Ministry of Trade Industry and Resources

MOTIR Minister Visits Daegu–Gyeongbuk to Discuss Industrial Security, Advanced Manufacturing, and Talent Development

Following visits to Jeonbuk (January 22, 2026), and the Busan-Ulsan-Gyeongnam area (January 23, 2026), Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) visited the Daegu-Gyeongbuk region—a key hub for Korea’s advanced industries—on February 5, 2026, as part of the government’s on-site outreach under the “Five Mega-Regions and Three Special Self-Governing Provinces” initiative. During the trip, Minister Kim visited Star Group Ind. Co., Ltd., a rare earth permanent magnet manufacturer in Daegu, and met with five key companies across the rare earth value chain—including Hyundai Motor, POSCO, and Korea Zinc—along with relevant support organizations to hear about challenges in securing rare earth supplies. MOTIR also presented comprehensive measures on rare earth supply chains, developed through the Industrial Security Supply Chain Task Force since October 2025, and discussed policy support and public–private cooperation to ensure supply chain stability. Minister Kim said, “Korea’s national competitiveness hinges on industrial resource security, and the public and private sectors must work closely to ensure stable management of rare earth supply chains.” Minister Kim then held a lunch meeting with graduate students at leading universities in Daegu and Gyeongbuk to hear their perspectives on the future of the region’s key industries, including robotics and automobiles. The students also proposed government support for talent development, including programs to train talent for AI convergence and to strengthen graduate-level capabilities. Minister Kim said that “MOTIR will incorporate youth perspectives and, together with relevant ministries and local governments, refine talent and regional industry policies to build a more effective pipeline from education to industry.” Minister Kim also held a Manufacturing AI Transformation (M.AX) roundtable with local companies and relevant institutions to discuss building a regional hub to expand M.AX across industrial sites. During the event, the Korea Planning & Evaluation Institute of Industrial Technology (KEIT) and the Daegu Digital Innovation Promotion Agency signed a cooperation MOU to support the smooth implementation of AX innovation technology development projects in the regional hub. Participants discussed the next steps for the regional AX hub program, measures to link regional initiatives with M.AX, and how to expand M.AX in the region’s key industries, including robotics. Minister Kim noted, “M.AX is a core lever for raising productivity and quality in regional manufacturing at the same time.” He added, “MOTIR will provide policy and program support to expand M.AX, linking local businesses with research institutions.” As the final event of the visit, Minister Kim met with regional innovation institutions—including research institutes and technoparks—and local economic organizations, including the Daegu Chamber of Commerce and Industry, to discuss the Daegu–Gyeongbuk region’s industrial vulnerabilities and potential and ways to strengthen competitiveness. Participants also extensively discussed the roles of each organization in revitalizing the regional economy and advancing the “Five Mega-Regions and Three Special Self-Governing Provinces” regional growth initiative. They noted strong interest among local companies in AI-based manufacturing innovation (M.AX) and industrial upgrading, and called on the central government to expand related program budgets and increase participation by local companies. Minister Kim said, “MOTIR will support the expansion of M.AX across industrial sites and strengthen the region’s industrial competitiveness,” and asked the regional innovation institutions and economic organizations to work closely with the ministry to advan date2026-02-05

January Exports Top $60 Billion for the First Time

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that in January 2026, Korea’s exports rose 33.9 percent year-on-year to USD 65.9 billion, while imports increased 11.7 percent to $57.1 billion, resulting in an $8.7 billion surplus. Exports hit the highest level on record for any January, topping $60.0 billion for the first time. Average daily exports (adjusted for working days) rose 14.0 percent year-on-year to $2.8 billion, also a record for any January. By product, exports increased in 13 of Korea’s 15 key export items. Semiconductors rose to $20.5 billion (up 102.7 percent), followed by wireless communication devices ($2.0 billion, up 66.9 percent), computers ($1.6 billion, up 89.2 percent), displays ($1.4 billion, up 26.1 percent), automobiles ($6.1 billion, up 21.7 percent), petroleum products ($3.7 billion, up 8.5 percent), and bio-health products ($1.4 billion, up 18.3 percent). By contrast, petrochemicals fell to $3.5 billion (down 1.5 percent) and ships slipped to $2.5 billion (down 0.4 percent). Beyond the 15 major items, exports of electrical equipment ($1.4 billion, up 19.8 percent), agri-fishery products ($1.0 billion, up 19.3 percent), and cosmetics ($1.0 billion, up 36.4 percent) each posted record highs for January. By destination, exports increased in seven of Korea’s nine major markets, including China ($13.5 billion, up 46.7 percent), the United States ($12.0 billion, up 29.5 percent), ASEAN ($12.1 billion, up 40.7 percent), and the EU ($5.4 billion, up 6.9 percent). Imports rose 11.7 percent year-on-year to $57.1 billion. Energy imports fell to $10.0 billion (down 11.9 percent), while non-energy imports rose to $47.1 billion (up 18.4 percent). The trade surplus in January came to $8.7 billion, up $10.7 billion from a year earlier, marking the largest on record for any January and extending Korea’s surplus streak to 12 consecutive months since February 2025. Minister JK (Jung-Kwan) Kim stated, “Exports in January posted double-digit growth, marking a solid start to the year.” He added, “It is encouraging that growth was broad-based across major items such as semiconductors and automobiles, as well as promising consumer goods.” Noting that “uncertainty in the trade environment is increasing amid recent U.S. tariff policy and spreading protectionism,” Minister Kim said, “the government will continue consultations with the United States while keeping Korea’s national interests as the top priority.” He added, “the government will mobilize all available resources to build a more resilient trade structure by diversifying products and markets and broadening the exporter base.” date2026-02-03

