South Korea and the UK signed an upgraded free trade agreement aimed at expanding bilateral trade by easing rules of origin for Korean exports and opening new sectors in both markets, South Korea's Trade Ministry said Tuesday.
The revised agreement was signed in London by South Korean Trade Minister Yeo Han-koo and his British counterpart, Chris Bryant, following two years of negotiations, Yonhap News reported, citing the ministry.
The two countries updated the original free trade agreement signed in 2019 and implemented in 2021 after Britain's exit from the European Union.
Under the renewed deal, Britain agreed to ease rules of origin for automobiles as well as beauty and food products exported from South Korea.
For automobiles, the value-added requirement for tariff-free treatment will be reduced from 55% to 25%, making it significantly easier for South Korean carmakers to qualify for preferential tariffs.
Automobiles are a key South Korean export to Britain, accounting for 36% of South Korea's total exports to the country last year.
