UK trade negotiations reached a major milestone as Britain signed a new deal with South Korea. Consequently, the agreement aims to boost UK trade by increasing exports of cars, Scottish salmon, and Guinness. Moreover, it supports services and pharmaceutical sectors.
Finalized on December 15, 2025, the deal replaces the 2019 post-Brexit arrangement. As a result, the government expects it to add an extra £400 million annually to the economy. Trade between the UK and South Korea already exceeds £15 billion per year. In addition, Prime Minister Keir Starmer described the deal as a major win for British businesses and workers.
The deal also changes automotive export rules. Specifically, the required percentage of British or EU content in cars drops from 55 percent to 25 percent. Therefore, manufacturers can source parts, such as batteries, from China while still qualifying for zero tariffs. Consequently, industry leaders welcomed the move, noting it improves UK carmakers’ global competitiveness.
Jaguar Land Rover’s chief financial officer, Richard Molyneux, called the deal positive for international business growth. Similarly, Bentley Motors’ CEO, Frank-Steffen Walliser, said access to South Korea remains critical for luxury car exports. Furthermore, analysts predict the revised rules could attract more foreign investment to UK manufacturing.
The agreement covers services, pharmaceuticals, and food and drink, reflecting the diversity of UK trade priorities. Additionally, government officials highlighted that Scottish salmon and Guinness will benefit from improved export pathways. These measures aim to integrate British products further into Asian markets.
This deal follows recent UK agreements with India, the United States, and the EU. Consequently, strengthening UK trade with South Korea could help offset post-Brexit challenges and support long-term economic growth.
Businesses will benefit from lower regulatory barriers, simpler tariffs, and clearer trade rules. Moreover, policymakers hope the deal will encourage investment, expand exports, and create jobs across multiple sectors.
UK trade experts say the agreement demonstrates confidence in Britain’s international partnerships. Therefore, enhancing export opportunities shows the government’s commitment to strong global trade relations.
Overall, UK trade now sits at the heart of the economic growth strategy. Accordingly, new agreements like this one are expected to generate revenue and strengthen the industrial base.
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