As a result of the rivalry between the U.S. and China, Europe has become one of the most important markets for South Korea in terms of trade balance and direct investments. This development has been most evident in Central and Eastern Europe (CEE), a region encompassing Bulgaria, the Czech Republic, Estonia, Hungary, Lithuania, Latvia, Poland, Romania, Slovenia and Slovakia.

Many of these countries have received numerous South Korean investments in the automotive and spare parts industries. At the same time, they also have the potential to become consumers of South Korean products, which is still negligible in this part of Europe.