Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning
I note the announcement made by the UK government on 15 December that it has concluded negotiations on an upgraded UK-Republic of Korea Free Trade Agreement (FTA).
This modernised agreement builds on the existing continuity deal that the UK already has with the Republic of Korea, with new provisions to support digital trade and services, whilst providing continuity to our goods exporters.
The Republic of Korea is an important trading partner for Wales in sectors such as automotive and engineering. Goods trade between the Republic of Korea and Wales was valued at £597.8m in the year ending June 2025 of which imports and exports were valued at £365.1m and £232.7m respectively. This makes them our 18th largest export partner and 14th largest import partner. The Republic of Korea is the world’s 12th largest economy and offers strong opportunities for Welsh exporting businesses in sectors including advanced manufacturing, electronics, creative industries, and cyber security.
This upgraded FTA delivers:
- Goods market access continuity and improvements, safeguarding Welsh exports in sectors such as automotive and food & drink.
- Simplified customs procedures and digitised processes, which should reduce costs and complexity for Welsh exporters.
- Enhanced SPS provisions, ensuring access for Welsh agri-food exports.
- A Digital Trade chapter, enabling secure cross-border data flows and supporting Welsh businesses in e-commerce, financial services, and tech sectors.
- Chapters on sustainability including environment and labour, gender equality, anti-corruption, and SME cooperation, reflecting shared values and providing inclusive opportunities for Welsh businesses.
Our initial view is that the agreement will deliver some positive outcomes for Welsh exporters looking to sell into the Korean market with enhanced provisions in some areas including digital trade. As this FTA builds on an existing deal, we will not be publishing a full Welsh Government Perspective report. However, a short summary of our analysis of the deal and its potential impacts on Wales will be published in due course.
Engagement between the UK government and the Welsh Government during these negotiations has been constructive and positive. We welcome this collaborative approach.