EU and South Korea Deepen Strategic Trade and Technology Partnership in Face of Geopolitical Tensions
European Trade and Economic Security Commissioner Maroš Šefčovič and South Korean Minister for Trade Yeo Han-koo co-chaired the EU-Korea Trade and Technology Council in mid-April 2026, agreeing to deepen cooperation across semiconductors, electric-vehicle batteries, critical raw materials, hydrogen, and digital trust frameworks. The meeting marks one of the most concrete advances of the EU’s Indo-Pacific economic strategy since the publication of the Updated Strategy in 2023.
Semiconductors: the heart of the deal
Both sides agreed to align on critical chip security — coordination of export controls towards third countries, joint research on next-generation lithography, and supply-chain transparency. South Korea’s Samsung and SK Hynix produce roughly 60% of global high-end memory chips; the EU’s ASML in the Netherlands holds a global monopoly on extreme ultraviolet lithography machines. The deal formalises an ecosystem in which each party can credibly threaten and credibly compensate the other in case of supply-chain disruption.
Batteries and raw materials
The two sides agreed a joint Critical Raw Materials Memorandum covering lithium, nickel, cobalt, manganese and rare earths. South Korea — like the EU — depends overwhelmingly on Chinese processing for these materials. The MoU sets out cooperation on diversified sourcing in Africa, Latin America and Australia, with shared standards on environmental and labour conditions. Korean battery majors LG Energy Solution and Samsung SDI are among the largest investors in EU battery gigafactories, with €15 billion of operational facilities across Hungary, Poland and Germany.
Digital trust and AI
The Council also extended the EU-Korea adequacy decision on personal data transfers, originally adopted in 2021. Both sides committed to coordinated implementation of the EU AI Act and Korea’s Framework Act on AI, in force since January 2026. A working group was established on governance of foundation models — the type of large AI models that power systems like ChatGPT — with the aim of avoiding fragmentation of compliance regimes.
The geopolitical context
The deepening EU-Korea relationship plays out against the backdrop of US tariff policy under the second Trump administration, the Iran war’s pressure on global energy markets, and continued US-China technology decoupling. Both Brussels and Seoul see the partnership as insurance against unilateral pressure from larger powers. The Council’s joint statement explicitly references “a rules-based, predictable trade order” as a shared interest.
What comes next
The two sides agreed to upgrade their existing 2010 Free Trade Agreement, with formal renegotiation talks to begin in autumn 2026. Among the planned chapters: digital trade, sustainability, services liberalisation, and updated rules of origin reflecting EV supply chains. The next ministerial meeting is scheduled for early 2027 in Seoul.
