Ministry of Trade Industry and Resources

Korea Ramps Up AI Factories to Lead Global Manufacturing by 2030

The Ministry of Trade, Industry and Resources (MOTIR) held the the AI Factory M.AX (Manufacturing AI Transformation) Alliance Strategy Meeting (hereinafter “M.AX Alliance”) on October 1, bringing together leading manufacturers such as Samsung Electronics, Hyundai Motor, LG Energy Solution, and HD Hyundai Heavy Industries to accelerate Korea’s rise as a global leader in manufacturing AI by 2030. The number of AI Factory pilot projects has surpassed 100, with a target of 500 by 2030. These projects apply AI to manufacturing to boost productivity, cut costs, and reduce carbon emissions. Examples include Samsung Electronics using AI for semiconductor inspections, Hyundai Motor deploying AI-powered robotic arms for flexible production, and HD Hyundai Heavy Industries developing AI robots for ship maintenance. Humanoid robots will also begin field demonstrations this year at six sites across the display, shipbuilding, and logistics sectors. Companies including Samsung Display, CJ Logistics, LG Electronics, and SK Energy will test robots for various tasks, with more than 100 projects planned through 2027 to gather data and train AI. MOTIR will further expand the initiative to cover the entire production cycle, from factory design to supply chains and logistics. By integrating robotics, digital twins, and advanced infrastructure, Korea aims to establish fully autonomous “dark factories” and become the world’s leading exporter of AI factories by 2030. Minister Kim emphasized, “The age of AI is a race against time. By leveraging Korea’s manufacturing strengths and data, we can lead the world in AI factories. Through the M.AX Alliance, we will break down regulatory barriers, focus resources, and place Korea firmly on the path to global leadership in manufacturing AI.”   date2025-10-02

End-Users, Fabless Firms, and Foundries Link Up to Build Korea’s On-Device AI Semiconductor Ecosystem

The Ministry of Trade, Industry and Energy (MOTIE, Minister Kim Jung-kwan) hosted a forum on September 30 at the Seongnam Global Convergence Center with semiconductor end-user and supplier companies as the first step in launching the K-On-Device AI Semiconductor Technology Development Project, a core initiative of the AI Semiconductor M.AX Alliance. The Alliance was established to help Korea emerge as a global leader in manufacturing AX (advanced transformation) by 2030. The forum brought together about 150 stakeholders from across the AI semiconductor industry, including end-user companies in the automobile, IoT/appliance, machinery/robotics, and defense sectors; Korean fabless companies (design) and foundries (manufacturing); and global IP firms that supply semiconductor design blocks. The program featured technology demonstrations by fabless firms such as DEEPX, Mobilint, and FuriosaAI; a presentation on the project implementation plan by MOTIE; the signing of MOUs among MOTIE, end-users, fabless firms, foundries, and IP firms; and a discussion led by end-users, Arm, and Samsung Foundry on how to foster Korea’s AI semiconductor ecosystem. Overview of the AI Semiconductor M.AX Alliance Forum  Date/Location: Tuesday, September 30, 2025, 15:00–17:30 / Seongnam Global Convergence Center (1F, Multipurpose Hall 2) Hosted/Organized by: MOTIE / Korea Semiconductor Industry Association, Korea Planning & Evaluation Institute of Industrial Technology (KEIT) Participants: Minister of Trade, Industry and Energy and about 150 representatives from industry, academia, and research, including semiconductor end-users, foundries, and fabless firms  Program: AI semiconductor fabless technology demonstrations, presentation of the project implementation plan, signing of an MOU to ensure project success, and discussions on ways to strengthen Korea’s AI semiconductor ecosystem Background and Implementation Plan for the Project To become a global leader in manufacturing AX, developing AI models is important, but it is equally essential to develop on-device AI semiconductors—the hardware that powers AI within advanced products across industries. To this end, MOTIE is committed to supporting the development of Korean on-device AI semiconductors for integration into advanced products such as autonomous vehicles, smart home appliances, humanoids, and unmanned aerial vehicles, working in close partnership with end-user companies in four key sectors and fabless firms in Korea. In August, a KRW 1 trillion project to develop customized AI semiconductors, AI software, and modules needed for producing advanced products in four key industries was exempted from the preliminary feasibility study. Following an appropriateness review, MOTIE plans to formally launch the project in 2026 through consortia of end-user and fabless companies. The project aims to release Korean-made AI semiconductor prototypes in 2028 and develop 10 types of on-device AI semiconductors for integration into advanced products by 2030.   Scope of the K-On-Device AI Semiconductor Technology Development Project  On-Device AI Semiconductor Full Stack: Development and demonstration of customized on-device AI semiconductors, AI software, modules, and prototypes Application in Advanced Products: Autonomous vehicles, smart home appliances, unmanned aerial vehicles, collaborative robots, humanoids, unmanned agricultural robots Implementation Plan: (2026) Formation of sector-specific consortia and project announcement → Begin AI semiconductor design (2027–2028) Production and verification of AI semiconductor prototypes (2029) Development of modules to be integrated into advanced products using AI semiconductors (2030) Development of advanced prototypes such as autonomous vehicles and humanoids equipped with Korean-made AI semiconductors   Operation of the AI Semiconductor M.AX Alliance The Allia date2025-09-30

