South Korean battery companies, including Samsung SDI and SK On, have invested over $8 billion in Hungary, prompting the government to support local companies in ensuring stable operations and compliance with European Union (EU) environmental regulations.
The Ministry of Trade, Industry and Energy announced that Park Jeong-seong, head of the Trade Negotiation Headquarters, visited Hungary on November 9 to meet with senior government officials and discuss improving the investment environment for Korean battery companies and expanding economic cooperation between the two countries.
During his visit, Park met with Hungarian Deputy Prime Minister and Minister of Foreign Affairs Anita Orban, Minister of Economic Development and Energy Istvan Kapitany, and Minister of Regional Development Viktoria Orlinz, urging cooperation to resolve operational challenges faced by Korean firms.
South Korea is a major investor in Hungary and the largest investor from Asia, having expanded cooperation in advanced manufacturing sectors such as automotive, batteries, and electronics. According to the ministry, trade between the two countries reached $4.7 billion last year.
Additionally, Hungary ranks as the seventh-largest investment destination for South Korea within the EU as of June this year. Notably, South Korean battery companies, including Samsung SDI and SK On, have collectively invested over $8 billion in Hungary to establish a production and supply base for the European electric vehicle market.
During the discussions, the EU's Industrial Acceleration Act (IAA) and Battery Regulation were key topics. The European Commission proposed the Industrial Acceleration Act in March, aimed at enhancing manufacturing capabilities and decarbonization investments in strategic industries. The legislation includes requirements for foreign investments exceeding €100 million in certain sectors, such as batteries and electric vehicles, to contribute to local employment and development.
Park emphasized that leveraging the production base and technology established by Korean companies in Hungary aligns with the EU's goal of strengthening regional manufacturing capabilities. He also conveyed that stable investment activities by Korean firms could contribute to job creation and supply chain enhancement in Hungary, which is a key battery production hub in Europe.
Regarding the EU Battery Regulation, Park expressed agreement with its objectives but stressed the need for sufficient preparation time and reasonable implementation for Korean companies to respond effectively. The EU has postponed the application date for corporate supply chain due diligence obligations related to environmental and human rights risks in battery production and supply chains to August 18, 2027, two years later than initially planned.
Park also held a joint declaration ceremony with local battery companies, the Korea Battery Industry Association, the South Korean Embassy in Hungary, and the Korea Trade-Investment Promotion Agency (KOTRA) to strengthen Environmental, Social, and Governance (ESG) management.
Participating companies adopted a resolution to enhance shared responsibility in environmental, health, and safety areas and to build a battery industry ecosystem that grows alongside the Hungarian community. During a related business meeting, they discussed key challenges faced by the local industry and support measures for stable investment and operations.
Park Jeong-seong stated, "Korean companies such as Samsung SDI and SK On, which have entered Hungary, have played a significant role in contributing to the economic and industrial development of both countries through investments exceeding $8 billion. The government will actively support our companies to continue their investment and operations in a stable environment while fulfilling their social responsibilities."
* This article has been translated by AI.
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