Seoul: Trade Minister Yeo Han-koo announced on Wednesday that the government will actively work to alleviate the challenges faced by South Korean battery firms in expanding their operations within the European Union (EU). This initiative aims to enhance South Korea's trade environment with the EU, facilitating smoother business operations for local battery manufacturers.

According to Yonhap News Agency, Yeo highlighted the crucial role that exports of secondary batteries and cathode materials have played in South Korea's trade with the EU in recent years. His comments were made during a meeting with representatives from local battery companies, where the focus was on tackling the potential obstacles posed by the EU's new battery regulations. These regulations could increase the operational burdens on Korean firms, which are already dealing with the challenges of sluggish global demand for electric vehicles and ongoing supply chain risks.

Minister Yeo assured that the government would maintain open communication with battery companies to address these challenges. He emphasized the importance of improving trade and investment conditions with the EU and its individual member states to support the entry and expansion of Korean firms in the EU market.

The EU is a significant export destination for Korean battery manufacturers, contributing to 15 percent of South Korea's exports of secondary batteries in 2024. Korean companies have been actively investing in the region, setting up manufacturing facilities in countries such as Poland and Hungary, as noted by the Ministry of Trade, Industry and Resources.