South Korea seeks non-discrimination in EU Net-Zero Industry Act

South Korea's Ministry of Trade, Industry and Energy (MOTIE) has launched a diplomatic effort to prevent domestic companies from facing disadvantages under the European Union's Net-Zero Industry Act (IAA). A government delegation, led by Kim Jang-hee, Senior Trade Strategy Officer, held a series of meetings with key members of the European Parliament in Strasbourg on November 20 and 21.

The IAA aims to strengthen the competitiveness of key industries within the EU and protect regional supply chains. However, concerns have been raised that its provisions, such as preferential treatment for intra-regional products, could act as trade barriers for foreign companies.

During meetings with members of the Internal Market and Consumer Protection (IMCO), International Trade (INTA), and Industry, Research and Energy (ITRE) committees, the delegation emphasized that South Korean companies have contributed significantly to the EU through local production, job creation, and supply chain development. The government specifically requested that South Korea be recognized as a reliable partner to ensure non-discrimination in sectors including automobiles, nuclear power, steel, and batteries, as well as in public procurement and support.