The agreement not only strengthens bilateral trade relations but also lays the foundation for deeper cooperation between the RoK and the 27 EU members in the digital era.
The DTA is expected to create a transparent and reliable legal framework, promote the secure flow of data, and eliminate unnecessary barriers to digital trade. This agreement places people and their rights at its core, ensuring privacy and personal data protection while facilitating business operations, particularly for European enterprises, by recognising electronic contracts and digital signatures, allowing more efficient access to the RoK market.
Additionally, consumers will benefit from enhanced consumer protection regulations and minimised unwanted communications. European consumers will enjoy greater protection when purchasing the RoK’s products online, whether books, cosmetics, or electronics, through measures that safeguard against spam and unfair commercial practices.
The EU and the RoK began discussions on the DTA in the fall of 2023, shortly after the EU announced a similar agreement with Japan. During the 12th meeting of the Trade Committee under the EU-the RoK Free Trade Agreement (FTA), EU Commissioner for Trade and Economic Security Maros Sefcovic and the RoK’s Trade Minister Cheong In-kyo emphasised the importance of establishing mutually beneficial common rules on data and digital technology.
Following the completion of DTA negotiations, the EU and the RoK will undertake the necessary legal procedures to officially sign and ratify the agreement. This deal is seen as a vote of confidence from Seoul in the EU’s approach to managing technology and e-commerce.
Beyond digital trade, the EU and the RoK also agreed to establish a dedicated committee on emerging trade and economic issues. This committee will enhance bilateral cooperation in strategic areas such as economic security, excess production capacity, and supply chain resilience.
Amid rising tensions in EU-US trade relations and the potential deterioration of the 1.7 trillion USD transatlantic trade partnership, the digital trade agreement with the RoK highlights the EU’s efforts to diversify its trade activities with other countries.
In recent months, the EU has secured several free trade agreements, including one with the Southern Common Market (Mercosur) bloc, and aims to finalise an FTA with India this year. Another digital trade agreement was signed with Singapore in July last year, though its ratification is still pending approval from the European Parliament and member states.
The agreement with Singapore appears to serve as a model for future digital trade agreements. Emphasising the significance of digital trade agreements, particularly as efforts to curb transatlantic trade tensions stall, Commissioner Sefcovic mentioned ongoing negotiations with Thailand, Indonesia, Malaysia, the Philippines, and India, with similar agreements underway to strengthen the EU’s trade ties with countries around the world.
The EU's continued cooperation with like-minded nations such as the RoK to form global standards for digital trade rules and cross-border data flows will further strengthen its bilateral trade relations with other countries.
Through the DTA, the EU and the RoK reaffirm their strong commitment to advancing digital cooperation. The EU-RoK digital trade document is expected to serve as a model for high-standard digital trade agreements in the Indo-Pacific region and beyond.
