Ministry of Trade Industry and Resources

Seoul Hosts Discussions on the Future of Productivity in the Asia-Pacific Region

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that it will co-host the 66th session of the Asian Productivity Organization (APO) Governing Body Meeting (GBM) with the Korea Productivity Center (Chairman Park Sungjoong) from October 28 to 30, 2025, at The Plaza Seoul. This is the first time Korea has hosted the meeting since 2017. Founded in 1961, the APO is an international organization dedicated to improving productivity and promoting sustainable economic growth across the Asia-Pacific region. The organization currently comprises 20 member economies, and this year’s meeting will bring together approximately 80 delegates from 19 of them. Key agenda items for this year’s GBM include the APO Vision 2030 Strategy and Implementation Roadmap, which will address challenges such as AI and digital transformation, declining birth rates and aging populations, and climate change.  Delegates will also discuss ways to enhance the APO’s operational framework, drawing on the experiences of other international organizations such as the International Labour Organization (ILO) and the World Bank. In his welcoming remarks, Lee Seung-ryeol, Director General for Industrial Policy at MOTIR, emphasized that “enhancing productivity is the most effective solution for achieving sustainable growth. Korea will continue to strengthen cooperation with member economies to ensure a smooth AI transformation that translates into productivity innovation across the Asia-Pacific region.” In his opening address, Park Sungjoong, Chairman of the Korea Productivity Center, stated, “The world today faces a complex array of challenges, including AI transformation, the climate crisis, and demographic shifts. The APO must pursue fundamental innovation in response to these evolving challenges, and I hope this meeting serves as a turning point that lays the foundation for that transformation.” date2025-10-28

Korea Announces New Basic Plan to Strengthen Materials, Parts, and Equipment Industry

The Ministry of Trade, Industry and Resources (MOTIR) announced the 2026–2030 Basic Plan for Strengthening the Materials, Parts, and Equipment (MPE) Industry, outlining strategies to enhance innovation, market, and ecosystem capabilities to drive a new phase of growth and global competitiveness. The new plan builds on progress made since the 2019 Japanese export restrictions, which led to the first MPE Basic Plan (2020–2025) and accelerated Korea’s technological independence in key sectors. The revised plan aims to support advanced industries and strengthen economic security in an era of intensifying global competition, while responding to emerging challenges such as artificial intelligence (AI) and carbon neutrality. MOTIR will designate ten additional MPE Specialized Clusters by 2030 to expand Korea’s core manufacturing bases and foster cooperation between demand and supply companies. It will also launch 15 Super Eul Projects to develop world-leading technologies and five AI New Materials Projects to create materials for extreme environments using artificial intelligence. The government will promote collaboration in technology, production, and procurement across the value chain and advance ten ecosystem-based cooperation models to secure next-generation supply chains. Three new industry collaboration projects will receive KRW 35 billion in joint R&D and policy support over five years. Minister JK (Jung-Kwan) Kim emphasized that the government will “reinforce the sector’s fundamental competitiveness through challenge, innovation, and speed,” adding that it will “expand fiscal, fund-based, and policy support while actively pursuing supply chain stabilization.” date2025-10-24

K-Semiconductors in the AI Era Poised for Record Exports as Industry Leaders Gather for Semiconductor Day

Vice Minister of Trade, Industry and Resources Moon Shin-hak attended the 18th Semiconductor Day ceremony held at the Grand InterContinental Seoul Parnas on Wednesday, October 22, 2025, where he presented government awards to individuals who contributed to the advancement of Korea’s semiconductor industry. The ceremony brought together about 550 representatives from industry, academia, and research, including Song Jaihyuk, Chairman of the Korea Semiconductor Industry Association (KSIA) and President of Samsung Electronics’ Device Solutions Division, as well as Kwak Noh-jung, CEO of SK hynix. In his opening remarks, Chairman Song stated, “As AI adoption accelerates and demand for advanced semiconductors grows, Korea’s semiconductor exports are expanding rapidly, with the competitiveness of K-semiconductors drawing global attention.” He emphasized that amid technological paradigm shifts such as AI and quantum computing, semiconductors are a national strategic asset, and that this is a critical window of opportunity for proactive investment, talent development, and infrastructure expansion. In his congratulatory address, Vice Minister Moon noted, “Semiconductor exports are projected to exceed USD 165 billion this year, achieving an all-time high for the second consecutive year. In the AI era, Korea’s semiconductor industry will continue to strengthen its leadership in memory semiconductors while narrowing the competitiveness gap with advanced economies in areas such as system semiconductors, fabless, and materials, parts, and equipment. The government will remain steadfast in fostering semiconductors and other high-tech industries.” As of September 2025, semiconductor exports totaled USD 119.7 billion and are on track to post another record high, following last year’s performance. Semiconductors accounted for 23 percent of Korea’s total exports—which stood at USD 519.7 billion through September—maintaining their position as the country’s top export category. At the ceremony, a total of 83 individuals were recognized for their contributions to the semiconductor industry and to cooperation between large and small enterprises. The recipients included SK hynix CEO Kwak Noh-jung, who received the Gold Tower Order of Industrial Service Merit, along with one recipient of the Silver Tower, one of the Bronze Tower, three Industrial Service Medals, three Presidential Citations, four Prime Minister’s Citations, 40 MOTIR Minister’s Citations, and 30 KSIA Chairman’s Awards. date2025-10-23

