Seoul’s Ministry of Trade, Industry and Energy held an emergency meeting Friday to monitor economic conditions as the UK’s departure from the European Union became official in a historic referendum.
In the meeting chaired by Vice Trade Minister Lee Kwan-sup, participants expressed the view that the Brexit will have a limited impact on the South Korean economy for the time being. They said that effects of the South Korea-EU free trade agreement will continue as Britain’s actual exit from the EU will actually take place at least two years later from now as defined under the Treaty of Lisbon.
Those attending the meeting also predicted a direct impact on South Korean exports and investment will be limited but voiced concern about indirect effects caused by jitters in the global financial markets.
South Korean exports to the United Kingdom stood at about seven-point-four billion dollars last year, accounting for a mere one-point-four percent of total exports.
British investment in South Korea posted 260 million dollars in 2015, or one-point-two percent of total foreign investment.