Britain hails ‘golden age’ in South Korea relations after crucial trade deal struck

A new free trade agreement between the UK and South Korea has successfully prevented impending tariff increases on British exports, securing vital trade links.

The landmark deal is set to secure £2bn worth of UK exports, which will face higher tariffs from January as the interim agreement with Seoul nears expiration.

The deal is also expected to increase services exports by £400 million.

UK officials hailed the agreement as the dawn of “a new golden age in UK-South Korea relations”.

Britain previously took advantage of the European Union’s trade deal with South Korea and then secured a continuity agreement shortly before leaving the bloc in 2020.

However, this agreement was set to expire on January 1 as it was extended for another two years from its original end date.

Sir Keir Starmer described Monday’s deal as a “major win for British business and workers” alongside trade deals with the EU, India and the US.

Trade secretary Sir Chris Bryant said: “Korean culture is on the rise in the UK, with millions of Brits watching great Korean TV like Squid Game and listening to K-pop artists like Blackpink – but this trade deal will take our relationship to the next level, unlocking hundreds of millions of pounds and huge opportunities for businesses.”

Companies including Bentley, Jaguar Land Rover and Guinness owner Diageo praised the deal.

Diageo’s interim chief executive Nik Jhangiani said it would “help meet growing demand from South Korean consumers” for Guinness canned in Runcorn, Cheshire.

Bentley’s chairman, Frank-Steffen Walliser, said the deal would preserve its access to an “important market” for luxury cars.