Abstract
This chapter analyses Brexit and its possible consequences for UK–South Korea relations. The first part of the chapter focuses on broader aspects such as economic relations between the UK and the Asia-Pacific area as well as the benefits that some powerful Asian economies might derive from Brexit. The second part traces EU–South Korean relations with Britain as a member country. The third part explores British–South Korean relations prior to the Brexit vote, while part four examines the possibility of a new free-trade Agreement (FTA) between the two countries.
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Notes
- 1.
Jacob Wood, Haejin Jang, Brexit: The Economic and Political Implications for Asia, Social Sciences, 17 April 2017, http://www.readcube.com/articles/10.3390/socsci6020041.
- 2.
Aédan Mordecai, Pradumna Bickram Rana, Phidel Marion G.Vineles, Brexit and Its Aftermath; Impact and Policy Recommendations for Asia, Rajaratnam School of International Studies, December 2016, p. 10.
- 3.
Gauri Khandekar, EU-Asia Trade; in Need of a Strategy, January 2013, p. 1, http://fride.org/download/PB_13_EU_Asia_trade.pdf.
- 4.
Generally, this policy is summarised by a 2016 Polish Trade Office report seen by this author (unpublished document). South Korea’s NTB policy is analysed in http://benmuse.typepad.com/koreaus_fta/2010/07/what-are-these-korean-nontariff-barriers-to-us-auto-imports.html. See also Ivan Decreus, Cris Millner, and Nicholas Peridy, “Some New Insights into the Effects of the EU–South Korea Free Trade Area, The Role of Non-tariff Barriers”, Journal of Economic Integration, 25 (4), December 2010, pp. 783–817.
- 5.
http://www.koreaherald.com/view.php?ud=20150727001080, see also Heunchong Kim, Korea and the European Union: A Changing Landscape, in Richard Youngs (ed.), A New Context for the EU-Korean Relations, FRIDE and the Korean Foundation, 2013, pp. 25–33.
- 6.
Karel de Gucht, The EU—Korea Free Trade Agreement in Practice, European Commission to Trade, Brussels, 2011, p. 5.
- 7.
Under the FTA, all NTBs in the automobile, pharmaceutical and electronics sectors are to be prevented. Although the FTA agreement mentions only four sectors as having specific commitments with considerable practical relevance, i.e. electronics, motor vehicles, pharmaceutical products/devices and chemicals, South Korea extensively uses its domestic trade barriers in relations with other—mostly weaker—economies.
- 8.
European Union External Action, The Republic of Korea and the EU, 10 May 2016, file:///C:/Users/PIOTR/Desktop/korea%20brexit/The%20Republic%20of%20Korea%20and%20the%20EU%20-%20European%20External%20Action%20Service.html.
- 9.
Ibidem.
- 10.
Ibidem.
- 11.
Agreement between the government of the Republic of Korea and the government of the United Kingdom of Great Britain and Northern Ireland for the promotion and protection of investments, http://investmentpolicyhub.unctad.org/Download/TreatyFile/1843.
- 12.
UK-Korea double taxation convention, signed on 25 October 1996, https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/498384/korea-dtc_-_in_force.pdf. British–South Korean economic relations date back to the end of the Korean War. At first, there were diplomatic and missionary activities, which were later supplemented by an economic presence and technical assistance in the 1969–1980 period. As well as this type of assistance, British finance and technology from the private sector played a major role in at least two important areas of South Korea’s recent development: shipbuilding and the automobile industry. Reviving an old tradition, British banks have established themselves in South Korea in large numbers and have recently begun to operate in Pusan as well as Seoul. Recent years have seen the establishment of a number of joint venture companies, a trend that seems likely to grow. Two-way trade, minimal in the 1960s, has expanded rapidly in the last 10 years, with the balance heavily in South Korea’s favour. A British Chamber of Commerce was established in Seoul in 1982—see J. Hoare, The Centenary of Korean-British Diplomatic Relations: Aspects of British Interest and Involvement in Korea 1600–1983, article presented before the Royal Asiatic Society-Korea Branch on 9 November 1983 in commemoration of the Korean-British centennial.
- 13.
Department for International Trade, Doing Business in South Korea, South Korean Trade and Export Guide, 25 November 2015, https://www.gov.uk/government/publications/exporting-to-south-korea/exporting-to-south-korea.
- 14.
Ibidem.
- 15.
What Does South Korea Export to the United Kingdom, OEC 2015, http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/kor/gbr/show/2015/.
- 16.
Ibidem.
- 17.
https://www.japantimes.co.jp/opinion/2017/03/26/commentary/world-commentary/china-south-korea-trade-war-must-end/#.Wf1bJmjWxKA. See also Stephen Denney, South Korea’s Economic Dependence on China, 4 September 2015, The Diplomat, https://thediplomat.com/2015/09/south-koreas-economic-dependence-on-china/.
- 18.
Department for International Trade, Doing Business in South Korea, South Korean Trade and Export Guide, 25 November 2015, https://www.gov.uk/government/publications/exporting-to-south-korea/exporting-to-south-korea.
- 19.
Quote from Simon Hix, Hae-Won Jun, Can Global Britain forge a better trade deal with South Korea?, http://blogs.lse.ac.uk/brexit/2017/02/07/can-global-britain-forge-a-better-trade-deal-with-south-korea-this-is-why-its-unlikely/.
- 20.
Boris Johnson statement, https://www.politico.eu/article/boris-johnson-countries-queuing-up-for-post-brexit-trade-deals/.
