A group of South Korean governmental bodies recently wrapped up their second meeting analyzing the effects of the EU’s Carbon Border Adjustment Mechanism (CBAM) on Korean enterprises. The South Korean government’s standpoint remains consistent — to mitigate the repercussions of CBAM on Korean exporters to the EU. 

But questions remain as to how effective Seoul’s response will be, as complying with the EU’s new rule will create new operational costs and attempting to reduce the impact on domestic firms could conflict with international trade law.

As it enters a transitional phase in Oct. 2023, CBAM will require