South Korea strengthens response to EU Industrial Acceleration Act

The South Korean government and industry are intensifying joint efforts to prevent domestic companies from facing disadvantages during the legislative process of the European Union’s Industrial Acceleration Act (IAA). The IAA, often referred to as the “European version of the Inflation Reduction Act,” aims to expand regional production in strategic industries by applying low-carbon standards and favoring European-made products in public procurement and subsidy systems.

During a second meeting of the Public-Private Joint Task Force held at the Korea Chamber of Commerce and Industry, officials discussed strategies to ensure equal treatment for Korean firms in sectors such as automobiles, batteries, steel, and nuclear power. Key concerns include the definition of regional content requirements and the recognition of South Korea as a reliable partner.

To advance these efforts, Trade Minister Park Jung-sung is scheduled to visit Brussels next month for high-level outreach to key figures in the European Parliament. This follows recent diplomatic actions, including meetings with members of the European Parliament in Strasbourg and discussions during the 14th Korea-EU Free Trade Agreement (FTA) Goods Committee, where South Korea urged the EU Commission to ensure non-discriminatory treatment for Korean components and assembly.