Geographical indications (GI) are an intellectual property regime linking regional characteristics to product quality and have traditionally been regarded as an economic asset. Recently, however, GI has evolved beyond trade negotiations into the domain of cultural diplomacy, becoming intertwined with cultural identity and national image, while also functioning as an arena for international normative competition over protection standards. This study conceptualizes GI as a composite agenda of intersecting economic interests, cultural identity, and normative order, and examines the implications and limitations of Korea’s GI policy in trade negotiations and cultural diplomacy. It reviews the divergent GI strategies of the EU, the United States, and emerging economies under the WTO-TRIPS regime, and empirically analyzes how GI functions as both a trade asset and as a culturally charged international issue by examining the Korea–EU FTA negotiations and the kimchi origin dispute. The analysis reveals that competition over GI contributes to the formation of international normative judgments on legitimate protection systems, whereas Korea’s strategic use remains constrained by fragmented governance and reactive policy approaches. The study proposes policy directions for managing GI as an integrated asset combining economic, cultural, and normative dimensions.