section_path: Government and politics/Foreign relations/European Union
section_name: European Union
paragraph_text: European Union
  
  The European Union (EU) and South Korea are important trading partners, having negotiated a free trade agreement for many years since South Korea was designated as a priority FTA partner in 2006. The free trade agreement was approved in September 2010, and took effect on July 1, 2011. South Korea is the EU's tenth largest trade partner, and the EU has become South Korea's fourth largest export destination. EU trade with South Korea exceeded €90 billion in 2015 and has enjoyed an annual average growth rate of 9.8% between 2003 and 2013.
  
  The EU has been the single largest foreign investor in South Korea since 1962, and accounted for almost 45% of all FDI inflows into Korea in 2006. Nevertheless, EU companies have significant problems accessing and operating in the South Korean market because of stringent standards and testing requirements for products and services often creating barriers to trade. Both in its regular bilateral contacts with South Korea and through its FTA with Korea, the EU is seeking to improve the current geopolitical situation.