Korea, UK discuss financial cooperation after FTA upgrade

Lee Eog-weon, right, chairman of the Financial Services Commission (FSC), meets with Colin Crooks, British ambassador to Korea, at Government Complex Seoul, Dec. 22. Courtesy of FSC

Lee Eog-weon, chairman of Korea’s Financial Services Commission, met with Colin Crooks, British ambassador to Korea, on Monday to exchange views on the global economic outlook for next year, financial policy directions and ways to expand bilateral cooperation, the commission said.

The meeting took place at Government Complex Seoul, days after Korea and the U.K. concluded negotiations to upgrade their bilateral free trade agreement (FTA) following more than two years of talks. The revised Korea-U.K. FTA was finalized on Dec. 15.

Lee said the Korean government is taking preemptive steps to respond to growing global volatility by closely monitoring both domestic and external economic conditions. He emphasized that authorities are prepared to stabilize financial markets through market support programs totaling more than 100 trillion won ($67.5 billion), with additional measures available if conditions deteriorate.

He also outlined the government’s broader financial policy direction, noting that Seoul this year laid the foundation for what it calls a “major financial transformation.” That initiative focuses on expanding productive finance to support real economic activity, strengthening inclusive finance to better serve vulnerable groups and restoring public trust in the financial system, Lee said.

Looking ahead, Lee added that the government plans to accelerate structural reforms next year under the financial transformation agenda, with the goal of producing visible and measurable outcomes. Those reforms are expected to include efforts to enhance financial market efficiency, improve risk management and encourage innovation across the financial sector.

Crooks welcomed the conclusion of the Korea-U.K. FTA upgrade talks, saying the agreement opens a new chapter for cooperation between the two countries as the global economy and geopolitical landscape undergo rapid shifts. He said the revised trade pact reflects the two nations’ shared commitment to open markets and closer economic ties.

The upgraded accord modernizes a post-Brexit framework to better reflect the digital age, lowering thresholds on billions of dollars in trade by relaxing stringent origin rules for electric vehicles and processed foods while cementing new protections for the cross-border flow of data and services. Brexit refers to the U.K.’s exit from the European Union in 2020.

The ambassador also expressed hopes that the updated agreement would help deepen cooperation in the financial sector, for example by expanding opportunities for financial institutions from both countries to enter and operate in each other’s markets. Stronger financial sector collaboration would support broader trade and investment flows, Crooks said.

Both sides agreed on the importance of maintaining close communication and coordination as they seek to strengthen financial cooperation alongside the broader economic partnership reinforced by the upgraded FTA, according to the commission.