Ministry of Trade Industry and Resources

16 Companies from Three Petrochemical Complexes Submit Business Restructuring Plans, Successfully Completing the First Step of Structural Reform

All 16 petrochemical companies operating Naphtha Cracking Centers (NCCs) and Propane Dehydrogenation (PDH) facilities across three petrochemical complexes in Yeosu, Daesan, and Ulsan submitted their draft business restructuring plans by December 19, in line with the end-December deadline set out in the government’s roadmap to revitalize the petrochemical industry announced in August.  Following the completion of the first phase of structural reform, the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) chaired a meeting with the petrochemical industry at the Korea Chamber of Commerce and Industry in Seoul on December 22. The meeting was convened to gather industry feedback on the submitted restructuring plans and to encourage their prompt implementation. Minister JK (Jung-Kwan) Kim stated, “The timely submission of restructuring plans by all companies puts the industry on track to meet its voluntary capacity reduction target of 2.7 to 3.7 million tons, provided the plans are fully implemented.” He emphasized that “structural reform must move forward at a faster pace starting next year to deliver tangible results” and urged companies to “promptly establish their final business restructuring plans based on the drafts.” Once companies submit their final plans, MOTIR will review them for approval through a dedicated Business Restructuring Review Committee. Upon approval, the ministry will announce a comprehensive support package—covering finance, tax incentives, R&D, and regulatory easing—to support implementation. To support the shift toward higher value-added production, the Chemical Industry Innovation Alliance will be launched on December 23. The Alliance will bring together all key stakeholders across the chemical industry ecosystem—including demand-anchor companies, small and medium-sized chemical firms, academia, and research institutions—and serve as a collaborative platform to explore R&D programs and infrastructure support measures for core materials, with a view to advancing the industry’s main sectors and accelerating its transition toward more environmentally sustainable production. In advancing such R&D efforts, the government will give priority to the R&D needs of companies participating in the restructuring. The meeting also discussed the “Daesan Project No. 1,” for which HD and Lotte applied for restructuring approval on November 26. The project is currently undergoing preliminary review, with approval targeted for January next year, while the government’s support package has entered its final review stage. Creditor financial institutions are also working to coordinate and finalize financial support measures based on ongoing due diligence. Minister Kim assessed that “despite a tight schedule, all companies had submitted their draft restructuring plans by the end-December deadline set at the August ministerial meeting on strengthening industrial competitiveness, marking a solid start to structural reform.” He added that “while this year focused on laying the strategic groundwork for reform, next year will be decisive in determining its success through execution,” and stressed that “the government and industry will work together as one team toward the successful restructuring of the petrochemical sector.” Minister Kim also emphasized that “the government will pay close attention to potential challenges affecting regional SMEs and employment during the restructuring process,” and said that “a comprehensive support plan for the chemical industry ecosystem will be announced in the first half of next year.” date2025-12-23

MOTIR Reviews Request for Additional Designation of Ganghwa Southern District in Incheon Free Economic Zone

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the 146th Free Economic Zone (FEZ) Committee on Monday, December 15. During the meeting, MOTIR reported a request for the additional designation of the Ganghwa Southern District within the Incheon FEZ, and the Committee deliberated and approved an amendment to the development plan for the Sindae Hinterland Complex of the Gwangyang Bay Area FEZ, including a revision of the project period. Under the Special Act on Designation and Management of Free Economic Zones, local governments seeking free economic zone designation are required to submit a development plan to MOTIR. The ministry then reports the request to the FEZ Committee and, following consultations with relevant ministries and expert evaluations, makes a final determination through the Committee’s deliberation and resolution. Incheon plans to develop the Ganghwa Southern District into a globally recognized advanced industrial city that integrates future technologies with regional resources. The plan leverages local agri-food and marine specialties, as well as the area’s cultural and natural assets and international airport infrastructure, to foster new growth engines in advanced industries and cultural tourism—including bio, physical AI, and integrated tourism—while establishing a strategic foothold to respond to the reorganization of global supply chains. The proposed amendment to the development plan for the Sindae Hinterland Complex extends the project period through 2026 to ensure smooth implementation of follow-up projects and adjusts the project area to reflect finalized land survey results. Je Kyung-hee, Director-General of the Free Economic Zone Planning Office, stated that “the Committee will actively reflect the views of local governments and, in close consultation with experts and relevant ministries, develop tailored development strategies to ensure that free economic zones evolve as key hubs for foreign investment attraction and regional development.” date2025-12-16

