Son Kyung-sik "Corporate Anxiety Grows Over Ukraine Crisis... EU Delegation Asked to Be Communication Channel"

KEF Holds Meeting with EU Delegation in Korea
"Please Help Minimize Damage to Our Companies"

On the 7th, Son Kyung-sik, Chairman of the Korea Employers Federation, is speaking at the 'Korean-Chinese Ambassador Invitation KEF Chairman Meeting' held at the Four Seasons Hotel in Jongno-gu, Seoul. This meeting was held under the theme of economic cooperation measures between Korea and China to overcome the COVID-19 crisis. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kiho Sung] Sohn Kyung-shik, Chairman of the Korea Employers Federation (KEF), recently invited the European Union (EU) Delegation to Korea amid the armed conflict between Russia and Ukraine, urging them to serve as a channel for information exchange and communication with Korean companies. This move aims to minimize the damage to Korean businesses as international pressure on Russia intensifies.

On the 28th, KEF held a meeting with the EU Delegation at the Four Seasons Hotel in Seoul. The EU side was represented by Maria Castillo Fernandez, Ambassador of the European Union to Korea, along with delegations from 24 EU member countries. On the KEF side, the chairman and key business leaders totaling 10 participants attended.

In his opening remarks, Chairman Sohn expressed deep concern over the recent armed conflict between Russia and Ukraine and appealed for support for Korean companies. He first emphasized the economic cooperation between Korea and the EU, stating, "Despite the pandemic crisis, the EU, Korea's largest investor, significantly increased its investment, and trade in high value-added and eco-friendly products such as electric vehicles, secondary batteries, and bio-health has greatly expanded."

He continued, "Due to the Ukraine situation, domestic companies in the automobile, semiconductor, home appliance, and petrochemical sectors, which heavily depend on overseas raw materials and exports, are experiencing growing anxiety," and added, "I hope today's meeting will serve as a channel for information exchange and communication between the EU Delegation and companies to minimize damage to our businesses."

He also conveyed concerns from companies regarding the EU Carbon Border Adjustment Mechanism (CBAM), set to be fully implemented from 2026, which is related to the growing global interest in eco-friendly and ESG (Environmental, Social, and Governance) management. Chairman Sohn explained, "Korean companies are expanding the use of renewable energy, developing eco-friendly technologies, and increasing investments. Since 2015, Korea has actively operated a carbon emissions trading system similar to the EU's," and requested the EU side to fully consider Korean companies' positions, warning that "rapid carbon emission reductions could lead to cost increases that companies cannot bear, potentially shrinking trade and economic cooperation between both sides."

Additionally, Chairman Sohn expressed regret that the opinions of the business community were not adequately reflected during the social consensus process for ratifying the International Labour Organization (ILO) core conventions but pledged that KEF would strive to ensure the implementation of the three ILO conventions coming into effect this April. He also mentioned that KEF is considering dispatching an inspection team to study the EU's cooperative labor relations, social dialogue experiences, and legal systems.

He referred to former Foreign Minister Kang Kyung-wha's candidacy for the next ILO Director-General election, introducing her as "an international organization expert with many years of experience in senior UN positions and a former Korean Foreign Minister recognized by the international community," and requested the support of the EU ambassadors.

Maria Castillo Fernandez, Ambassador of the EU to Korea, stated, "Green and digital economic cooperation is very important for the post-pandemic recovery for both the EU and Korea," and added, "We hope economic cooperation in these areas will be discussed more actively, and we will continue to review the concerns of the Korean business community regarding the implementation of the Carbon Border Adjustment Mechanism."

This content was produced with the assistance of AI translation services.