S. Korea Vows To Take Pre-emptive Steps Over Brexit

South Korea pledged Wednesday to take pre-emptive steps to counter possible worse case scenarios after the British Parliament voted down Prime Minister Theresa May's Brexit deal

SEJONG, (APP - UrduPoint / Pakistan Point News - 16th Jan, 2019 ) :South Korea pledged Wednesday to take pre-emptive steps to counter possible worse case scenarios after the British Parliament voted down Prime Minister Theresa May's Brexit deal.

Lee Ho-seung, the first vice minister of economy and finance, said South Korea will closely monitor the situation, though the rejection of the deal had a limited impact on global financial markets as it was widely expected.

"We will take all necessary steps swiftly and decisively to stabilize financial markets in case of sharp volatility under a contingency plan," Lee said in a meeting with relevant officials in Seoul.

The senior official also said a no-deal Brexit, even if happens, could have a limited impact on Asia's fourth-largest economy because of the relatively small volume of bilateral trade.

South Korea exported goods worth US$5.4 billion to Britain in the first 11 months of 2018 while importing goods worth $6.2 billion from Britain during the cited period.

Lee said South Korea will lay the groundwork for talks with Britain on forging a bilateral free trade deal quickly after Britain leaves the European Union.

The central bank also said it will keep close tabs on local and foreign financial markets to check the possible impact of the British vote.

"The British parliamentary rejection rather fuels uncertainties over the future of Brexit," said the Bank of Korea in a release. "As the present situation moves forward, financial markets at home and abroad may experience higher volatility. We plan to closely check developments."