Factory's Post 🇪🇺 #4

Factory's Post is back to deliver the insights you need for your business growth.💡We've gathered the latest business trends, useful information for market entry, and hot news from the Korea-Europe ecosystem!

As geopolitical uncertainty and trade shifts intensify, European companies are once again recalibrating their Asia strategies. In particular, the potential return of Trump-era tariffs has prompted renewed interest in “Going East,” but this time, with a sharper focus on supply chain resilience and local partnerships. A series of recent webinars and conferences, including the Sifted Talks on Asia Expansion and our onsite work in Shanghai, highlighted a recurring theme: expanding into Asia is no longer a one-way street; mutual, two-way strategies are fast becoming the new norm.

🌏 From 'Going East' to 'Going West': Strategic Convergence Between Korea and Europe
Europe is increasingly viewing Asia, particularly Korea, Japan, Taiwan, and Southeast Asia, as strategic growth markets. Korean firms, especially in EV and battery tech, are being seen not just as competitors but as potential manufacturing and export partners. At the same time, Korean companies are also addressing resource shortages in Europe through co-development and supply agreements. But as the Cabot, which enabled to achieve 25% of the group's total revenue in China, sustainable success depends less on tech alone and more on deep cultural integration and local empowerment.

Korean players, in parallel, are also ramping up their “Going West” efforts. According to The Bell, Doosan is strategically expanding into Europe with a focus on ESG-aligned, carbon-neutral technologies across its subsidiaries. This mirrors many of the same patterns European companies apply when entering Asia: local validation, long-term PoC (proof of concept) pilots, and trust-based technology partnerships.

The key insight? One-directional expansion is no longer enough. Real global collaboration now depends on mutual understanding, shared investment in localization, and strategic bridge-building. At 123 Factory, we’re dedicated to supporting companies on both sides of this bridge; enabling meaningful, bidirectional tech exchange between Korea and Europe. As industrial boundaries blur and innovation flows across continents, it’s clear: Europe and Korea are not just new markets to each other; they should be mirrors as well as partners.

Government Support

🌟 EUREKA Lightweight Call opens again

The EUREKA Lightweighting Call supports international R&D projects in the field of lightweighting technologies. Lightweighting offers commercial and environmental value by reducing material usage, enhancing performance, and increasing energy efficiency across industries.

📘 Program Overview

• Tender for the transnational Eureka Lightweighting F&E-Fördercall: Transnational Eureka lightweighting call - Eureka

• Call opened: 15 May – 23 October 2025

• Participating Countries: Austria, Belgium, Chile, France, Germany, Lithuania, Poland, Portugal, Slovakia, South Korea, Spain, Turkey, and Ukraine.

• Internationale Matchmaking Plattform (kostenlos) inkl. Projekt-Pitching Bereich: Home | Eureka Lightweighting Call 2025

📌 Target Application Areas

• Mobility: Automotive, aerospace, rail, shipbuilding

• General Industries: Machinery, construction, energy, healthcare, agriculture

• Key Technologies: Lightweight materials, smart design, advanced manufacturing, digital twin, AI-based process control, recycling, joining technologies, additive manufacturing

✅ Eligibility Requirements

• A consortium of at least two independent organizations from two different countries

• Projects should aim for industrial and commercialization potential (TRL 4–6)

• The project must show clear added value from international collaboration

• Maximum project duration: 36 months

• No single country or organization may exceed 70% of the total budget

• A Consortium Agreement is required after approval

For more information, visit EUREKA Lightweighting Call.

Government Support Trends

🚀 Mega- Public Investments on Korea’s Tech, Defense, and Mobility Sectors

South Korea is making bold moves to strengthen its tech and industrial leadership, with major government-backed investments across aviation, defense, and startups. The Korea Development Bank will inject 1.7 trillion won into promising startups this year, especially in AI, robotics, and semiconductors. Meanwhile, 79.1 million USD has been earmarked for next-generation defense technologies, including autonomous systems and smart weaponry. Korean Air is also joining the momentum by announcing a 1.2 trillion won R&D and training hub in Bucheon, signaling a long-term commitment to sustainable aviation and advanced pilot education.

These initiatives reflect a broader national strategy to secure Korea’s position in critical tech and mobility sectors, not only for domestic growth but also for global competitiveness.

Geopolitics & Trade

🌍 Tariff War: A Strategic Tightrope for Europe and Asia

As former U.S. President Donald Trump pushes for a return to aggressive tariff policies against China, the global trade order is once again facing disruption. The U.S. has proposed tariffs as high as 145% on Chinese goods, prompting retaliatory measures from China and concerns over supply chain instability. While the intention is to weaken China, experts warn the real economic damage could hit the U.S. and its allies.

Interestingly, Chinese industries like EV maker BYD remain largely insulated from U.S. tariffs, gaining an advantage as rivals such as Volkswagen and BMW face headwinds. Meanwhile, Europe sees both opportunities and threats; with increased demand for Airbus over Boeing, but also pressure from a surge in Chinese imports. The EU is now considering protective tariffs of its own to shield local markets.

