S. Korea, EU discuss supply chains, economic security

South Korea’s Finance Minister Choo Kyung-ho met with the trade chief of the European Union on Wednesday and discussed ways to boost cooperation on supply chains and a wide range of issues on economic security, Choo’s office said.

During the meeting with Valdis Dombrovskis, an executive vice president at the European Commission, in Seoul, Choo welcomed their decision to launch talks for a digital trade pact and voiced hope for stronger bilateral relations in the supply chains of key industries, renewable energy and broader economic issues, according to the Ministry of Economy and Finance.

Earlier this week, South Korea and the EU announced their decision to initiate negotiations on a bilateral digital trade agreement, which aims to better protect digital transactions and foster a free and fair online environment.

Choo also asked for the EU’s attention to South Korean businesses over the course of its implementation of its new carbon border tax and other laws on trade and the environment amid concerns that they would discriminate against foreign firms.

The EU’s new carbon-pricing system named the Carbon Border Adjustment Mechanism, or CBAM, calls for levying an import charge on steel, cement, electricity, fertilizer, aluminum and other related items equivalent to their carbon emissions from production.

The regulation scheme will fully take effect in 2026 after a transition period that began last month.

The EU official shared the need to boost bilateral cooperation in various sectors, and vowed to consider the South Korean stance regarding 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 an all-time high of US$136.3 billion in 2022, up from 106.8 billion in 2018 and 102.7 billion in 2020, government data showed.