Ministry of Trade Industry and Resources

Roundtable with Heads of Foreign Chambers of Commerce in Korea

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) chaired a roundtable with heads of foreign chambers of commerce in Korea on February 26, 2026, at KEPCO in Seoul. The meeting was held ahead of the revised Trade Union Act taking effect on March 10, 2026, to hear views from foreign-invested companies and review on-the-ground conditions. The meeting was attended by Minister Kim Young-hoon of the Ministry of Employment and Labor (MOEL), as well as representatives of foreign chambers of commerce in Korea, including those from the United States, Europe, and Japan.   In his remarks, Minister Kim said that MOTIR and MOEL had coordinated to prepare guidelines for interpreting the revised Act to reduce uncertainty in labor–management relations and support stable relations through dialogue and cooperation. He added that MOTIR, together with MOEL, will strengthen labor–management communication and set up a hotline for foreign-invested companies. date2026-02-27

MOTIR Launches Industrial Complex AX Initiative to Expand M.AX Nationwide

A region-led framework to scale AI transformation (AX) across industrial complexes is now underway. On February 26, 2026, the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the launch ceremony for the Industrial Complex AX Subcommittee, the 11th subcommittee under the M.AX Alliance, at the Changwon National Industrial Complex. Manufacturers, AI companies, universities, research institutes, and local governments attended the event and discussed the direction of the industrial complex AX and the subcommittee’s operating plan. The new subcommittee brings together more than 500 institutions from industry, academia, and research, and is chaired by Park Min-won, President of Changwon National University. The subcommittee will coordinate industrial complex AX projects and policies, connect tenant firms with the Alliance’s 10 existing subcommittees, share best practices and on-the-ground challenges across complexes, and build a system to collect, share, and use manufacturing data. It will serve as a private sector–led platform that aligns regional growth strategies with M.AX policy and drives AX through industry–academia–research collaboration. The Industrial Complex AX Subcommittee includes the chairs of 10 regional “M.AX Innovation Network in Industrial Complexes (MINI) Alliances” as subcommittee members. The MINI Alliances will serve as the subcommittee’s implementation arm and will be rolled out in phases—starting with the Changwon MINI Alliance launched the same day as the subcommittee—with further expansion depending on the designation of AX pilot industrial complexes. They will identify AX priorities tailored to local industries and develop demonstration models for immediate on-site use and wider adoption. At the event, the government also released its Industrial Complex AX Strategy. Korea’s 1,341 industrial complexes cluster companies by industry and supply chain, making them well-suited to scaling manufacturing AX. The strategy sets out three priorities to make industrial complexes the main hubs for this effort. First, MOTIR will upgrade key regional industrial complexes into M.AX clusters and support anchor firms under the “Five Mega-Regions and Three Special Self-Governing Provinces” initiative in building world-leading lights-out manufacturing facilities (dark factories), foster AX ecosystems, and integrate them with mega regulatory sandbox districts. MOTIR will also select three additional AX pilot industrial complexes in 2026 to build demonstration testbeds and integrated support centers for large-scale AI deployment. Second, MOTIR will build an industry–academia–research ecosystem around industrial complexes to develop and deploy shared AI models for tenant firms. It will also run regular M.AX Caravan programs to match manufacturers with AI specialists. In addition, the ministry will work with local universities on demand-driven R&D and workforce training. Third, MOTIR will expand essential infrastructure for industrial complex AX by continuing to attract AI data centers—following the 2025 placements in the Osong Industrial Complex and the Busan Myeongji–Noksan National Industrial Complex—and building dedicated 5G networks. The ministry will pilot the 5G network in one industrial complex in 2026 before scaling it nationwide. Minister JK (Jung-Kwan) Kim said, “Industrial complex AX goes beyond individual companies adopting AI. The focus is on testing and scaling AI innovation models through industry–academia–research collaboration within industrial complexes.” He added, “The Industrial Complex AX Subcommittee will serve as a platform to support regional growth and deliver tangible M.AX results.” date2026-02-27

