New UK-South Korea trade deal on horizon
West Midlands businesses have hailed negotiations for a modernised trade deal with South Korea as a “massive opportunity” for UK firms and a significant boost for renewable energy.
Business and Trade Secretary Kemi Badenoch has launched talks for a new deal with the Far East state in a bid to boost trade and strengthen the UK’s relationship with its key South Asian ally.
And the new talks were welcomed by Sian Timmins (pictured), Greater Birmingham Chambers of Commerce’s head of international divisions, as a move towards a greener future following South Korea’s pledge to invest £21 billion into the UK, backing renewable energy and infrastructure projects across the country and supporting more than 1,500 skilled jobs.
She said: “The newly modernised trade deal between the UK and South Korea is to be welcomed, particularly in light of the shared commitment to advancing renewable energy. Korean businesses have pledged a substantial £21 billion in investments for projects across the UK, underscoring a mutual commitment to sustainable initiatives.
“In the Greater Birmingham region, renewable energy is of significant importance, aligning seamlessly with West Midlands Mayor Andy Street’s ambitious goal of achieving net zero emissions by 2041.
“Noteworthy contributors to this endeavour, such as Tyseley Energy Park and others, highlight the proactive role of Chamber members in spearheading advancements towards a cleaner, more sustainable future.”
South Korea is the 13th largest economy in the world and its import demand is set to grow rapidly. With around 45 million middle-class consumers and an import market expected to grow by 45 per cent by 2035, the state presents massive opportunities for UK companies.
The UK and South Korea are both major modern economies with large digital sectors and the current trade deal, negotiated more than a decade ago, doesn’t include digital chapters reflecting the modern economy.
With nearly 80 per cent of UK services exports to Korea delivered digitally in 2021, securing modern digital provisions could unlock big opportunities for UK businesses.
The UK’s trade with South Korea has more than doubled in current prices since the UK’s existing trade deal was agreed in 2011. An upgraded trade deal is expected to boost the annual £16 billion trading relationship with South Korea, supporting jobs and livelihoods up and down the UK.
Speaking ahead of the launch, Business and Trade Secretary Kemi Badenoch said: “The Government is upgrading our trade deal with South Korea to ensure that our trading relationship plays to the UK’s strengths as an advanced, high-tech economy.
“This refreshed, modernised deal will boost our world-leading services sector, while also creating new opportunities for UK exports such as in our world-leading food and luxury goods sector.”
The launch of the new deal coincides with the joint UK-Korea announcement of a record £21 billion of investments in green energy and infrastructure projects across the UK.