Minister Kim Meets with Korean Companies Operating in Beijing

JK (Jung-Kwan) Kim, Minister of Trade, Industry and Resources (MOTIR), held a roundtable with Korean companies operating in Beijing on Thursday, December 11.   The meeting was attended by representatives from Korean companies and related organizations in China, including Samsung, SK, LG Chem, POSCO China, and Doosan Enerbility.   After delivering opening remarks, Minister Kim listened to policy suggestions and discussed challenges and proposals raised by participating companies regarding economic, trade, and industrial issues. date2025-12-15

Minister Kim Visits the Xiaomi Electric Vehicle Plant in Beijing

JK (Jung-Kwan) Kim, Minister of Trade, Industry and Resources (MOTIR), visited the Xiaomi electric vehicle manufacturing plant in Beijing, China, on Thursday, December 11. During the visit, Minister Kim toured the electric vehicle production process at the facility.   Following the tour, Minister Kim held a meeting with company officials to discuss the electric vehicle industry’s R&D trends and business environment. date2025-12-15

MND, MSIT, MOTIR, and MSS Join Forces to Accelerate AI Transformation (AX) Across Defense and Industry

The Ministry of National Defense (MND, Minister Ahn Gyu-baek) held the inaugural 2025 Defense AI Ecosystem Development Forum at the Grand Hyatt Seoul on Wednesday, December 3. The event was designed to strengthen government-wide governance for cooperation on defense AI and to build momentum for major defense AI programs planned for 2026, bringing together senior government officials and about 500 representatives from AI-related private companies. The program featured sessions on Korea’s defense AX strategy, mid- to long-term plans for defense–ICT cooperation, MOTIR’s defense AX strategy and support initiatives, support programs for defense-innovation startups, and briefings on defense AI requirements for 2026. Participants discussed future directions and challenges for defense AI and developed a shared understanding of areas for practical cooperation. During the forum, the Ministry of Science and ICT (MSIT, Minister Bae Kyung-hoon), the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), and the Ministry of SMEs and Startups (MSS, Minister Han Seong-sook) joined MND in announcing the signing of a Memorandum of Understanding (MOU) to accelerate AI transformation (AX) across the defense and industrial sectors. Under the MOU, the ministries will leverage sovereign AI foundation models to cooperate on AX innovation; identify defense AI needs; provide testbed opportunities for real-world validation; support access to defense R&D infrastructure; develop core AI technologies and related infrastructure; expand cross-sector utilization in defense, industry, and the public sector; foster AI talent; broaden the application of defense and manufacturing AI technologies within national defense; and discover and scale startups and SMEs in the defense AX domain. As global security conditions evolve amid the rapid adoption of AI—including intelligent command-and-control, unmanned and autonomous systems, and automated defense operations—the agreement brings together the expertise of MSIT, MOTIR, and MSS to promote cohesive and interconnected AX policies across the defense and industrial sectors. The agreement establishes a full AX collaboration pipeline among government agencies, from securing core AX technologies and enabling real-world validation in the defense sector to supporting industrial deployment and adoption by startups and SMEs. These efforts are expected to accelerate AX across defense and industry, strengthen defense-industry competitiveness, and support the development of a more advanced and trusted defense force. Minister Kim Jung-kwan of MOTIR stated, “In an era where advanced technologies such as AI shape both security and economic competitiveness, expanding AX in the defense sector is no longer optional but essential. Building on the strong trilateral foundation of AI, manufacturing, and defense, MOTIR will identify demand for dual-use AI technologies through M.AX (Manufacturing AX) and provide targeted support. Beginning next year, we will advance the AX Sprint Program to help create an AX market in the defense industry, and we will work closely with the military to strengthen real-world validation for AI-embodied next-generation weapons. Through these efforts, MOTIR will actively support the establishment of a robust defense AI ecosystem.” date2025-12-03

MOTIR Reveals Ceramic R&D Roadmap to Boost Competitiveness of Key Materials for Advanced Industries

