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- South Korea
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- Negotiations and agreementsTrade policy
The EU-Republic of Korea free trade agreement (FTA) had provisionally applied since July 2011 before it was formally ratified in December 2015.
It went further than any of the EU’s previous agreements in lifting trade barriers, and was also the EU's first trade deal with an Asian country.
It was also the EU’s first FTA to include a chapter on Trade and Sustainable Development. The chapter reaffirms the commitment of the EU and Korea* to contribute to sustainable development by integrating labour and environmental (including climate) protection in the bilateral trade relationship.
*Covering the territory of the Republic of Korea, commonly known as South Korea.
- Korea is the EU's 9th largest export destination for goods, whereas the EU is Korea's 3rd largest export market.
- Since the entry into force of the EU-Korea free trade agreement on 1 July 2011, bilateral trade and investment have expanded remarkably. Total bilateral trade in goods amounted to 107.3 billion euros in 2021, up by 70.8% from 2011.
- Bilateral trade between the EU and Korea remains highly concentrated in the industrial sectors that represented 95.9% of total bilateral trade in 2021, including machinery and appliances (33.9%), transport equipment (18.9%), and chemicals (15.1%).
- Bilateral trade in agricultural products has gradually increased in the decade since the agreement’s entry into force, accounting for 3.9% in 2021. Of EU total exports to Korea, the share of agricultural products grew from 5.3% in 2011 to 7.6% in 2021. In 2020, EU-Korea trade in services remained concentrated on a handful of sectors: transport (25.7%); royalties and license fees (15.2%); and telecommunications, computer and information services (14.1%).
- Bilateral trade in services soared by 72.2% between 2011 and 2020, amounting to €18.6 billion in 2020.
- The EU remains South Korea's biggest foreign direct investor, ahead of Japan and the US.
The EU and the Republic of Korea
1 July 2021 marked the 10th anniversary of the EU-Republic of Korea free trade agreement. The agreement eliminates duties for industrial and agricultural goods in a progressive, step-by-step manner.
The majority of import duties were removed in 2011. The remaining ones – with the exception of a limited number of agricultural products – were removed after five years on 1 July 2016.
The FTA also addresses non-tariff barriers to trade, specifically in the automotive, pharmaceutical, medical devices and electronics sectors.
The agreement has created new opportunities for market access in services and investments, and includes provisions in areas such as competition policy, government procurement, intellectual property rights, transparency in regulation, and sustainable development.
The FTA also includes a legally binding chapter on Trade and Sustainable Development. As a result of a dispute resolution confirming that Korea did not comply with its obligations set out in the TSD chapter, the country is in the process of amending its labour laws.
The FTA established a number of specialised committees and working groups between the two parties to monitor implementation.
These bodies also provide an opportunity to seek resolutions to market access concerns and to engage in closer regulatory cooperation. An annual trade committee at ministerial level plays a supervisory role and is designed to ensure that the agreement operates properly.
In 2010, the EU and Korea upgraded their broader relationship to a Strategic Partnership. On 10 May 2010 the two sides signed a Framework Agreement, which entered into force on 1 June 2014. It provides a basis for strengthened cooperation on major political and global issues such as human rights, non-proliferation of weapons of mass destruction, counter-terrorism, climate change and energy security. This is an overarching political cooperation agreement with a legal link to the EU-Republic of Korea Free Trade Agreement.
- The Commission's annual reports on the implementation of FTAs contain a section on the Republic of Korea.
- Fact sheet: EU-Korea FTA: a quick reading guide
- Fact sheet: 10 key benefits of the EU-Korea FTA
Committees and Dialogues
The EU and the Republic of Korea meet regularly to discuss issues and best practices and oversee the proper functioning of the Agreement.
Trading with the Republic of Korea
- Importing into the EU from Korea
- EU trade defence measures on imports from Korea
- Exporting from the EU to Korea
- Trade relations are part of the EU's overall political and economic relations with the Republic of Korea
- The Republic of Korea is a member of the World Trade Organization
- Evaluation of the Free Trade Agreement between the EU and the Republic of Korea
Trade in agricultural products between the EU and Korea is about to become a lot easier, thanks to the digitisation of procedures agreed today between the two partners.
Today, the Executive Vice-President and Commissioner for Trade Valdis Dombrovskis and Korean Minister for Trade Ahn Dukgeun co-chaired the 10th Trade Committee between the EU and the Republic of Korea.
The ten-year anniversary of the EU-Republic of Korea Trade Agreement comes with an impressive growth in bilateral trade of more than 50%, reaching over €110 billion.