North Korea warns Brexit could lead to a ‘domino effect’

SEOUL, June 27 (UPI) — North Korea made a rare move on Monday when it addressed the Brexit decision in its state newspaper, characterizing Britain’s plan to leave the European Union as “utter disruption” that could result in a “domino effect.”

Pyongyang’s state-controlled newspaper Rodong Sinmun noted in an article the decision to leave the E.U. in Britain was made by referendum – but the selection was causing problems.

“The referendum is dividing the opinion of the international community,” the article stated, according to South Korean news service News 1. “Many countries of the world are watching with deep concern to see which path Britain will take, and how the EU will cope with the situation.”

Quoting statistics from the British government on the negative consequences of Brexit, Pyongyang pointed out British gross domestic product could shrink by 3.6 percent in two years and at least 520,000 jobs could disappear.

“The decision can only be a very big blow to the European Union … a domino effect could take place as more countries decide to follow the British example and leave the EU,” the statement from Pyongyang read.

In South Korea, President Park Geun-hye said Seoul should prepare for significant economic challenges that could result from Brexit.

“If we do not make the right decisions now and hesitate, the [South Korean] economy will face great challenges,” Park said, according to South Korean newspaper Korea Economic Daily.

South Korea’s growth has slowed, reflecting global trends, and its shipbuilding industry has been mired in debt and losing new orders to cheaper competitors in China.