‘UK-Korea ties not to be affected by Brexit’
Seoul encouraged to cooperate with new British PM’s key initiatives
Visiting South Korea from Sept. 30 to Oct. 1, Heather Wheeler was one of many senior British government representatives who have come here to reassure that strong bilateral ties with Korea will remain after Brexit, which was decided on by a referendum in June 2016.
But Wheeler’s words of assurance, whether she kept it in mind or not, had a couple of reasons to be more convincing than others.
Appointed as the U.K. Foreign and Commonwealth Office (FCO) minister for Asia and the Pacific, July 26, Wheeler was the latest FCO official to travel to South Korea under the government of new British Prime Minister Boris Johnson.
Johnson has pledged that the U.K. will leave the European Union (EU), Oct. 31, after his predecessor Theresa May failed to bring a divided nation together during her threeyear premiership and stepped down, July 24.
Any possible reversal Brexit plan by Johnson, a mercurial and unpredictable figure, would add to uncertainty on the U.K. economy after agreeing on a post-Brexit trade deal with South Korea in August.
It could possibly dent the credibility of Johnson and some of his key initiatives, too.
Among them are becoming the world’s first major economy to reduce carbon emissions to net zero by 2050 and also slashing corporate tax rates to be among the lowest in the Western hemisphere.
“The prime minister has made it absolutely clear that we want to leave with a deal. We are negotiating very hard to have a deal, but ultimately on Oct. 31, we will be leaving,” Wheeler said during a media interview at the British Embassy in Seoul, Oct. 1. “There shouldn’t be any undue speculation in Korea because our future relationship with Global Britain and trade with you is certain, and that’s what businesses always want — certainty.”
She said a continuity free trade agreement (FTA) signed Aug. 22 will “kick in” and ensure bilateral trade even if the U.K. leaves the EU under a no-deal scenario.
The deal is on the same lines as the EU-Korea FTA, and is one of the largest agreements Britain has signed so far, and the first in Asia.
“We want to do business as usual, Global Britain and Korea,” Wheeler said.
To encourage foreign investment, the U.K. is seeking to have the lowest corporate tax rate.
Ireland has a rate of 12.5 percent, while the U.K. has 19 percent.
Wheeler said the U.K.’s corporate tax policy, along with English being an international language, is sending a message that Global Britain not only wants to export goods and services but also is “very welcoming for Korean investment to come and set up businesses.”
When asked about the U.K.’s role in the denuclearization of North Korea after Brexit, Wheeler said her country can continue to contribute to peace on the Korean Peninsula.
“We can help perhaps more on the technical level because we’ve got great expertise in denuclearization in the decommissioning of nuclear facilities and equipment,” she said.
British Ambassador to South Korea Simon Smith, who sat in on the interview, said the U.K. will be “very much part of the international community consensus” whether it is an EU member or not.
This was first Korea visit by Wheeler, also a Conservative member of parliament, as minister for Asia and the Pacific.
She signed a memorandum of understanding with Second Vice Foreign Minister Lee Tae-ho to launch a Senior Economic Dialogue.
The dialogue will come as a part of efforts to expand institutional platforms in the post-Brexit era. Lee has been invited to London for the inaugural session of the dialogue early next year.
Wheeler’s visit also focused on climate change, one area of cooperation that the U.K. seeks to enhance. Others are fintech, energy and soft power such as fashion, music and film.
Being the host of the next year’s U.N. climate change summit — the 26th session of the Conference of the Parties (COP 26) — the U.K. is urging South Korea to join its commitment for net zero carbon emissions by 2050.
According to Wheeler, the U.K.’s reliance on coal is below 5 percent of its total energy use, while its use of renewable energy has grown to 40 percent in the last seven years.
“We want to see where we can help with any new infrastructure or technical assistance, particularly with offshore wind, so that you can join with the rest of the world in changing from using coal to using renewable sources,” she said.
Wheeler talked about women’s empowerment, on which she gave a keynote speech at a reception attended by recipients of the Chevening U.K. Scholarships offered to international students.
Although women increasingly receiving higher education get important jobs, they are still paid less than men.
To tackle such a challenge, the U.K has introduced a new law requiring its top 250 businesses to publicize their gender pay gap.
“This means businesses automatically start realizing they must stop paying women less,” she said.