Demand for UK goods
The South Korean public has a taste for British culture and a respect for UK goods. Many well-known UK brands like Standard Chartered, Jaguar Land Rover, British Airways, Lush, Boots and Burberry are already selling in South Korea.
Government policy
The Korean New Deal, announced in 2020, plans to invest approximately £100 billion to create 1.9 million jobs by 2025 based on two main policies, the Digital New Deal and Green New Deal. This presents opportunities in sectors of UK strength (Ministry of Economy and Finance)
UK-South Korea trade agreement
The UK has signed a trade agreement with South Korea. Read our latest updates for more information on the status of this agreement and how it may benefit your business.
Top five UK goods exported to South Korea, in the four quarters to the end of Q4 2022
| Goods | Value (£billion) |
|---|---|
| Crude oil | |
| Cars | |
| Clothing | |
| Non-ferrous metals | |
| Mechanical power generators (intermediate) |
Source:
ONS Trade in goods: country-by-commodity exports
Last updated: April 2023
Download the latest trade and investment factsheet for South Korea.
Top five UK services exported to South Korea, in the four quarters to the end of Q4 2022
| Service | Value (£million) |
|---|---|
| Other Business Services | |
| Financial | |
| Telecommunications, computer and information services | |
| Intellectual property | |
| Transportation |
Source:
ONS UK trade in services: service type by partner country, non-seasonally adjusted
Last updated: April 2023
Download the latest trade and investment factsheet for South Korea.
Total import value (into the UK from South Korea) and export value (from the UK into South Korea) over time
| Year | Imports (£billion) | Exports (£billion) | Total trade (£billion) |
|---|---|---|---|
| 2016 | 6.1 | 7.0 | 13.1 |
| 2017 | 7.8 | 9.1 | 16.9 |
| 2018 | 6.1 | 9.2 | 15.4 |
| 2019 | 6.4 | 6.8 | 13.3 |
| 2020 | 5.3 | 7.2 | 12.5 |
| 2021 | 6.2 | 7.9 | 14.0 |
| 2022 | 8.1 | 10.2 | 18.3 |
Source:
ONS UK total trade: all countries, seasonally adjusted
Last updated: April 2023
Total trade is the sum of all exports and imports over the same time period.
Download the latest trade and investment factsheet for South Korea.
South Korea: at a glance
Economic growth
4.1%
Actual figure (IMF, 2021)
The UK is 7.4% (IMF, 2021, projected figure)
GDP per capita
$35,004
Actual figure (IMF, 2021)
The UK is $47,329 (IMF, 2021, projected figure)
Currency
South Korean won
Business languages
Korean
You may need a translator
Time zone
GMT +9
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Opportunities for exporters
There are export opportunities in a range of areas including technology, automotive, fintech, offshore wind and life sciences.
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South Korea has advanced technology infrastructure with high-speed internet and high smartphone penetration. It aims to lead the world in the Fourth Industrial Revolution and is use of artificial intelligence (AI) and development of smart cities. Its digital new deal targets plans to put approximately £37.6 billion into key tech investments by 2025.
Demand for UK expertise
South Korea's government and tech industry see the UK as one of the priority countries to collaborate with on innovation. This creates growing partnership opportunities for UK businesses.
Investment in AI
South Korea offers many opportunities for UK AI businesses, with the Korean government and many Korean conglomerates actively investing in AI-focused R&D and start-ups. The country hosts a rapidly developing local AI market and a highly developed ICT infrastructure. This creates a solid foundation for UK businesses to test and introduce their AI technology.
Smart cities
South Korea offers many opportunities for UK AI businesses, with the Korean government and many Korean conglomerates actively investing in AI-focused R&D and start-ups. The country hosts a rapidly developing local AI market and a highly developed ICT infrastructure. This creates a solid foundation for UK businesses to test and introduce their AI technology.
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In July 2020 South Korea announced a Green New Deal to achieve net-zero emissions and accelerate the transition towards a low-carbon and green economy. The government plans to build an eco-friendly energy infrastructure that promotes energy saving and an increased use of renewable energy.
Demand for UK expertise
To meet their targets, South Korea will need support from companies with a proven track record of success in the field of clean energy sources like wind and hydrogen. UK companies have already successfully participated in the development of offshore wind in Taiwan, giving assurance of an ability to operate in North East Asia.
Offshore wind
Massive government and private sector investment in offshore wind power will create opportunities for UK companies. The UK is recognised as having a world-leading offer in the supply chain.
Hydrogen
Korea offers huge opportunities for UK fuel cell and hydrogen companies with public and private sectors investing heavily in the nascent hydrogen economy. It sees hydrogen as a crucial to its transition to a low-carbon economy. There is growing awareness in Korea that the UK is a world leader in basic science and advanced materials.
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Financial services are the third largest service export from the UK to South Korea. The government is making some progress in changing regulations and providing support to innovative FinTech companies.
