UK hails ‘new golden age’ in relations with South Korea after trade deal struck

The deal is expected to protect £2 billion of UK exports which had faced an increase in tariffs in January when a temporary deal with Seoul was due to expire.

It is also expected to boost services exports by £400 million, with UK officials hailing the deal as the start of “a new golden age of UK-South Korea relations”.

Britain had previously benefitted from the EU’s trade deal with South Korea, and secured a continuity deal shortly before leaving the bloc in 2020.

But that deal was set to expire on January 1, having already been extended for two years beyond its original expiration date.

Read more: Government pledges extra £19m for safe housing for domestic abuse survivors

Read more: Starmer aware of farmers 'considering suicide' over inheritance tax rises

Sir Keir Starmer described Monday’s agreement as “a huge win for British businesses and working people” alongside trade deals with the EU, India and the US.

Trade minister Sir Chris Bryant said: “Korean culture has taken off in the UK, with millions of Brits already binge watching great Korean TV like Squid Game and streaming K-pop artists like Blackpink – but this trade deal will take our relationship to the next level, with hundreds of millions of pounds and vast opportunities unlocked for businesses.”

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

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

Bentley’s chairman Frank-Steffen Walliser said the deal would protect its access to “a key market” for luxury cars.