SME Times | 27 June 2016

S Korea to review free trade accord with EU

The South Korean government said on Sunday that it will review the Free Trade Agreement (FTA) signed with the European Union (EU) following Britain’s exit from the bloc.

"The effect of the South Korea-EU FTA on Britain will automatically become void at the time of its official withdrawal from the EU. But a revision to the FTA is deemed necessary to reflect it," said the South Korean Ministry of Trade, Industry and Energy in a statement.

Seoul signed an FTA with Brussels in 2009, which came into force two years later, EFE news reported.

The ministry explained that it will discuss the situation with the EU and negotiate with the bloc, excluding London, the necessary changes in the treaty.

Until Britain’s departure comes into effect, a process that can take two years, "the current South Korea-EU FTA will continue to hold true," read the statement.

It added that Seoul will consider signing another FTA with London to resolve "legal uncertainties" in bilateral trade.

The priority, concludes the statement, is to minimise the negative impact of the exit on the country’s businesses.