For European stakeholders eyeing Asia, the message is clear: recalibrate strategic positioning. With the U.S. increasingly unpredictable and China both a partner and competitor, Europe must walk a fine line—reducing dependence while remaining engaged. For more insights, visit KOTRA München’s weekly report.

Geopolitics & Trade

🤖 4 Korean Startups Named to CB Insights' 2025 Global AI 100

Four Korean AI startups — Upstage, Twelve Labs, Nota AI, and Dnotitia — have been named to CB Insights' prestigious 2025 Global AI 100, marking the highest number of Korean entries in the list’s history. The annual ranking highlights the most innovative AI companies globally, selected from over 17,000 contenders based on funding, partnerships, team strength, and technical maturity.

The selected companies reflect Korea’s growing depth in next-gen AI infrastructure and applications. Upstage was listed under foundation models alongside major U.S. players, while Twelve Labs stood out in video content AI, Nota AI in edge computing and lightweight AI models, and Dnotitia in vector database innovation, positioning Korea as a serious player in enterprise-level AI technologies.

123 Factory would like to extend our special congratulations to Nota AI, with whom we actively collaborate, on their selection for the Global AI 100!🎉 Visit here for more insights on who will be the next frontier of AI.

123 Factory, Now

🇨🇳 Where Mobility Meets Innovation: 123 Factory’s Journey to Auto Shanghai 2025

Last month, the 123 Factory team was in Shanghai for Auto Shanghai 2025: one of the biggest mobility events in the world. Beyond just walking the show floor, we connected with local partners, attended side events, and got a front-row seat to the trends shaping global mobility. From EV supply chains and battery innovation to AI-driven mobility tech, we saw firsthand how global players like Volkswagen, ZF Group, 3M, and others are collaborating in China and beyond.

We also noticed some powerful shifts; like the “In China, For China” manufacturing strategy, breakthroughs in megamolding for battery packs, and signs of a global supply chain realignment from Asia to Europe and North America. It’s clear that the mobility industry is not just evolving – it’s transforming fast, and Asia is a major driving force.

🚗 Highlight: Global Mobility Innovation Gathering

We wrapped up the week at a lively gathering hosted by S-Tron, The Drivery Shanghai, and WeWork China. Startups, corporates, and experts from across the globe shared ideas and sparked new connections.

Our CEO Eunseo Yi and Sustainability Director Christine Kim joined panel discussions, introduced 123 Factory, and exchanged mobility area’s sustainability ideas with Shanghai-based mobility partners.

Events like these remind us why we believe true innovation only happens through collaboration, and we’re excited to keep building those bridges across borders. 

If you want to know more about the live podcast on Autonomous Driving technology hosted by Christine, read our LinkedIn Article! 😊

Upcoming Events

• AI EXPO KOREA
  14-16 May | Seoul, Korea | AI
  Generate your high-quality B2B sales leads at the most effective AI SHOW in Korea, exhibiting on AI Solution, AI Infrastructure & Platform, and AI Convergence.

• BUTECH 2025
  20-23 May | Busan, Korea | Machinery Fair
  International experts, scholars, and industrialists gather to witness the latest technologies of East Asia

• COSMOBEAUTY SEOUL 2025
  28-30 May | Seoul, Korea | Cosmetics & Beauty
  Discover the latest beauty trends at internationally certified beauty exhibition with 38-year tradition at the heart of beauty industry.

• 🌟 EV Trend Korea 2025
  3-5 June | Seoul, Korea | EV, Mobility
  EV TREND KOREA 2025 will showcase everything about EV beyond business platforms through various side events such as international conferences, professional seminars, and EV DRIVE based on a wider variety of new products and technologies.

• Smart Tech Korea
  11-13 June | Seoul, Korea | AI, Secu, Robot
  Global platform to showcase the latest innovations and solutions across all stages of industry - AI & Big Data, Secu Tech, Robot Tech, Retail & Logis, Smart Tech, and GSC.

• International Electric Power Industry Expo Korea 2025
  11-13 June | Daegu, Korea | Electric Power
  Korea’s Largest Electric Industrial Shows hosted by Korea Electrical Contractors Association (KECA). The show focuses on new technology and product and seminars conceived of Energy · Digital transformation, and RE100.

• 🌟 NextRise 2025
  26-27 June | Seoul, Korea | Global Startup Fair
  The heart of Asia's startup scene, offers an array of exhibitions, conferences, business meetups, and partner events. It's a gathering point for the world's top startups to foster collaboration and innovation.

Based in Berlin & Seoul, 123 Factory is a dynamic collaboration platform where Korean and European businesses grow together. We are a strategic partner driving innovation, helping European businesses enter the Asian market and vice versa. Let’s turn ideas into reality and scale your business together! 🚀

Thank you for reading Factory’s Post!
We’re always open to exciting news, promotions, and proposals to share with the 123 community. Feel free to contact [email protected], we’d love to hear from you! 😀