South Korea and the United Kingdom have concluded negotiations to upgrade their bilateral free-trade agreement, a move expected to widen market access for Korean automakers and open Britain’s high-speed rail sector to Korean firms.
The deal, signed in London by South Korea’s chief trade negotiator Yeo Han-koo and U.K. Trade Minister Chris Bryant, follows more than two years of talks. It notably eases rules of origin for automobiles, lowering the local-content threshold from 55% to 25%—a change that will help Korean electric-vehicle makers using imported materials qualify for zero tariffs when exporting to the U.K.
Other industries set to benefit include cosmetics, chemicals and processed foods such as dumplings and kimchi. The agreement also expands Korean access to British services, including online gaming and artificial intelligence-based sectors.
The updated pact simplifies visa procedures for skilled professionals, strengthens provisions on digital trade, investor protection and cultural cooperation, and establishes a supply-chain partnership for critical materials. A new Korea–U.K. Innovation Committee will oversee joint technology initiatives.
“Completing this upgrade reaffirms our commitment to free-market principles and deepens ties with a key European partner,” Mr. Yeo said. The agreement will now undergo legal review and domestic ratification procedures in both countries before taking effect.
