EU Core Raw Materials Act Ahead of Implementation... Government Says "Proactive Response Needed to Enhance Industrial Competitiveness"

Ministry of Industry Holds Meeting with Related Agencies on Supply Chain and Climate Energy Trade

On the 26th, the Ministry of Trade, Industry and Energy held a meeting with related organizations on supply chain and climate energy trade to review recent legislative trends in the European Union (EU) and their impact on Korean companies.

The EU's Core Raw Materials Act and Supply Chain Due Diligence Directive, which have been promoted so far, are nearing final approval and enforcement, and the Carbon Neutral Industry Act reached a tripartite agreement (Commission-Council-Parliament) in February this year.

The Core Raw Materials Act, aimed at securing a stable supply of raw materials, sets targets to strengthen domestic production capacity of strategic raw materials (at least 10% extraction, 40% processing, and 25% recycling within the region) and reduce import dependency (below 65%). It also stipulates support for strategic projects and risk mitigation measures. Since it does not include discriminatory provisions against non-EU companies, the Ministry of Trade, Industry and Energy expects the impact on individual companies to be limited. The Supply Chain Due Diligence Directive, which imposes human rights and environmental obligations within the supply chain on companies above a certain scale both inside and outside the region, has significantly narrowed its scope, easing the burden compared to the draft, according to the Ministry.

Meanwhile, the tripartite agreement on the Carbon Neutral Industry Act, aimed at enhancing manufacturing capabilities for carbon-neutral technologies, stipulates related support such as simplified approval procedures for target technologies including nuclear power, solar power, and wind power. The government has confirmed that there are no discriminatory elements against non-EU companies.

The government has closely communicated with experts from industry, academia, and research institutes through meetings and countermeasure conferences to share the EU's legislative trends and assess their impact. It has also made efforts to reduce uncertainty by conveying concerns and requests from the Korean industry to the EU side on various occasions, including high-level bilateral talks.

Shim Jin-su, Director of the New Trade Strategy Support Division at the Ministry of Trade, Industry and Energy, said, "We will closely monitor the burdens and opportunities for companies arising from the EU's legislation and implementation, maintain close communication with industry and research institutions, and promote explanatory meetings for companies."

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