Ministry of Trade Industry and Resources

MOTIR Minister Encourages U.S. Companies to Expand Investment in Korea

Minister of Trade, Industry and Resources (MOTIR) JK (Jung-Kwan) Kim held a meeting with members of the American Chamber of Commerce in Korea (AMCHAM), including U.S. foreign-invested companies operating in Korea, on Friday afternoon, January 9, 2026, at the Mugunghwa Hall of the Government Complex Seoul. The meeting was arranged at AMCHAM’s request amid the signing of a memorandum of understanding on strategic investment between Korea and the United States in November last year and the subsequent proposal of the Special Act for Korea–U.S. Strategic Investment Management. Discussions focused on gathering feedback and hearing about the challenges faced by U.S. foreign-invested companies operating in Korea, as well as on strengthening communication to better support their investment activities. During the meeting, Minister Kim expressed his appreciation for the fact that U.S. investment in Korea reached a record high last year, noting that the increase comes at a time when Korean firms are also expanding investment in the U.S. following the conclusion of bilateral tariff negotiations. He assessed that this trend reflects the mutually beneficial development of investment cooperation between the two countries. The meeting was attended by James Kim, Chairman and CEO of AMCHAM Korea, along with representatives of major American companies investing in Korea. Participants shared their views on issues such as Korea–U.S. tariff negotiations on individual products and foreign investment incentive schemes. Minister Kim stated, “The government will reflect feedback from AMCHAM member companies in its policies, while continuing to create a more predictable and stable investment environment for foreign-invested companies.” Looking ahead to 2026, Minister Kim expressed hope that bilateral cooperation would further deepen in advanced and future-oriented industries, and encouraged U.S. companies to continue expanding their investment in Korea. MOTIR plans to carefully review the suggestions raised at the meeting and maintain close communication with key foreign-invested companies. date2026-01-12

2025 Foreign Direct Investment Briefing

Nam Myung-woo, Acting Director General for Cross-Border Investment Policy at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), delivered a briefing to the press on Korea’s 2025 foreign direct investment performance at the Government Complex Sejong on Wednesday, January 7, 2026. During the briefing, Acting Director General Nam noted that Korea’s annual foreign direct investment in 2025, based on investment notifications, rose 4.3 percent year-on-year to USD 36.1 billion, marking the highest level on record, while funds received increased 16.3 percent to $18.0 billion, ranking third highest on record. The briefing was followed by a question-and-answer session with members of the press corps. date2026-01-07

