The European Union and South Korea signed a landmark Digital Trade Agreement (DTA) during a summit in Brussels on Wednesday.
"This DTA demonstrates the shared commitment to promote open, transparent, and rules-based trade," a written statement from the European Commission said.
The agreement came as European Council President Antonio Costa and Commission President Ursula von der Leyen hosted Korean President Lee Jae Myung in Brussels for the 11th EU-South Korea Summit.
"The DTA complements the EU-Republic of Korea Free Trade Agreement -- in place since 2011 -- with binding high-standard digital trade rules," the statement noted.
It outlined that the rules will include recognizing the legal validity and enforceability of electronic contracts and enabling the use of an electronic signature.
"The Agreement will bring new opportunities for consumers and businesses, notably for micro, small and medium enterprises. The Agreement will also enhance consumer safety and confidence in the digital economy, through robust online consumer protection rules," the statement said.
It added that the agreement will also facilitate cross-border data flows and prohibit the mandatory transfer of source code.
"At the same time, both the EU and Republic of Korea will maintain their respective high levels of protection for personal data and privacy, as well as the regulatory space for pursuing legitimate policy objectives," the statement said.
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