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 high-speed rail and major service markets.
The Ministry of Trade, Industry and Energy announced on the 16th that on the 15th, Trade Minister Yeo Han-koo signed a joint declaration with Chris Bryant, the UK’s Minister for Trade, confirming the conclusion of the Korea-UK FTA improvement negotiations in London. The UK is the world’s 6th largest market by nominal GDP and the 2nd largest in Europe, and is a global financial and investment hub with the highest market share in international banking and foreign exchange transactions.
The revised Korea-UK FTA is expected to drive the expansion of trade between the two countries by easing strict rules of origin for key export items and further opening the UK high-speed rail and major service markets. Additionally, numerous new trade norms have been incorporated to expand exchanges and cooperation in various fields. The relaxation of rules of origin for promising export items such as automobiles, K-beauty, and K-food has laid the foundation for expanding the entry of domestic products into the UK market.
Following the declaration of the conclusion of the negotiations, the government plans to promptly complete the procedures for formal signing, including legal review and translation of the agreement text into Korean. After the formal signing, the government will also proceed with the economic impact assessment and National Assembly ratification process to ensure the agreement’s implementation. Minister Yeo emphasized, “The revised Korea-UK FTA is significant as it includes not only market liberalization elements but also numerous comprehensive cooperation norms to timely respond to the changing trade environment, such as digital trade and supply chain stabilization cooperation.”