Korea’s Annual Foreign Direct Investment Hits All-Time High of $36.1 Billion

Korea’s annual foreign direct investment (FDI) on a notification basis reached USD 36.1 billion in 2025, up 4.3 percent year-on-year and marking an all-time high. Actual inflows also increased 16.3 percent year-on-year to $18.0 billion, the third-highest figure on record. Despite a steep decline in investment during the first half of 2025 (down 14.6 percent), overall investor sentiment recovered following the launch of the new administration, which helped restore confidence in Korea’s economy and industries and reduce uncertainty. In particular, the government’s strong policy drive in artificial intelligence (AI), combined with proactive investment promotion efforts surrounding the Gyeongju APEC Summit, proved effective. In addition to quantitative growth, the quality of investment also improved. Greenfield investment, which has a strong impact on regional economic revitalization and job creation, reached its highest level to date. High-quality investments linked to advanced industries such as AI, semiconductors, and biotechnology also expanded, supporting expectations that these inflows will contribute significantly to the development of Korea’s economy and industries. By type, greenfield investment notifications rose 7.1 percent year-on-year to $28.6 billion, the highest level on record. M&A investment totaled $7.5 billion, down 5.1 percent from the previous year; however, the pace of decline narrowed significantly after a sharp drop of 54.0 percent in the third quarter. By industry, manufacturing investment increased 8.8 percent year-on-year to $15.8 billion, led by notable investment in key materials for advanced industries, reflecting efforts to strengthen supply chains amid external uncertainty. Investment rose sharply in chemicals (up 99.5 percent to $5.8 billion) and metals (up 272.2 percent to $2.7 billion), while declines were recorded in electrical and electronics (down 31.6 percent to $3.6 billion), as well as machinery and medical precision equipment (down 63.7 percent to $0.9 billion). Services investment also expanded, rising 6.8 percent year-on-year to $19.1 billion, supported by increased investment in AI data centers and online platforms. Growth was concentrated in distribution (up 71.0 percent to $2.9 billion), information and communications (up 9.2 percent to $2.3 billion), and research and development, professional, and scientific services (up 43.6 percent to $2.0 billion), while finance and insurance recorded a decline (down 10.6 percent to $7.5 billion). By source country, investment from the United States expanded mainly in metals, distribution, and information and communications, reaching $9.8 billion, up 86.6 percent year-on-year. Investment from the European Union increased to $6.9 billion (up 35.7 percent), driven largely by chemicals and distribution. In contrast, investment from Japan declined 28.1 percent to $4.4 billion, while investment from China fell 38.0 percent to $3.6 billion. Building on the momentum from last year’s strong performance, MOTIR will expand incentives for foreign investment linked to regional development in 2026, actively identify and improve unreasonable regulations affecting foreign-invested companies, and continue efforts to create a more predictable and stable investment environment. date2026-01-07

Korea’s Annual Exports Reach New Highs in 2025

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that Korea’s exports in 2025 reached USD 709.7 billion, up 3.8 percent year-on-year, marking the first time exports surpassed $700 billion and the highest annual performance on record. Daily average exports also climbed 4.6 percent from the previous year to a record $2.64 billion. Korea’s imports in 2025 stood at $631.7 billion, remaining broadly flat (down 0.02 percent year-on-year) as non-energy imports—including semiconductor manufacturing equipment—increased and energy imports declined amid falling global oil prices. The trade balance posted a surplus of $78.0 billion, extending the surplus streak to 11 consecutive months and improving by $26.2 billion year-on-year. This marked Korea’s largest trade surplus since 2017, when the surplus stood at $95.2 billion. Exports continued to be driven by its core industries—including semiconductors, automobiles, and ships—while electrical equipment, agricultural and fishery products, and cosmetics each recorded their highest export values on record, emerging as new growth drivers. By destination, exports became more diversified, with reliance on the United States and China decreasing and exports to ASEAN, Latin America, and the CIS increasing. In 2025, exports increased in six of Korea’s 15 key export items, alongside solid growth in promising items outside the top 15, including electrical equipment, agricultural and fishery products, and cosmetics. Exports of semiconductors, Korea’s largest export item, rose 22.2 percent year-on-year to an all-time high of $173.4 billion, supported by solid demand from AI data centers and a sharp rise in fixed prices for memory chips. Monthly semiconductor exports set new highs for nine consecutive months beginning in April. Automobile exports totaled $72.0 billion, up 1.7 percent, setting a new record (previously $70.9 billion in 2023). While exports to the U.S.—the largest market—declined due to tariff impacts, shipments to the EU and the CIS rose on strong demand for hybrid vehicles and used cars. Bio-health exports rose 7.9 percent to $16.3 billion, extending their growth streak for a second consecutive year. Ship exports surged 24.9 percent to $32.0 billion, while exports of computers ($13.8 billion, up 4.5 percent) and wireless communication devices ($17.3 billion, up 0.4 percent) also increased. Meanwhile, exports of items outside the top 15 increased 5.5 percent to $157.4 billion, marking a new high and further diversifying Korea’s export portfolio. Exports of agricultural and fishery products, cosmetics, and electrical equipment reached record highs, reflecting growing global demand for K-food and K-beauty products as well as rising electricity demand worldwide. By contrast, exports of petroleum products declined due to lower unit prices, while exports of petrochemicals and steel fell amid declining product prices caused by global oversupply. Exports expanded in six of Korea’s nine major export markets in 2025. Exports to China, Korea’s largest export destination, declined 1.7 percent to $130.8 billion, as decreases in petrochemicals, wireless communication devices, and general machinery offset solid semiconductor exports. Exports to the U.S. fell 3.8 percent to $122.9 billion, reflecting declines in automobiles, general machinery, and auto parts. However, double-digit growth in semiconductor exports helped moderate the overall decline. Korea’s trade surplus with the U.S. stood at $49.5 billion, down $6.1 billion from 2024. Exports to ASEAN rose 7.4 percent to $122.5 billion, driven by semiconductors, raising ASEAN’s share of total exports from 16.7 percent in 2024 to 17.3 percent in 2025. Exports to the EU rose 3.0 percent to a record high of $70.1 billion, led by automobiles and ships, with broad- date2026-01-02

