The Ministry of Trade, Industry and Energy held a meeting with local industry officials on Thursday to discuss responses to the European Union's new Industrial Accelerator Act aimed at bolstering EU industrial capacity. The bill prioritizes low-carbon EU-made products in public procurement and imposes stricter foreign investment screenings. Korean companies urged the government to mitigate adverse effects and press the EU for relaxations.
The Ministry of Trade, Industry and Energy convened a meeting with officials from major automobile, steel, and battery companies on Thursday, March 5, 2026, to address concerns over the European Union's Industrial Accelerator Act (IAA). The legislation seeks to enhance the industrial capacity of EU countries by prioritizing low-carbon products made in the EU for public procurement, introducing stricter screening processes for large foreign investments in strategic sectors, and mandating the employment of EU workers.
Participants, including representatives from Hyundai Motor, called on the government to work to prevent the IAA from negatively impacting Korean companies and to urge the EU to ease the prioritization of EU-made products, according to ministry officials. The ministry stated it would raise these concerns during a working-level meeting of trade officials from both sides in Belgium later that Thursday local time.
This gathering followed the EU's announcement of the IAA and reflects South Korea's efforts to safeguard its industries amid potential trade barriers. The bill's provisions could restrict foreign companies' access to the EU market, potentially affecting Korea's key export sectors.
