South Korean Trade Minister Yoo Myung-hee and her British counterpart Liam Fox on Monday gave their approval in Seoul to the conditions of the "emergency bridge agreement" which will maintain practically the same tariff regime that exists between the two countries according to the FTA between South Korea and the European Union, reports Efe news.
South Korea will also prepare responses to other possible scenarios including a "no-deal" Brexit, the ministry added. Some changes were made to the existing Korea-EU FTA in the latest bilateral agreement.
As of 2018, South Korean exports to Britain amounted to about $6.4 billion (5.03 billion pounds) in 2018, making up 1.05% of the country's total exports, according to data from the Korea International Trade Association.
Yoo said that the deal is significant as it eased uncertainties sparked by Brexit, with exporters already facing challenges triggered by the escalating trade dispute between Washington and Beijing.
South Korea - Asia's fourth largest economy - is a global leader in electronics, steel and auto industry.
Both countries aim to ratify the deal by the end of October, and implement it in November.
The UK is pushing to strike agreements with its trading partners as the Brexit deadline looms.
According to the United Kingdom government, they are: the CARIFUM bloc - encompassing a clutch of Caribbean islands and Central American states - Chile, the Eastern and Southern Africa trade bloc, the Faroe Islands, Iceland and Norway, Israel, Liechtenstein, Pacific States, the Palestinian Authority and Switzerland.