The European Union (EU) is speeding up legislation under the Industrial Acceleration Act (IAA) to enhance preferences for locally produced products, prompting the South Korean government to intensify its response against potential discrimination. The government is demanding equal treatment for Korean components and final assembly products, with plans for the head of the Trade Negotiation Headquarters to visit Brussels next month to persuade key EU officials.
On October 28, the Ministry of Trade, Industry and Energy will hold the second meeting of the public-private task force (TF) on the EU Industrial Acceleration Act, chaired by Park Jeong-seong, head of the Trade Negotiation Headquarters, at the Korea Chamber of Commerce and Industry. This meeting will include representatives from major industries such as automotive, batteries, steel, and nuclear power, as well as relevant government departments.
The EU Industrial Acceleration Act aims to strengthen industrial competitiveness and promote manufacturing within Europe. Concerns have been raised that enhanced preferences for locally produced products could impact market access and business operations for South Korean companies.
In response, the government launched a public-private TF on October 15 to establish a joint response system with the industry. The second meeting will share results from local contacts made with key EU legislative bodies and outline future strategies.
Previously, on October 20-21, the government dispatched a new trade strategy support officer to the European Parliament in Strasbourg, France. During this visit, they met with eight members of the European Parliament from major political groups and relevant committees to request the prevention of discrimination against South Korean companies and equal treatment for trusted partner countries.
At the 14th Korea-EU Free Trade Agreement (FTA) Goods Trade Committee held on October 21, South Korea conveyed its concerns regarding the Industrial Acceleration Act to the EU Commission. The government specifically urged for equal treatment of Korean components and final assembly products and called for reasonable criteria for recognizing locally produced products.
This upcoming meeting will assess the EU's legislative trends and key issues based on these local contacts. A central focus will be whether the EU can recognize South Korea as a reliable partner in the process of favoring locally produced products and how to establish criteria for recognizing local production in the automotive sector.
The government plans to emphasize that South Korean companies contribute to investment, job creation, and supply chain development in the EU. This approach aims not only to seek exceptions for South Korean products but also to minimize institutional disadvantages by demonstrating that domestic companies' investments and production activities benefit the EU industrial ecosystem.
Collaboration between the government and industry will also be strengthened. The Korea International Trade Association and the Korea Trade-Investment Promotion Agency (KOTRA), among other relevant organizations, will share information on EU legislative trends and local contacts, and will develop plans to convey joint opinions using the local networks of companies operating in the EU.
Notably, next month, Park will personally visit Brussels, Belgium. He plans to meet with key figures in the European Parliament to explain the contributions of South Korean companies to EU investment, employment, and supply chains, and to advocate for the incorporation of domestic industry concerns into the legislative process of the Industrial Acceleration Act.
Park Jeong-seong stated, "We will pursue multifaceted outreach to major legislative bodies such as the EU Commission, Council, and European Parliament to ensure that our companies are not discriminated against during the legislative process of the EU Industrial Acceleration Act. We will strengthen the cooperative framework among the government, industry, local embassies, and corporate offices through the public-private TF to ensure that our industry's position is effectively reflected in the EU legislative process."
* This article has been translated by AI.
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