(Seoul = Yonhap News) Reporter Shin Chang-yong = In response to the strengthening of environmental regulations on battery manufacturing facilities following the inauguration of the new Hungarian government, the Korean government visited Hungary to resolve the difficulties faced by companies entering the country.
The Ministry of Trade, Industry and Energy announced that Minister of Trade, Industry and Energy Park Jeong-sung visited Hungary on the 9th (local time) and met with Deputy Prime Minister and Minister of Foreign Affairs Ernitor Orbán, Minister of Economy and Energy Istvan Kapitani, and Minister of Regional Development Viktoria Lörinc.
This visit took place in a situation where uncertainty about the local battery business as a whole has increased due to strengthening environmental regulations following the inauguration of the new Hungarian government led by Prime Minister Peter Peter in May.
Director Park explained that Korea, as Hungary's largest investor in Asia, has contributed to Hungary's economic development by creating jobs and strengthening the industrial supply chain in high-tech manufacturing fields such as automobiles, batteries, and electronics.
In particular, the battery field is important as a strategic industry for eco-friendly policies such as carbon neutrality and renewable energy and synergy with related industries such as Hungary's electric vehicle industry, so we requested attention to help Korean companies do business in Hungary smoothly.
In addition, in relation to the Industrial Acceleration Act (IAA), the EU's preferential policy for regional production, he emphasized that actively utilizing the production base and technological capabilities established by Korean companies in Hungary is in line with the purpose of the IAA and is a way to raise Hungary's status as a production and supply base in Europe.
In addition, we requested sufficient preparation period and reasonable system operation so that Korean companies can respond smoothly to the EU battery law, which requires reporting of carbon emissions, use of recycled raw materials, and supply chain due diligence.
Director Park then held a 'Joint Declaration Ceremony to Strengthen ESG Management' with Korean battery companies operating in Hungary, the Korea Battery Industry Association, the Korean Embassy in Hungary, and the Korea Trade-Investment Promotion Agency (KOTRA), and strengthened his commitment to voluntarily fulfill his responsibilities in the areas of environment, health, and safety and to create a win-win ecosystem.
Director Park said, “Korean companies, including Samsung SDI and SK On, have invested more than $8 billion in Hungary and have played an important role in the economic and industrial development of both countries. We will provide active support at the government level so that our companies can continue to invest and manage in a stable environment and fulfill their social responsibilities.”
Hungary emerged as a major production base in Europe by intensively fostering the battery industry by attracting foreign direct investment (FDI) during the former Viktor Orbán administration, but the policy has changed dramatically due to strengthened regulations since the launch of the new government.
In fact, Samsung SDI and SK On continue to face business risks, including being fined one after another for violating environmental regulations.
On this day, the difficulties faced by battery companies entering Hungary were also brought to the fore at the general meeting of the National Assembly's Trade, Industry, Energy, Small and Medium Venture Business Committee.
People Power Party lawmaker Koo Ja-geun said, "Since the inauguration of the new Hungarian government, our battery companies are facing difficulties such as plant shutdowns and fines," and emphasized, "It is an issue that must be resolved diplomatically, such as going beyond the practical level and having the president personally take care of the situation."
