Business
UK lands major South Korea trade deal in boost for Welsh economy
Tariff-free access secured as exports and jobs set to grow across Wales
THE UK has agreed a wide-ranging free trade deal with South Korea which ministers say will safeguard thousands of jobs, increase exports from Wales, and unlock hundreds of millions of pounds in new opportunities for British services firms.
The agreement — announced on Monday (Dec 15) in London by Trade Minister Chris Bryant and his Korean counterpart Minister Yeo Han-koo — is the fourth major trade deal struck by the UK Government this year, following agreements with the EU, the US and India.
Welsh exporters stand to benefit
Wales already sells more than £280 million worth of goods to South Korea each year, including over £227 million in machinery. Power-generating machinery exports have risen by more than 50% since 2023.
The Welsh automotive sector is also expected to gain from the agreement. Exports of road vehicles from Wales to South Korea were valued at £3.7 million in 2024, up 57% on the previous year.
Across the UK, services firms stand to gain approximately £400 million, helped by improved access to South Korea’s expanding financial market — the second largest importer of UK services after the United States.
Tariff-free access locked in
The deal preserves tariff-free access for 98% of tariff lines, shielding around £2 billion worth of UK exports from significant tariff hikes that had been looming. It also modernises digital trade rules by legitimising e-contracts and other electronic processes, making it faster and cheaper for Welsh and UK companies to operate in Korea.
Key industries — including automotive, pharmaceuticals, and food and drink — retain protections designed to help firms secure supply chains and expand internationally.
Prime Minister: “A huge win”
Prime Minister Keir Starmer welcomed the deal as a major step forward for economic growth.
“This is a huge win for British business and working people and marks our fourth major agreement in 2025 after the EU, India and US,” he said.
“Korean culture is already hugely influential here. Making trade easier will support jobs and growth felt across the whole country.”
Trade Minister Chris Bryant said the agreement would “take our relationship to the next level” and unlock “hundreds of millions in opportunities”.
“This secures the UK as a global leader in digital trade while giving cast-iron protections to key industries,” he added.
“Landmark deal” for Welsh businesses
Secretary of State for Wales Jo Stevens said the agreement would help Welsh exporters grow and create new jobs.
“It further unlocks the immense potential for growth across Wales’s key industries, including machinery businesses, by providing better access to a growing market,” she said.
“This is a real boost for the UK economy and will put more money back in the pockets of businesses and consumers across Wales.”
What the deal includes
According to the UK Government, the agreement will:
- Secure permanent tariff-free access across 98% of tariff lines (matching EU terms).
- Create new export opportunities as South Korea’s import market is forecast to grow by 26% by 2035.
- Update “rules of origin” to simplify tariff-free trade for automotive and pharmaceutical sectors.
- Strengthen access to Korea’s expanding financial market, building on £1.1 billion in UK financial and insurance exports last year.
- Streamline customs processes and reduce non-tariff barriers for SMEs, which make up over 99% of UK businesses.
“Golden age” of UK–Korea relations
The UK Government says the agreement signals a “new golden age” in bilateral trade, with Virgin Atlantic launching daily flights between London and Seoul in 2026.
It follows several high-profile trade announcements this year:
- The UK-India trade deal signed in July, projected to add £4.8 billion to the economy.
- A May agreement with the United States, which accompanied £150 billion in investment commitments from US companies.
- A revised trade agreement with the EU, expected to add £9 billion to the economy by 2040.
Business
Bid to convert office space into chocolate factory, salon and laundrette
A CALL for the retrospective conversion of office space previously connected to a Pembrokeshire car hire business to a chocolate factory, a beauty salon and a laundrette has been submitted to county planners
In an application to Pembrokeshire County Council, Mr M Williams, through agent Preseli Planning Ltd, sought retrospective permission for the subdivision of an office on land off Scotchwell Cottage, Cartlett, Haverfordwest into three units forming a chocolate manufacturing, a beauty salon, and a launderette, along with associated works.
A supporting statement said planning history at the site saw a 2018 application for the refurbishment of an existing office building and a change of use from oil depot offices to a hire car office and car/van storage yard, approved back in 2019.
For the chocolate manufacturing by ‘Pembrokeshire Chocolate company,’ as part of the latest scheme it said: “The operation comprises of manufacturing of handmade bespoke flavoured chocolate bars. Historically there was an element of counter sales but this has now ceased. The business sales comprise of online orders and the delivery of produce to local stockist. There are no counter sales from the premises.”
It said the beauty salon “offers treatments, nail services and hairdressing,” operating “on an appointment only basis, with the hairdresser element also offering a mobile service”. It said the third unit of the building functions as a commercial laundrette and ironing services known as ‘West Coast Laundry,’ which “predominantly provides services to holiday cottages, hotels and care homes”.
The statement added: “Beyond the unchanged access the site has parking provision for at least 12 vehicles and a turning area. The building now forms three units which employ two persons per unit. The 12 parking spaces, therefore, provide sufficient provision for staff.
“In terms of visiting members of the public the beauty salon operates on an appointment only basis and based on its small scale can only accommodate two customers at any one time. Therefore, ample parking provision exists to visitors.
