London: South Korea and Britain have finalized an enhanced free trade agreement (FTA) to ease rules of origin for Korean automobiles and consumer goods, and to open Britain's high-speed rail and online game markets, as announced by Seoul's trade ministry.

According to Yonhap News Agency, the agreement was signed by Korean Trade Minister Yeo Han-koo and British Trade Minister Chris Bryant in London, following two years of negotiations. The original FTA was signed in 2019 and implemented in 2021.

The renewed deal reduces the requirement for Korean carmakers to qualify for tariff exemptions from 55 percent to 25 percent of a vehicle's value being generated within Korea. This is significant as automobiles account for 36 percent of Korea's exports to Britain. The agreement also benefits Korean beauty and food products by easing or eliminating tariffs under certain manufacturing conditions.

In government procurement, Britain will now open its high-speed rail market to Korea. The agreement also facilitates entry for Korean engineers and special workforces into Britain, aiming to prevent issues similar to a recent incident in Georgia, USA, involving Korean nationals.

Additionally, the FTA includes regulations for digital trade, cross-border data transfers, and updated investor protection measures. The two countries will enhance cooperation in AI and advanced technologies by establishing an innovation committee.

Yeo emphasized the importance of upholding multilateral systems and free trade amid global changes, highlighting the novelty of the trade norms included in the FTA.