Korea and EU Strengthen Cooperation on Supply Chains and Advanced Industries... Expanding Collaboration on Key Minerals and Batteries

Sharing Supply Chain Stabilization Policies Amid Hormuz Risk

Discussion on the EU Industrial Acceleration Act

"Need to Address Concerns of Korean Companies"

Consensus on Expanding Investment Cooperation in Batteries, BESS, and Advanced Manufacturing

Yonhap News

The government has convened with the European Union (EU) to strengthen cooperation on supply chain stabilization and strategic industries. As global supply chain risks grow due to instability in the Middle East and concerns over a potential blockade of the Strait of Hormuz, the initiative aims to expand collaboration in key minerals, batteries, and advanced industries.

The Ministry of Trade, Industry and Energy announced on May 21 in Seoul that it held the '2nd Korea-EU Supply Chain and Industry Policy Dialogue' with the Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW) of the European Commission. The meeting was led by Vice Minister Moon Sinhak and Kerstin Jorna, Director-General of DG GROW, who attended as chief representatives.

Both sides shared their respective supply chain stabilization policies in response to the ongoing supply chain instability caused by heightened geopolitical conflicts and the possibility of a blockade of the Strait of Hormuz.

The Korean government introduced its supply chain legislation and Early Warning System (EWS) for materials, parts, and equipment, explaining its framework for the rapid detection and response to supply and demand crises in critical items. The EU side also shared the current status and future plans for building its own supply chain monitoring system.

The discussions continued on industrial policy and legislative trends. The Korean government emphasized that major policies being promoted by the EU, such as the Industrial Acceleration Act, should be designed and implemented in a way that strengthens Korea-EU supply chain connectivity. It also requested attention so that the concerns of Korean companies operating in Europe can be reflected in EU policies.

Cooperation strategies in key minerals and battery sectors were also major agenda items. Both sides discussed information sharing, risk analysis, and the potential for investment and project collaboration to build robust supply chains for critical minerals.

In the battery sector, the Korean side explained that Korean companies are contributing to strengthening the battery production base and supply chain in Europe through large-scale local investments, and raised the need to expand Korean company participation in battery energy storage system (BESS) projects within Europe.

Ways to expand inter-company investment cooperation were also discussed. Both sides agreed that combining Europe's original technology with Korea's advanced manufacturing capabilities could enhance supply chain stability and industrial competitiveness, and decided to expand cooperation and investment in advanced industries.

They also discussed using EU corporate support programs such as the 'EU Business Hub' to discover new partnerships in green, digital, and healthcare sectors, and to translate inter-company cooperation into tangible industrial results.

Vice Minister Moon stated, "Korea and the EU are strategic partners sharing universal values of freedom, human rights, and rule of law, and are complementary economic partners with significant potential for cooperation in advanced industries and supply chains. I hope that this dialogue will develop into a key channel for further solidifying supply chain stabilization and industrial cooperation."

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