The United Kingdom and South Korea have concluded negotiations on an upgraded free trade agreement that protects tariff-free access for the vast majority of bilateral trade and promises to enhance market opportunities for British businesses across key sectors.

After more than two years of talks, ministers from both countries announced the deal on December fifteen, securing permanent zero tariffs on about ninety-eight per cent of tariff lines and modernising the post-Brexit continuity accord that has governed trade since two thousand twenty-one.

The agreement also expands cooperation on services and digital trade, with government estimates indicating that UK services exports could increase by around four hundred million pounds a year while strengthening supply chain integration between the two economies.

British automotive manufacturers are among the major beneficiaries, with luxury carmakers such as Bentley gaining from simplified rules of origin that make it easier to qualify for tariff-free exports.

Food and drink producers are also expected to benefit, with products including Scottish salmon and other premium British exports maintaining strong access to the South Korean market, one of East Asia’s most dynamic import destinations.

The deal further improves market access for financial, professional and digital services firms, including provisions recognising electronic contracts and reducing regulatory friction.

UK ministers described the agreement as a significant step in securing stable, long-term trade relationships in the Asia-Pacific region and protecting billions of pounds in exports that would otherwise have faced higher tariffs.

South Korean officials emphasised the pact’s role in reinforcing open trade and economic cooperation at a time of global uncertainty.

The agreement now moves toward ratification, with both governments highlighting its potential to support jobs, investment and sustained economic growth.