Korea-EU Competitiveness Partnership launched; new high-level economic dialogue established

Minister of Trade, Industry and Energy Kim Jung-kwan presides over the European Investor Roundtable in Brussels, Belgium, on Wednesday local time, held on the sidelines of President Lee Jae Myung's visit to the European Union. [Ministry of Trade, Industry and Energy]
Minister of Trade, Industry and Energy Kim Jung-kwan presides over the European Investor Roundtable in Brussels, Belgium, on Wednesday local time, held on the sidelines of President Lee Jae Myung's visit to the European Union. [Ministry of Trade, Industry and Energy]

South Korea and the European Union have agreed to broaden economic cooperation across advanced technology, digital trade and supply chains.

The Ministry of Trade, Industry and Energy said Wednesday that President Lee Jae Myung's visit to the EU produced significant outcomes in trade, investment and digital cooperation.

On the sidelines of the visit, the ministry and the Korea Trade-Investment Promotion Agency (KOTRA) co-hosted a foreign investment declaration ceremony and a European Investor Roundtable in Brussels, Belgium.

At the events, four European companies pledged a combined $165 million (about 250 billion won) in foreign direct investment in South Korea.

German advanced materials firm Orafol plans to expand the factory of a Korean reflective-film company it acquired last year. Dutch firm Prodrive Technologies will establish its first Korean subsidiary to import and sell equipment modules for semiconductors and other advanced industries.

Trade Minister Kim Jung-kwan attended the European Investor Roundtable and held in-depth discussions with European investors on future investment cooperation.

"South Korea's competitive advanced-industry supply chain and AI ecosystem will continue to offer new opportunities for European companies," Kim said. "We will actively work to expand foreign investment incentives, improve the regulatory environment and ensure that any difficulties encountered during the investment process are resolved promptly."

South Korea and the EU also signed a Digital Trade Agreement. Trade negotiator Yeo Han-koo, chief trade negotiator at the Ministry of Trade, Industry and Energy, and EU Commissioner for Trade and Economic Security Maros Sefcovic formally signed the agreement in the presence of both sides' leaders.

The Korea-EU DTA is South Korea's second bilateral digital trade agreement, after one signed with Singapore, and the first such pact concluded with any of South Korea's five largest trading partners.

The agreement prohibits requirements to localize computing facilities and data, meaning Korean companies entering the EU market will not need to build out local data centers, easing the burden of establishing servers abroad.

It also includes provisions to ensure a secure e-commerce environment and to facilitate digital trade through electronic signatures, authentication and electronic invoicing.

South Korea and the EU also agreed to launch the Korea-EU Competitiveness Partnership, a top-level economic cooperation framework covering trade, investment, supply chains, digital, advanced technology, energy and innovation.

The two sides will also establish a new high-level economic dialogue to oversee and coordinate existing consultation channels in trade, industrial policy and economic security — including the Free Trade Agreement Trade Committee, the next-generation strategic dialogue and the supply chain industrial policy dialogue.


oskymoon@heraldcorp.com