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UK and South Korea resume trade talks focusing on tech and digital services expansion

2025-04-21 20:39:19 By

Secretary of State for Business and Trade, Jonathan Reynolds at the North East Growth Summit in Sunderland.

The UK has recommenced trade negotiations with South Korea, with a focus on enhancing technology and digital services sectors.

British representatives have travelled to Seoul for discussions with their South Korean counterparts today, as they seek to forge a forward-looking, digitally-oriented trade deal, as reported by City AM.

This marks the first round of talks under the Labour government since the trade discussions were put on hold during the transition period after the July 4 election.

Speaking to City AM, Business and Trade Secretary Jonathan Reynolds said: "Both the UK and South Korea are renowned as global leaders in technology. Our high-tech economies have so much more we can do together once our trade deal is upgraded."

He added: "Trade deals with partners like South Korea mean UK businesses will have more opportunities to sell their excellent goods and services around the world."

Reynolds expressed satisfaction that negotiators are resuming this vital work, which contributes to building a stronger economy.

According to officials, the UK-South Korea trade relationship was valued at approximately £17bn in the year leading up to June 2024, with these talks being the third set to restart following Labour's electoral victory, succeeding discussions with the Gulf Cooperation Council and Switzerland.

The government is determined to secure a deal that opens significant export avenues for British companies, especially given South Korea's growing consumer demand for high-tech imports.

Diplomatic ties spanning 140 years are set to be rejuvenated, with the Department for Business and Trade (DBT) emphasising the need to refresh the decade-old trade agreement between the two nations, particularly citing an absence of a digital chapter in the current framework.

In 2022, the UK's thriving digital sector boasted a value of £158.3 billion, with roughly 7,000 British firms exporting to Korea - 85% of which are SMEs.

Officials are optimistic that a revised agreement could potentially boost this number through modernised customs processes, alongside planned talks on simplified origin rules and the prospect of lower tariffs.

TechUK's Sabina Ciofu has expressed support for a "renewed commitment" towards trade discussions, highlighting significant potential in advancing digital services and technology trade, areas where UK innovation excels globally.

"With South Korea's strong focus on research and development in key technologies, including semiconductors, 6G, and ICT infrastructure, this offers a unique chance to drive forward high-tech advancements and strengthen our global digital capabilities," Ciofu conveyed to City AM.

Adding to the positive sentiment, Chris Sunghwal, CEO of SeAH Wind, a South Korean energy company, commended the opportunities ahead for "enhanced relations between our two great nations". He endorsed the establishment of the new monopile factory in Teesside, hailing it as "a world class leading facility, bringing together the best of both cultures from South Korea and the UK".

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