UK–South Korea Trade Deal

The updated UK–South Korea free trade agreement has been positioned as a positive step for innovation, digital trade and closer collaboration between the two countries. On the surface, it sounds like good news for South Korean healthcare and medical AI companies with ambitions in the UK.

In practice, however, the impact of the deal is far more limited than the headlines suggest.

This article looks at what does and does not change for Korean healthcare AI companies that are already active in the UK, or seriously considering expansion here.

What the trade deal does not really change

Software and AI

For most healthcare AI companies, products are software based and intangible. These have never been subject to customs duties, so tariff reductions have little to no direct impact. From a commercial perspective, software companies were already able to sell into the UK without tariff related friction.

Medical device tariffs

Even for AI products classified as medical devices, tariffs between South Korea and the UK were already low or close to zero prior to the updated agreement. As a result, the trade deal does not materially reduce costs for companies in this category.

In short, the trade agreement does not meaningfully change the commercial fundamentals for selling healthcare AI products into the UK.

The real constraint: regulation after Brexit

Where companies continue to face friction is regulation.

Since Brexit, the UK has moved away from the EU regulatory framework, introducing UKCA certification to replace CE marking for the UK market. This shift has created an additional layer of complexity for companies that are active across both the UK and Europe.

Key challenges include:

• Navigating UKCA requirements alongside existing CE certification

• Managing approval timelines that directly affect revenue forecasts

• Interpreting evolving guidance as the UK regulatory framework continues to mature

These issues sit entirely outside the scope of free trade agreements, but they have a far greater impact on real world expansion decisions.

Local execution matters more than policy

Beyond regulation, successful growth in the UK depends on having the right local capability in place.

Companies expanding from South Korea often underestimate:

• The operational effort required to support regulatory compliance locally

• The differences in NHS procurement and adoption pathways

• The importance of local leadership and commercial experience

In reality, UK growth is driven far more by execution, people and timelines than by trade policy.

A more realistic view

The UK–South Korea trade deal is directionally positive and reinforces strong diplomatic and economic ties. However, for healthcare AI companies, it should not be mistaken for a catalyst that removes the hardest barriers to UK expansion.

For decision makers, the critical questions remain the same:

• How long will regulatory approval take?

• What local expertise is needed to operate effectively in the UK?

• How quickly can clinical validation translate into commercial adoption?

These are the factors that ultimately determine success.

Final thoughts

For South Korean healthcare AI companies, the opportunity in the UK remains significant. But progress depends less on trade agreements and more on regulatory readiness, local capability and execution on the ground.

Understanding that reality early allows companies to plan more effectively, allocate resources correctly and avoid costly delays.

That, far more than any headline trade deal, is what shapes successful UK growth.