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.
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 Q2 2024
| Goods | Value (£ million ) |
|---|---|
| Crude oil | |
| Mechanical power generators (intermediate) | |
| Cars | |
| Scientific instruments (capital) | |
| Clothing |
Source:
ONS Trade in goods: country-by-commodity exports
Last updated: September 2024
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 Q1 2024
| Service | Value (£ billion ) |
|---|---|
| Other Business Services | |
| Transportation | |
| Financial | |
| Travel | |
| Intellectual property |
Source:
ONS UK trade in services: service type by partner country, non-seasonally adjusted
Last updated: July 2024
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 | 13.2 |
| 2017 | 7.8 | 9.1 | 16.9 |
| 2018 | 6.0 | 9.2 | 15.2 |
| 2019 | 6.5 | 7.0 | 13.5 |
| 2020 | 5.4 | 7.4 | 12.8 |
| 2021 | 6.1 | 8.3 | 14.4 |
| 2022 | 8.1 | 11.4 | 19.5 |
| 2023 | 7.0 | 9.9 | 16.9 |
Source:
ONS UK total trade: all countries, seasonally adjusted
Last updated: October 2024
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
2.6%
Actual figure (IMF, 2022)
The UK is 4.1% (IMF, 2022, actual figure)
GDP per capita
$35,142
Actual figure (IMF, 2021)
The UK is $46,422 (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's aerospace industry, led by Korea Aerospace Industries and Korean Air, excels in aircraft manufacturing and testing, and maintenance, repair and overhaul (MRO) services. The government is targeting significant growth in the space sector, with plans for numerous satellites and rockets, presenting opportunities for UK companies to collaborate and contribute.
Aviation
British firms can capitalise on South Korea's aerospace sector by contributing to commercial aircraft production through design and development. Additional avenues include offering MRO services and supplying aircraft components to major players like Korean Air and Asiana Airlines. Tailoring solutions for low-cost carriers also presents profitable prospects.
Space
The fast-growing space industry offers opportunities for UK businesses specialising in space-related technologies, satellite systems and launch-vehicle components. Businesses can form partnerships and contribute to this thriving sector's development.
UAVs and drones
South Korea's growing interest in unmanned aerial vehicles (UAVs) and drones creates opportunities for UK companies. While complete UAV systems may face restrictions, companies can still participate by supplying core mission systems and key components to meet the country's demands in surveillance, agriculture and logistics applications.
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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 has a strong reputation for cutting-edge advanced engineering and innovation for high performance vehicles. This aligns with Korea’s focus on future mobility solutions and R&D investments such as electric vehicles, autonomous vehicles and hydrogen fuel cells. UK expertise in these areas presents a major opportunity for collaboration.
Low emission vehicles
The structure of the automotive industry in Korea is slowly shifting from internal combustion engine vehicles to electrified vehicles (battery EVs and hydrogen fuel cell EVs), introducing policies to support the future vehicle industry by providing subsidies for electrified vehicles and strengthening R&D and building infrastructure for such vehicles.
Connected and autonomous vehicles
Korea boasts state-of-the-art ICT infrastructure with already 90% of its urban areas having 5G coverage. This strength in network technology, along with the country’s globally competitive automotive sector, offers a strong foundation for rapid commercialisation of self-driving vehicles and makes Korea a highly attractive market for UK CAV technology and solution providers.
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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.
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South Korea is at the fore front of the global shipbuilding industry, demonstrating strong performance in the production of high-value-added, eco-friendly ships. Korean shipyards are actively promoting changes in the fields of decarbonization, unmanned ships and smart yards to lead the global paradigm shift.
Demand for UK expertise
South Korea announced significant investments of approximately $1.44 billion in eco-friendly, digital and smart technologies over the next decade to become the World’s leading shipbuilding technology powerhouse by 2040. South Korea will explore collaborations with other countries or international organisations and these investments will provide great opportunities for British companies with innovative technologies and proven excellence.
Shipbuilding
South Korea is striving to lead in green ship technology by accelerating the development of next-generation ships powered by hydrogen fuel cells or ammonia. The Korean shipbuilding industry is accelerating the construction of smart shipyards using artificial intelligence (AI) to address manpower shortages and safety issues. The Korean government seeks to enhance the technological competitiveness of the shipbuilding industry by leading international standards in autonomous vessels.
Offshore wind
Offshore wind power has emerged as a new growth area for Korea’s major shipbuilding companies. Hanwha Ocean is expanding its business with the construction of a large offshore wind installation vessel. HD Hyundai Heavy Industries is entering the European offshore wind power market and strengthening cooperation with global companies. Samsung Heavy Industries has developed a 9.5MW large-scale offshore wind floating vehicle model and is targeting the domestic and overseas offshore markets.
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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
South Korea views hydrogen as a strategic solution to reduce the carbon footprint of its industries and achieve a sustainable energy future as it lacks in both conventional and easily exploitable renewable energy resources. Public and private investment are key to building a robust hydrogen ecosystem and the Korean government’s ambitious plans for hydrogen development are matched by its commitment to supporting sustained capital investment from both public and private entities.
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South Korea has advanced technology infrastructure with high-speed internet and high smartphone penetration. 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 tech businesses.
AI
South Korea has been actively increasing the commercialisation of AI products and services in both domestic and international marketplaces, allowing the country to shorten the gap with more advanced nations faster. The South Korean government has launched an artificial intelligence strategy council in April, 2024, jointly with domestic big tech firms such as Naver and Kakao, to develop AI policies and guidelines in collaboration with the private sector.
Semiconductor
South Korea ranks as the second largest semiconductor equipment market at $25 billion, a share of 24.4%. Semiconductor is South Korea’s single biggest export item, accounting for around 10% of its GDP. In January 2024, South Korea's government unveiled details of its ambitious semiconductor cluster plan. This involves 622 trillion won ($470 billion) of investment from major semiconductor firms by 2047 to build the world largest semiconductor mega cluster in South Korea in order to cement the country’s status as a semiconductor superpower.
Quantum
The South Korean government has set a goal to become the global hub for quantum economy by 2035. A collaborative investment of 3 trillion won ($2.31 billion) by the government and private sector between 2023 and 2035 aims to achieve 85% technology level compared to leading countries. The goal includes the development of a 1,000-qubit quantum computer with own technology, initiating intercity quantum network, developing state-of-the-art quantum sensors, and training of 2,500 quantum core professionals and 10,000 professionals in the field of quantum.
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.
View guidance on IP in South Korea on GOV.UK.
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. DBT can suggest online marketplaces to help you get started. DBT’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
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