Brussels, 10 March 2025
The EU and the Republic of Korea (South Korea) have concluded negotiations for a landmark Digital Trade Agreement (DTA), underscoring their commitment to a strong and reliable partnership that is fit to face the fast-paced digital developments of today.
During the 12th Trade Committee under the EU-South Korea Free Trade Agreement (FTA), Commissioner for Trade and Economic Security Maroš Šefčovič and Korean Trade Minister Cheong In-kyo emphasised the importance of mutually beneficial rules around the data and digital technologies, which increasingly permeate every sphere of life.
This ambitious Agreement reflects the EU’s commitment to setting high-standard digital trade rules, while connecting further the digital economies of the EU and Korea. The deal provides binding rules that build consumer trust; ensure predictability and legal certainty for businesses, as well as trusted data flows; while removing and preventing the emergence of unjustified barriers to digital trade.
The DTA promotes an approach for building digital and data rules with individuals and their rights at its core. It ensures the EU and Korea preserve policy space to develop and implement the policies required to address new challenges in the digital economy.
The provisions cover cross-border data flows, privacy and personal data protection, customs duties on electronic transmissions, electronic contracts, authentication and trust services, source code protection, online consumer trust, unsolicited direct marketing communications, open government data and regulatory cooperation on digital trade.
In addition, this Agreement seeks to enhance digital trade in services and goods, by increasing legal certainty for European businesses in Korea. It recognises the legal validity and enforceability of electronic contracts and encourages the use of electronic signatures. This will enable European companies to serve their South Korean customers directly from Europe more efficiently. European consumers will benefit from improved consumer protection regulations and measures addressing unsolicited communications.
The EU and the Republic of Korea also agreed to deepen their 2010 FTA, by establishing a new specialised committee on emerging trade and economic issues. This committee will provide a dedicated platform for the EU and Korea to cooperate on topics of strategic importance such as economic security, overcapacity, and supply chains resilience.
Next steps
The political conclusion marks the end of the negotiations for the EU-Korea Digital Trade Agreement. The Commission and Korea will now follow their respective procedures to work towards the formal signature and conclusion of the EU-Korea DTA. On the EU side, this will include legal scrubbing and translations into all EU languages, before the proposal can be sent to the Council and European Parliament.
Background
The Digital Trade Agreement complements the 2010 EU-Korea FTA, which underpins the robust and continuously growing economic ties between the two partners. Since its application in 2011, bilateral trade has grown to record levels, reaching €132 billion in 2022.
The DTA also complements the EU-Korea Digital Partnership. It sets high standards for digital trade rules in the Indo-Pacific region, and beyond, reflecting the EU’s approach on digital and data policies, which puts people and their rights at the center.
Examples of digital trade range from cloud services, financial services, and digitally ordered services or products, to everyday actions such as downloading an application on a smartphone, booking a ride through an app, or purchasing a book online.
The Specialised Committee on emerging trade and economic issues will further contribute to strengthening these ties; it will meet once a year and will report on its work to the Trade Committee.
More information
- EU trade and investment relations with Korea
- Digital Trade Agreements
- More on EU Digital Trade
- EU-Republic of Korea Digital Partnership
Quote
This Digital Trade Agreement shows how we can work with strategic like-minded partners to bring economic benefits through the digital realm to both consumers and businesses. Today’s announcement strengthens our Digital Partnership with the Republic of Korea. It is also a testament to the appeal of the EU’s approach to digital issues, namely economic benefits with people and their interests at the centre. Agreements such as this one bolster our leadership role on the global stage.
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy
In a time of geopolitical uncertainty, strengthening our ties with like-minded partners such as the Republic of Korea is of paramount importance. Today marks a double success in that regard, as we not only contribute to the well-being of our businesses and citizens but also demonstrate our strong commitment to the international rules-based system. Our FTA and DTA will ensure businesses and consumers benefit from a fair, safe and open trade system, both online and offline.
Maroš Šefčovič, Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency
Source – EU Commission
Remarks by Commissioner Šefčovič on the conclusion of the Digital Trade Agreement between the EU and the Republic of Korea
Brussels, 10 March 2025
“Check against delivery”
Good afternoon. Together with Minister Inyo Cheong, I had the honour to co-chair the 12th Trade Committee under the EU-Korea Free Trade Agreement, and I am glad to be here with some exciting news.
Today, we have successfully concluded negotiations for a Digital Trade Agreement between the EU and the Republic of Korea, bringing our economies even closer together.
Digital trade is a part and parcel of global trade. It accounts for around 25 percent of all international trade and in fact, is growing at a faster pace than traditional trade.
The EU is global leader in both exports and imports of digitally deliverable services, totalling 1.3 trillion euros in 2022 – or 54 percent of the EU’s total trade in services.
Today’s agreement with the Republic of Korea is therefore nothing short of a major milestone, following a similar landmark deal with Singapore, which we aim to sign in the coming months.
Our digital trade agreement with Korea will have a positive impact on everyday life in Europe. It will, for instance:
- Make it easier for EU companies to service their Korean customers directly from Europe, while recognising the validity and enforceability of e-contracts: Imagine a European IT company providing software updates remotely or a European engineer executing projects online.
- European consumers will also enjoy better protection when buying Korean goods online, whether it is books, cosmetics or electronics, with safeguards against spam and unfair trading practices.
This builds on the success of our 2010 Free Trade Agreement, as digital trade continues to make great strides, reshaping global commerce. As a result, our trade partnership will be truly in sync with today’s realities.
All in all, it is in our interest to continue partnering with like-minded countries, like the Republic of Korea, to establish global standards for digital trade rules and cross-border data flows, while also strengthening our overall trade and investment ties.
In a few moments, I will be speaking to my counterpart from Thailand, as we continue to expand our network of trade agreements in all key regions – and I want to keep the momentum going.
In conclusion, let me appreciate the work of both the European and Korean negotiating teams for their hard work in bringing this significant agreement across the finish line in record time.
Source – EU Commission