The United Kingdom and South Korea have finalised a trade deal designed to increase exports of luxury goods including Bentley cars, Scottish salmon, and Guinness canned in Britain.

The government described the agreement as an extension of the existing tariff-free trade deal covering most goods and services between the two nations. Officials said it would support thousands of UK jobs and boost the economy.

This marks the fourth trade agreement struck by the Labour government, following deals with the EU, US, and India.

Deal Highlights

• Tariff-free trade maintained: 98% of trade will continue to be tariff-free, aligning with previous EU terms.
• Protection for key exports: The deal safeguards £2bn of UK exports from potential tariff increases starting January 2026.
• Reduction of non-tariff barriers: Rules around product origin and other regulations have been simplified to make business more efficient.
• Digital and investment protections: The agreement includes measures to facilitate smoother trade in technology and investment.

Trade Minister Chris Bryant announced the deal from Samsung’s flagship store in London, alongside South Korea’s trade minister Yeo Han-koo.

Prime Minister Sir Keir Starmer called it “a huge win for British business,” highlighting its role in boosting jobs and growth nationwide.

Industry Reaction

• Bentley Motors: CEO Frank-Steffen Walliser said South Korea is a key luxury market, and smooth trade access is vital for growth.
• Diageo (Guinness): Interim CEO Nik Jhangiani noted that the deal would meet growing demand from South Korean consumers.
• Scotch Whisky Association: Interim International Director Emily Weaver Roads emphasized that the Asia-Pacific is the largest regional market by value for whisky, and the deal would enhance Scotch Whisky access to South Korea.

UK trade experts highlighted that South Korea could serve as a gateway to Asia, while the UK could act as a bridge to Europe for South Korean companies.

Context

South Korea ranks as the UK’s 25th largest trading partner, accounting for 0.8% of UK trade in the 12 months to June 2025. During the same period, UK exports to South Korea fell 16.4%, and South Korean exports to the UK dropped 10.8%.

The government hopes the new agreement will streamline trade, reduce bureaucracy, and create opportunities for British small businesses.