The European Commission recommends that the EU open negotiations with the Republic of Korea (South Korea) to create an agreement on mutual recognition. This agreement would allow both sides to accept each other's testing results, certificates, and product markings, eliminating the need for companies to undergo duplicate testing.

Why this is needed:
The EU already has similar agreements with countries like Australia, Canada, and Japan. These agreements are crucial because they reduce "non-tariff barriers"—extra rules or delays that make trade difficult. By accepting each other's tests, companies save time and money, which is especially helpful for small and medium-sized businesses.

Currently, EU companies do not benefit from equivalent mutual recognition agreements with South Korea, putting them at a competitive disadvantage compared to firms from other countries.

Economic Benefits:
This agreement would significantly boost trade. The existing EU-South Korea Free Trade Agreement already eliminated 98.7% of tariffs. Furthermore, bilateral trade reached EUR 123.7 billion in goods in 2024. By streamlining procedures, the agreement is expected to boost exports, increase the number of exporting firms, and expand product lines, particularly in sectors that make up approximately 30% of total EU exports.

Goal of the Agreement:
The main goal is to facilitate trade by ensuring that both the EU and South Korea accept proof of compliance (like test reports and certificates) issued by the other party's certified testing bodies. The agreement will cover specific products and sectors, ensuring that the free movement of certified goods is maintained while respecting international trade rules.

Broader context

This proposed agreement is part of a bigger puzzle. The EU already has similar mutual recognition agreements with several major trading partners, including the United States, Japan, Canada, Australia, New Zealand, Switzerland, and Israel. South Korea, meanwhile, has such agreements with Canada, the United States, the United Kingdom, and others. This means South Korean companies already benefit from easier access to those markets, but EU companies do not get the same treatment in South Korea.

The existing EU-South Korea Free Trade Agreement, which started in 2011, has already removed 98.7% of tariffs (taxes on imported goods). However, removing tariffs is only half the battle. The bigger challenge today is "non-tariff barriers"—things like duplicate testing, different rules, and paperwork delays. This new agreement targets exactly those remaining barriers.

In 2024, trade between the EU and South Korea reached EUR 123.7 billion in goods. South Korea is the EU’s eighth-largest export destination. The sectors that would benefit most from this agreement make up about 30% of all EU exports—think electronics, machinery, medical devices, and car parts.

Impact on people living in the EU

Lower prices on some goods. When companies save money on testing and certification, those savings can lead to lower prices for products like electronics, medical equipment, and machinery parts imported from South Korea.

More product choices. Smaller European companies currently avoid exporting to South Korea because duplicate testing is too expensive. With this agreement, more EU firms—especially smaller ones—can afford to sell their products there. This means they grow stronger at home too, offering more jobs and more product variety for EU consumers.

Faster access to new products. Currently, when a company wants to sell a product in both the EU and South Korea, it often needs to test the same product twice. This causes delays. With mutual recognition, products that pass safety tests in one market can be sold in the other more quickly. For example, a new medical device or a new type of phone could reach EU shelves faster.

No lowering of safety standards. The agreement does not require the EU to change its safety, health, or environmental rules. It only means that the EU trusts South Korea’s testing bodies to check products against EU rules when those products are exported to Europe. South Korea similarly trusts EU testers for products going there.

Impact on people in South Korea

South Korean consumers would see similar benefits: lower prices, more choices, and faster access to European-made products. Additionally, South Korean exporters already have mutual recognition deals with several other major economies. Adding the EU to that list would make South Korea an even more attractive hub for manufacturing and trade, supporting jobs there.