Estonia’s rising reputation as a digital powerhouse and defence innovator has attracted attention far beyond Europe’s borders. This March, South Korea officially inaugurated its new embassy in Tallinn, signalling a new level of cooperation.
“Despite the geographic distance between us, Estonia and the Republic of Korea have a lot in common,” Minister of Foreign Affairs Margus Tsahkna said. “Our history shows the importance of the rules-based international order, the right to self-determination, and territorial integrity.”
During the ceremony, Tsahkna met with Kim Hong Kyun, first vice foreign minister of South Korea, to discuss strengthening economic and defence cooperation. Diplomacy builds upon established ties between the countries in other sectors, including FDI.
Estonia has purchased K9 self-propelled howitzers from South Korea and appears likely to expand military acquisitions as the government increases defence spending, leading among NATO nations in its security commitments.
Estonia and South Korea have also found common ground in one of the most futuristic parts of the green energy ecosystem — hydrogen technology development.
Last year, Hydrogen Valley Estonia and Chungnam Technopark signed a Memorandum of Understanding to advance hydrogen industry collaboration. The agreement focuses on exchanging information on low-carbon energy policies and fostering cooperation in hydrogen-focused application fields. Chungnam, a southwestern province in South Korea, is known as an industrial hub for petrochemicals, steel, and automotive manufacturing.
Back in 2023, Korea Shipbuilding & Offshore Engineering (KSOE), a member of HD Hyundai Group, invested €45M in Estonian startup Elcogen and its Solid Oxide technology. The investment followed extensive testing of the full range of technology available in the market and a previous R&D collaboration agreement signed in January 2023. The deal will fund Elcogen’s manufacturing capacity expansion via a new 360MW factory facility in Tallinn to satisfy rising demand.
The energy partnership could be much broader. South Korean company Samsung CT, in collaboration with Canadian partners, is expected to be the main contractor for the planned construction of the Small Modular Reactor, according to the plans. Overall, the trade volume between the two countries exceeds $200M annually and is growing steadily, with Estonia exporting mainly wood products (plywood, sawn wood) and instruments.
Estonia opened an embassy and an official business hub in Seul in 2023 during President Alar Karis‘ official visit. “As a node of Northern European know-how and digital business, Estonia represents a gateway to Europe and to the EU market for the Koreans,” he said.
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