Seoul, Berlin elevate ties as Lee seeks equal EU industry treatment for Korean firms

President Lee Jae Myung and German Chancellor Friedrich Merz agreed to elevate the two countries’ bilateral relationship to an enhanced strategic partnership during their summit in Seoul on Thursday.

“Our two countries agreed to strengthen strategic cooperation in the economic and industrial sectors, and to broaden the scope of our cooperation to encompass advanced industries and future growth engines,” Lee said in a joint press briefing with Merz after their bilateral talks at the Blue House in central Seoul.

This includes areas where Korea and Germany have a strong competitive edge, including automobiles, batteries and semiconductors. They also agreed to collaborate more on joint research and technological innovation in AI, quantum technology, biotechnology and space.

Regarding the European Union’s Industrial Accelerator Act, aimed at strengthening the industrial capacity of EU countries, Lee asked Germany to “help ensure that Korean companies are treated just the same as those in EU member states.”

Lee also relayed that Korean defense companies are “keenly interested in establishing long-term partnerships with German companies” through joint ventures and joint development.

This marked the first visit by a German chancellor to Korea in three years and comes as the two countries celebrate 140 years of diplomatic relations.

The two leaders held summit talks and announced the results in a joint press briefing.

In his opening remarks at the summit, Lee noted, "As global manufacturing powerhouses, both our countries serve as key cooperative partners in building stable supply chains and securing new engines for growth."

Korea and Germany adopted a joint statement on deepening political and security cooperation; economic, scientific and technological cooperation; protecting the global rules-based order; and cultural exchanges.

The statement stressed the importance of ensuring the continued full implementation of the Korea-EU FTA and reaffirmed their commitment to “open, free and fair trade and a rules-based trading system, underscoring the need to ensure transparency, predictability and nondiscriminatory treatment in bilateral trade and investment relations.”

The two countries have an annual trade volume exceeding $30 billion, according to the Blue House

The two sides renewed their joint declaration of intent on the energy partnership and agreed to expand policy and technology exchanges in renewable energy and power grids, Lee said.

They also signed a protocol amending the agreement for the avoidance of double taxation, aimed at guaranteeing a more transparent environment for investment and business cooperation.

Korean and German companies and research institutions will further cooperate to advance the energy transition and ensure a stable supply of clean energy.

They agreed to work together to promote peace and stability in both regions. They also exchanged views on the war in Ukraine, the situation in the Middle East, the rules-based free trade order and responses to the climate crisis.

Amid growing uncertainty in the global economy and security, the two agreed to strengthen their strategic coordination on key pending issues and recognized that “Northeast Asia’s security is closely interlinked with that of Europe,” Lee said.

Merz drew on Germany’s own painful experience of division and “expressed a deep, unwavering understanding of our efforts to resume dialogue and establish a peace regime on the Korean Peninsula,” Lee added.

During the press briefing, the German chancellor noted that the security of South Korea and Europe is inextricably interconnected. He said that North Korean soldiers' fighting against Ukrainian troops in Donbas and Moscow’s supply of weapons to Pyongyang endangers freedom of Europe.

The leaders agreed to develop their dialogue under the framework of the Korea-Germany Advisory Committee on the Korean Peninsula.

Merz also noted that Germany is pleased to cooperate with South Korea in innovation, noting that Seoul has been investing proactively in its own AI models and data centers and is emerging as a global leader in the AI landscape.

They further agreed to work toward the prompt conclusion of a bilateral military intelligence-sharing pact, or General Security of Military Information Agreement, to solidify the institutional foundation for defense and security cooperation, the Blue House said.

This marks the third summit between Lee and Merz, following their previous meetings at last year's G20 summit in South Africa in November and the Group of 7 summit in France in June.

This year also marks the 60th anniversary of the arrival of Korean nurses in Germany.

Under a labor-for-loans pact, Korea dispatched thousands of miners and nurses to Germany in the 1960s to earn foreign currency for their families and their country.

The leaders later attended an official dinner joined by government and business leaders including Hyundai Motor Group Executive Chair Euisun Chung.

Merz invited Lee to visit Germany next year.

BY SARAH KIM [[email protected]]