EU-Korea Summit focuses on digital trade, defence, and key industries

The summit underscores the EU's increasing focus on the Indo-Pacific region, with discussions potentially leading to a NATO-style economic deterrence pact with Seoul aimed at countering trade coercion from major powers. Bilateral trade between the EU and South Korea reached over 124 billion euros last year, with Europe exporting machinery and chemical products while importing South Korean cars, microchips, and electronics.

South Korea's status as a technology powerhouse, investing nearly five percent of its GDP in research and development, is a significant factor. The country's microchips and batteries are crucial for Europe's economy, supported by substantial Korean investments in countries like Germany, Poland, and Hungary. The summit highlights the evolving nature of international security, where safeguarding supply chains for semiconductors and electric vehicle batteries is becoming as critical as traditional military strength.