South Korea and the United Kingdom have concluded negotiations to improve their Free Trade Agreement (FTA). The main points include easing strict rules of origin for key export items such as automobiles and K-food, and further opening the UK’s high-speed rail and major service markets. The Ministry of Trade, Industry and Energy announced that Trade Minister Yeo Han-koo signed a joint declaration with Chris Bryant, the UK’s Minister for Trade, confirming the conclusion of the negotiations in London.
The UK is the world’s 6th largest economy by nominal GDP and the 2nd largest in Europe, serving as a global financial and investment hub. However, trade volume between the two countries ranks only around 20th globally, necessitating improved market access through these negotiations. The revised Korea-UK FTA is expected to drive trade expansion by easing strict rules of origin for key export items and further opening the UK’s high-speed rail and major service markets.
While the original agreement had already opened most goods markets, this negotiation focused on easing strict rules of origin for key export items to facilitate easier application of FTA preferential tariffs. The rules of origin for promising export items such as automobiles, K-beauty, and K-food were relaxed to expand the entry of domestic products into the UK market. Additionally, the government procurement and service markets were further opened to improve market access for both countries.
New trade norms were also introduced, establishing digital trade rules and comprehensive cooperation frameworks in areas such as supply chains and innovation. The two countries agreed to establish enhanced data trade norms, including the liberalization of cross-border data transfers, prohibition of localization requirements for computing facilities, and prohibition of source code submission requirements. The government plans to promptly complete the procedures for formal signing, including legal review and translation of the agreement text, and to smoothly proceed with the procedures for the agreement’s entry into force, including economic impact assessment and parliamentary ratification.