South Korea will formally seek approval from its parliament and also ratify the trade agreement with Britain on or before 31 October
Britain and South Korea have reportedly agreed to sign a free trade agreement that would help South Korea maintain trade and minimize trade uncertainty with Britain, based on existing free trade agreement of Seoul with the European Union.
Apparently, this agreement would be signed ahead of the exit of Britain from the EU in late October. The agreement would include keeping zero-tariffs on South Korean exports like automobiles and auto parts.
According to the Ministry of Trade, Industry and Energy , South Korea will also make responses to other probable scenarios including no-deal Brexit. The European Union membership of Britain is due to end on 31 Oct, with or without an agreement.
Seemingly, if an agreement has not been ratified and agreed by then, the government will have to face the choice of leaving without an agreement, looking for more time or cancelling Brexit altogether.
Sources familiar with the matter informed that South Korea will formally seek approval from its parliament and also ratify the trade agreement with Britain on or before 31 October.
According to data from the Korea International Trade Association, as of 2018, South Korean exports to Britain were valued at around $6.4 billion in 2018, making up 1.05% of the total exports of the country.
Supposedly, since 2017, UK exports have climbed by 9.7% and in 2018, the sales of British vehicles to Korea surged by a third to £943 million. In 2017, there were around 6,900 VAT-registered businesses in Britain exporting goods to South Korea, along with 5,400 British businesses importing South Korean goods to the UK. For South Korea, UK is the second largest trading partner among European Union members.
International Trade Secretary Liam Fox stated that the value of trade between South Korea and UK has increase by more than twice since the EU-Korea agreement was affected in 2011.