Korea Reaches $66.0 Billion in January–November Auto Exports

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced on December 21 that Korea’s cumulative automobile exports for January–November 2025 reached an all-time high of USD 66.0 billion. With exports continuing at the current pace, total automobile exports in 2025 are expected to surpass the previous annual record of $70.9 billion set in 2023.  November automobile exports increased 13.7 percent year-on-year to $6.4 billion, marking the second-highest November figure on record. Eco-friendly vehicle exports totaled 78,000 units, with export value rising 26.3 percent year-on-year to $2.3 billion. Hybrid vehicles accounted for 69 percent of total eco-friendly vehicle exports, at 54,000 units, and 67 percent of export value, at $1.6 billion. On a cumulative basis, hybrid vehicle exports for January–November surpassed 500,000 units, up 27 percent year-on-year. Domestic automobile sales reached 146,000 units in November. Domestically produced vehicle sales declined 5.2 percent year-on-year to 115,000 units, while imported vehicle sales increased 18.2 percent to 31,000 units. Eco-friendly vehicle sales rose year-on-year for 21 consecutive months, totaling 71,000 units and accounting for 48.4 percent of total monthly domestic sales. By type, this included 51,000 hybrid vehicles, 18,000 EVs, 1,000 plug-in hybrid vehicles, and 1,000 hydrogen vehicles. Notably, cumulative domestic EV sales for January–November reached a record high of 207,000 units, up 52.2 percent year-on-year, driven by strong domestic EV demand. This figure has already surpassed the previous annual record of 158,000 units set in 2023. Automobile exports to all regions increased year-on-year in November. Domestic automobile production rose 2.9 percent year-on-year to 354,000 units, largely reflecting a base effect from production disruptions caused by heavy snowfall in the Seoul metropolitan area in November 2024. Cumulative automobile production for January–November totaled 3.74 million units. If current trends continue, Korea is expected to exceed 4 million units in annual production for the third consecutive year. With uncertainties eased following the conclusion of the Korea–United States tariff negotiations, MOTIR will continue to strengthen support for the domestic automobile industry’s growth next year. The ministry will promote the development of AI-based autonomous driving technologies, expand production, investment, and R&D in eco-friendly vehicles, and address export-related challenges. date2025-12-22

MOTIR Reviews Agenda Items for the Successful Convening of the 14th WTO Ministerial Conference

