Business and Trade Secretary Kemi Badenoch will launch talks on a modernised trade deal with South Korea to boost trade and strengthen this relationship with a key ally.
It comes as Korean businesses commit £21 billion of investment into the UK, backing renewable energy and infrastructure projects across the country and supporting more than 1500 highly skilled jobs.
South Korea is the 13th largest economy in the world and its import demand is set to grow rapidly. With around 45 million middle class consumers and an import market expected to grow by 45% by 2035, it presents massive opportunities for UK companies.
Commenting on the news of plans for a fresh trade deal with South Korea, Anne White, Head of International Trade and Compliance, Thames Valley Chamber of Commerce said: “Embracing modern digital provisions in trade agreements is the key to unlocking vast opportunities for UK businesses.
“While the current UK export value to South Korea stands at £8.6 billion year to Q2 2023, there remains untapped potential. Enhancements to the FTA, particularly in digital services, hold the promise of expanding horizons for UK exporters beyond their current 1.6% market share.”
William Bain, British Chambers of Commerce Head of Trade Policy, said: “An improved trade deal with South Korea would be very welcome. It could deliver for the UK’s food and drink sector, manufacturing companies and services providers, as well as locking in record inward investment into the UK.
“South Korea is a vital export market for our Chamber Network, but also a key source of semi-conductors for the UK manufacturing sector, as well as many everyday consumer goods – such as cars, electrical goods and electronics.
“The BCC has been at the forefront of campaigns to expand and simplify digital trade for services as well as goods. Building on the ideas in our Trade Manifesto, these negotiations can create a new bespoke agreement which fires up online trade and e-commerce between our countries.
“We have clear interests to defend too. This includes continuing flexibility for manufacturing exports, preferential tariff treatment in the South Korean market, and trading terms for data flows and intellectual property.
“But we enter this process with hope and optimism. If Government works closely with business, throughout these negotiations, we can produce the best trading terms for economic growth with a key partner. This would benefit small, medium and large firms, across the UK.”