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held a meeting with ceramic companies on Wednesday, December 3, at the Korea Planning & Evaluation Institute of Industrial Technology (KEIT) under the Korea Chamber of Commerce and Industry (KCCI). At the meeting, MOTIR revealed the “Ceramic R&D Roadmap,” which aims to enhance the high added value of Korea’s ceramic industry and stabilize its supply chain. The government plans to utilize the Roadmap to systematically support the strategic development of ceramic technologies and the advancement of the industry’s foundation. The Roadmap is structured around four strategic pillars and comprises 46 key tasks across 12 priority fields. These include meeting demand from next-generation leading industries (AI, semiconductors, and displays); enhancing the high durability of ceramics (semiconductors, next-generation telecommunications, defense and aviation, and hydrogen technologies); improving reliability for use in energy and eco-friendly sectors (secondary batteries, advanced biotechnology, and future mobility); and upgrading the base of the ceramic industry (refractories, cement, and glass). The Roadmap outlines measures to strengthen both advanced ceramics and traditional ceramic industries, with the goal of enhancing competitiveness in a balanced manner across the sector. To facilitate early market entry of newly developed technologies, the government will provide follow-up support, including the establishment of commercialization testbeds and assistance with intellectual property (IP) strategies for global market expansion. For systematic implementation, MOTIR will allocate approximately KRW 100 billion in funding through 2030 by leveraging the Materials, Parts, and Components Technology Development Project, new budget allocations, and contributions to the Korea Institute of Ceramic Engineering & Technology. Experts from industry, academia, and research institutes emphasized that “securing core ceramic technologies is fundamental to strengthening industry competitiveness and stabilizing the national supply chain,” adding that “continuous management is required to ensure that the newly announced R&D Roadmap reflects global trends in a timely manner.” Na Sung-hwa, Director General for Industrial Supply Chain Policy at MOTIR, noted that “this R&D Roadmap marks an important start for elevating the competitiveness of the ceramic industry. As global uncertainties continue to rise, technological self-reliance and supply chain stabilization in the ceramic sector are not optional, but essential.” She stated, “MOTIR will continue to incorporate expert feedback and global technological developments into future updates of the R&D Roadmap to build a stable and robust ecosystem for the ceramic industry.” date2025-12-03

Defense AI Ecosystem Development Forum

Kim Jung-kwan, Minister of Trade, Industry and Resources (MOTIR), attended the Defense AI Ecosystem Development Forum held on Wednesday, December 3, at the Grand Hyatt Seoul in Yongsan. The event was organized to strengthen government-wide governance for defense AI cooperation and build momentum for major defense AI programs planned for 2026.   The forum was also attended by Ahn Gyu-baek, Minister of National Defense, Bae Kyung-hoon, Deputy Prime Minister and Minister of Science and ICT, and Han Seong-sook, Minister of SMEs and Startups, along with approximately 500 experts and representatives from AI-related private companies.   Minister Kim emphasized that expanding AX in the defense sector is essential in an era where advanced technologies such as AI shape both security and economic competitiveness, noting MOTIR’s plans to support AI-driven dual-use technology development through M.AX and to advance AX initiatives in cooperation with the military. date2025-12-03

