EU and South Korea sign Digital Trade Agreement at Brussels summit, with defence cooperation on the table

At a joint press appearance in Brussels, European Commission President Ursula von der Leyen and South Korean President Lee Jae-myung held the signing ceremony for the new Digital Trade Agreement. The text covers binding rules on data flows, digital identity recognition, e-signatures and artificial-intelligence compliance. The EU side said the agreement could deliver an additional €1.5 billion in services exports per year within two years.

On the defence-industry track, EU High Representative Kaja Kallas said negotiations are continuing between Hyundai Rotem, Hanwha Aerospace and LIG Nex1 and European defence firms on joint production. Polish Defence Minister Władysław Kosiniak-Kamysz announced that a technical agreement has been reached to set up a maintenance line in Europe for K9 self-propelled howitzers. The Netherlands and Romania are weighing similar projects.

Mr Lee proposed deeper intelligence sharing with the EU on the North Korean threat and stressed that joint work was needed to support Indo-Pacific stability. According to Euronews diplomacy correspondent Hans von der Burchard, the agreement text was approved by qualified majority in May despite reservations from Hungary and Slovakia inside the EU. Hyundai Rotem shares on the KOSPI closed 2.3% higher on the day. (Not investment advice.)