Member companies of the Korea Enterprises Federation met with ambassadors of the European Union on Tuesday to elevate economic cooperation and discuss strategies for embracing the shift in the labor market induced by industrial restructuring.

Top officials from 23 EU member nations’ embassies in Korea, including Maria Castillo Fernandez, the ambassador of the EU, attended the business roundtable event hosted by the KEF held at a hotel in Seoul on Tuesday.

Sohn Kyung-shik, chairman of the KEF, which has over 4,200 member companies, underscored the importance of a partnership between South Korea and the EU as “a partner of 60 years that shares the values of democracy and the market economy with Korea.”

“Cooperation between Korea and the EU will become more important down the road as both sides face myriad shared concerns, including global supply chain issues, the industrial transition, and new technology development,” Sohn said.

To respond to the great transformation of the labor market caused by the industrial transition, structural reform should be carried out to resolve Korea's labor market rigidity and strengthen corporate competitiveness, according to the chairman.

“The KEF will actively work to create an environment in which not only Korean companies but also many EU companies operating in Korea can continue to invest and conduct business activities,” he said.

He called on the senior EU diplomats to support Korean firms that feel the weight of the EU’s new regulations, such as the Carbon Border Adjustment Mechanism, a carbon tariff on carbon-intensive products, and corporate sustainability due diligence, which requires companies to conduct due diligence on human rights and environmental impacts across their value chain.

“As Korean companies are actively engaging in environmental, social and governance management, we ask for the interest and support of EU ambassadors to ensure that these regulations do not weaken economic cooperation between Korea and the EU.”