Korea to Germany Import Duty 2026: KOREU FTA, CBAM, VAT

The Korea-EU Free Trade Agreement (KOREU) has eliminated MFN duty on approximately 99 percent of bilateral trade since its 2011 entry into force and 2016 full phase-in. Korea is one of the EU's top six non-EU trading partners. Germany is the largest EU destination for Korean exports across cars, machinery, electronics, and chemicals.

This guide covers the KOREU FTA framework, the rules of origin, the CBAM exposure on steel and aluminum, the EU AD/CVD posture, and worked examples for the top Korean export categories.

The duty stack

Worked example: Korean car into Germany

35,000 EUR Hyundai Genesis G80 sedan, manufactured in Ulsan, HTS 8703.23. KOREU origin (Korean-produced).

Effective rate 19 percent (recoverable VAT for business buyer; final consumer pays). The KOREU MFN waiver is worth 10 percent of vehicle invoice for the importer (EU MFN on cars is 10 percent without KOREU). On a 35,000 EUR car, that is 3,500 EUR per vehicle.

The KOREU FTA is the structural reason Korean OEMs (Hyundai, Kia, Genesis) are competitive in the German consumer car market. Without KOREU, the 10 percent MFN would close the price gap with German domestic alternatives.

Worked example: Korean steel into Germany

500,000 EUR of HTS 7208.39 hot-rolled steel coil from POSCO Korea. 2,500 tonnes.

Effective rate 103 percent of original invoice value. The CBAM layer is the binding cost on Korean steel into Germany despite KOREU preference. Korean producers benefit from the K-ETS credit (12 EUR/tCO2e) but the net CBAM is still material.

Worked example: Korean machinery into Germany

500,000 EUR of HTS 8457.10 CNC machining center from Doosan Machine Tools.

Effective rate 19 percent (recoverable VAT). Korean machine tools are price-competitive with German domestic supply on the same KOREU-zero MFN. The win for Korean producers is the FOB price advantage; the win for German buyers is the same total landed cost as German domestic plus broader supplier choice.

Worked example: Korean electronics into Germany

200,000 EUR of Samsung-branded HTS 8517.62 smart-home devices (origin Vietnam-manufactured but sold via Samsung Korea... wait, this needs to be of Korean origin to use KOREU).

Reframe: 200,000 EUR of HTS 8528.72 OLED TV panels from LG Display Korea. Korean origin.

Effective rate 19 percent (recoverable). KOREU MFN waiver is worth 14 percent of TV invoice value (EU MFN on TVs is 14 percent without KOREU). Significant cost advantage for Korean display imports.

KOREU rules of origin

KOREU origin requires:

1. Wholly obtained or produced in Korea (or EU partner), or
2. Sufficient working or processing per the product-specific rules in KOREU Protocol Annex II.

Common patterns:

• Chapter 87 vehicles: RVC of 45 to 55 percent depending on subheading.
• Chapter 84 to 85 machinery: tariff shift to the heading plus 45 to 55 percent RVC.
• Chapter 72 to 73 steel: melt and pour in KOREU territory, or substantial transformation from non-originating substrate.
• Chapter 39 plastics: chemical reaction or substantial transformation from non-originating resin.
• Chapter 28 to 29 chemicals: chemical reaction in KOREU territory.

The Korean producer issues a self-certification (approved exporter declaration on the commercial invoice) for shipments above 6,000 EUR. Below that, importer declaration suffices. No third-party certificate (unlike the EUR.1 form used in some other EU FTAs).

CBAM and the K-ETS credit

Korea's K-ETS (Korea Emissions Trading Scheme) has been active since 2015. The 2026 carbon price runs approximately 12 EUR/tCO2e (well below EU ETS at 88 EUR but credited against CBAM).

For Korean steel, the K-ETS credit reduces CBAM by 12 EUR/tCO2e. On a 1.85 tCO2e/tonne crude steel emissions intensity, the K-ETS credit is 22 EUR per tonne. The net CBAM is 88 minus 12 equals 76 EUR per tCO2e, or 141 EUR per tonne of crude steel.

Korean steel producers have invested heavily in EAF capacity and hydrogen-reduction pilot programs that lower the verified emissions further. Supplier-verified values from POSCO and Hyundai Steel are typically 1.7 to 1.9 tCO2e per tonne for crude steel, below the published default value of 1.78.

Documentation German Zoll wants

• Commercial invoice (EU 18 fields plus EORI, TARIC, KOREU origin declaration if claiming preference).
• Packing list.
• Bill of lading or airway bill.
• KOREU approved exporter declaration on invoice for shipments above 6,000 EUR.
• CBAM certificate for steel, aluminum, cement, fertilizer, hydrogen.
• For AD-covered Korean steel: producer-specific rate documentation.

Run your Korea to Germany shipment now

The LandedFees calculator handles KOREU FTA preference, the rule of origin checks per HS line, the CBAM stack with K-ETS credit, and the German VAT calculation.

Calculate a Korea to Germany shipment

Citations

• Korea-EU Free Trade Agreement (KOREU): https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/south-korea_en
• KOREU Annex II (product-specific rules of origin): EU Official Journal
• EU CBAM regulation (EU) 2023/956
• Korea K-ETS Ministry of Environment: https://www.me.go.kr
• EU Trade Defence Investigations: https://trade.ec.europa.eu/access-to-markets/en/content/eu-trade-defence-investigations
• German Zoll: https://www.zoll.de