CEO Roundtable on the Daesan No. 1 Petrochemical Restructuring Project

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) presided over the CEO Roundtable with companies participating in the Daesan No. 1 petrochemical restructuring project on February 25, 2026, at the Korea Trade-Investment Promotion Agency (KOTRA) in Seoul. The meeting was held to support the swift implementation of the project. Participants included the CEO of HD Hyundai Oilbank Son Myung-joon; the CEO of HD Hyundai Chemical Cho Nam-su; and the CEO of LOTTE Chemical Lee Young-jun. During his opening remarks, Minister Kim said, “The Daesan No. 1 project is the first tangible outcome of government–industry coordination” and noted that it will “help accelerate the petrochemical industry’s restructuring.” He added, “The ministry will work closely with companies to advance follow-up projects and will put in place all necessary support to minimize negative impacts on local economies, employment, and SMEs.” date2026-02-26

MOTIR and MOEL Meet with Foreign Chambers to Hear Industry Views Ahead of Revised Trade Union Act

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Ministry of Employment and Labor (MOEL, Minister Kim Young-hoon) held a meeting with the heads of foreign chambers of commerce in Korea on February 26, 2026, at KEPCO’s Southern Seoul Headquarters. The meeting was convened ahead of the revised Trade Union Act taking effect on March 10, 2026, to hear views from foreign-invested companies and review workplace conditions. In his opening remarks, Minister JK (Jung-Kwan) Kim explained that MOTIR and MOEL had jointly prepared guidelines for interpreting the revised Act to reduce workplace uncertainty and promote stable labor–management relations through dialogue and cooperation. He added that MOTIR will work with MOEL to step up support for companies by strengthening communication between labor and management as well as setting up a hotline for foreign-invested companies. Minister Kim Young-hoon stated that the revised Act is intended to promote dialogue between labor and management and reinforce the foundations of a sustainable industrial ecosystem built on shared growth. He noted that the government is preparing for implementation, giving top priority to enhancing workplace predictability, while remaining consistent with the purpose of the revision and balancing business activity with the protection of labor rights. At the meeting, major foreign chambers, including the American Chamber of Commerce in Korea (AMCHAM) and the European Chamber of Commerce in Korea (ECCK), offered suggestions on the revised Trade Union Act’s implementation. The government said it will closely review the input and reflect it in the rollout. MOTIR and MOEL will strengthen coordination to boost industrial competitiveness and provide a stable footing for business activity. They will reflect the views of both business and labor in a balanced manner and continue improving the foreign investment climate based on stable labor–management relations, laying the groundwork for increased investment. date2026-02-26

Total Sales at Major Retailers Rise 4.4% in January 2026

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that total sales at 26 major retailers (15 brick-and-mortar retailers and 11 online retailers) in January 2026 rose 4.4 percent year-on-year, with offline sales down 0.6 percent and online sales up 8.2 percent. Offline sales at department stores (up 13.4 percent) and convenience stores (up 0.8 percent) posted growth, while large supermarkets (down 18.8 percent) and SSMs (down 4.4 percent) declined. Department stores and convenience stores recorded positive growth for seven consecutive months from July 2025. Department store sales rose in fashion/apparel, including winter clothing, and premium international brands, while convenience store sales increased in desserts and ready-to-eat foods. Large supermarket and SSM sales fell from a year earlier, as the Lunar New Year holiday fell on January 29 in 2025 but on February 17 in 2026. Sales declined as seasonal demand for holiday gift sets and key food items did not materialize in January 2026. Online sales have maintained an upward trend since the statistics were first compiled. Sales rose across all product categories, including food (up 7.7 percent), fashion/apparel (up 10.1 percent), and cosmetics (up 15.5 percent). Sales shares by channel were 58.7 percent for online retailers, 16.8 percent for department stores, 12.7 percent for convenience stores, 9.7 percent for large supermarkets, and 2.1 percent for SSMs. Compared with the 2025 annual shares, department stores rose 2.6 percentage points, while online retailers fell 0.3 percentage points. Shares also declined for large supermarkets (down 0.1 percentage points), SSMs (down 0.1 percentage points), and convenience stores (down 2.1 percentage points). date2026-02-26

