South Korea’s Deputy Prime Minister and Economy and Finance Minister Choo Kyung-ho presided the 231st Ministerial Meeting on International Economic Affairs on December 26 at the Government Complex Seoul, which was attended by ministers and vice ministers of relevant ministries, including the Ministry of Trade, Industry and Energy (MOTIE).
In his opening message, Minister Choo remarked that 2022 has been a year with a high level of external uncertainty from Russia-Ukraine war, supply chain realignment and financial austerity, and forecasted that it is likely difficulties will persist throughout 2023.
Concerning the U.S.’ Inflation Reduction Act (IRA), Minister Choo stated that communication with the U.S. government and Congress will continue, alongside the Korean government’s close collaboration with domestic industries to seek concrete response measures.
Noting that the EU has also recently introduced a number of measures to respond to climate change and supply chain risks, he said that the Korean government will push measures to minimize domestic economic burden while seizing opportunities that arise, and laid out the following key points.
First, with regard to the EU Carbon Border Adjustment Mechanism (CBAM) announced this month, the Korean government will assist companies in the steel and aluminum industries and small and medium-sized (SMEs) that lack response capacity.
Second, the EU’s draft Critical Raw Materials Act (CRMA) will be announced during the first quarter of 2023, containing core materials’ supply chain changes, for which the Korean government will preemptively engage in communicating with EU counterparts during the legislation process early on to prevent unfair discrimination and ensure that the Act is established in accordance with international rules under the World Trade Organization (WTO).
Lastly, with the EU’s Foreign Subsidies Regulation to be enforced mid-2023, the Korean government will request a fair guideline from the EU so as to prevent Korean companies withdrawing from the EU market, while preparing internal measures to better equip companies with necessary information.
Minister Choo assured that the Korean government will strive to stay alert and respond swiftly to challenges caused by the above issues.
Source: Ministry of Trade, Industry and Energy