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UK lands major South Korea trade deal in boost for Welsh economy

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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

Why mental health support is now critical for Welsh businesses

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MENTAL HEALTH support has become a key issue for businesses in Wales as employers face growing pressure to help staff manage financial strain, stress and wellbeing at work.

The issue is being highlighted during Mental Health Awareness Week, with new insight from Reed showing that support for employee wellbeing is now an important part of attracting and retaining staff.

Workers in Wales said they need an annual income of £42,000 to live comfortably, compared with an average regional salary of £36,000. That leaves a “comfort gap” of £6,000.

Reed’s latest salary guides also show that 71% of workers say pay has become more important since the cost-of-living crisis, with many employees feeling the pressure of rising everyday costs.

The strain is not only financial. Separate research shows almost one in four workers in Wales, 24%, say they have previously been formally diagnosed with a mental health condition — the highest reported proportion of any UK region.

Pay alone ‘not enough’

Becky Hole, Regional Director at Reed, said employers now needed to look beyond salary alone.

She said: “In Wales, financial pressure and mental health challenges are closely linked. Our data shows that many employees are placing greater importance on stability and support, particularly where salary growth is constrained.

“This means benefits that support work-life balance and mental wellbeing are becoming a much more important part of how valued people feel at work.

“Organisations that prioritise employee wellbeing also benefit in tangible ways. By providing stronger support for mental health, employers can lower staff turnover and reduce the long-term costs linked to ongoing recruitment and the loss of skilled, experienced employees.”

What workers want

WHEN asked what would help them manage stress, 35% of workers in Wales said they wanted more flexible working, 34% wanted better mental health training for managers, and 30% wanted clearer communication about support already available.

However, Reed said there remains a gap between what workers want and what they receive.

The most common benefits currently reported by workers in Wales are onsite parking, at 28%, flexi time, at 26%, and hybrid working, at 23%. Nearly one in five workers, 18%, said they receive no benefits at all.

Ms Hole added: “What this shows is a disconnect between what employees say would most help them manage stress and how clearly mental health support is currently embedded and communicated.

“However, Wales stands out when it comes to flexi time, with a higher proportion of employers offering this benefit compared to other regions — a positive step given its proven role in supporting employee wellbeing and work-life balance.

“Flexible working, open conversations about mental health and managers who are properly trained all come through strongly as priorities.

“Employers have a responsibility to look after their people, and those who want to help their workforce truly destress need to ensure their benefits are visible, accessible and actively support everyday mental resilience.”

Reed said businesses that take wellbeing seriously are more likely to retain skills, stability and trust over the long term.

 

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Business

Pembroke Power Station National Grid power plans backed

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A CALL to site specialist diesel generators at Pembroke Power Station to help keep the lights on in the event of a National Grid shutdown has been given the thumbs-up by county planners.

In a screening application to Pembrokeshire County Council, RWE Generation UK PLC, through Ove Arup & Partners Ltd, sought to site up to six containerised diesel generators, diesel storage tank(s) and electrical connections at Pembroke Power Station, Pwllcrochan, near Pembroke.

The application site is within the site of the existing Pembroke Power Station, a combined-cycle gas turbine (CCGT) station which began commercial operation in September 2012, with a gross consented capacity of about 2,199 megawatts electric (MWe), replacing the previous oil-fired power station which operated for almost 30 years and was decommissioned in 1999.

A supporting statement says, subject to confirmation, it is considered to comprise permitted development, the scheme “a standalone plant, with its own fuel supply, capable of starting up, operating and shutting down independently from the power station”.

It adds: “It is required only in an emergency to maintain plant status and keep the power station operationally ‘ready’ in the event of a total or partial shutdown of the National Grid system. It is not required for the normal operation of the power station and does not extend its capacity, which remains as already consented, therefore it is not considered a change or extension.”

On need, it says it is mandatory that all electricity generators of over a megawatt have to adopt a new minimum standard of asset resilience; power stations “must be capable of restoring demand on the National Grid electricity transmission system in the event of a total or partial shutdown of the National Grid system,” the Power Station not currently meeting this new asset resilience standard.

It says construction is hoped to start in July 2026, lasting approximately nine to 12 months, the main part across the summer months.

The application was considered by officers to fall under permitted development, saying it “does not require Environmental Impact Assessment because the development, including cumulatively with other development in the locality, is not likely to have significant effects on the environment”.

 

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Business

MamGu Welshcakes earns B Corp certification

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A WELSHCAKE maker from Wales has joined a global movement of businesses recognised for high standards of social and environmental responsibility.

MamGu Welshcakes has announced that it has become a Certified B Corporation, also known as a B Corp.

The certification, verified by B Lab, recognises companies which meet standards covering social and environmental performance, transparency and accountability.

The assessment looks at a company’s operations across areas including governance, workers, community, the environment and customers. Businesses must also legally embed a commitment to purpose as well as profit.

MamGu Welshcakes now joins more than 10,700 B Corps globally, including more than 2,700 in the UK. Well-known certified businesses include The Guardian, Innocent Drinks, Patagonia, The Big Issue, Finisterre, Elemis and Sipsmith Gin.

The company says it is only the 13th food and drink producer in Wales to receive B Corp certification.

Chris Turner, CEO of B Lab UK said: “We are pleased to have B Corps of all shapes and sizes as part of our community – from startups to multinationals and across many different industries.

“Business is a powerful force and B Corps demonstrate that positive impact is possible in any sector. Welcoming MamGu Welshcakes is an exciting moment for the food and drink industry.

“B Lab UK and the rest of the B Corp community are really pleased that MamGu Welshcakes is paving the way for a new way of doing things.”

Sam Swift, director of MamGu Welshcakes said: “From day one we have always strived to be a business rooted in the community and we’re over the moon to now achieve B Corp certification.

“It’s a clear and rigorous standard that holds us accountable for how we do business; from supporting our people and communities to reducing our environmental impact.”

He added: “B Corp is not just a badge and certainly not the finish line, in fact we see this moment as a new baseline for everything we do next.

“We’re already looking at ways we can be better at everything, from who we work with to the ingredients we use and where they come from.”

B Lab is a non-profit organisation which says it is working to transform the global economy to benefit people, communities and the planet.

 

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