South Korea's trade ministry met EU officials in Brussels from September 16 to 18 to push back on new trade regulations. The talks covered the Industrial Accelerator Act (IAA), which ties public procurement and subsidies to EU-origin and low-carbon criteria, and the Carbon Border Adjustment Mechanism (CBAM), which is set to expand beyond steel and aluminum to downstream products like auto parts and home appliances. Seoul wants longer timelines and lighter verification burdens for complex supply chains. Companies with EU exposure should track these negotiations closely. The IAA's low-carbon and origin requirements could affect eligibility for procurement and subsidies in sectors like steel, cement, and wind turbines. Meanwhile, CBAM expansion will add compliance costs for exporters. South Korea also proposed a permanent consultation channel on the Corporate Sustainability Due Diligence Directive (CSDDD) as its implementation guidelines are still being drafted.
