UK-Korea FTA Boosts Alcohol Exports | Scotch & Soju Growth

The UK and South Korea are in the final stages of signing an upgraded Free Trade Agreement (FTA), a move set to strengthen bilateral trade ties. The UK has completed negotiations to upgrade the existing FTA with South Korea, which was initially rolled over after the UK's exit from the EU in 2021. The Department for Business and Trade stated that the UK has "future-proofed" its trade relationship with this strategically important partner in the Asia-Pacific region.

The UK and South Korea are the world's sixth and twelfth largest economies, respectively. South Korea's import market is projected to grow by 26% by 2035, offering significant opportunities for UK goods and services exporters to access Asia's dynamic market. The FTA ensures that £2 billion worth of UK goods exports will continue to enjoy preferential tariff reductions.

UK drinks giant Diageo welcomed the upgraded FTA, viewing it as a crucial measure to protect British goods exports. Nik Jhangiani, Diageo's Interim CEO, praised the agreement, noting it will help drive exports of Guinness, canned in Runcorn, meeting the growing demand for the world's number one stout among South Korean consumers. Furthermore, the UK secured an agreement in the deal to initiate further protection for all Geographical Indications (GIs) originating from the four constituent nations of the UK. GI confirmation provides a higher level of security for UK agricultural products, food, and beverages.

Consequently, this trade agreement is expected to boost domestically produced British beverages, including English wine and Scotch whisky. The Scotch whisky industry received a significant boost from the 2011 EU-South Korea agreement, which included the gradual elimination of the 20% import tariff on spirits and legal protection for the 'Scotch whisky' name. The strengthened UK-Korea FTA could bring further growth for the Scotch industry starting in 2025. Nicola Bates, CEO of WineGB, also welcomed the FTA, believing it will help eliminate trade barriers and create a more efficient route for English wine to enter the South Korean market.

Regarding South Korean products, its national liquor, Soju, may also benefit from closer ties with the UK. The Soju brand Jinro, the world's best-selling spirit brand, and its parent company HiteJinro have continuously focused on the UK market since 2022 and achieved significant growth. The strengthening of UK-Korea relations is expected to sustain the upward trend in Soju export sales.

2025-12-16

Source: https://www.thedrinksbusiness.com/2025/12/are-we-about-to-see-more-korean-soju-in-the-uk/