Seoul: The industry ministry convened a meeting with representatives from the automobile, home appliances, and steel sectors to address the European Union's (EU) forthcoming implementation of the Carbon Border Adjustment Mechanism (CBAM) scheduled for next year, officials revealed.

According to Yonhap News Agency, the EU plans to impose taxes on carbon-intensive goods imported into the region, starting with steel, aluminum, cement, and fertilizers on January 1. The carbon border levy is expected to expand to include additional items, such as auto parts, refrigerators, and washing machines, by 2028.

Under the CBAM scheme, exporters to the EU must calculate and report the carbon emissions of their products to importers. This enables importers to purchase CBAM certificates corresponding to the emissions levels reported.

Vice Trade Minister Park Jung-sung stated, "We will carefully review whether the recent announcement on the expansion of items applicable (under CBAM) could act as a trade barrier in disguise (to Korean companies)," ensuring ongoing dialogue with industries on the matter.

The ministry noted that through continuous consultations with the EU, there has been a postponement in the start of CBAM certificates sales to 2027 from the initially planned next year. Additionally, exemption criteria have been established for companies trading with small-sized importers in the EU.