A Historical Analysis of the Korea-EU Free Trade Agreement

Purpose – The purpose of this paper is to provide a historical and institutional analysis of the Korea–EU Free Trade Agreement (FTA), highlighting its significance as one of the first new generation FTAs. The study examines how strategic motivations, institutional path dependence, and shifting geopolitical contexts shaped its negotiation and implementation. Design/Methodology/Approach – Based on documentary analysis, historical review, and theoretical application, this paper applies the framework of strategic path dependence to explain the sequencing of policy choices and institutional learning. It analyzes Korea’s evolving FTA strategy, the EU’s shift from multilateralism to bilateralism, and the eventual convergence of strategic objectives. Findings – This paper studies the Korea–EU FTA as the outcome of cumulative institutional development and strategic alignment rather than an isolated decision. For Korea, the agreement embodied the FTA Hub strategy to diversify markets and strengthen regulatory credibility. For the EU, it served as a pilot project to export regulatory norms to Asia. Positive policy feedback reinforced economic, political, and institutional benefits, creating strategic lock-in and making the FTA a durable cornerstone of bilateral relations. Research Implications – In the management of trade policy, this study demonstrates how middle powers can leverage high-standard FTAs as instruments of institutional diplomacy, while regional actors employ them to project normative influence. The findings contribute to understanding path dependence in trade governance, and provide insights for assessing the replicability of the Korea–EU model in Asia–Europe relations.