Demand for UK expertise
South Korea’s FinTech industry was, until recently, constrained by government regulation and a lack of domestic venture capital. South Korea is now seeking support from more experienced FinTech markets like the UK to turn this situation around.
Government and FinTech
FinTech is an important growth industry for Korea. The Regulatory Sandbox Programme is the Korean government’s major policy to spur innovation in the industries of the fourth industrial revolution. It encourages local and overseas companies to develop and deploy new solutions and gain market validation by providing a roll-out environment free from certain regulations.
Opportunities for UK companies
In 2016, Korea signed a FinTech bridge agreement with the UK. It aims to increase coordination on regulation and help FinTech firms and investors gain access to each other’s markets. Key areas of growth and potential include digital payments, P2P lending and blockchain technologies and opportunities in AI applications for finance, robo-advisors and insurtech, among others.
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The South Korean automotive industry is one of the largest in the world and a major part of their economy. They are expanding into advanced technology and innovation, especially low-carbon vehicles and driverless technology.
Demand for UK expertise
The UK is increasingly recognised in South Korea as an innovation leader, especially in driverless technology. Opportunities in this area are increasing as a result.
Low emission vehicles
The government has created an eco-friendly vehicle programme to support the development of these technologies. By 2040, South Korea plans to manufacture 6.2 million hydrogen cars and build 1,200 charging stations.
Connected and autonomous vehicles
South Korea offers significant opportunities for British connected and autonomous vehicle (CAV) companies. Korea’s strength in network technology and globally competitive automotive sector, offer a strong foundation for rapid commercialisation of self-driving vehicles.
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South Korea has a large pharmaceutical and biopharmaceutical market. It also has one of the largest medical device markets in the world. There are strong opportunities for UK digital healthcare companies with the government, major hospitals and large conglomerates. A growing number of tech start-ups are also investing heavily in the field.
Research and development
Opportunities for R&D collaborations and technology transfers exist in fields like oncology, cardiology, drug discovery, metabolic diseases and tissue engineering.
Digital health
Korea’s digital healthcare capability gap has created opportunities for overseas digital health companies to enter the market. Promising areas for UK companies include big data (precision medicine and genomics) and health IT (clinical IT systems, patient monitoring accessories and EMR/HER) and AI-based digital healthcare products and services.
Licensing options
South Korean companies are increasingly willing to license products from outside the country, presenting new opportunities for UK companies.
Check for trade barriers
Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. Check for any issues that may impact your business when exporting.
Check duties and customs
Find information on how to export goods from the UK. View the duties, rules, restrictions, and the documents you need for your products.
Doing business in South Korea
Preparing to export
VAT
South Korea has a VAT rate of 10%. Cultural items like newspapers, books and magazines may be exempt.
There are special tax exemptions under the FDI incentives scheme. For more information visit the Invest KOREA website.
Standards and regulations
The Korean Agency for Technology and Standards (KATS) administers and monitors Korea’s industrial standards.
Packaging and labelling
Country of origin labelling is needed for commercial shipments entering South Korea.
The Korean Customs Service publishes a list of the country of origin labelling requirements.
Intellectual property (IP)
Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.
The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for British businesses can be found through a network of IP attachés, based in key UK export markets.
Trade barriers
Check for any reported barriers to trading with South Korea.
Report any trade barriers that are affecting your business so we can help fix them.
Protecting your business
Routes to market
A long-term commitment to the market will pay dividends here. Successful market entry strategies include relationship building, adaptation of your offer to Korean tastes and commitment to visiting and exhibiting in the market.
Routes to market which may work well for you are:
- e-commerce - South Korea is a technologically advanced consumer economy. It is the leading market in the world for e-commerce sales, so selling via an online marketplace or website could be an excellent way into the market. DIT can suggest online marketplaces to help you get started. DIT’s E-Exporting Programme can also help
- using agents and distributors - appointing an agent or distributor can overcome language and cultural barriers. You should support your local representative with frequent visits and regular updates, particularly in the first 12 months.
- establishing a local office – it’s recommended that you trial the agent or distributor route before establishing a local office. Once you’re operating successfully, a local office may be an effective way to gain greater control over your operations.
The website of Invest KOREA, the national investment promotion agency, is a good source of further information. It supports the establishment of foreign businesses in South Korea, and has a London office.
Business culture
South Korea is modern and business-friendly, but there are some cultural differences to be aware of:
- The numerical system counts differently from the UK. Make sure all numbers are written down and fully understood in negotiations
- South Korea has a culture of dynamic, rapid action. Be prepared for expectations of fast delivery and last-minute alterations
- The preferred greeting style in business is a slight bow followed by a handshake
Next steps
Get ready to do business abroad
Step-by-step lessons to accelerate your exporting ability.
Read more
Contact an international trade advisor
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