- 21.
Quote from Simon Hix, Hae-Won Jun, ibidem.
- 22.
South Korea becomes the seventh country to agree to strike new trade links with Britain after Brexit as Liam Fox vows to make the UK a hub of global commerce, http://www.dailymail.co.uk/news/article-4045148/South-Korea-SEVENTH-country-agree-strike-new-trade-links-Britain-Brexit-Liam-Fox-vows-make-UK-hub-global-commerce.html.
- 23.
Ibidem.
- 24.
Now South Korea wants British free-trade deal as UK ministers struggle to cope with demand, http://www.express.co.uk/news/world/688053/South-Korea-post-brexit-UK-trade-deal-Government-Australia-Canada-Germany-New-Zealand.
- 25.
These are Clifford Chance, Allen & Overy, Herbert Smith Freehills, Stephenson Harwood, and Linklaters, see Jun Hae-won, Brexit and challenges for Korea-UK trade relations, in IFANS Focus, January–June, 2017, p. 83.
- 26.
Simon Hix, Hae-Won Jun, ibidem.
- 27.
Brexit to have limited impact on Korean legal market: experts, http://www.koreaherald.com/view.php?ud=20160626000249.
- 28.
Ibidem.
- 29.
- 30.
Simon Hix, Hae-Won Jun, ibidem.
- 31.
KPMG Wirtschaftprufungsgesllschaft, Brexit: An Impact Analysis, How Brexit may affect South Korean companies established in the UK, 2017, p. 10.
- 32.
Warsaw Trade and Investment Office in Seoul, materials delivered in 2017, non-printed version, author: Donat Krzysztof Wiśniewski, head of the office.
References
Agreement Between the Government of the Republic of Korea and the Government of the United Kingdom of Great Britain and Northern Ireland for the Promotion and Protection of Investments. http://investmentpolicyhub.unctad.org/Download/TreatyFile/1843.
Boris Johnson Statement. https://www.politico.eu/article/boris-johnson-countries-queuing-up-for-post-brexit-trade-deals/.
Decreus, I., Millner, C., & Peridy, N. (2010, December). Some New Insights into the Effects of the EU–South Korea Free Trade Area, the Role of Non-tariff Barriers. Journal of Economic Integration, 25(4), 783–817.
de Gucht, K. (2011). The EU—Korea Free Trade Agreement in Practice. Brussels: European Commission to Trade.
Department for International Trade. (2015, November 25). Doing Business in South Korea, South Korean Trade and Export Guide. https://www.gov.uk/government/publications/exporting-to-south-korea/exporting-to-south-korea.
European Union External Action. (2016, May 10). The Republic of Korea and the EU. file:///C:/Users/PIOTR/Desktop/korea%20brexit/The%20Republic%20of%20Korea%20and%20the%20EU%20-%20European%20External%20Action%20Service.html.
Hoare, J. (1983). The Centenary of Korean-British Diplomatic Relations: Aspects of British Interest and Involvement in Korea 1600–1983. Article Presented Before the Royal Asiatic Society-Korea Branch on 9 November 1983 in Commemoration of the Korean-British Centennial.
Hix, S., & Jun, H.-W. (2017). Can Global Britain Forge a Better Trade Deal with South Korea? http://blogs.lse.ac.uk/brexit/2017/02/07/can-global-britain-forge-a-better-trade-deal-with-south-korea-this-is-why-its-unlikely/.
https://www.japantimes.co.jp/opinion/2017/03/26/commentary/world-commentary/china-south-korea-trade-war-must-end/#.Wf1bJmjWxKA. See also Denney, S. (2015, September 4). South Korea’s Economic Dependence on China. The Diplomat. https://thediplomat.com/2015/09/south-koreas-economic-dependence-on-china/.
Jun, H.-W. (2017, January–June). Brexit and Challenges for Korea-UK Trade Relations. IFANS Focus.
Khandekar, G. (2013, January). EU-Asia Trade; in Need of a Strategy (p. 1). http://fride.org/download/PB_13_EU_Asia_trade.pdf.
Kim, H. (2013). Korea and the European Union: A Changing Landscape. In R. Youngs (Ed.), A New Context for the EU-Korean Relations, FRIDE and the Korean Foundation (pp. 25–33).
KPMG Wirtschaftprufungsgesllschaft. (2017). Brexit: An Impact Analysis, How Brexit May Affect South Korean Companies Established in the United Kingdom (p. 10).
Mordecai, A., Rana, P. B., & Vineles, P. M. G. (2016, December). Brexit and Its Aftermath; Impact and Policy Recommendations for Asia. Rajaratnam School of International Studies.
UK-Korea Double Taxation Convention, Signed on 25 October 1996. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/498384/korea-dtc_-_in_force.pdf.
Warsaw Trade and Investment Office in Seoul, Materials Delivered in 2017, Non-printed Version, Author: Donat Krzysztof Wiśniewski, Head of the Office.
What Does South Korea Export to the United Kingdom, OEC 2015. http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/kor/gbr/show/2015/.
Wood, J., & Jang, H. (2017, April 17). Brexit: The Economic and Political Implications for Asia, Social Sciences. http://www.readcube.com/articles/10.3390/socsci6020041.
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Ostaszewski, P. (2018). Brexit and Britain’s Relations with South Korea. In: Kowalski, A. (eds) Brexit and the Consequences for International Competitiveness. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-03245-6_10
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