Korean delegation highlights investment, supply chain contributions in EU; cooperation on digital and critical minerals also on agenda

Kim Jang-hee (right), director general for new trade strategy support at South Korea's Ministry of Trade, Industry and Energy, poses for a photo with Dragoș Tudorache, policy adviser to the EU's executive vice president, at EU headquarters in Brussels, Belgium, on Wednesday (local time). [Ministry of Trade, Industry and Energy]
Kim Jang-hee (right), director general for new trade strategy support at South Korea's Ministry of Trade, Industry and Energy, poses for a photo with Dragoș Tudorache, policy adviser to the EU's executive vice president, at EU headquarters in Brussels, Belgium, on Wednesday (local time). [Ministry of Trade, Industry and Energy]

South Korea has asked the European Union to actively reflect the interests of Korean companies as it drafts new trade regulations and detailed implementation standards.

According to the Ministry of Trade, Industry and Energy on Friday, a South Korean delegation led by Kim Jang-hee, director general for new trade strategy support, held a series of meetings with senior EU officials in Brussels, Belgium, from Wednesday through Friday (local time).

The visit was a follow-up to a high-level meeting held Sept. 9 between Industry Minister Kim Jung-kwan and EU Executive Vice President for Prosperity and Industrial Strategy Stéphane Séjourné, and was arranged to preemptively shield Korean companies from unreasonable regulatory burdens.

The delegation met with Dragoș Tudorache, policy adviser to Executive Vice President Séjourné, and Valère Moutarlier, deputy director general of the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, to explain Korean companies' long-standing local investment and contributions to employment and supply chains in connection with the Industrial Acceleration Act (IAA).

The delegation said the IAA should be designed to account for cooperation with reliable partners such as South Korea.

The IAA aims to expand domestic production in strategic industries by applying European-origin and low-carbon criteria to public procurement, subsidies and other public support regimes.

A draft released in March stipulated that companies seeking public procurement contracts or subsidies in strategic industries — including automobiles, steel, cement and aluminum — as well as green industries such as wind turbines, must meet requirements including EU origin and low-carbon standards.

In a separate meeting with Andreas Stein, director of judicial policy at the Directorate-General for Justice and Consumers, the delegation asked that Korean industry's positions be reflected in future guidelines on the Corporate Sustainability Due Diligence Directive (CSDDD) and proposed establishing a standing consultation channel.

On the Carbon Border Adjustment Mechanism (CBAM), the delegation met with Gerasimos Thomas, director general of the Directorate-General for Taxation and Customs Union, and asked that administrative and financial burdens on Korean companies be minimized during implementation — including on third-party verification and the expansion to downstream products. The delegation particularly said the timing of implementation for downstream products with complex supply chains should take into account the realistic conditions facing businesses.

The EU has been applying the CBAM "carbon levy" to basic materials such as steel and aluminum since January and is considering expanding its scope to downstream products including auto parts and home appliances.

During the visit, the ministry also discussed ways to expand cooperation in future trade areas such as digital and critical minerals, beyond regulatory response.

"Changes in EU regulations related to industry, supply chains and the environment are a critical trade environment that directly affects the economic activities of our companies," Kim said. "We will continue consultations to ensure that Korean companies' positions are sufficiently reflected in the implementation process."


oskymoon@heraldcorp.com