MOTIR Announces Industrial R&D Innovation Plan Under the New Administration

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the Industrial R&D Strategic Planning and Investment Council’s first meeting of 2026 on January 28, 2026, at the Korea Trade Insurance Corporation (K-SURE). Chaired by Vice Minister Moon Shin-hak, the meeting brought together experts from industry, academia, and research institutes. During the meeting, MOTIR announced the Industrial R&D Innovation Plan and participants discussed an action plan for launching new projects in 2026. Drawing on extensive input from industry, the Industrial R&D Innovation Plan was developed to set a new direction and lay the foundation for industrial technology innovation, as major economies step up their industrial policy initiatives and the global AI race intensifies. Under the plan, MOTIR will move away from a Seoul Capital Area-centric approach and fragmented, small-scale projects and shift the industrial R&D framework toward three innovation pillars: regional R&D, R&D for the M.AX Alliance, and R&D to strengthen industrial competitiveness. First, to strengthen regional R&D and support the “Five Mega-Regions and Three Special Self-Governing Provinces” initiative, MOTIR will roll out a KRW 2.0 trillion R&D package and foster advanced industries in key industrial areas, including the Southern Semiconductor Belt and the Battery Triangle Belt. The ministry will also expand R&D to help regions affected by industrial downturns regain momentum, including through the KRW 1.5 trillion K-Chemistry Industry Transformation R&D Project. When selecting projects, MOTIR will require reviewers to consider regional spillover effects—such as impacts on investment, jobs, and production—and will introduce region-specific project types. In line with the same initiative, the ministry will designate six additional graduate programs specializing in advanced industries and establish 30 joint industry–academia labs by 2030, with regional innovation institutions - including public research institutes – serving as anchors.  Second, MOTIR will restructure R&D around the M.AX Alliance. By 2030, the ministry will build 500 AI factories and develop 15 leading manufacturing AI models through collaboration among large companies, SMEs, and startups. MOTIR will also strengthen embedded-AI R&D to integrate AI into existing products, including autonomous ships and self-driving vehicles. In addition, MOTIR will support the development of humanoids designed for industrial use and fund 10 on-site demonstration projects in 2026. MOTIR will also launch a KRW 0.7 trillion program this year to develop K-On-Device AI semiconductors. Third, MOTIR will strengthen industrial competitiveness through R&D by launching the Industrial Leap Technology Project, led by demand-side anchor companies that serve as the backbone of industrial ecosystems, to open new opportunities for partner firms and maximize the industrial impact of R&D. Pilot projects will begin in 2026, with large-scale projects to follow starting in 2027. In addition, MOTIR will strengthen the foundations for R&D innovation by easing R&D regulations, strengthening innovation capacity, and cutting unnecessary paperwork. The ministry will select 30 priority regulatory reform tasks for advanced and emerging industries and introduce “regulation-free R&D,” which will launch regulatory consultations in parallel with R&D projects to grant special exemptions in a timely manner. MOTIR will establish a KRW 1.0 trillion commercialization fund, direct investment toward initiatives such as the Industrial Leap Technology Project, and incorporate market demand—including investor input—in R&D planning. The ministry will also foster technical talent across the full career pipeline—from postdoctoral researchers to early-career researchers a date2026-01-29

