On Wednesday, South Korea’s Finance Minister Choo Kyung-ho met with Valdis Dombrovskis, the executive vice president of the European Commission, to discuss ways to bolster cooperation in supply chains, renewable energy, and other economic matters, according to the Ministry of Economy and Finance.
The two sides declared their intention to initiate negotiations for a bilateral digital trade agreement, which is meant to protect digital transactions and set up a fair online environment.
Choo also asked the EU to consider South Korean companies in the implementation of its new carbon border tax and other trade and environmental laws, as he was concerned that they may discriminate against foreign firms.
The EU’s Carbon Border Adjustment Mechanism, or CBAM, requires an import charge on steel, cement, electricity, fertilizer, aluminum, and other related items equivalent to their carbon emissions from production. This system will become fully effective in 2026 after a transition period that started last month.
The EU official expressed the need to increase bilateral collaboration in various sectors, and promised to take into account South Korea’s perspective on the carbon tax system and other EU regulations, according to the ministry.
The EU is South Korea’s third-largest trading partner, and two-way trade reached a record high of US$136.3 billion in 2022, up from 106.8 billion in 2018 and 102.7 billion in 2020, government data showed.
Finance Minister Choo Kyung-ho speaks during a meeting of economy-related ministers in Seoul on Oct. 31, 2023. (Yonhap)
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