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A new Free Trade Agreement with Korea is expected to boost the UK economy by at least

£500m. Douglas Barrett highlights the opportunities for UK exporters in the region

The EU-Korea Free Trade Agreement (FTA), which came into effect on 1 July 2011, will remove 97 per cent of tariffs between the two territories within three years, while some have already disappeared upon implementation. For many years, Korea was a forgotten

market for most UK exporters – geographically squeezed between the mega economies of high-tech Japan and low-cost China. Sixty years ago, Korea was devastated

by the Korean War and largely dependant on foreign aid. In three short generations, the country and its hard-working population have transformed the Republic of Korea into the 12th largest economy in the world. The fi gures are staggering – GDP growth of 6.1 per cent in 2010, and an economy which never went into recession during the recent fi nancial crisis. Korea also hosted a G20 summit in Seoul in November 2010.

Globally, Korea is dominated by

the ‘Chaebol’ – large family-owned conglomerates, Samsung, LG, Hyundai and Kia Motors – which are already household names in the UK. Korea is enjoying high growth and correspondingly high incomes, with a consumer base which craves quality, making it an attractive market for UK companies.

DIGITAL LEADER

Korea is geographically small – the size of Scotland and Wales combined – with around 40 per cent of its 50m population living in high-tech capital Seoul. The country has embraced the digital

revolution. Its compact nature meant it was the fi rst to roll out a comprehensive broadband network – more than 57 per cent of the country has 100mb broadband, speeds the UK aims to emulate and 1gb broadband is being tested with full rollout in 2012.

Visitors will be struck by the number

of internet cafes, or PC Bangs as they are known locally, particularly in Seoul’s university area. Online gaming is big business, creating good opportunities for UK companies, especially those that branch out from console-based games. 3D television was fi rst rolled out in

Korea and electronics giants Samsung and LG continue to push technological boundaries. Travel on Seoul’s metro and you’ll see young and old alike watching live television on their mobile phones – Koreans are certainly early adopters.

STYLISH SEO FOLLOWERS OF FASHION

UK fashion has a reputation for style and quality with luxury brands like Burberry and Paul Smith highly sought after and popular with Koreans. UK Trade & Investment’s fashion trade mission to Seoul in 2010 was one of the most successful of the year, creating new

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Photograph: Photolibrary