Korea's trade chief visits Hungary to ease pressure on battery firms

South Korea's government has dispatched its top trade official to Hungary to address mounting difficulties faced by Korean battery manufacturers, as Hungary's new government has tightened environmental regulations on battery production facilities.

The Ministry of Trade, Industry and Resources said Monday (local time) that Trade Negotiation Bureau Chief Park Jeong-seong visited Hungary and held separate meetings with Deputy Prime Minister and Foreign Minister Annita Orban, Economy and Energy Minister Istvan Kapitany, and Regional Development Minister Viktoria Lorincz.

The visit comes amid growing uncertainty surrounding Hungary's battery industry following the launch of the new government led by Prime Minister Peter Magyar in May, which has moved to strengthen environmental regulations affecting the sector.

Park said South Korea is Hungary's largest Asian investor and has contributed to the country's economic development through job creation and supply chain strengthening in advanced manufacturing sectors including automobiles, batteries and electronics.

He said the battery industry is a strategically important sector not only for its links to Hungary's electric vehicle industry but also for advancing carbon neutrality and renewable energy policies, and asked for Hungarian support to ensure Korean companies can continue operating stably in the country.

On the EU's Industry Acceleration Act, which favors locally produced goods within the bloc, Park said Korean companies actively leveraging their production facilities and technology built in Hungary would align with the law's intent while also helping strengthen Hungary's competitiveness as a manufacturing and supply hub within Europe.

He also asked Hungarian officials to grant Korean companies sufficient preparation time and to apply related regulations reasonably as they adapt to the EU Battery Regulation, which mandates carbon emission reporting, the use of recycled materials, and supply chain due diligence.

Park then co-hosted a joint ESG management declaration ceremony with Korean battery companies operating in Hungary, the Korea Battery Industry Association, the Korean Embassy in Hungary, and KOTRA.

The participating organizations and companies pledged to voluntarily fulfill their responsibilities in environmental, health and safety areas and to work together to build an industrial ecosystem that coexists with local communities.

"Companies such as Samsung SDI and SK On have invested more than $8 billion in Hungary, playing an important role in the economic and industrial development of both countries," Park said. "The government will actively support our companies so they can continue investing and operating in a stable environment while fulfilling their social responsibilities."

Hungary had actively cultivated its battery industry under the previous government of Viktor Orban, attracting foreign direct investment and growing into a major battery production hub in Europe. Since the new government took office, however, tightened environmental regulations have brought changes to related industrial policy.

In practice, Samsung SDI and SK On have faced a growing operational burden, with both companies hit with fines for environmental regulation violations.

The difficulties facing Korean battery companies in Hungary also emerged as a key issue Monday at a plenary session of the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee.

People Power Party lawmaker Koo Ja-geun said Korean battery companies have faced factory shutdowns and fines since the new Hungarian government took office, calling it "a matter that must be resolved diplomatically, with the president personally taking charge on the ground, beyond the working level."