The South Korean government held high-level consultations with the European Commission, requesting that Seoul's positions be actively reflected in the legislation and detailed implementation criteria of the EU's new trade regulations.

The Ministry of Trade, Industry and Energy announced today (September 18) that a delegation led by Kim Jang-hee, Director-General for New Trade Strategy Support, held a series of meetings with high-ranking EU Commission officials in Brussels, Belgium, from September 16 to 18 (local time).

This visit was arranged as a follow-up to the high-level meeting on September 9 between Minister of Trade Kim Jeong-kwan and Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy at the EU, to proactively block unreasonable burdens on South Korean companies.

The delegation met with Dragos Tudorache, policy adviser in the office of Executive Vice-President Séjourné, and Valère Moutarlier, Deputy Director-General for Internal Market, Industry, Entrepreneurship and SMEs, to explain South Korean companies' long-standing local investments, employment, and contributions to the supply chain regarding the Industrial Accelerator Act (IAA).

They emphasized that the IAA should be designed to foster cooperation with trusted partners like South Korea.

The core objective of the IAA is to expand domestic production in strategic industries by applying European-origin and low-carbon criteria to various public support systems, including public procurement and subsidies.

The draft released in March stipulates that to receive public procurement and subsidies in strategic industries—including automobiles, steel, cement, and aluminum—as well as eco-friendly industries like wind turbines, requirements such as EU origin and low-carbon standards must be met.

In a meeting with Andreas Schwab, Director-General for Justice and Consumers (note: referring to the respective European Commission department), the delegation requested that the perspectives of the South Korean industry be reflected in future guidelines regarding the Corporate Sustainability Due Diligence Directive (CSDDD), and proposed establishing a permanent consultation channel.

Regarding the Carbon Border Adjustment Mechanism (CBAM), they met with Gerasimos Thomas, Director-General for Taxation and Customs Union, and requested minimizing administrative and financial burdens for South Korean companies during the implementation process, such as third-party verification and the expansion of downstream products.

They particularly emphasized that for downstream products with complex supply chains, the implementation timeline should be determined in consideration of companies' realistic readiness conditions.

The EU, which has been enforcing the CBAM carbon tax starting January of this year focusing on basic materials like steel and aluminum, is reviewing plans to expand its scope to downstream products such as auto parts and home appliances.

Taking the opportunity of this visit, the Ministry of Trade also discussed measures to expand cooperation in future trade sectors, such as digital technology and critical minerals.

Director-General Kim Jang-hee stated, "Changes in the EU's industrial, supply chain, and environmental systems are crucial trade environments that directly impact our companies' economic activities," adding, "We will continue consultations to ensure our companies' positions are fully reflected during the system implementation process."

(Photo provided by the Ministry of Trade, Industry and Energy, Yonhap News)