Korea presses EU on industrial act, carbon border in trade talks

The industry ministry said Wednesday that South Korea asked the European Union to soften local-content requirements under its industrial acceleration law and to grant sufficient transition periods for strategic sectors, at a virtual meeting of the two sides' trade committee.

The 14th Korea-EU FTA Goods Trade Committee was chaired on the Korean side by Kim Young-man, director-general for trade policy, and on the EU side by Joanna, director-general at the bloc's trade department, according to the Ministry of Trade, Industry and Energy.

Trade between the two sides rose about 64 percent to $136.8 billion in 2025 from $83.3 billion before the FTA took effect, the ministry said.

On the EU's Industrial Acceleration Act, Korea argued it is a reliable partner whose investment and job creation in autos, batteries and other core industries strengthen EU industrial competitiveness. It asked that excessive domestic-content requirements not undermine the competitiveness of companies on both sides or the stability of supply chains, and sought equal treatment for Korean parts and final assembly in public procurement and public support, along with adequate transition periods and reasonable exceptions for strategic industries including automobiles, low-carbon steel and nuclear power.

Regarding the carbon border adjustment mechanism, Seoul asked that Korean verification bodies be recognized quickly and without discrimination compared with EU institutions. It also called for the number of covered items to be kept to a minimum and for sufficient lead time when the scheme is extended in 2028 to downstream steel and aluminum products.

On the packaging and packaging waste regulation, Korea explained that semiconductor packaging requires special materials to prevent static electricity and protect products, and asked that chip packaging be exempted from design-for-recycling, recycled-content and reuse obligations.

For cosmetics, the ministry asked the EU to clarify qualification standards so that experts holding relevant Korean degrees can be recognized as cosmetic safety assessors, and to improve the system so that safety reports prepared by Korean institutions are accepted consistently across member states.

On automobiles, the two sides discussed expanding recognition of equivalence in technical regulations and ways to pursue a mutual recognition agreement. Korea expressed hope that additional technical consultations on revising the automobile annex would proceed smoothly, and both sides agreed to continue talks on an MRA to cut certification costs and time.

The EU raised offshore wind, the assessment criteria for electric vehicle subsidies, alcohol warning labels, original content labeling and online sales rules, and safety certification for infant textile products. Korea explained the purpose and operation of its systems, and the two sides exchanged views on difficulties facing their companies.

Both sides agreed to improve mutual market access through communication and cooperation under the FTA, and to produce substantive results through future high-level talks and the trade committee.