Are we about to see more British booze in South Korea?
South Korea and the UK are in the final stages of signing an upgraded free trade agreement (FTA) which would strengthen trading ties. So what could this mean for booze from both nations? Eloise Feilden investigates.
The UK has concluded negotiations with the Republic of Korea to upgrade the existing FTA between the two countries. The new deal, yet to be formally signed by ministers, builds on an existing agreement carried over when the UK left the European Union in 2021.
In a summary of the agreement posted on Monday (15 December), the Department for Business & Trade said the UK had “future-proofed its trading relationship with an important strategic partner in the Asia-Pacific”.
The UK has the 6th largest economy in the world by nominal GDP in 2025, while South Korea ranks 12th. The Republic’s import market is projected to grow by 26% by 2035, driven by a rising middle class, presenting a significant opportunity for UK exporters of goods and services to tap into one of Asia’s most dynamic and forward-looking economies.
The FTA ensures that the £2 billion in UK goods exports at risk of additional duties can continue to benefit from reduced tariffs
UK-based drinks giant Diageo was among the businesses which welcomed the upgraded FTA as a critical measure to protect the exports of British goods.
Nik Jhangiani, Diageo’s interim chief executive, said of the deal: “I commend Sir Chris Bryant and his South Korean counterpart Jung-Kwan Kim in securing a new trade agreement between the UK and South Korea. The deal will support export growth for Guinness, canned in Runcorn, and help satisfy the growing demand from South Korean consumers for the world’s number one stout.”
As part of the deal, the UK has secured an agreement to initiate further protections of geographical indications (GIs) from all four nations of the UK. GIs relate to food, drink or agricultural products which have ties to a specific area or region, or relate to products made using traditional methods.
If recognised in the country of sale, products with a GI are afforded greater protections. GI status in South Korea ensure that the heritage and quality of produce from across the UK is protected and recognised in the country.
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As such, the trade deal could boost drinks made on UK soil, including English wine and Scotch whisky.
The Scotch whisky industry received one of its biggest trade boosts in 2011 when a deal was signed between the EU (of which the UK was a member at the time) and South Korea. The agreement which was heralded as a “major milestone” at the time, is a first for the Scotch Whisky Association (SWA) with an Asian country. Benefits include the phasing out of the 20% spirits import duty and legal protection for the Scotch whisky name.
A strengthened FTA between the UK and South Korea could see a further boost to the Scotch industry from 2025 onwards.
The same goes for English wine. Exports of wine made in Great Britain were up 35% in 2024, though from a small base, accounting for just 9% of total sales.
Nicola Bates, CEO of WineGB, commented on the deal: “The UK wine sector is rapidly growing from 4% to 9% in 5 years with export volumes up 35% in 2024, so all measures to open up markets are welcome, including this enhanced Free Trade Agreement between the UK and the Republic of Korea. This agreement marks an important step in deepening our trade ties with one of Asia’s most dynamic markets. The inclusion of dedicated provisions to promote smooth customs procedures will help remove barriers and create a more efficient pathway for our wines to reach Korean consumers. As we deepen our ties with East Asian export markets, this FTA provides a timely boost to our long-term growth and diversification efforts.
As for Korean products, soju, the country’s national spirit, could benefit from stronger ties with the UK.
Korean soju brand Jinro is the biggest-selling spirits brand in the world. Parent company HiteJinro has been focusing its efforts on the UK since 2022, and said in May that it would continue to invest in the UK after reporting a compound annual growth rate (CAGR) of 73% in the UK in the three years to July 2024.
The drinks giant will focus on growing mainstream retail listings and maintaining collaborative activities in the on-trade. HiteJinro has secured listings in UK supermarkets Sainsbury’s, Costco, Morrisons, and Tesco.
A stronger relationship between soju’s home country and the UK could see the spirit continue its upward trajectory in export sales.
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