The South Korean government has requested European Parliament members to prevent discrimination against Korean companies as discussions on the European Union's Industrial Acceleration Act (IAA) focus on enhancing local production preferences.
The Ministry of Trade, Industry and Energy announced that a government delegation led by Kim Jang-hee, the Director of New Trade Strategy Support, held a series of meetings with key European Parliament members in Strasbourg, France, on October 20-21. This visit aimed to convey the positions of the South Korean government and businesses following the announcement of amendments to the IAA in September, as legislative discussions are expected to intensify until the end of the year.
Kim met with prominent members from three relevant committees: the Internal Market and Consumer Protection Committee (IMCO), the International Trade Committee (INTA), and the Industry, Research and Energy Committee (ITRE). The delegation also engaged with Martin Hojsik, Vice President of the European Parliament, Camilla Gasiuk-Pihowicz, Vice Chair of the IMCO, and Katalin Van Brempt, Vice Chair of the INTA.
Additionally, they connected with members from major political groups, including the European People's Party (EPP), the Progressive Alliance of Socialists and Democrats (S&D), and the European Conservatives and Reformists (ECR).
Kim emphasized that South Korean companies have significantly contributed to local production, employment, and supply chain development through long-term investments in the EU. He conveyed that collaboration with competitive partners like South Korea aligns with the IAA's goal of enhancing EU industrial competitiveness.
He specifically requested that South Korea be recognized as a reliable partner to ensure that Korean companies are not discriminated against in key sectors such as automotive, nuclear energy, steel, and batteries. He also stressed the need for consistent application of the principle of equality across all aspects of the IAA, including public procurement and support.
The European Commission proposed the IAA in March, followed by the EU Council's draft in July and the European Parliament's draft in September. Concerns have grown that the legislative process may tighten local product preference requirements and limit the recognition of reliable external partners, potentially restricting market access for South Korean companies. This is particularly concerning for Korean firms that have invested in local production facilities, as they may still face regulatory impacts based on parts procurement and supply chain configurations.
Since the bill's announcement in March, the South Korean government has submitted four official position papers to the EU. High-level contacts with the European Commission, member state governments, and the European Parliament have continued. On October 15, a public-private task force was launched, involving key industries such as automotive, batteries, steel, and nuclear energy, to strengthen joint responses to the IAA.
Kim Jang-hee stated, "South Korea is a key partner that has contributed to the EU's industrial competitiveness and supply chain strengthening. We will actively respond to ensure that our companies' positions are adequately reflected in the EU legislative process through a series of high-level and public-private outreach efforts centered around the task force."
* This article has been translated by AI.
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