EU and South Korea strengthen digital trade relations with a new agreement

 

The European Union and the Republic of Korea have successfully concluded negotiations on a groundbreaking Digital Trade Agreement (DTA), reinforcing their commitment to a resilient and forward-looking partnership amid rapid technological advancements. During the 12th Trade Committee meeting under the EU-South Korea Free Trade Agreement (FTA), EU Commissioner for Trade and Economic Security Maroš Šefčovič and Korean Trade Minister Cheong In-kyo highlighted the significance of fair and mutually beneficial digital trade rules in an increasingly digitalized world.

This ambitious agreement underscores the EU’s dedication to high-standard digital trade regulations while further integrating the digital economies of both partners. The deal introduces binding rules to enhance consumer trust, provide legal certainty for businesses, and ensure secure data flows, while eliminating unjustified barriers to digital trade.

With a strong focus on individuals’ rights and data protection, the DTA enables both the EU and Korea to maintain the flexibility needed to address emerging digital economy challenges. Key provisions cover cross-border data flows, privacy protection, electronic contracts, authentication and trust services, source code security, online consumer protection, unsolicited marketing regulations, and regulatory cooperation on digital trade.

Moreover, the agreement aims to boost digital trade in goods and services by providing European businesses in Korea with greater legal certainty. It recognizes the validity of electronic contracts and promotes electronic signatures, allowing European companies to serve Korean customers more efficiently. Consumers will also benefit from enhanced protection measures and stricter regulations on unsolicited communications.

Additionally, the EU and Korea have agreed to strengthen their 2010 FTA by establishing a specialized committee to address emerging trade and economic issues. This platform will facilitate cooperation on key strategic matters such as economic security, industrial overcapacity, and supply chain resilience.

Next Steps

With the negotiations concluded, the EU and Korea will now proceed with their respective formal approval processes. In the EU, this includes legal finalization and translations before submission to the Council and the European Parliament for approval.

Background

The Digital Trade Agreement builds upon the 2010 EU-Korea FTA, which has driven record levels of bilateral trade, reaching €132 billion in 2022. It also complements the EU-Korea Digital Partnership, setting high standards for digital trade in the Indo-Pacific region and beyond. The agreement covers a wide range of digital trade activities, from cloud and financial services to online purchases and app-based transactions.

The newly established Specialised Committee on Emerging Trade and Economic Issues will further solidify this collaboration, meeting annually and reporting its progress to the Trade Committee.

Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_732