Director General for Trade Negotiations Kwon Hye-jin of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) will serve as Korea’s chief representative at the World Trade Organization (WTO) Senior Officials Meeting (SOM) to be held in Geneva, Switzerland, from Monday, December 15 to Wednesday, December 17, 2025. The SOM is convened approximately three months prior to the 14th WTO Ministerial Conference (MC14), scheduled for March 2026 in Cameroon. The meeting will bring together senior officials from WTO members to review the MC14 agenda, identify key deliverables, and engage in high-level consultations on current WTO issues.  Director General Kwon will also participate in the WTO General Council to discuss ways to deliver outcomes on key MC14 agenda items, including WTO reform; the incorporation of the Agreement on Electronic Commerce; the extension of the moratorium on customs duties on electronic transmissions; and the incorporation of the Investment Facilitation for Development (IFD) Agreement into the WTO system. Additionally, she will consult with WTO members on major issues, such as the continued development of the Industrial Policy Dialogue. On the margins of the meeting, Director General Kwon will meet with representatives of key trading partners, including South Africa and the European Union, to advance cooperation on the accession and expansion of the IFD Agreement, which Korea co-chairs with Chile. MOTIR underscored the importance of restoring the WTO’s functions to ensure a predictable trade and investment environment and reaffirmed its commitment to working closely with relevant ministries to deliver meaningful outcomes at the MC14. date2025-12-16

K-Trade Opens New Pathways

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Korea International Trade Association (KITA) held the 62nd Trade Day Ceremony at COEX in Seoul on Thursday, December 4, 2025, with around 1,000 attendees, including trade-merit honorees and leaders from government ministries and related institutions. 2025 Export Performance and Evaluation Despite numerous challenges, Korea’s exports are on track to reach an all-time high, recording USD 640.2 billion from January to November 2025. Since the launch of the new administration, exports have recorded six consecutive months of growth as uncertainties eased, reflecting a positive “slow start, strong finish” trajectory. Korea’s export growth this year has been driven by strong competitiveness in key manufacturing sectors such as semiconductors, automobiles, ships, and bio-related industries. K-consumer goods, including K-food and beauty products, as well as defense exports, have also performed strongly amid the global spread of Korean culture. Export destinations have diversified beyond the traditionally concentrated U.S. and Chinese markets, expanding into ASEAN, the EU, and other regions. The export base has also broadened, with the number of exporting SMEs reaching 89,000 cumulatively in the first three quarters—an all-time high—and SME export value rising to USD 87.1 billion, also marking a record high. Minister JK (Jung-Kwan) Kim stated, “This year’s achievements were made possible by the combination of our industrial competitiveness and strong export commitment, symbolizing the resilience and robustness of our economy and export sector.” He added, “Going forward, we will strive not only to surpass the all-time export record but also to open new pathways for Korean trade through industrial innovation and K-culture—and to ensure that the benefits of export growth extend to SMEs, local communities, and workers across the country.” 62nd Trade Day Ceremony and Awards Held under the slogan “K-Trade Opens New Pathways,” the 62nd Trade Day Ceremony included an opening video, welcome remarks by the KITA Chairman, a theme video, the awards ceremony, congratulatory remarks by the Prime Minister, and a commemorative program. This year, 598 individuals received government commendations, and 1,689 companies were awarded Export Towers in recognition of their contributions to Korea’s export growth. To honor the exceptional contributions of trade professionals in achieving record-high export performance amid global uncertainty—the government awarded one additional Silver Tower Order of Industrial Service Merit—following last year’s expansion of the Gold Tower Order of Industrial Service Merit. Government commendations and Export Towers were also presented on-site to individuals and companies who excelled in developing new markets and expanding Korea’s export base. This year’s award-winning companies showcased several notable trends: First, companies in core industries such as semiconductors and automobiles demonstrated sustained resilience amid challenging conditions. The Gold Tower Order of Industrial Service Merit was awarded to a semiconductor inspection equipment manufacturer expanding exports through strong technological capabilities and rising AI chip demand, as well as to an automaker diversifying its export market through manufacturing innovation and competitive product quality. The highest honor—the USD 35 billion Export Tower—was awarded to a leading HBM semiconductor company. Second, shipbuilding and defense companies posted significant growth, further broadening Korea’s export portfolio. Major Export Towers (USD 4 billion and USD 600 million) were awarded to shipbuilders advancing the transition to eco-friendly vessels, and a Silver Tower Order of Industrial Service Merit date2025-12-16

