[THE INVESTOR] Britain’s decision to quit the European Union could have a lasting impact on global markets in the long term, Korea’s top financial regulator said on July 1.

Yim Jong-yong, chairman of Financial Services Commission said the Korean market is moving toward stability after Brexit turbulence but “uncertainties still remain high as Britain’s exit from the EU is the first of its kind.”

Almost US$4 trillion has been wiped out from global equity values since June 24 when Britain’s decision to leave the 28-nation economic bloc was officially announced.

On the day, Korea’s benchmark index KOSPI dropped 3.1 percent to 1,925.24 points in the largest daily loss in over four years. But the main index rebounded to recover to 1,984.21 in the first 15 minutes of trading on July 1.

“Apart from Brexit, there is growing instability stemming from uncertainties of major countries’ monetary policies, China’s slowing growth and restructuring as well as deflation caused by low oil price,” he said.

He added that concerns over slowdown of Korea’s potential growth rate remained due to structural factors like low birth rate and aging society while the country faces a drop in exports and consumer prices.

Yim also reaffirmed that the government will take quick and bold steps to ease any post-Brexit market turmoil while thoroughly preparing to ride out the changes ahead.

By Park Han-na (hnpark@heraldcorp.com)