MOTIR Approves First Petrochemical Restructuring Project, Unveils Support Package of Over KRW 2.1 Trillion

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced on February 23, 2026, that it approved the final plan for the “Daesan No. 1” restructuring project submitted by HD Hyundai Oilbank, HD Hyundai Chemical, and Lotte Chemical. This marks the first approval under the Petrochemical Industry Restructuring Roadmap released in August 2025. Under the plan, Lotte Chemical will separate its Daesan operations and merge the business with HD Hyundai Chemical to integrate the naphtha cracking center (NCC) and downstream facilities. HD Hyundai Oilbank and Lotte Chemical will inject a combined KRW 1.2 trillion into the newly established entity, adjusting HD Hyundai Chemical’s ownership structure from 60:40 to 50:50. The companies will finalize the setup after signing the merger-related agreements, securing board approvals, and completing the spin-off and merger procedures. In coordination with relevant agencies, MOTIR prepared a tailored support package that includes financing of up to KRW 2 trillion, tax measures, and steps to streamline regulatory approvals—including merger review and permitting/licensing procedures. The package also provides KRW 69–115 billion to ease utility and raw-material cost burdens, as well as measures to address industrial and employment challenges in affected regions. For R&D, MOTIR will fast-track support starting this year for two high-value projects requested by the approved companies, totaling KRW 26 billion. Over the longer term, MOTIR will pursue additional large-scale programs to support the shift to higher value-added and greener production. During the three-year restructuring period, the Daesan No. 1 project is expected to ease oversupply at the complex by suspending one ethylene production facility and scaling back low-margin downstream operations, while improving utilization across remaining assets. In addition, vertical integration across the refining–petrochemical value chain is expected to bolster feedstock security and cost competitiveness, while enabling flexible output adjustments in line with refining margins and naphtha spreads. Once the integrated corporation is in place, the combined business is expected to move away from commodity-driven exports by expanding high-value materials, including high-elastic lightweight materials and organic solvents for electrolytes. The business will also shift to lower-carbon feedstocks and processes by using bio-based naphtha and introducing ethane as a feedstock. Operational integration, backed by shareholder measures, is expected to strengthen the company’s financial position. MOTIR will expedite follow-up restructuring projects, using public-private consultations to refine project-specific proposals submitted in December 2025 and to help companies finalize and file their restructuring plans. The ministry will also promptly draft the enforcement decree for the Special Act on Strengthening and Supporting the Competitiveness of the Petrochemical Industry, establishing the institutional basis to implement approved restructuring plans. In March 2026, the government will launch a Chemical Industry Ecosystem Forum to develop policy measures that limit the impact of restructuring on local economies, employment, and SME suppliers. Building on the forum’s discussions, the government will prepare a comprehensive support package for the sector in the first half of 2026. On February 25, 2026, MOTIR held a CEO roundtable at the Korea Trade-Investment Promotion Agency (KOTRA) to outline the support package and discuss next steps for implementation. At the meeting, Minister JK (Jung-Kwan) Kim thanked the companies behind the first approved project and called for thorough implementation to keep the plan on track. Minister Kim described the Daesan No. 1 project as the first tangible outcome of government–industry coordination, noting that it will help acce date2026-02-25

January 2026 Automobile Exports Reach $6.1 Billion, Second-Highest January on Record