3rd Industrial Convergence Regulatory Special Case Review Committee

Kim Jung-kwan, Minister of Trade, Industry and Energy, attended the 3rd Industrial Convergence Regulatory Special Case Review Committee held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, on Thursday, September 25, 2025.  The meeting was attended by government and private committee members, as well as representatives of applicant companies. Before the session, Minister Kim observed a demonstration of AeiROBOT’s AI-powered bipedal humanoid robot.  The committee then deliberated on and approved 40 regulatory sandbox projects in areas including AI, robotics, and energy.   date2025-09-29

Removing Obsolete “Spiderweb” Regulations to Accelerate Real Growth in AI and Robotics

The Ministry of Trade, Industry and Energy (MOTIE, Minister Kim Jung-kwan) announced that at the 3rd Industrial Convergence Regulatory Special Case Review Committee, held on Thursday, September 25, it reviewed and approved 40 regulatory sandbox projects in fields including AI, robotics, and energy. Among the items deliberated in person was a set of planned regulatory sandbox projects, prepared jointly with the Personal Information Protection Commission and the Ministry of Employment and Labor, to proactively rationalize regulations that have hindered the use of AI in industrial sites. As part of these projects, AeiROBOT will demonstrate a bipedal humanoid robot equipped with AI in industrial settings. Current laws lack relevant standards and safety requirements, limiting the deployment of such robots in workplaces. Through this demonstration, data will be gathered to develop appropriate standards and safety criteria, which is expected to accelerate the proliferation of industrial AI, strengthen industrial competitiveness, and reduce occupational risks by replacing hazardous and repetitive tasks with robots. Another project will be carried out by iVH, which will generate synthetic data from real driving video footage for use in training and evaluating autonomous driving AI models. Synthetic data delivers performance comparable to original data while also enabling training on rare scenarios such as multi-vehicle collisions. However, companies have raised concerns about potential violations of the Personal Information Protection Act if individuals could be identified in synthetic data. This demonstration aims to establish safe standards for synthetic data generation, contributing to the advancement of autonomous driving technology. Beyond the planned projects, Korea Railway Solar Power Co., Ltd. will demonstrate a “power-generating railway” by installing carpet-type solar panels on railway tracks to produce and supply electricity. Currently, solar power operators must undergo regulatory approvals such as electrical construction permits, notifications, and pre-use inspections, but no detailed standards exist for railway-based solar panels. This demonstration marks the first attempt at railway-based solar power in Korea and is expected to contribute to the diversification and expansion of renewable energy. Separately, on September 24, Minister Kim visited Neubility, a company specializing in outdoor mobile robots, to hear industry concerns. Neubility had requested streamlined safety certification procedures for outdoor mobile robots at the 1st Core Regulatory Rationalization Strategy Meeting chaired by the President on September 15. At present, companies must undergo a two-month process covering 16 evaluation items before operating on sidewalks. MOTIE plans to consolidate and simplify certain items without compromising safety, shorten certification periods, and amend relevant laws within the year. Minister Kim stressed, “This round of regulatory exemptions is significant in that it has broken down silos between ministries and proactively removed outdated and unnecessary ‘spiderweb’ regulations. With the launch of the M.AX Alliance, we will mobilize every available measure to swiftly resolve on-site regulatory barriers and fully support efforts to accelerate manufacturing AX.”   date2025-09-26

Korea’s Retail Industry Grows 3.7% in August

The Ministry of Trade, Industry and Energy (MOTIE) announced on September 24 that Korea’s retail industry grew 3.7 percent year-on-year in August 2025, with offline sales falling 3.1 percent and online sales rising 10.5 percent. MOTIE's monthly retail sales figures are based on surveys of 23 major retailers, comprising 13 brick-and-mortar retailers and 10 online retailers. By offline retail channel, department stores rose 2.8 percent and convenience stores gained 1.1 percent, while large supermarkets fell 15.6 percent and super supermarkets (SSM) dropped 5.9 percent. This decline was largely due to Chuseok falling 19 days later than last year, which reduced food sales compared with August 2024.  Department stores also saw weaker food sales, but strong indoor marketing campaigns during record late-summer heatwaves boosted luxury goods and fashion/apparel, driving overall growth. By category, offline sales fell in food (down 6.9 percent), electronics/culture (down 18.1 percent), and household goods (down 5.7 percent). Online sales expanded across services such as food delivery, e-coupons, and travel products (up 18.1 percent), as well as food (up 16.3 percent) and cosmetics (up 13.5 percent).   date2025-09-25

