On 10 June 2026, the European Union and the Republic of Korea signed a landmark Digital Trade Agreement (DTA) during the EU-Republic of Korea Summit in Brussels. The agreement, signed by EU Commissioner for Trade and Economic Security Maroš Šefčovič and Korean Trade Minister Yeo Han-koo, establishes binding rules on electronic contracts, electronic signatures, cross-border data flows, and a prohibition on mandatory source code transfer, while preserving each party's high levels of personal data protection and privacy. The DTA aims to boost digital trade, which already accounts for over one third of total services trade between the EU and Korea (€11 billion in 2023), and to enhance consumer protection and confidence in the digital economy.
The DTA complements the existing EU-Republic of Korea Free Trade Agreement, in force since 2011, and is the second standalone digital trade agreement the EU has signed, following a similar pact with Singapore. It builds on the EU-Republic of Korea Digital Partnership launched in November 2022. The agreement is part of the EU's broader strategy to establish future-oriented digital trade rules with like-minded partners amid rising global tensions and economic fragmentation.
Next steps and ratification
Following signature, both parties will begin their respective ratification procedures. On the EU side, the European Parliament must give its consent, after which the Council will formally conclude the agreement. The text of the DTA has been made publicly available.
Stakeholder impact and trade-offs
The agreement creates both opportunities and adjustments for key stakeholders:
- EU and Korean businesses, especially micro, small and medium enterprises, gain legal certainty for electronic contracts and signatures, reduced barriers to cross-border data flows, and protection against forced source code disclosure. This lowers compliance costs and opens new market access.
- EU and Korean consumers benefit from stronger online consumer protection rules, increasing safety and trust in digital transactions. However, the agreement does not lower existing data protection standards, so privacy safeguards remain intact.
- EU and Korean regulators maintain their regulatory space for legitimate policy objectives, such as data protection and privacy, but must ensure that new digital trade rules do not conflict with domestic laws, potentially requiring coordination.
- The European Parliament and Council will now scrutinise the agreement, with ratification expected to involve debate on the balance between trade liberalisation and data sovereignty.
Policy orientation and significance
The DTA reflects the EU's 'people-centric' approach to digital and data policies, prioritising rights and trust while promoting open, rules-based digital trade. Over 60% of global GDP is now linked to digital transactions, making such agreements increasingly important. The deal sets high standards for digital trade rules in the Indo-Pacific region and beyond, signalling the EU's commitment to shaping global digital governance with trusted partners.