UK industrial technology suppliers are set to gain easier access to South Korea’s advanced manufacturing base under a new free trade agreement designed to modernises digital trade rules and strengthens supply-chain cooperation between the two countries.
The upgraded UK-South Korea FTA, announced by trade minister Chris Bryant and his Korean counterpart Yeo Han-koo, secures permanent tariff-free access across 98% of tariff lines and introduces new provisions on digital trade, data flows and AI cooperation.
The UK government estimates services exports could increase by around £400m annually in the long run, with opportunities highlighted in advanced manufacturing, digital services and industrial technology.
For industrial IoT and automation vendors, a key change is the emphasis on streamlined customs procedures, electronic contracts and clearer, English-language regulatory information, which together are intended to reduce friction for small and mid-sized exporters.
The agreement also includes a dedicated chapter on supply chain cooperation aimed at helping firms diversify sources of components and raw materials in sectors such as automotive and pharmaceuticals.
Business groups argue that the deal could provide a platform for wider collaboration in automation and digital manufacturing.
Rain Newton-Smith, CEO of the Confederation of British Industry, said the agreement would help business “go further and faster, powering growth through collaboration in advanced manufacturing, digital, services, clean energy and creative industries,” while Make UK has described it as a signal that the UK remains committed to free and fair trade in an era of increasing protectionism.
Alongside tariff provisions, the FTA’s updated digital trade chapter commits both sides to enabling trusted cross-border data flows and to avoiding unjustified data localisation requirements.
Industry bodies such as techUK say this should make it easier for UK digital and technology companies to deliver cloud-based services, data-driven analytics and AI-enabled solutions into the Korean market.
With South Korea positioned as one of Asia’s most advanced industrial economies – and a growing hub for electronics, automotive and high-tech manufacturing – the agreement is likely to be closely watched by UK robotics, automation and industrial software providers assessing export opportunities in the wider Asia-Pacific region.
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