The current cumulation arrangement between the United Kingdom, South Korea, and the European Union under the UK–South Korea Free Trade Agreement (FTA) is scheduled to expire on 31 December 2025.

This arrangement currently allows UK and Korean exporters to count EU-originating materials as originating content under the Rules of Origin when determining whether a product qualifies for preferential tariff treatment under the FTA. It has been particularly important for sectors such as textiles and apparel, where EU inputs are commonly used in UK manufacturing.

Unless a further extension or new agreement is reached, from 1 January 2026, EU materials will no longer automatically be considered originating under the UK–Korea FTA. This means that goods incorporating EU content may no longer meet the rules of origin required to benefit from zero-duty access between the UK and South Korea unless they have been sufficiently transformed in the UK.

Businesses that rely on this cumulation provision should review their supply chains and assess whether their products will continue to qualify for preferential tariffs after the expiry date. They should also monitor developments in trade negotiations between the UK and South Korea, as discussions on a modernised UK-South Korea FTA are ongoing.

UKFT continues to engage with government and industry stakeholders on this issue and will provide updates as more information becomes available.

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