Han-UK Strengthen Cooperation on Nuclear Power and Offshore Wind... Establish New Economic and Financial Investment Channels

'Plan to Promote Follow-up Measures in the Economic Sector after the UK State Visit'

Going forward, customs procedures for key materials and components between Korea and the United Kingdom will be simplified, and joint response measures to major economic and financial issues will be promoted. In addition to strengthening cooperation in the zero-carbon energy sectors such as nuclear power and offshore wind power, intergovernmental coordination will also be enhanced in the fields of critical minerals and semiconductors.

The Ministry of Economy and Finance and the Ministry of Trade, Industry and Energy announced the "Follow-up Plan for Economic Measures after the UK State Visit" at the Foreign Economic Ministers' Meeting held on the 4th at the Government Complex Sejong, chaired by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho. This is a follow-up measure based on the "Downing Agreement," which includes the highest level of cooperation in all areas such as security and economy, following President Yoon Suk-yeol's state visit to the UK last month.

Taking this opportunity, the bilateral relationship will be elevated to a "Global Strategic Partnership," and economic cooperation will be strengthened across all areas including trade, energy, science, finance, and development. As of October this year, the trade volume between the two countries stands at $9.26 billion, showing some recovery after shrinking due to the United Kingdom's withdrawal from the European Union (Brexit) and the COVID-19 pandemic. Korea's exports to the UK rank fifth among European countries after Germany, the Netherlands, France, and Italy, highlighting the need to strengthen cooperation.

Specifically, through this follow-up measure, negotiations to improve the Free Trade Agreement (FTA) between the two countries will begin in January next year. Discussions are expected to cover all areas including digital, trade policy (supply chain, energy, bioeconomy), cooperation (development, gender equality, innovation, etc.), services, and regulatory environment. The government plans to focus on simplifying customs procedures for key materials and components, removing technical barriers to clean energy, and enabling free cross-border data transfers.

By the end of next year, a bilateral investment cooperation channel will also be established. The scope will be expanded not only to foreign direct investment (FDI) but also to portfolio investments by financial institutions. In the first half of next year, the "Korea-UK Economic and Financial Dialogue" between the two countries' finance ministries will be officially held to jointly respond to major economic and financial issues and global economic risks.

President Yoon Suk-yeol Holds Summit Meeting with UK Prime Minister Rishi Sunak
(London=Yonhap News) Reporter Im Heon-jeong = President Yoon Suk-yeol, on a state visit to the UK, shakes hands with Prime Minister Rishi Sunak during the Korea-UK summit held at 10 Downing Street, London, on the 22nd (local time). 2023.11.23
kane@yna.co.kr
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Strengthening Clean Energy Cooperation such as Nuclear Power and Offshore Wind Power

The two countries will build a top-level zero-carbon energy alliance through a clean energy partnership. Through this, they plan to jointly respond to the spread of clean energy not only in both countries but also in third countries. The Ministry of Trade, Industry and Energy will establish a high-level clean energy meeting next year to seek expanded participation from private companies. The UK and Korea have designated new nuclear power plant construction as a core cooperation area and will use the "Korea-UK Nuclear Industry Dialogue" in the first half of next year to discuss new nuclear power plant construction between companies and institutions from both countries. In the offshore wind power sector, a director-level dialogue between the relevant officials of the two countries will be held next year to continue discussions.

Concrete plans for intergovernmental cooperation in key minerals, semiconductors, and supply chains will be developed. Based on the signing of the "Semiconductor Cooperation Framework," efforts will be made to stabilize the semiconductor supply chain, foster talent, and strengthen research and development (R&D). Through the establishment of a "Joint Working Group on Critical Minerals," research, innovation, and partnerships between companies and academic institutions will be promoted. The government stated, "Based on this cooperation, we will further specify visible outcomes such as diversifying our supply chains and joint research."

Cooperation will also be promoted in basic science, space, and bio sectors. Based on the Korea-UK Memorandum of Understanding on space cooperation, collaboration will be pursued in areas such as space exploration and space industry, and research cooperation will be strengthened in advanced bio fields. They agreed to continue discussions on international norms and technical standards, including improving AI safety, and to develop a joint vision for AI utilization. Next year, joint research supporting young and promising researchers from both countries will be supported, and a partnership forum in the digital field will be held annually to expand it as a key cooperation area.

Cultural exchanges between the two countries will also be strengthened. Starting next year, the age limit for participants in the working holiday program between the two countries will be raised from 30 to 35 years old, and the quota will be significantly expanded from 1,000 to 5,000 people. Furthermore, exchanges between companies in various fields such as film, TV, music, and games will be expanded, along with official working-level trade cooperation exchanges. In the area of official development assistance, new cooperative projects between the Economic Development Cooperation Fund (EDCF) and the UK’s British International Investment (BII) will be launched starting next year.