Seoul steps up outreach to EU lawmakers over 'Made in Europe' industrial law

South Korea's government has launched an intensive outreach campaign targeting key European Parliament figures to protect Korean companies from potential discrimination under the EU's Industrial Acceleration Act (IAA), often called Europe's answer to the US Inflation Reduction Act, which is set to take effect next year.

The IAA aims to expand domestic production of strategic industries within the EU by applying European-origin and low-carbon criteria to public procurement, subsidies and other forms of public support. The move has raised growing concerns that Korean companies could face discriminatory treatment under the new regime.

South Korea's Ministry of Trade, Industry and Energy said Thursday that a delegation led by Kim Jang-hee, director general for new trade strategy support, held a series of meetings with key European Parliament lawmakers in Strasbourg, France, on Tuesday and Wednesday (local time), conveying the government's and industry's positions on the IAA.

The visit came as parliamentary review of the legislation is intensifying through year-end, following the release of the European Parliament's proposed amendments to the IAA in September. The delegation sought to present Seoul's position directly to the key figures leading the review within the parliament.

Kim met with senior lawmakers from three standing committees with jurisdiction over the bill: the Committee on the Internal Market and Consumer Protection (IMCO), the Committee on International Trade (INTA), and the Committee on Industry, Research and Energy (ITRE). The delegation also held talks with European Parliament Vice President Martin Hojsík, IMCO Vice Chair Kamila Gasiuk-Pihowicz and INTA Vice Chair Kathleen Van Brempt.

The delegation also met with lawmakers from major political groups, including the European People's Party (EPP), the Progressive Alliance of Socialists and Democrats (S&D) and the European Conservatives and Reformists (ECR).

"Korean companies have long invested in the EU, contributing to local production, employment and supply chain development," Kim said. "Cooperation with competitive partners like Korea aligns with the IAA's goal of strengthening EU industrial competitiveness."

He also called on EU lawmakers to recognize Korea as a trusted partner so that Korean companies are not discriminated against in key sectors such as automobiles, nuclear power, steel and batteries, and urged the consistent application of the equivalence principle across all areas of IAA implementation, including public procurement and public support.

Since the IAA bill was introduced in March, the government has submitted its official position four times and has continued high-level outreach to the European Commission, EU member states and the European Parliament. On Oct. 15, it launched a public-private joint task force on the IAA to strengthen coordinated responses with industry.

"We will continue to conduct intensive high-level and public-private outreach centered on the joint task force," Kim said, "and will actively work to ensure that Korean companies' interests are fully reflected in the EU legislative process."

South Korea's exports to the EU totaled $70.1 billion last year, making the potential impact of the IAA significant.

Through the IAA, the EU aims to raise its manufacturing sector's share of GDP from 14.3 percent in 2024 — a level it attributes to oversupply from China — to 20 percent by 2035. The sectors the IAA targets for intensive regulation overlap heavily with Korea's four key export industries to the EU — automobiles and parts, batteries and materials, steel, and nuclear power and electrical equipment — which together accounted for 36.5 percent, or $25.6 billion, of Korea's EU exports last year.