Private Sector Experts Propose Policies for Critical Minerals Recycling

The Private Expert Committee on Critical Minerals Recycling, which has been operating since April to support the growth of Korea’s critical minerals recycling industry, has identified 31 policy tasks under four key strategies—building industrial foundations, improving regulations and systems, establishing management frameworks, and fostering technological innovation—and proposed them to the government. The Ministry of Trade, Industry and Energy (MOTIE, Minister Kim Jung-kwan) announced that following the release of the Policy Direction for Promoting Critical Minerals Recycling at the 4th Supply Chain Stabilization Committee Meeting in March, it launched the Private Expert Committee in April to ensure that the views of businesses and experts as policy stakeholders are actively reflected in policy. The committee, chaired by Park Hyun-chul, President of the Critical Minerals Recycling Forum, consists of 22 members across subcommittees on industry support, regulatory improvement, and technology development. Between April and September, the committee held over ten meetings and presented 31 policy tasks to the government. These were classified into top-priority (8), key (8), and follow-up (15) tasks, based on importance, urgency, and industry demand. Top-priority tasks include expanding government support to strengthen industrial competitiveness, broadening the designation of recyclable resources to secure raw materials, easing import restrictions, and developing demonstration technologies for rare earth recycling. MOTIE will actively incorporate these recommendations into the comprehensive Plan to Promote Critical Minerals Recycling, which is being developed this year through a joint task force of three ministries (MOTIE, the Ministry of Economy and Finance, and the Ministry of Environment). The ministry will continue efforts to boost Korea’s critical minerals recycling industry and enhance the stability of critical minerals supply chains.   date2025-09-25

Korea’s Auto Industry Maintains Growth Momentum in August

The Ministry of Trade, Industry and Energy (MOTIE) announced on September 16 that Korea’s automobile exports, domestic sales, and production all increased year-on-year in August, marking the second consecutive month of growth. Automobile exports rose 8.6 percent to $5.5 billion, the highest August level on record. Cumulative exports for January–August also set a new record at $47.7 billion. By region, exports to the EU climbed 54.0 percent to $0.8 billion, while exports to non-EU European countries soared 73.2 percent to $0.6 billion. Exports of eco-friendly vehicles increased 26.6 percent to 69,000 units, continuing eight straight months of growth. Electric vehicle (EV) exports surged 78.4 percent to 23,000 units. Domestic automobile sales grew 8.3 percent to 139,000 units. Eco-friendly vehicles accounted for 50.7 percent of total sales, with 70,000 units sold (up 36.1 percent year-on-year). EV sales in particular rose 55.7 percent to 24,000 units. Cumulative EV sales for January–August reached 141,000 units, nearly matching the full-year 2024 total. Automobile production increased 7.1 percent year-on-year to 321,000 units, the highest August figure since 2013, supported by solid demand in both export and domestic markets.   date2025-09-17

Korea’s ICT Exports Up 11.1% in August

The Ministry of Trade, Industry and Energy and the Ministry of Science and ICT announced on September 15 that Korea’s exports of ICT goods in August 2025 rose 11.1 percent year-on-year to USD 22.9 billion, while imports grew 7.6 percent to $12.5 billion. The trade balance recorded a surplus of $10.3 billion. Despite new tariff measures, ICT exports reached an all-time high for the month of August, driven by record-breaking semiconductor shipments. Semiconductor exports surged 27.0 percent year-on-year, supported by rising DRAM and NAND contract prices and strong demand for high-value memory products such as DDR5 and HBM. Communication device exports increased 1.8 percent, supported by favorable demand for battlefield communications equipment in the U.S. and Mexico. By contrast, exports of displays (down 9.4 percent), mobile phones (down 15.4 percent), and computers/peripherals (down 16.6 percent) declined. Display exports fell on weak demand for TVs, monitors, and mobile devices. Mobile phone exports were weighed down by slowing parts shipments despite solid demand for new finished models. Computer and peripheral exports were impacted by last year’s high base for SSD shipments, though demand from data centers in China and the Netherlands helped narrow the decline. By destination, exports to Taiwan (up 65.6 percent), Vietnam (up 18.0 percent), the EU (up 8.2 percent), Japan (up 3.9 percent), and China including Hong Kong (up 0.3 percent) all increased, while exports to the U.S. fell 9.9 percent. ICT imports in August rose 7.6 percent year-on-year to $12.5 billion, driven by gains in semiconductors (up 4.7 percent), mobile phones (up 20.2 percent), and computers/peripherals (up 31.1 percent).   date2025-09-16

