Government: "Korea-UK FTA, Brexit Impact Limited"... Effective January 1, 8 AM

Ministry of Industry Holds Final Joint Public-Private Meeting on Brexit Response
Active Support for Corporate Field Difficulties Including 'Brexit Response Support Desk'

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] The government confirmed that even if Brexit (the United Kingdom's withdrawal from the European Union (EU)) begins on the 1st of next month, the impact on the Free Trade Agreement (FTA) between South Korea and the UK will be limited. The Korea-UK FTA will take effect at 8 a.m. Korean time on the 1st of next month.

The Ministry of Trade, Industry and Energy stated on the 30th at 4 p.m. that it held a public-private joint meeting chaired by Deputy Minister Park Ki-young at the Lotte Hotel in Seoul to conduct a final review of the Korea-UK FTA preparation status.

An official from the Ministry of Trade, Industry and Energy emphasized, "Through this final review meeting, the government and related industries reaffirmed that despite the implementation of Brexit, the impact on South Korea is limited."

The government proactively signed the Korea-UK FTA last year on August 22 to prevent any trade gaps caused by Brexit. The National Assembly ratified it on October 28 of the same year.

As with the Korea-EU FTA, all tariffs on industrial products between the two countries will be eliminated. This means that our key export items such as automobiles and auto parts can be sold to the UK tariff-free. Before the Korea-UK FTA was concluded, tariffs of 10% on automobiles and 2-4% on auto parts were imposed respectively.

With the recent conclusion of the UK-EU trade agreement negotiations, tariff-free benefits continue for trade between the UK and the EU, significantly alleviating tariff concerns for our companies operating in Europe.

Source: Ministry of Trade, Industry and Energy

The government plans to make thorough preparations as some on-site difficulties may occur during the initial implementation in January next year.

Deputy Minister Park pointed out, "Although concerns about a no-deal Brexit have been settled with the recent UK-EU negotiation agreement, on-site difficulties may arise during the initial implementation of Brexit in January next year."

Accordingly, KOTRA and the Korea International Trade Association will strengthen consultation and guidance functions by linking the domestic consultation window 'Brexit Response Support Desk' and the overseas window 'Korea-UK FTA Overseas Utilization Support Center.'

They will establish an organic cooperation system with institutions responsible for customs and clearance (Korea Customs Service), certification (Korea Agency for Technology and Standards and Ministry of SMEs and Startups), and local difficulties (embassies).

The Korea Customs Service will form a 'Korea-UK FTA Special Support Team' at six headquarters and directly controlled customs offices nationwide. They will support designation of certified exporters of origin, application of preferential tariffs, and resolution of overseas customs clearance difficulties.

The Korea Agency for Technology and Standards will provide consulting to companies on certification difficulties received through the '1381 Certification and Standards Call Center' together with specialized testing and certification institutions.

The Ministry of SMEs and Startups will support costs for our small and medium enterprises to acquire the UK's new certification (UKCA) and to switch existing CE certification bodies (from UK to EU member states).

The budget for the overseas standard certification acquisition support project next year is 15.3 billion KRW. It will provide post-support for up to 70% of costs incurred for testing, certification, and consulting related to certification acquisition, up to a limit of 100 million KRW.

Companies wishing to participate can apply through the Small and Medium Business Export Support Center website when the project recruitment announcements are posted. Recruitment announcements will be made in February, May, and August next year.

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