UK resumes tech-focused trade talks with South Korea
The UK is resuming trade talks with South Korea with discussions focused on boosting tech and digital services.
British negotiators have flown to Seoul to meet South Korean counterparts today as talks restart in a bid to secure a modern, digital-focused trade agreement.
It is the first time the discussions have recommenced under the Labour government, after trade talks were paused during the transition period following the July 4 election.
Business and trade secretary Jonathan Reynolds told City PM: “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.
“Trade deals with partners like South Korea mean UK businesses will have more opportunities to sell their excellent goods and services around the world.
“I’m pleased that negotiators are now able to get back to this important work, helping us build a stronger economy.”
The UK and South Korea share a trade relationship worth some £17bn in the year to June 2024, officials said, with the talks the third to resume post-Labour’s election win, following the Gulf Cooperation Council and Switzerland.
Ministers are committed to pursuing a deal that secures major export opportunities for UK firms’ amid South Korea’s booming demand for high-tech imports among consumers.
Diplomatic relations between the two countries go back some 140 years, but the current trade deal, agreed over 10 years ago, has no digital chapter and needs updating, the Department for Business and Trade (DBT) added.
The UK’s digital sector was valued at £158.3bn in 2022, and some 7,000 UK firms already export to Korea, of which 85 per cent are small and medium sized enterprises (SMEs).
A deal could see this figure rise thanks to digitalised customs procedures would help grow this figure, officials said, with simplified rules of origin and reduced tariffs set to be discussed.
Sabina Ciofu, from TechUK, welcomed the “renewed commitment” to trade talks and stressed: “We see significant opportunity in expanding trade in digital services and technology, where British expertise and innovation are world-leading.
“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,” Coifu told City PM.
And Chris Sunghwal, CEO of South Korean energy firm SeAH Wind, praised the potential for “enhanced relations between our two great nations” and described the company’s recently announced new monopile factory in Teesside as “a world class leading facility, bringing together the best of both cultures from South Korea and the UK”.
He added: “We firmly believe our journey and experience can be replicated by other South Korean companies considering the UK as their next investment destination.”