Korea’s ICT Exports Reach All-Time High in November

The Ministry of Trade, Industry and Resources and the Ministry of Science and ICT announced on December 15 that Korea’s exports of ICT goods in November 2025 rose 24.3 percent year-on-year to USD 25.5 billion. Imports increased by 2.7 percent to $12.8 billion, resulting in a trade surplus of $12.7 billion. Amid a recovery in global demand for ICT devices, ICT exports rose for the tenth consecutive month on a year-on-year basis in November, reaching an all-time high. The trade balance also posted the largest surplus on record, in line with the strong growth in exports. By product, exports of semiconductors (up 38.6 percent), mobile phones (up 3.5 percent), computers/peripherals (up 1.9 percent), and communication equipment (up 3.3 percent) increased, while display exports declined (down 3.7 percent). Semiconductor exports reached a record high, supported by continued increases in fixed memory semiconductor prices and strong demand for high-value products. Mobile phone exports rose on robust demand for high-performance components, including camera modules and 3D sensing modules. Exports of computers and peripherals returned to growth on strong SSD demand as investment in AI servers expanded.   Communication equipment exports increased thanks to recovering demand for automotive equipment in the United States and for components in Vietnam. By contrast, display exports declined, as falling LCD prices and weaker downstream demand outweighed a rebound in OLED exports. By destination, exports to India fell 8.9 percent, while exports to China, including Hong Kong (up 25.3 percent), Vietnam (up 11.6 percent), the European Union (up 18.1 percent), the United States (up 7.9 percent), and Taiwan (up 32.2 percent) all increased. Exports to Japan also rose 18.0 percent, returning to growth on higher shipments of semiconductors and computers and peripherals. ICT imports amounted to $12.8 billion in November, up 2.7 percent year-on-year, driven by increases in mobile phones, including components (up 26.9 percent), computers/peripherals (up 11.2 percent), and communication equipment (up 21.5 percent). In particular, strong demand for newly released products from major global manufacturers, launched in September, led to higher imports of finished mobile phones. By contrast, imports of semiconductors (down 3.3 percent) and displays (down 0.7 percent) declined. date2025-12-15

Roundtable with the Seoul Japan Club (SJC) and Japanese-Invested Companies

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK (Jung-Kwan) Kim) attended the roundtable with the Seoul Japan Club (SJC) and Japanese-invested companies held at the Korea Press Center on Thursday, December 11.   The meeting brought together SJC Chairman and President of Mitsubishi Corporation Korea Matsuura Tetsuya, representatives of major Japanese investors, and officials from relevant organizations, including the Japan External Trade Organization (JETRO) and the Japan Chamber of Commerce and Industry in Korea.   In his remarks, Trade Minister Yeo highlighted that Japan has become one of Korea’s largest foreign investors despite global trade uncertainties. He underscored the need to strengthen cooperation with Japan in advanced industries—including AI, semiconductors, biotechnology, and new energy—to ensure that Japan’s investment in Korea leads to strengthened bilateral supply chains. date2025-12-12

MOTIR Holds WTO Multilateral Trade Strategy Meeting

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK (Jung-Kwan) Kim) held the WTO Multilateral Trade Strategy Meeting on Wednesday, December 10, at the Korea Chamber of Commerce and Industry in Seoul.   The meeting brought together the Ministry of Economy and Finance (MOEF), the Ministry of Foreign Affairs (MOFA), the Ministry of Agriculture, Food and Rural Affairs (MAFRA), the Ministry of Oceans and Fisheries (MOF), and the Permanent Mission of the Republic of Korea in Geneva.   In his remarks, Trade Minister Yeo emphasized that “enhancing the relevance of the WTO and restoring the multilateral trading system are essential to ensuring a predictable trade and investment environment for Korean companies amid growing global trade uncertainties.” He underscored the importance of working closely with relevant ministries and like-minded members to deliver meaningful outcomes at MC14, including the incorporation of the IFD Agreement and the extension of the E-Commerce Moratorium. date2025-12-12