*Yoon Suk-yeol, the President of South Korea, arrived in the UK on Tuesday to initiate negotiations on a new free trade agreement. Both Yoon and British Prime Minister Rishi Sunak seek to bolster their international profiles in anticipation of upcoming general elections. Yoon’s three-day visit includes meetings with British leaders, and business representatives, and discussions on critical technologies such as artificial intelligence.
Royal welcome and parliamentary address
Yoon Suk-yeol and his wife were given a royal welcome, riding in a carriage to Buckingham Palace to meet King Charles III. On the opening day of his visit, Yoon delivered an address to the Houses of Parliament. This visit not only strengthens diplomatic ties but also provides an opportunity for Yoon to showcase his statesman-like credentials to the South Korean audience.
Trade negotiations and UK’s post-brexit strategy
One of the primary objectives of Yoon’s visit is to launch negotiations on an updated free trade agreement with the UK. For the UK, this marks another step in its efforts to establish closer relationships with international partners post-Brexit. The UK has been actively engaging in trade talks with various nations, with a notable ongoing negotiation with India.
Prime Minister Rishi Sunak sees progress in trade negotiations as a way to demonstrate his commitment to growing the UK economy ahead of the expected 2024 general election. Currently, his Conservative Party trails the Labour opposition in opinion polls by about 20 percentage points.
Yoon’s foreign policy agenda
Yoon Suk-yeol’s People Power Party is aiming to regain control of parliament in an upcoming election. He has placed significant emphasis on foreign policy during his presidency, focusing on strengthening South Korea’s relationship with the US and mending ties with Japan. Yoon’s visit to the UK allows him to further bolster his foreign policy credentials, though concrete outcomes may be limited compared to his visits to Washington and Tokyo.
Bilateral agreements and technological collaboration
During their meetings, the South Korean and UK leaders are expected to sign an accord aimed at promoting investment between the two nations and fostering cooperation on critical technologies such as artificial intelligence, quantum computing, and semiconductors. The collaboration will also involve up to £4.5 million in joint research funding led by the Royal Society.
Prime Minister Sunak stated, “Through our new Downing Street Accord, we will drive investment, boost trade, and build a friendship that not only supports global stability but protects our interests and stands the test of time.”
Renegotiating the UK-South Korea trade agreement
The current free trade agreement between the UK and South Korea stems from a deal signed between the EU and South Korea in 2011. As the agreement is up for renegotiation, officials aim to “future-proof” it by including provisions for digital services. Given that nearly 80% of the UK’s services exports were delivered digitally in 2021, this is a crucial aspect of the negotiations.
South Korea is a significant market for British-made cars and a key supplier of new cars to the UK. The UK seeks to use the updated free trade agreement to secure supply chains for electric vehicle production. The formal negotiations are set to begin in Korea in January, with subsequent rounds alternating between the two countries.
Geopolitical considerations and defense collaboration
Amid heightened geopolitical tensions, defense cooperation is expected to be a prominent topic during Yoon’s visit. Both countries’ militaries are likely to increase joint training and operations, aiming to establish comprehensive exercise regimes, second only to the US, according to a statement from No. 10.
Yoon’s visit to the UK coincides with a tumultuous week in British politics, with Prime Minister Sunak working to strengthen his leadership after the dismissal of Home Secretary Suella Braverman and the unexpected return of former Prime Minister David Cameron to the Cabinet. Chancellor of the Exchequer Jeremy Hunt is set to deliver his autumn economic and fiscal statement as the party endeavors to win over the electorate.
AI collaboration and the Bletchley declaration
For Prime Minister Sunak, the visit provides another opportunity to highlight the recent Bletchley Declaration, aimed at uniting 28 countries to address the challenges of artificial intelligence. South Korea has agreed to host a virtual summit on AI in the coming months, continuing Sunak’s initiative in this critical field.
Strengthening economic ties and foreign direct investment
Last month, the UK secured a two-year extension to trade rules with South Korea, allowing it to continue supplying goods with a certain degree of EU content while enjoying favorable tariffs. UK officials aim to define country of origin rules to maintain their advantages, even if components for items like electric vehicles originate from abroad.
Foreign direct investment between the UK and South Korea remains stable, albeit below pre-pandemic levels. Yoon’s advisor for economic affairs, Choi Sang-mok, noted that there are areas to supplement in the existing free trade agreement due to its hasty signing during the Brexit period.
President Yoon Suk-yeol’s visit to the UK holds significant importance for both nations as they seek to enhance their economic ties, promote technological collaboration, and address geopolitical challenges in a rapidly evolving global landscape. The negotiations and agreements forged during this visit have the potential to shape their future relations and economic prospects.