2025 Annual and December Sales Trends for Major Retailers

Over the past five years, Korea’s retail industry has seen rapid growth in online sales and a contraction in large supermarket sales. Sales at the 26 major retailers (15 brick-and-mortar retailers and 11 online retailers) covered in this survey grew by an average of 6.7 percent per year from 2021 to 2025, with offline sales up 2.6 percent and online sales up 10.1 percent. Within offline retail, department stores (up 5.7 percent) and convenience stores (up 5.6 percent) sustained growth, while SSMs (up 1.0 percent) posted modest gains, and large supermarkets (down 4.2 percent) saw a sharp decline.  Sales at the 26 major retailers rose 6.8 percent in 2025, supported by growth in online sales (up 11.8 percent) and a modest increase in offline sales (up 0.4 percent).  Offline sales posted negative growth in the first half but turned positive in the second half of 2025, as the new administration executed a supplementary budget and rolled out domestic-demand measures such as recovery consumption coupons, improving consumer sentiment and supporting gains at department stores (up 4.3 percent), convenience stores (up 0.1 percent), and SSMs (up 0.3 percent). Sales at department stores (up 4.3 percent) and convenience stores (up 0.1 percent) slowed in the first half, but both increased for six consecutive months from July as consumer sentiment improved, ending 2025 with positive growth. Convenience stores, however, saw smaller growth than a year earlier, partly due to a decline in the number of outlets. Large supermarkets (down 4.2 percent) remained weak in every month except January (Lunar New Year) and October (Chuseok), posting negative growth for a second consecutive year following 2024. SSMs (up 0.3 percent) posted positive growth in the first half but turned negative in the second half of 2025. Sluggish food sales—its key revenue segment—pulled down sales per store, which have declined for 13 consecutive months since December 2024. Online sales remained strong, with steady growth across most product categories, including food, services/other, living and household goods, and home appliances. In December 2025, total sales at the 26 major retailers rose 4.4 percent year-on-year, with offline sales up 1.7 percent and online sales up 6.3 percent. Offline sales increased in fashion/accessories (up 5.1 percent) and premium international brands (up 13.7 percent), while declines continued in food (down 1.6 percent) and living and household goods (down 3.4 percent).  Online sales rose in food (up 13.7 percent) and living and household goods (up 6.0 percent). Services/other (down 2.4 percent) declined for the first time, reflecting base effects. date2026-01-28

MOTIR to Invest KRW 268.5 Billion to Accelerate AI-Driven Transformation in Manufacturing

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that it will allocate KRW 268.5 billion this year to Korea’s industrial innovation infrastructure program, which supports the establishment of research facilities and equipment to develop ultra-gap technologies and accelerate commercialization. This marks the program’s largest budget to date, up 11.5 percent from 2025, underscoring the government’s efforts to strengthen technological self-reliance and industrial competitiveness amid intensifying global technology competition. Full-Scale Investment in Core Infrastructure to Strengthen AI Capabilities in Manufacturing MOTIR plans to select 28 new projects this year (12 more than in 2025), with a total budget of KRW 28.0 billion, about 40 percent of which will be allocated to AI-based infrastructure.  By expanding AI facilities and equipment deployable directly at manufacturing sites—including AI autonomous laboratories and Manufacturing AI Transformation (M.AX) infrastructure—the program is expected to help build an industrial base that supports Korea’s transition to AI-driven manufacturing. Transforming Shared Research Spaces into Nationwide Industrial Technology Hubs Starting with this year’s newly selected projects, MOTIR will require the establishment of shared research spaces nationwide, which will serve as regional industrial technology hubs. These spaces will be established at research centers in advanced technology fields, including AI, semiconductors, and secondary batteries, to facilitate collaboration among industry, academia, and research institutions. This framework will bring together anchor companies, small and medium-sized suppliers, universities, and research institutes to advance practical technology development and accelerate commercialization. MOTIR will also pursue additional infrastructure support measures to better reflect on-site needs. These measures include upgrading and maintaining aging equipment at self-sustaining research centers with strong records of shared equipment use, as well as expanding AI autonomous laboratory infrastructure that supports the full experimental process—from virtual testing and experiment design to generating results. The industrial innovation infrastructure program will be announced in three rounds this year, with nine projects to be selected in the first round, scheduled for January 27, 2026. Further details are available on the websites of the Ministry of Trade, Industry and Resources (MOTIR) (www.motir.go.kr) and the Korea Institute for Advancement of Technology (KIAT) (www.kiat.or.kr). Choi Yeon-woo, Director General for Industrial Technology Convergence Policy at MOTIR, stated that “early investment in research facilities and equipment is critical to maintaining competitiveness amid rapid technological advances, including the AI transition.” He added that “through the industrial innovation infrastructure program, the government will support companies in responding to new technologies by building shared infrastructure that is essential to industrial technology development but difficult for small and medium-sized enterprises to establish independently. date2026-01-26

