Climate Change and Trade Policy Interaction in Korea

Purpose - This study analytically examines the integration of climate change considerations into Korea’s trade policy, focusing on how Korea’s bilateral, plurilateral, and multilateral trade strategies align with global climate goals under the Paris Agreement. Design/Methodology - The study employs a comprehensive review of Korea’s trade policy shift toward climate change mitigation, analyzing key developments in bilateral, plurilateral, and multilateral contexts. Findings - The research reveals that Korea’s trade policy has evolved to incorporate climate change objectives at bilateral, plurilateral, and multilateral levels. In bilateral trade policy, Korea leverages opportunity-driven competitiveness amid environmental trade barriers implemented by the EU and US. In the plurilateral context, Korea fosters cooperative alliances through initiatives such as the Indo-Pacific Economic Framework for Prosperity and the Climate Club, advancing regional energy and supply chain. At the multilateral level, Korea strategically engages within frameworks such as the World Trade Organization and the Conference of the Parties, shaping global green trade standards. The paper highlights Korea’s differentiated strategies across these three levels, which collectively aim to coordinate climate goals with the competitive transformation of domestic industries amid the ongoing energy transition. Originality/value - This study provides a unique analysis of Korea’s evolving trade policies in response to climate change, an area that remains relatively underexplored in trade policy research. By integrating economic and environmental objectives through trade policy development, Korea offers a valuable model demonstrating how the alignment of energy transition and net-zero goals, though challenging, can effectively synergize with trade policies for sustainable development.