KATS to Host the International AI Standards Summit With ISO, IEC, and ITU

The Korean Agency for Technology and Standards (KATS, President Kim Dae-ja) under the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that Korea will host the 2025 International AI Standards Summit from December 2 to 3 at The Shilla Seoul. The event will be organized in partnership with the world’s three leading international standards bodies—the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), and the International Telecommunication Union (ITU). With the rapid progress of AI, issues surrounding human rights violations, AI safety and reliability, and fragmented global standards have emerged as major international challenges. In response, the United Nations established the Artificial Intelligence Advisory Body (AIAB) and tasked it with preparing recommendations for AI governance. In its final report published in September 2024, “Governing AI for Humanity,” AIAB outlined seven key recommendations, including a proposal to convene a global AI standards summit. Following this, ISO, IEC, and ITU agreed to jointly launch the International AI Standards Summit and designated Korea in October 2024 as the host of the inaugural event. The summit will bring together senior leadership from the three organizations—ISO President Cho Sung-hwan, IEC President Jo Cops, and ITU Deputy Secretary-General Tomas Lamanauskas—as well as high-ranking representatives from major international bodies. Participants include Jean-Marie Paugam, Deputy Director General of the World Trade Organization (WTO); Andrew Staines, Assistant Director General of the World Intellectual Property Organization (WIPO); and Bjørn Berge, Deputy Secretary General of the Council of Europe. More than 300 C-suite executives from global companies, including Google, Microsoft, Huawei, and Alibaba, as well as Korean companies such as Samsung, LG, Naver, Kakao, and Hyundai Mobis, will also join discussions on the future of global AI standardization. Held under the theme “Standards Shaping the AI World,” the summit will highlight the central role of international standards in ensuring safe and responsible use of AI across industry, government, and society. Over the two-day program, participants will discuss strategic priorities for international AI standardization, global cooperation models, and approaches to responsible AI governance. At the opening ceremony, Prime Minister Kim Min-seok will deliver welcoming remarks, after which ISO, IEC, and ITU will issue the Seoul Statement on Artificial Intelligence (AI)—their first collective action to implement the UN’s recommendations. The Statement outlines the following four principal directions for global AI standardization, establishing shared norms for the safe and equitable use of AI. First, AI standards should address not only technical aspects but also the broader impacts of technology on people, society, and the environment. Second, safeguards to protect human rights—particularly against risks such as privacy violations and discrimination—must be strengthened within international AI standards. Third, AI standards must be fair and reliable global norms developed through the participation of governments, businesses, researchers, and civil society rather than being shaped by any single country or exclusive group of experts. Fourth, public-private partnerships should expand AI education and training to help narrow AI utilization gaps between countries and societies, allowing all to prepare effectively for the AI era. KATS President Kim Dae-ja noted, “AI standards are more than technical specifications. They are the basis of trust that enables people to use AI safely.” He added, “Building on this summit, the government will make every effort to position Korea as a global hub that leads AI standardization.” date2025-12-02

2025 International AI Standards Summit

Kim Jung-kwan, Minister of Trade, Industry and Resources (MOTIR), attended the 2025 International AI Standards Summit held on Tuesday, December 2, at The Shilla Seoul. The event was co-hosted by the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), and the International Telecommunication Union (ITU).   Minister Kim was joined by Prime Minister Kim Min-seok; ISO President Cho Sung-hwan; IEC President Jo Cops; and ITU Deputy Secretary-General Tomas Lamanauskas, as well as Jean-Marie Paugam, WTO Deputy Director General; Andrew Staines, WIPO Assistant Director General; and Bjørn Berge, Deputy Secretary General of the Council of Europe, along with senior officials from international organizations and representatives from leading Korean companies including Samsung, LG, Naver, Kakao, and Hyundai Mobis.   President Kim Dae-ja of the Korean Agency for Technology and Standards (KATS) noted in his remarks that AI standards are the basis of trust that enables that enables people to use AI safely. He added that Korea will work closely with global partners to strengthen responsible AI governance and to advance cooperation in international AI standardization. date2025-12-02

K-Battery to Power Korea’s Future Industries

The government convened the 8th National High-Tech Strategic Industry Committee on Friday, November 28, chaired by Prime Minister Kim Min-seok, to discuss plans to strengthen Korea’s rechargeable battery competitiveness, designate new strategic industry clusters, and expand the list of national high-tech strategic technologies. To reinforce Korea’s position amid the EV slowdown and China’s rapid catch-up, the government presented measures to secure leadership in next-generation battery technologies, strengthen the supply chain for key materials and minerals, and stimulate domestic demand to maintain a strong production base. In addition, the government will launch procedures to designate new specialized zones for rechargeable batteries, humanoid robotics, and advanced aviation engines, with a public call planned for December. It will also identify new national high-tech strategic technologies in areas such as nuclear energy, future mobility, and artificial intelligence. A demand survey will begin in December, followed by review and approval by the National High-Tech Strategic Industry Committee. Prime Minister Kim emphasized that Korea stands at a critical crossroads as the United States and China intensify their competition for technological supremacy. He pledged all-out government support to maintain technological leadership through the AI-driven M.AX (manufacturing transformation), the expansion of mother factories, next-generation battery technology development, and strengthened critical-mineral security.   date2025-12-01