Roundtable with Korean Companies Operating in Egypt

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held a meeting with Korean companies operating in Egypt at the Ambassador’s Residence in Cairo on January 18, 2026. Participants included representatives from Samsung Electronics, LG Electronics, Hyundai Rotem, Hanwha Aerospace, Korea Aerospace Industries (KAI), TP Inc., Dana Petroleum, and Korea Hydro & Nuclear Power (KHNP). During the meeting, Trade Minister Yeo heard business concerns and requests related to financing and streamlined administrative procedures, and discussed practical measures for addressing operational challenges in a timely manner. date2026-01-20

Trade Minister Yeo Visits the Sokhna Industrial Zone in Egypt

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) visited the Sokhna Industrial Zone and the adjacent Sokhna Port within the Suez Canal Economic Zone in Egypt on January 18, 2026, to review the local investment environment for Korean companies operating in Egypt. The delegation included representatives of Korean companies operating in Egypt, officials from KOTRA, and experts from the Korea Institute for International Economic Policy (KIEP). Trade Minister Yeo noted that “MOTIR plans to strengthen support for Korean companies’ expansion into Egypt by providing essential market-entry information, including an investment guidebook reflecting the findings from the recent visit to the Suez Canal Economic Zone.” date2026-01-20

Free Economic Zones See Strong Growth in Foreign-Invested Companies, Employment, and Investment

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced the results of the 2024 survey on businesses located in Free Economic Zones (FEZs), a nationally approved statistical survey jointly conducted with nine FEZ authorities since 2017. The survey provides a comprehensive overview of businesses operating in FEZs, covering investment status, employment, business activities (including sales, procurement, R&D, and production), the business environment and access to support programs, and operational challenges. According to the survey, Korea’s FEZs continued to expand in 2024, posting solid growth in the number of foreign-invested companies, employment, and investment, underscoring their role as key growth hubs for regional economies. Major indicators across the survey pointed to a favorable trend, with the number of foreign-invested companies in FEZs rising 8.2 percent year-on-year, while employment and investment increased 8.8 percent and 14.4 percent, respectively. As of 2024, a total of 8,590 companies were operating in FEZs, up 4.4 percent from the previous year. By region, Incheon accounted for 44.9 percent of the total, followed by Busan–Jinhae (28.4 percent) and Daegu–Gyeongbuk (12.2 percent). Notably, the number of tenant companies rose sharply in Gwangju (up 107 percent), Chungbuk (up 24 percent), and Gyeonggi (up 10 percent). Reflecting the increase in tenant companies, total employment in FEZs reached 254,775, marking an 8.8 percent rise from a year earlier. This growth significantly outpaced the nationwide increase in the employment rate (up 0.1 percentage points). Total investment in FEZs amounted to KRW 5.9 trillion (up 14.4 percent), while total sales reached KRW 189.7 trillion (up 2.0 percent), contributing greatly to regional economic activity. The number of foreign-invested companies operating in FEZs totaled 690 in 2024, an increase of 8.2 percent from the previous year. Of these, 84.6 percent were located in Incheon (53.2 percent) and Busan–Jinhae (31.4 percent), with Incheon recording particularly strong growth of 18 percent. Employment at foreign-invested companies stood at 57,389 (up 1.4 percent). Investment by these companies reached KRW 3.8 trillion (up 4.3 percent), while sales rose to KRW 56.2 trillion (up 11.6 percent), demonstrating steady momentum. FEZs are pursuing five-year development plans focused on building regional innovation ecosystems by fostering core strategic industries tailored to local strengths. In 2024, the number of companies in these core industries increased by 6.8 percent from the previous year. Employment in these sectors surged 27.0 percent, and sales rose 17.2 percent, marking robust growth. Je Kyung-hee, Director General of the Free Economic Zone Planning Office, noted that “despite challenging conditions, FEZs have sustained steady growth and continue to serve as key hubs for foreign investment and regional economic development.” She added that “the government will continue to develop and implement policies tailored to regional and industry-specific needs to support further investment and business activity.” date2026-01-20

