South Korea-EU Close Ranks on Critical Minerals

South Korea and the European Union have agreed to strengthen cooperation in the critical minerals, supply chain, and technology security sectors. These two issues are becoming more sensitive when global supply is easily disrupted and the technology war between major countries is becoming sharper.

Quoted from Yonhap, Tuesday, May 26, the agreement was discussed in the second round of a new special economic security and trade issues committee meeting held virtually on Tuesday, May 26.

The meeting was led by South Korean Deputy Trade Minister Park Jung-sung and EU official Denis Redonnet, according to the South Korean Ministry of Trade, Industry, and Resources.

South Korea and the European Union assess that supply chain cooperation and technology security need to be deepened. Both are equally dependent on imports of critical minerals.

Therefore, Seoul and Brussels agreed to encourage supply chain diversification. This means that the supply of important materials is not concentrated in one country or one line.

Both parties will also strengthen cooperation in the accumulation of reserves and recycling of critical minerals.

During the meeting, Park asked the EU to consider a grace period for the plan to implement battery rules. He emphasized the contribution of Korean companies to the EU battery supply chain.

Park also asked for Seoul's views to be considered in the drafting of details of the EU Industrial Accelerator Act or IAA. This rule is related to the EU's efforts to strengthen its industrial base.

In addition, South Korea expressed concern over the EU's plan to strengthen its steel safeguard policy. Safeguard is a trade protection measure, usually in the form of import restrictions, to protect domestic industries from surges in imported goods.