Korea-EU cooperation deepens on tech, supply chains amid global uncertainty

EU Ambassador to Korea Ugo Astuto, right, speaks during his first official press conference in Seoul, Friday. Korea Times photo by Kim Hyun-bin

The European Union’s strategic Digital Trade Agreement with Korea has been implemented alongside green and digital partnerships, widening cooperation into some of the most innovative areas of modern life, including artificial intelligence and advanced computing, the EU’s ambassador to Korea said Friday.

Ugo Astuto, the EU Ambassador to Korea, speaking at his first official press conference in Seoul, said the EU is Korea’s largest trading partner and its biggest foreign investor, calling the relationship “highly successful” and increasingly strategic across economic, technological and security domains.

“The free trade agreement between the EU and Korea is being complemented by green and digital partnerships,” Astuto said. “This means that today our cooperation covers the most innovative aspects of our economies.”

Astuto said cooperation has expanded into advanced technologies such as artificial intelligence and quantum computing, adding that the two sides are “working very closely in the most innovative areas of our economies.”

He pointed to progress toward a digital trade agreement and data-related decisions that will allow what he described as the “free flow of data with trust” between the EU and Korea. He also highlighted Korea’s participation as the first Asian associated member of the EU’s flagship research program, Horizon Europe.

“This allows European and Korean institutions to work together on research on an equal basis,” Astuto said. “I trust this will bring mutual benefits.”

Addressing global economic uncertainty, Astuto said the EU’s trade policy is rooted in “rules, predictability and multilateralism,” even as protectionism rises and global supply chains are reshaped.

“The European Union will always choose cooperation over fragmentation and partnership over uncertainty,” he said, citing the EU-Korea free trade agreement as a clear example of that approach.

Astuto described Korea as an “outstanding example” of a strategic partner, saying the two sides share values and converging interests. He said building “safe and reliable supply chains” has become one of the EU’s top priorities with Korea.

“In a world where we see economic coercion, the security and resilience of supply chains is a major issue,” he said, adding that the EU and Korea have “a lot to gain by exchanging best practices.”

He said EU political leaders have decided to establish a dedicated dialogue with Korea on supply-chain security, with the first session expected soon. The talks will be broad-based rather than focused on a small number of products, particularly at the initial stage.

On security and defense, Astuto said Europe faces an unprecedented situation as Russia’s war against Ukraine enters its fourth year, driving record defense spending and new EU tools aimed at making procurement more coordinated and effective.

“The threat from Russia is imminent and real,” he said. “This has created a growing awareness in Europe that we need to invest more — and better — in our own defense.”

He said Korean defense companies are already cooperating bilaterally with several EU member states and have become major suppliers to some of them, adding that Europe’s defense dimension is likely to grow further.

Turning to the Arctic, Astuto said the EU is preparing a new policy paper reflecting changing geopolitical conditions. He said the bloc’s approach continues to rest on three pillars: protecting the fragile Arctic environment, keeping the region a zone of peace and respecting the rights of indigenous peoples.

“At the same time, we must recognize the growing militarization of the Arctic,” he said, noting that the EU is strengthening coordination with partners including the United States and NATO, while keeping the door open to dialogue with Korea within that framework.

On sustainability rules and trade concerns, Astuto stressed that the EU’s carbon border adjustment mechanism is “not a trade measure.”

“It is an environmental instrument,” he said. “We are talking about fighting climate change, not restricting trade.”

He said the EU introduced a transitional period to encourage consultation and has been in close dialogue with Korean authorities and industry, including efforts to simplify aspects of the system.

“If we only reduce emissions in Europe and pollution is simply transferred elsewhere, we fail,” Astuto said. “The objective is to make heavily polluting industries greener, together.”

Astuto concluded by saying there remains a broad scope to deepen EU-Korea cooperation.

“It is particularly important, at a time of adverse winds globally, that like-minded democracies work together,” he said, citing shared values, converging interests and a commitment to international rules.