Industry ministry seeks to ease EU regulatory burden on Korean firms

The industry ministry said it held high-level talks with European Union officials in Brussels to reduce regulatory burdens on Korean companies and expand cooperation opportunities. Kim Jang-hee, head of the ministry's New Trade Strategy Support Office, led a delegation that met with senior officials from the European Commission between Sept. 16 and 18.

The discussions focused on the EU's Industrial Acceleration Act, the Corporate Sustainability Due Diligence Directive and the Carbon Border Adjustment Mechanism. The visit followed a Sept. 9 meeting between Industry Minister Kim Jeong-kwan and Stephane Sejourné, the commission's executive vice president.

Regarding the Industrial Acceleration Act, the ministry emphasized that the framework should recognize trusted partners like South Korea that have long invested in the EU and contributed to local employment and supply chains. Officials argued that the principle of partner country equivalence must be applied predictably across sectors including automobiles, steel and nuclear power.

On the due diligence directive, the delegation requested that industry positions on operational clarity and feasibility be reflected in upcoming guidelines based on a government submission made in July. They also proposed establishing a permanent consultation channel to discuss interpretation issues and corporate implementation challenges.

Regarding the carbon border mechanism, the ministry asked for minimized administrative costs during third-party verification and the expansion to downstream products. Officials stressed that decisions on the scope and timing of expanded coverage must consider the realistic feasibility for companies with complex supply chains.

The two sides also discussed expanding cooperation in future trade areas such as the digital economy and critical minerals. They reviewed remaining procedures for the entry into force of the Korea-EU Digital Trade Agreement signed in June and exchanged views on supply chain diversification and policy coordination.

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