Korea Ramps Up AI Factories to Lead Global Manufacturing by 2030

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the AI Factory M.AX Alliance Strategy Meeting on October 1, 2025, bringing together leading manufacturers such as Samsung Electronics, Hyundai Motor, LG Energy Solution, and HD Hyundai Heavy Industries to position Korea as a global leader in manufacturing AI by 2030. The number of pilot projects under the AI Factory initiative has surpassed 100, with a target of 500 by 2030. These projects integrate AI into manufacturing processes to boost productivity, reduce costs, and cut 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 trials 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 by 2027 to collect field data and advance AI development. 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 JK (Jung-Kwan) Kim emphasized, “The AI era 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 secure Korea’s global leadership in manufacturing AI.” date2025-10-02

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

The Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim) hosted a forum on September 30, 2025, at the Seongnam Global Convergence Center, bringing together 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 approximately 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 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 through close partnership with end-user companies in four key sectors and Korean fabless firms. 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 a formal review, MOTIE plans to 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 Alliance wil 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 JK Kim) reviewed and approved 40 regulatory sandbox projects in fields including AI, robotics, and energy at the 3rd Industrial Convergence Regulatory Special Case Review Committee held on September 25, 2025. Among the items deliberated in person was a set of government-designed regulatory sandbox projects prepared jointly with the Personal Information Protection Commission and the Ministry of Employment and Labor. The projects aim to proactively rationalize regulations that have hindered the use of AI in industrial sites. As part of these projects, AeiROBOT will demonstrate an AI-equipped bipedal humanoid robot equipped in industrial settings. Current laws lack relevant standards and safety requirements, limiting the deployment of such robots in workplaces. The demonstration will generate data needed to establish standards and safety criteria, which is expected to accelerate the proliferation of industrial AI, strengthen industrial competitiveness, and reduce occupational risks by enabling robots to perform hazardous and repetitive tasks. iVH will generate synthetic data from real driving video footage and use it to train and evaluate autonomous driving AI models. Synthetic data delivers performance comparable to original data while enabling models to learn rare scenarios, such as multi-vehicle collisions. However, companies have raised concerns about potential violations of the Personal Information Protection Act if individuals are identifiable in synthetic data. This demonstration aims to establish safe standards for the generation of synthetic data, contributing to the advancement of autonomous driving technology. In addition to the government-designed 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 obtain regulatory approvals such as electrical construction permits, file notifications, and undergo pre-use inspections, but no detailed standards exist for solar panels installed on railway tracks. This demonstration marks Korea’s first attempt to deploy railway-based solar power and is expected to contribute to the diversification and expansion of renewable energy. Separately, Minister Kim visited Neubility, a company specializing in outdoor mobile robots, on September 24, 2025, to hear industry concerns. Neubility had requested streamlined safety certification procedures for outdoor mobile robots at the first Core Regulatory Rationalization Strategy Meeting chaired by the President on September 15, 2025. Currently, companies must undergo a two-month process covering 16 evaluation items before operating such robots on sidewalks. MOTIE plans to consolidate or remove 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 helped break down silos between ministries and proactively removed outdated and unnecessary ‘spiderweb’ regulations. With the launch of the M.AX Alliance, we will mobilize all available measures 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 operated since April 2025 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 JK Kim) announced that following the release of the Policy Direction for Promoting Critical Minerals Recycling at the 4th Supply Chain Stabilization Committee Meeting in March 2025, it launched the Private Expert Committee in April 2025 to reflect the views of businesses and experts in policymaking. 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 2025, 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 (MOEF), and the Ministry of Environment (MOE). MOTIE 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