The government said on Wednesday that the impact of the British parliament's rejection of Prime Minister Theresa May’s Brexit withdrawal agreement on the global financial market is limited.

The government presented the assessment in a meeting of economy-related ministries, saying that the rejection was generally expected in the market.

First Vice Finance Minister Lee Ho-seung, however, added the global financial market may react differently depending on the British government's future plans after the rejection and its possible negotiations with the European Union. 

The vice minister said that even if Britain should leave the EU without a deal, its impact on South Korea's real economy will be limited given that Britain takes up a small portion in South Korea's trade. 

The bilateral trade volume came to 14-point-four billion dollars in 2017, accounting for one-point-four percent of South Korea's trade. 

The vice minister said the government will closely monitor developments of the Brexit process and take necessary steps proactively keeping in mind the possibility of a no-deal Brexit. 

The joint task force of related government agencies will closely monitor the Brexit situation and check its effects on the domestic and foreign financial markets. The government will swiftly take actions in accordance with a contingency plan in case of a sharp increase in volatility in the domestic foreign exchange and financial markets. 

In addition, the government will speed up efforts to conclude a free trade agreement(FTA) with Britain. 

It will hold talks with Britain to ensure South Korea will continue to receive the tariff benefits it has enjoyed under its FTA with the European Union. It will also check possible effects of Brexit on South Korean financial firms and other businesses operating in the European country. 

Finance Minister Hong Nam-ki will soon hold a meeting with chiefs of economy-related ministries to discuss related measures, including a plan to seek the FTA with Britain.

These measures come after Prime Minister Theresa May’s plan for Britain's withdrawal from the European Union was rejected in parliament by a 432-to-202 vote on Tuesday, increasing the likelihood of Britain leaving the EU on March 29th without a plan in place.