London: South Korea and the United Kingdom have successfully signed an upgraded free trade agreement aimed at enhancing bilateral trade by simplifying rules of origin for Korean exports and opening new sectors in both markets, as announced by South Korea's Trade Ministry on Tuesday.

According to Anadolu Agency, 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. The original free trade agreement, initially signed in 2019 and implemented in 2021 after Britain's exit from the European Union, has been updated through this renewed deal.

Under the new terms, Britain has agreed to ease rules of origin for South Korean exports, specifically automobiles, beauty products, and food items. For automobiles, the value-added requirement for tariff-free treatment will be lowered from 55% to 25%, thereby significantly facilitating South Korean carmakers in qualifying for preferential tariffs.

Automobiles represent a crucial segment of South Korea's exports to Britain, constituting 36% of the total exports to the UK last year. The updated agreement is anticipated to bolster trade relations and economic collaboration between the two nations.