Korea to Establish Largest-Ever Integrated Pavilion at CES 2026

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Ministry of SMEs and Startups (MSS, Minister Han Seong-sook) announced that they will engage in a whole-of-government collaboration to establish the largest-ever Korea Pavilion at CES 2026 (Consumer Electronics Show), to be held in Las Vegas in the United States, from January 6 to 9, 2026 (Tuesday to Friday).   CES is a leading global exhibition showcasing cutting-edge technologies in IT and consumer electronics. Under the theme “Innovators Show Up,” CES 2026 is expected to feature a wide range of innovative products and services applying AI technologies across sectors, including consumer electronics, mobility, and healthcare.   The exhibition will bring together approximately 4,500 companies from more than 150 countries. Korea will be represented by around 1,000 companies, ranging from major conglomerates such as Samsung, LG, Hyundai, and SK to innovative SMEs and promising startups with advanced technologies.   This year, centered on MOTIR’s Integrated Korea Pavilion and MSS’s K-Startup Integrated Pavilion, the government will build and operate a Korea Pavilion with unified booth designs, logos, and other branding elements, involving 38 organizations and 470 companies. Through large-scale national pavilion operations and “Korea Premium” marketing, the initiative is expected to enhance the effectiveness of participating Korean companies’ export marketing efforts.   Participating companies will be offered business networking opportunities with global firms—including Walmart and Intel—through a series of programs, such as an on-site expert seminar on January 5, technology demonstration sessions on January 6 and January 9, and the K-Innovation Pitching Challenge from January 7 to 8.    Meanwhile, according to the first-round results of the CES Innovation Awards announced in early November by the Consumer Technology Association (CTA), 168 Korean companies were named among the 284 overall award-winning companies.   Despite intense competition with more than 3,600 products submitted this year, Korea ranked first in the number of award recipients for the third consecutive year, once again demonstrating its global technological competitiveness on the international stage.   More than 80 percent of the 168 Korean award-winning companies were SMEs, totaling 137 firms. With AI expected to be the core theme of CES this year, Korean companies not only swept all three Best of Innovation Awards in the AI category, but also recorded the highest number of Innovation Awards, with 28 awards.   Minister Kim noted, “Amid intensifying competition for technological leadership in AI, CES—the world’s premier showcase of innovative technologies—will be an opportunity for Korean companies to demonstrate their technological capabilities and potential.” He added, “The government will actively provide support to ensure that innovation translates into export outcomes.”   Minister Han stated, “By delivering strong results at CES 2026, Korea’s venture and startup companies have made a clear impression on the global stage that Korea has the technological capabilities to lead future markets.” She added, “The government will continue to support innovative companies so that they can leverage CES as a stepping stone to expand globally.” date2026-01-05

Industrial Technology Workforce Reaches 1.74 Million, Posting Growth for a Fourth Consecutive Year

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced the results of the 2025 Survey on Supply and Demand of the Industrial Technology Workforce, which was conducted by the Korea Institute for Advancement of Technology (KIAT) from August 11 to October 24, 2025. The survey covered 21,327 sampled business establishments nationwide with 10 or more employees and collected data on workforce levels and shortages by industry, occupation, and region, as well as recruitment, hiring, and employee separations during 2024. According to the findings, the total industrial technology workforce reached approximately 1.74 million, representing a 1.1 percent increase from 1.72 million in the previous year and marking the fourth consecutive year of growth. Employment in the twelve key industries totaled approximately 1.16 million workers, accounting for 66.6 percent of the overall industrial technology workforce. The semiconductor (up 4.3 percent) and bio-health (up 4.0 percent) industries recorded higher workforce growth than other major sectors. The shipbuilding industry, after experiencing workforce declines for eight consecutive years, has now recorded increases for the second year in a row, reaching 59,213 workers in 2024 (up 1.2 percent). Regionally, the industrial technology workforce in the Seoul metropolitan area has accounted for more than half of the national total since 2023, reaching 50.34 percent in 2024, with concentration in the metropolitan area continuing to intensify. The estimated shortage of industrial technology workers stood at approximately 40,000, representing a 1.6 percent increase from the previous year. Recruitment and hiring of both experienced workers and new entrants were more prevalent among non-metropolitan establishments. In recruitment, non-metropolitan shares stood at 50.1 percent for experienced workers and 57.8 percent for new entrants, while in hiring, the figures rose to 50.3 percent and 58.6 percent, respectively, exceeding those of the metropolitan area. The number of employees leaving their jobs declined year-on-year (down 0.7 percent), and the early turnover rate within one year of employment has continued to fall steadily over the past five years. date2026-01-02