South Korea trade deal 'may bring £500m to UK economy'

image captionNick Clegg announced the new trade agreement during his visit to South Korea

A trade deal has been agreed between the UK and South Korea, Deputy Prime Minister Nick Clegg has announced.

The UK has approved a Free Trade Agreement between the EU and South Korea, which could bring £500m a year into the British economy, he said.

Mr Clegg, attending a nuclear summit in Seoul, said the UK aimed to foster good trade links with expanding economies.

The agreement "marks a new and even stronger era for trade" between the UK and South Korea, he added.

Bilateral trade between the two countries is already around £6.5bn - Britain is South Korea's second largest European trading partner after Germany.

More than half of Korea's investment in the EU in 2010 and 2011 was in the UK.

"The best of British design, innovation and services will have even greater opportunity to show their strength in South Korea," Mr Clegg said.

"UK and Korean companies will be able to form alliances on multi-billion pound projects across the world."

Sporting contracts

He announced the agreement at a meeting with South Korean Prime Minister Kim Hwang-sik

Mr Clegg is in Seoul for the Nuclear Security Summit on Tuesday, where Britain is expected to call for greater information security as part of international efforts to prevent nuclear weapons falling into the hands of terrorists.

During his visit, Mr Clegg also unveiled a new Host2Host agreement between the two counties, which it is hoped will help British firms win contracts to assist in the delivery of sporting events in South Korea.

These include the Asian Games 2014, the World Student Games in 2015 and the Pyeongchang Winter Olympics 2018.

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