The South Korean government has expressed concerns regarding the European Union's (EU) proposed Industrial Acceleration Act (IAA), raising the possibility of violations of trade norms and urging that Korean companies not face discrimination in public procurement and support processes.
The Ministry of Trade, Industry and Energy announced that Park Jeong-sung, head of the Trade Negotiation Headquarters, conveyed South Korea's position on the IAA during a meeting on September 23 with Anna Cavazzini, chair of the European Parliament's Internal Market and Consumer Protection Committee (IMCO), and other IMCO representatives.
Cavazzini, who is also a co-rapporteur for the IAA, is actively involved in the legislative discussions, which have intensified following the recent release of a draft report by the co-rapporteurs.
During the meeting, Park emphasized that South Korea and the EU share a commitment to free trade and a rules-based international economic order. He highlighted that Korean companies have contributed to local production, employment, and supply chain development in key industries such as automobiles, batteries, semiconductors, and steel through their investments in Europe.
Park expressed concerns that while the EU aims to enhance industrial competitiveness and supply chain resilience through the IAA, certain provisions may pose significant risks of violating trade laws. He stressed the importance of adhering to existing trade norms, such as the Korea-EU Free Trade Agreement (FTA), and considering the established investment and supply chain relationships during the legislative process.
The government plans to continue discussions with the EU to ensure that Korean companies are not treated less favorably than EU firms in public procurement and support processes related to steel, automobiles, batteries, and nuclear power.
Both sides acknowledged the growing importance of Korea-EU industrial and trade cooperation amid uncertainties in the global trade environment and supply chain restructuring, agreeing to maintain ongoing communication regarding key trade and industrial issues, including developments related to the IAA.
Park stated, "We will demand recognition of equality for reliable partner countries like Korea to ensure that our products are not discriminated against compared to EU products. We will closely communicate with the EU to prevent any discriminatory treatment from being reflected in public procurement and support programs in sectors such as steel, automobiles, batteries, and nuclear power that fall under the IAA."
* This article has been translated by AI.
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