“With regard to the chocolate manufacturing and commercial laundrette service these enterprises do not attract visitors but do attract the dropping off laundry and delivery of associated inputs. Drop off and collections associated with the laundry services tend to fall in line with holiday accommodation changeover days, for example Tuesday drop off and collections on the Thursday.
“With regard to the chocolate manufacturing ingredients are delivered by couriers and movements associated with this is also estimated at 10 vehicular movements per week.”
The application will be considered by county planners at a later date.
Business
First Minister criticised after ‘Netflix’ comment on struggling high streets
Government announces 15% support package but campaigners say costs still crushing hospitality
PUBS, cafés and restaurants across Wales will receive extra business rates relief — but ministers are facing criticism after comments suggesting people staying home watching Netflix are partly to blame for struggling high streets.
The Welsh Government has announced a 15% business rates discount for around 4,400 hospitality businesses in 2026-27, backed by up to £8 million in funding.
Announcing the package, Welsh Government Finance Secretary Mark Drakeford said: “Pubs, restaurants, cafés, bars, and live music venues are at the heart of communities across Wales. We know they are facing real pressures, from rising costs to changing consumer habits.
“This additional support will help around 4,400 businesses as they adapt to these challenges.”
The announcement came hours after Eluned Morgan suggested in Senedd discussions that changing lifestyles — including more time spent at home on streaming services — were contributing to falling footfall in town centres.
The remarks prompted political backlash.
Leader of the Welsh Liberal Democrats, Jane Dodds, said: “People are not willingly choosing Netflix over the high street. They are being forced indoors because prices keep rising and wages are not.
“Blaming people for staying at home is an insult to business owners who are working longer hours just to survive.”
Industry groups say the problem runs deeper than consumer behaviour.
The Campaign for Real Ale (CAMRA) welcomed the discount but warned it would not prevent closures.
Chris Charters, CAMRA Wales director, said: “15% off for a year is only the start. It won’t fix the unfair business rates system our pubs are being crushed by.
“Welsh publicans need a permanent solution, or doors will continue to close.”
Across Pembrokeshire, traders have repeatedly told The Herald that rising energy bills, wage pressures and rates — rather than a lack of willingness to go out — are keeping customers away.
Several town centres have seen growing numbers of empty units over the past year, with independent shops and hospitality venues reporting reduced footfall outside the main tourist season.
While ministers say the relief balances support with tight public finances, business groups are calling for wider and longer-term reform.
Further debate on rates changes is expected later this year.

Business
Pub rate relief welcomed but closures still feared
CAMRA warns one-year discount is only a sticking plaster as many Welsh locals face rising bills
A BUSINESS rates discount for Welsh pubs has been welcomed as a step in the right direction — but campaigners warn it will not be enough to stop more locals from shutting their doors.
The Campaign for Real Ale (CAMRA) says the Welsh Government’s decision to offer a 15 per cent reduction on business rates bills for the coming year will provide short-term breathing space for struggling publicans.
However, it believes the move fails to tackle deeper problems in the rating system that continue to pile pressure on community pubs across Wales, including in Pembrokeshire and Carmarthenshire.
Chris Charters, Director of CAMRA Wales, said: “Today’s announcement from the Finance Secretary that pubs will get 15% discount on their business rates bills is a welcome step.
“However, many pubs still face big hikes in their bills due to the rates revaluation which could still lead to more of our locals in Wales being forced to close for good.
“15% off for a year is only the start of supporting pubs with business rates. It won’t fix the unfair business rates system our pubs are being crushed by.”
He added: “Welsh publicans need a permanent solution, or doors will continue to close and communities will be shut away from these essential social hubs that help tackle loneliness and isolation.”
Mounting pressure on locals
Under plans announced by the Welsh Government, pubs will receive a temporary discount on their rates bills for the next financial year.
But CAMRA argues that many premises are simultaneously facing sharp increases following the latest revaluation, which recalculates rateable values based on property size and trading potential.
For some smaller, rural venues, especially those already operating on tight margins, the increases could wipe out the benefit of the relief entirely.
Publicans say they are also contending with rising energy costs, higher wages, supplier price hikes and changing customer habits since the pandemic.
In west Wales, several long-standing village pubs have either reduced their opening hours or put their businesses on the market in the past year, with landlords warning that overheads are becoming unsustainable.
Community role
Campaigners stress that the issue goes beyond beer sales.
Pubs are often described as the last remaining social spaces in small communities — hosting charity events, sports teams, live music and local groups.
In parts of rural Pembrokeshire, a pub can be the only public meeting place left after the loss of shops, banks and post offices.
CAMRA says supermarkets and online retailers enjoy structural advantages that traditional pubs cannot match, making it harder for locals to compete on price.
The organisation is now calling on ministers to introduce a permanently lower business rates multiplier for pubs, rather than relying on short-term discounts.
Long-term reform call
CAMRA wants whoever forms the next Welsh administration to commit to fundamental reform of the rating system, arguing that pubs should be recognised as community assets rather than treated like large commercial premises.
Without change, it warns, the number of closures is likely to accelerate.
Charters said: “This is about protecting the future of our locals. Once a pub shuts, it rarely reopens. We can’t afford to lose any more.”
For many communities across west Wales, the fear is simple: temporary relief may buy time — but it may not be enough to save the local.
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