Government: "Brexit Officially Confirmed... Korea-EU FTA Applies Until the End of This Year"

Automatic Enforcement of Korea-UK FTA from January Next Year
Maintaining Preferential Tariff Benefits Including Duty-Free Exports

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The government announced on the 31st that the Korea-EU Free Trade Agreement (FTA) will continue to be applied as is until the end of this year, even after Brexit (the United Kingdom's withdrawal from the European Union (EU)).

According to the Ministry of Trade, Industry and Energy on the same day, the EU Council of Ministers gave final approval to the Brexit agreement (EU withdrawal agreement) on the 30th (local time), completing all Brexit procedures between the UK and the EU.

Accordingly, the UK will officially leave the EU at 8 a.m. on the 1st of next month, Korea time, and at 12 a.m. on the 1st of next month, Brussels time.

Immediately after Brexit, the UK will enter a transition period during which negotiations on future relations such as trade agreements with the EU will take place. This transition period will last until December 31 of this year.

During the transition period, the UK will maintain the status of an EU member state under international agreements according to the EU withdrawal agreement, and the Korea-EU FTA will continue to be applied. In other words, there will be no substantial changes in Korea-UK trade relations during the transition period after Brexit.

Additionally, last year, the government signed the Korea-UK FTA to preemptively block uncertainties caused by Brexit and to secure the stability and continuity of Korea-UK trade relations.

All domestic legal arrangements, including tariffs, for the implementation of the Korea-UK FTA have been completed, and the Korea-UK FTA will automatically come into effect from January 1 of next year, when the transition period ends. Existing preferential tariff benefits, such as duty-free exports of all manufactured goods, will be maintained at the same level as the Korea-EU FTA.

The government plans to actively promote and inform that the Korea-EU FTA will continue to be applied as is until the end of this year to prevent unnecessary confusion for Korean companies trading with the UK.

The Korea International Trade Association will hold a corporate meeting on the 31st with companies such as Samsung Electronics, Hyundai Motor, and Doosan Heavy Industries, and will post Brexit-related information on relevant agency websites.

This weekend, KOTRA and the Korea International Trade Association plan to provide consultation and guidance services related to Brexit to Korean companies through the "Brexit Response Support Desk" they operate.

This content was produced with the assistance of AI translation services.