Issue Cumulative EU compliance costs for Korean firms and their suppliers

Summary

The EU's Battery Regulation, Carbon Border Adjustment Mechanism, deforestation regulation, corporate sustainability due diligence rules, AI Act and digital rules require Korean firms and their suppliers in the EU market to manage carbon, environmental, human-rights and data information systematically. When several regimes apply at once, cumulative costs fall not only on large companies but also on small and mid-sized suppliers in their supply chains. Wider preferences for local manufacturing and procurement mean Korean firms must also consider local production, local sourcing and joint investment rather than simple exports. The report therefore calls for treating regulatory response as a core item of economic cooperation, with government talks on the intent and scope of rules, standards and certification, emissions accounting and data verification, supply-chain due diligence and battery passport interoperability. Rather than pursuing uniform harmonisation, it favours respecting each side's policy goals while reducing duplicate burdens and improving interoperability of standards and certification, backed by information and support for smaller suppliers.