In January 2026, automobile export volumes (up 23.4 percent), domestic sales (up 14.0 percent), and production (up 24.1 percent) all increased year-on-year. The gains reflected base effects, as the 2025 Lunar New Year holiday fell on January 25–30, leaving three fewer working days than in 2026, as well as solid exports of eco-friendly vehicles. Automobile exports totaled USD 6.1 billion, up 21.7 percent year-on-year, the second-highest January export value on record. Eco-friendly vehicle exports accounted for 42 percent of the total, led by hybrid vehicles at $1.7 billion (up 85.5 percent) and electric vehicles at $0.8 billion (up 21.2 percent). Export volumes reached 247,000 units, up 23.4 percent year-on-year. Eco-friendly vehicles amounted to 92,000 units (up 51.5 percent), accounting for 37.4 percent of total exports. Domestic sales rose 14.0 percent year-on-year to 121,000 units. Domestically produced vehicles totaled 98,000 units (up 9.6 percent) and imported vehicles totaled 23,000 units (up 37.9 percent). By model, the Sorento, Sportage, and Carnival recorded the highest sales volumes. Eco-friendly vehicle sales increased 48.3 percent year-on-year to 58,000 units, accounting for 47.7 percent of domestic sales. Electric vehicle sales rose to 10,000 units, up 507.2 percent year-on-year. Production rose 24.1 percent year-on-year to 361,000 units on strong exports and domestic sales. By model, the Trax recorded the highest output, followed by the Avante and Kona. Output increased year-on-year across all five domestic automakers, and some automakers that had temporarily suspended plant operations in January 2025 posted production growth of more than 2,000 percent. date2026-02-19

SEMICON Korea 2026 Opening Ceremony

Vice Minister Moon Shin-hak of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) attended the opening ceremony of SEMICON Korea 2026 on February 11, 2026, at COEX in Gangnam, Seoul.  The event was also attended by Ajit Manocha, President and CEO of SEMI; Cha Ji-hyun, President of SEMI Korea; and Song Jae-hyuk, President and Chief Technology Officer (CTO) of Samsung Electronics’ semiconductor (DS) division, along with more than 550 domestic and international semiconductor companies across 2,409 booths. In his opening remarks, Vice Minister Moon said, “The government will offer incentives aligned with global standards, following the recent enactment of the Special Act on Semiconductors,” adding, “We will be a strong backbone for the industry so stakeholders can continue research without disruption and invest boldly.” date2026-02-12

SEMICON Korea 2026 Connects Korea’s MPE Firms with Global Semiconductor Supply Chains

SEMICON Korea 2026, Korea’s largest semiconductor exhibition, will take place from February 11 to 13, 2026, at COEX and other venues. Hosted by SEMI, a global association representing the advanced electronics industry, the event brings together around 550 Korean and international semiconductor companies across 2,409 booths. Beyond the exhibition, the event features more than 30 side programs, including an AI summit co-hosted by SEMI and the Korea Advanced Institute of Science and Technology (KAIST), a U.S. investment forum held with SelectUSA, a Korea–Netherlands technology cooperation seminar, and mentoring sessions for university students. AI-driven demand is expected to push the global semiconductor market above USD 1 trillion for the first time in 2026, with growth also expected in semiconductor materials, parts, and equipment (MPE). Semiconductor competition is shifting from firm-to-firm rivalry over performance gains to rivalry between ecosystems. This shift underscores the growing importance of an integrated value chain spanning design, manufacturing, packaging, and MPE. Against this backdrop, SEMICON Korea 2026 invites semiconductor companies to share the latest technology and market trends, take stock of where the ecosystem stands and where it is heading, and explore opportunities for collaboration. The event also offers business-matching sessions to support the global expansion of Korea’s semiconductor MPE companies. In his opening remarks, Vice Minister Moon Shin-hak of the Ministry of Trade, Industry and Resources said, “The government will offer incentives aligned with global standards, following the recent enactment of the Special Act on Semiconductors,” adding, “We will stand firmly behind the industry so stakeholders can continue research without disruption and invest boldly.” date2026-02-11

MOTIR Signs Cooperation MOU with Changwon National University

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) signed an MOU with Changwon National University on February 6, 2026. The signing ceremony was attended by Park Min-won, President of Changwon National University, Lee Sang-hoon, Chairman of the Korea Industrial Complex Corporation (KICOX), and representatives from related institutions and universities. Following the signing, participants discussed ways to advance industrial complex AX (AI transformation) grounded in industry–academia–research collaboration. “Digital and AI transformation in industrial complexes must move beyond individual firms and become a region-wide innovation effort involving universities and research institutes,” he said. “We will translate cooperation into concrete measures so anchor universities such as Changwon National University can serve as talent and technology hubs for industrial complex AX.” date2026-02-06