South Korea and the United Kingdom have signed a deal to upgrade their bilateral free trade agreement(FTA) after two years of negotiations, aiming to expand market access and strengthen economic ties.

The Ministry of Trade, Industry and Resources said Tuesday that Trade Minister Yeo Han‑koo and Chris Bryant, minister of state at the British Department for Business and Trade, signed the agreement in London on Monday.

The new deal is expected to boost South Korea’s exports to Britain by expanding tariff‑free benefits for automobiles, which account for 36 percent of Seoul’s shipments to the United Kingdom, and by opening Britain’s high‑speed rail market.

Currently, South Korean carmakers qualify for a tariff exemption only if at least 55 percent of a vehicle’s value, including parts and materials, is manufactured domestically. The new deal lowers that requirement to 25 percent.

South Korea and the United Kingdom first implemented a bilateral FTA in 2021, modeled on the South Korea–European Union pact, to ensure continuity in trade and investment following Britain’s withdrawal from the European Union.

After six rounds of negotiations and five ministerial meetings since early last year, the two sides reached a final agreement and signed the upgraded deal.