UK and South Korea Sign New Trade Deal to Boost Logistics, Exports and Supply Chain Growth

London — The UK and South Korea have signed an upgraded trade agreement designed to boost bilateral exports and strengthen supply chain cooperation across key sectors including automotive, food & drink, and pharmaceuticals.

The new UK–South Korea trade deal replaces the post-Brexit continuity arrangement and secures tariff-free access for 98% of goods traded between the two countries, a level aligned with the EU’s deal with South Korea.

A major shift under the agreement is a relaxation of rules of origin for vehicles. The minimum domestic content required for tariff-free car exports has fallen from 55% to 25%, allowing manufacturers to source more components such as batteries and electronic systems from abroad and still qualify for duty-free access. This change opens up significant flexibility for complex supply chains.

The deal also enhances trade conditions for pharmaceuticals, food & beverage, and other manufactured goods. Iconic British exports (including Scottish salmon, Bentley cars and beverages) are expected to benefit from more predictable cost structures and streamlined customs clearance processes, potentially easing bottlenecks in cross-border transport.

Officials highlight that the agreement also strengthens digital trade provisions, legitimises electronic contracts, and offers greater clarity in import/export licensing—moves that support smoother cross-border operations and reduce risks for perishable and time-sensitive cargo.

UK Trade Minister Chris Bryant and his South Korean counterpart Yeo Han-koo announced the deal at an event in London, underscoring its importance for economic growth and supply chain resilience amid global trade uncertainty. Industry leaders have welcomed the update, noting that improved market access and reduced trade barriers could enhance competitiveness and shipping efficiency.

Analysts say the agreement not only protects nearly £2 billion of exports from increased duties but also provides a more predictable foundation for logistics planning and supply chain optimization across both markets.