Ministry of Trade Industry and Resources

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister Kim Jung-kwan) visited Brussels, Belgium, from December 1 to December 3 and met with senior European Union officials, including Maroš Šefčovič, Commissioner for Trade and Economic Security, and Borys Budka, Chair of the European Parliament’s Committee on Industry, Research and Energy (ITRE). Their discussions covered a wide range of key trade issues and future cooperation measures, including the establishment of a future-oriented Korea–EU cooperation framework, the EU’s planned steel tariff rate quota (TRQ) system, the EU Battery Regulation, the Carbon Border Adjustment Mechanism (CBAM), the Foreign Subsidies Regulation (FSR) investigation related to the Czech nuclear project, and the Korea–EU Digital Trade Agreement (DTA). 

The visit took place to reinforce the mutually beneficial and strategic partnership between Korea and the EU amid rapid changes in the global trade landscape—including rising protectionism and supply chain restructuring—as well as to resolve trade barriers facing Korean companies entering the EU market. The two sides noted their long-standing partnership grounded in shared values of free trade and a market economy and agreed to maintain close communication to respond proactively to global overcapacity, the spread of protectionism, and the transition toward carbon neutrality. They also committed to deepening cooperation in supply chains, digital trade, and economic security.

Key Outcomes and Discussions 

Both sides agreed that the current Korea–EU FTA is insufficient for addressing emerging issues such as digital trade, supply chains, and economic security. Korea proposed upgrading cooperation by managing potential trade and investment risks for Korean firms in the EU and deepening high-level engagement on emerging trade issues. The two sides agreed to launch a Next Generation Strategic Dialogue on Trade, Supply Chains & Technology in the first half of next year.

Korea requested favorable treatment under the EU’s planned steel import-control mechanism, including stable quota allocation or possible TRQ exemption. The EU responded that Korea is being considered among the First Group of negotiation partners and that it would explore measures to mitigate potential impacts on Korean companies.

Korea also urged the EU to support battery-sector investors and reduce regulatory uncertainty by swiftly finalizing the implementing rules under the Battery Regulation, ensuring coherence with related EU policies, and recognizing batteries as part of the Energy Intensive Industry Sector. Chair Borys Budka emphasized that Korea and Europe have effectively become a community of shared destiny in the battery supply chain and proposed expanding practical cooperation, including potential joint-production models.

Korea welcomed recent improvements in CBAM rules but urged the EU to finalize emissions-calculation methodologies and verifier standards to reduce uncertainty. Korea also cautioned that expanding CBAM coverage to downstream products could burden SMEs and stressed that any such expansion should follow sufficient impact assessments. Korea emphasized the need to avoid double regulation for countries with emissions-trading schemes such as K-ETS.

Korea expressed serious concern over the FSR investigation related to Korea Hydro & Nuclear Power’s bid for the Czech nuclear project, stating that the bid was selected through fair competition and involved no market-distorting subsidies. Korea requested a careful and impartial review.

Both sides agreed to complete domestic procedures promptly so that the Korea–EU DTA can be signed at the next high-level meeting.