Korea to take market stabilization measures on British referendum results

The Korean government said Friday that it will take market stabilizing measures if the foreign exchange market becomes wildly volatile due to the results of the landmark British vote.

"As South Korea has low exposure to Britain in terms of trade, a final decision (to quit the European Union) will have a limited impact on the South Korean economy," Vice Finance Minister Choi Sang-mok said at an emergency meeting with officials of the financial authorities and the central bank.

Vice Finance Minister Choi Sang-mok listens to an official while presiding over a meeting of government officials over issues related to Brexit vote in Seoul on June 24, 2016. (Yonhap)

"If the foreign exchange market shows excessive volatility, the government will take swift measures to stabilize the market." Uncertainty about the outcome of the British vote has driven volatility in global markets, as the country plays a major role in the world financial market.

The Korean official said the government will continue to keep close tabs on the market until the official referendum outcome is released later in the day.

Latest opinion polls said that the "remain" side would win a razor-thin margin of victory over the "leave" side. Korean stocks started a tad higher on Friday as investor sentiment was boosted by the initial polls. (Yonhap)