency throughout our trade programme.
The conclusion summary setting out what we have agreed as part of this deal will be published at 2230 Monday 15 December on GOV.UK, and a technical note will follow shortly.
Figures for Korean import growth, in real terms 2023-2035
DBT Global trade outlook June 2025 report – GOV.UK
UK exports of finance and insurance services ONS UK trade in services service type by partner country Q2 2025
Samsung KX is the ‘Home of innovation, where tech meets culture’. The premium experience store, located in Coal Yards Drop in Kings Cross, is the best place in the UK to get hands on with Samsung’s product and services portfolio.
Along with product launches, events, customer support, partner, CSR and Community activities, Samsung KX has become a landmark destination for London’s culture and innovation.
