Yeo Han-koo, chief trade negotiator at South Korea's Ministry of Trade, Industry and Energy [The Herald Business DB]
Yeo Han-koo, chief trade negotiator at South Korea's Ministry of Trade, Industry and Energy [The Herald Business DB]

South Korea's Ministry of Trade, Industry and Energy said Thursday that Yeo Han-koo, the ministry's chief trade negotiator, asked the UK's newly appointed trade minister to cooperate on issues including South Korea's imports of Russian liquefied natural gas.

Yeo held a video call with UK Trade Minister Anas Sarwar to congratulate him on his appointment and discuss key bilateral trade issues.

Yeo said the UK's planned ban on shipping, insurance and other services related to Russian LNG — set to take effect in January 2027 — raises concerns about South Korea's LNG supply stability and energy security.

Korea Gas Corporation holds a long-term contract to import LNG produced by Russia's Sakhalin II project through March 2028 and could face difficulties if the measure takes effect. A halt in reinsurance and other services by British insurers could disrupt domestic LNG shipments.

The EU, which introduced similar sanctions, decided last month to grant an exemption for Sakhalin II LNG transported to South Korea and Japan.

Citing that EU exemption, Yeo proposed that the two sides maintain close communication and pursue flexible cooperation.

Yeo also said South Korea needs a reasonable quota allocation for its steel products in response to the UK's recent tightening of protectionist measures on steel imports.

He called on the UK to take an active interest and cooperate in creating a balanced trading environment for businesses on both sides, in keeping with the spirit of mutual benefit under the Korea-UK free trade agreement.

The UK, following a similar approach to the EU, has since July 1 cut import volumes of steel products by nearly half and applied a 50 percent tariff on quantities exceeding the quota.

South Korea's tariff-free quota rose from 93,000 tons to 173,000 tons, but the number of product categories subject to the quota also expanded from four to nine, in effect tightening the overall regulatory burden.

The two sides also exchanged views on follow-up measures from FTA improvement negotiations and the UK's introduction of a carbon border adjustment mechanism, and agreed to strengthen a forward-looking partnership across industry, trade and energy.


oskymoon@heraldcorp.com