The European Union and the Republic of Korea have successfully concluded negotiations for a landmark Digital Trade Agreement (DTA), reinforcing their commitment to a robust and future-proof partnership that can navigate the rapid pace of digital advancements.
During the recent 12th Trade Committee meeting under the EU-South Korea Free Trade Agreement (FTA), EU Commissioner for Trade and Economic Security, Maroš Šefčovič, and Korean Trade Minister Cheong In-kyo emphasized the growing significance of establishing mutually beneficial rules for data and digital technologies, which are increasingly integral to all aspects of life.
This ambitious agreement sets a high standard for digital trade, further integrating the EU and Korea’s digital economies. The DTA establishes binding rules that enhance consumer trust, provide legal certainty for businesses, and support reliable data flows, while removing and preventing unjustified barriers to digital trade.
At its core, the DTA focuses on protecting individuals’ rights and ensuring that both the EU and Korea retain the policy flexibility needed to address emerging challenges in the digital economy.
Key provisions include:
- Cross-border data flows
- Privacy and personal data protection
- Customs duties on electronic transmissions
- Electronic contracts, authentication, and trust services
- Source code protection
- Consumer trust and protection online
- Regulations on unsolicited direct marketing communications
- Open government data
- Regulatory cooperation on digital trade
The agreement also enhances digital trade in services and goods, offering greater legal clarity for European businesses operating in Korea. It recognizes the legal validity and enforceability of electronic contracts and encourages the use of electronic signatures. This will allow European companies to serve their South Korean customers more efficiently from Europe. European consumers will also benefit from stronger consumer protection measures, particularly regarding unsolicited communications.
Furthermore, the EU and the Republic of Korea have agreed to deepen their 2010 FTA by establishing a specialized committee on emerging trade and economic issues. This committee will serve as a platform for collaboration on critical matters, such as economic security, overcapacity, and the resilience of supply chains.
Next Steps
The political conclusion marks the end of the EU-Korea Digital Trade Agreement negotiations. Both the EU and Korea will now proceed with their respective procedures toward the formal signature and ratification of the DTA. In the EU, this includes legal review, translation into all official languages, and submission to the Council and European Parliament for final approval.
