British businesses to benefit as rules of origin to South Korea extended
The UK has secured a two-year extension to rules which help British companies to access lower or zero tariffs when selling goods to South Korea. The two countries have also just launched trade negotiations on an upgraded, modern free trade agreement which will boost the service, food and luxury goods sectors.
The extension has been secured under the UK-South Korea Free Trade Agreement and comes as welcome news for businesses who can continue to avoid the high tariffs imposed by South Korea on products entering the country.
It also comes ahead of the launch of negotiations on a new, modernised trade deal between the UK and South Korea, expected before the end of the year.
South Korea is the 13th largest economy in the world and set to grow rapidly. Thanks to a burgeoning middle class, its import market is expected to grow 45% by 2035. The UK’s trade with Korea has more than doubled since the original trade deal was negotiated in 2019.
Goods make up the majority of UK exports to South Korea, with £7.3 billion worth exported last year. A broad range of British manufacturing sectors are expected to benefit from the extension, including food and drink and automotive, which is the second largest British export to South Korea.
Minister for International Trade Nigel Huddleston said: “This is fantastic news for UK businesses who can continue selling their brilliant goods with confidence to South Korea, a fast-growing market of the future with a high demand for quality British products.”
Find out more about exporting opportunities in South Korea.