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A no-deal Brexit will have limited impacts on the Korean economy and capital market, given the country’s small exposure to securities based in the United Kingdom, the Financial Supervisory Service (FSS) said on Wednesday.

The possible ramifications on the market from the British exit from the European Union on March 29 made the key topic at the FSS regular meeting on financial market conditions on Wednesday.

The FSS predicted the U.K. and the EU would eventually reach a Brexit deal but did not entirely rule out a “no-deal” scenario. No-deal Brexit means the U.K. leaving the EU immediately on March 29, with no transition period.

Market watchers fear this could lead to havoc in not just the U.K. but also on the global financial market. If the U.K. ends up leaving the EU without an agreement, disastrous consequences would happen to businesses and individuals in the U.K due to volatility in consumer and commerce prices.

The U.K. has previously agreed on a Brexit deal with the EU that includes the U.K.’s divorce bill of 39 billion pounds ($50.8 billion). But the British parliament turned down the agreement, raising the possibility of the country leaving the EU without any protection.

EU Commission President Jean-Claude Juncker in his recent interview with a German press said “no one in Europe would oppose” extension to Brexit talks if British requests for it beyond the March 29 deadline,” although he said he did not know how long the exit could be delayed.

Direct impact from a no-deal exit on the Korean financial market would be limited, given Korea’s small exposure to the U.K. market, the FSS said.

Korean financial companies’ current holding of U.K. securities stood at $7.95 billion, or mere 3.3 percent of the country’s total holdings abroad, as of the end of September last year. U.K. investors held 42.2 trillion won ($37.5 billion) in Korean securities or just 1.3 percent of the total market capitalization.

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