Korea’s Prime Minister Attends Opening Ceremony of 2025 WCE

The 2025 World Climate Industry EXPO (WCE) opened on August 27 in Busan, Korea. This large-scale international event is co-hosted by the Korean government, the International Energy Agency (IEA), and the World Bank (WB) as the flagship of Energy Super Week, held from August 25 to 29. The expo features exhibitions, 12 conferences, and nearly 60 side events and programs under the theme, “Energy for AI & AI for Energy.” ▶Global Energy and Climate Leaders Meet in Busan The opening ceremony brought together more than 1,000 participants, including the IEA Executive Director and WB Vice President. Alongside major figures from international bodies, it also hosted 32 government delegations and 15 ambassadors and other officials from 24 embassies in Korea. Major digital companies such as Microsoft, Google, NVIDIA, and Amazon Web Services; global leading players in clean energy such as RWE, Schneider Electric, Siemens, and Bloom Energy; and homegrown corporations such as Samsung Electronics, Hyundai Motor, SK Innovation, Hanwha Qcells, and Doosan Enerbility, were also present. In his opening remarks, Korea’s Prime Minister Kim Min-seok stated, “Korea will achieve carbon neutrality, energy security, and economic growth by constructing an ‘Energy Highway,’ expanding electricity grids, and transitioning to renewable energy.” He added, “We will work with the international community for a sustainable future powered by AI and energy.” Keynote addresses followed. IEA Executive Director Fatih Birol projected that energy demand could grow up to six times faster in the future due to increasing use of AI, electric vehicles, and air-conditioning. He stressed the importance of grid investment, noting, “Rapid grid expansion is a shared global challenge in the AI era. Powerful and flexible grid systems are the foundation of competitiveness in the AI industry.” Microsoft’s Director of Sustainability Policy Michelle Patron mentioned, “Grid investment is necessary to expand clean energy supply in line with demands from AI and economic growth.” She added, “To secure stable carbon-free energy supply sought by businesses, we must improve procurement methods and coordinate the connection of relevant systems, such as power purchase agreements and renewable energy certification.” ▶New Korean Administration Unveils Visions for Climate and Energy The 2025 WCE operates 6 exhibition halls, where nearly 540 companies demonstrate future energy solutions and industry strategies driven by next-generation grids, AI, and renewable energy. This year’s highlight is the newly launched “Energy Highway” hall featuring Korea’s three major electrical equipment companies—Hyosung Heavy Industries, LS Electric, and HD Hyundai Electric. The hall showcases strategic projects of the new Korean administration, such as a West Coast high-voltage direct current network, while presenting onshore/offshore grid solutions, smart grids, microgrids, ultra-high voltage transformers, and energy storage systems. Other exhibits feature next-generation energy technologies. Doosan Enerbility showcases Korea’s first 10MW-class wind turbine as well as small modular reactor technologies. Korea Zinc introduces a value chain on renewable energy and green hydrogen. Hanwha Qcells presents innovative technologies and products for RE100 industrial complex development, such as floating solar panels and agrivoltaics. Samsung Electronics, LG Electronics, SK Innovation, and Hyundai Motor provide a glimpse into the future of energy-AI convergence through consumer-focused innovations, such as immersion cooling for AI data centers, AI chips and glass substrates, zero-energy buildings, smart homes, eco-friendly heat pumps, and electric vehicle charging robots. ▶100 Global Energy Leaders Discuss AI-Era Energy Strategies The 2025 WCE held 12 in date2025-08-29

Korea’s Retail Industry Grows 9.1% in July

The Ministry of Trade, Industry and Energy (MOTIE) announced on August 27 that Korea’s retail industry grew 9.1 percent year-on-year in July 2025, with offline sales gaining 2.7 percent and online sales surging 15.3 percent. MOTIE's monthly retail sales figures are based on surveys of 23 major retailers, comprising 13 brick-and-mortar retailers and 10 online retailers. By offline retail channel, convenience stores rose 3.9 percent, marking their first gain in four months. This growth was partly driven by use of People’s Livelihood Recovery Consumption Coupons, issued by the Korean government as part of efforts to revitalize the economy. Department stores also climbed 5.1 percent, supported by positive growth across all product categories except miscellaneous goods. Super supermarket operators edged up 1.8 percent, maintaining their upward trajectory for the fifth consecutive month. By category, offline sales expanded in food products (up 2.7 percent), services/others (up 4.4 percent), and luxury goods (up 11.3 percent). Meanwhile, online sales posted solid growth in July, driven by strong performance in the services category (up 24.9 percent) and the food category (up 24.2 percent). date2025-08-28