Gov't, ruling party say they would not consider revising growth outlook, extra budget due to Brexit

The government and ruling Saenuri Party said Friday that they will not consider revising an economic growth outlook downwards or expanding an extra budget because of Britain's exit from the European Union.

They reached the agreement as they believe the impact of Brexit on South Korea's economy would be "limited," party officials said.

The two sides held an emergency meeting at the National Assembly after Britons voted to leave the EU in a historic referendum.

"We have sufficient capabilities to respond to the Brexit case," Rep. Lee Hyun-jae, a policy coordination chief of the ruling party, told reporters.

"As the impact of Brexit would be limited in the short term, we are not considering an extra budget with regard to Brexit."

Lee added that the party and the government would maintain a "24-hour" coordination system to respond properly to any negative fallout from Brexit.

Earlier in the day, the ruling and opposition parties alike said the government must come up with a plan to minimize fallout from Britain's decision to leave the European Union.

"The exit of Britain from the European Union is expected to have an adverse impact on the global and local economies," Saenuri said in a statement. It said the South Korean government needs to take action in regards to this development. Saenuri added the government must also keep close eyes on the changes in the U.S.'s key interest rates, adding it should consider rolling out measures to stabilize the domestic market if the need arises.

The main opposition Minjoo Party of Korea echoed the view, adding the issue will emerge as another major drag on the South Korean economy along with corporate restructuring and mounting household debts.

"President Park Geun-hye failed to show leadership in easing uncertainties in the South Korean economy. This time, we urge Park to come up with detailed plans that can be trusted by the people," Minjoo added.

The minor opposition People's Party said the government should also draw up blueprints for different scenarios, which includes "the worst case."

The party added efforts must be made to beef up the country's industrial capabilities to overcome any European crisis situation that can rock the South Korean economy. (Yonhap)