Ministry of Trade Industry and Resources

MOTIR Reviews Impact of Prolonged Middle East Conflict on Key Export Items and Delivery of Support Measures

The Korean government has stepped in directly to address difficulties facing key export industries, as it moves to minimize export disruptions from the prolonged conflict in the Middle East. Following the launch of a pan-government export support system on March 11, 2026, it is now taking a closer look at sector-specific impacts and stepping up tailored support, including logistics and liquidity assistance. The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held a meeting with major exporters at the Korea Trade Insurance Corporation (K-SURE) on March 26, 2026, to review conditions across key sectors and the export outlook in the wake of the war in the Middle East. The meeting was chaired by Na Sung-hwa, Director General for International Trade Policy, and was attended by representatives from eight key industries: semiconductors, automobiles, machinery, petroleum products, petrochemicals, steel, biohealth, and displays. Companies voiced concern over rising freight rates and war-risk surcharges tied to uncertainty in the Strait of Hormuz, as well as possible delays in financing and payments and instability in raw material supplies. To address these concerns, the government will accelerate existing logistics and liquidity support and improve implementation on the ground. First, the government will continue rolling out emergency logistics vouchers. MOTIR is accepting applications through the end of March 2026 for KRW 8 billion in emergency vouchers to help cover international shipping costs, return shipping, war-risk surcharges, and rerouting charges. For companies with a high share of exports to the Middle East, the ministry is also operating a fast-track program that issues vouchers within three days of application. As of March 24, 44 companies had received support. The Ministry of SMEs and Startups (MSS) has also been running a KRW 10.5 billion emergency logistics voucher program since March 20, 2026. The government will also move quickly to provide KRW 24.2 trillion in emergency liquidity support through policy finance institutions. K-SURE has expanded working-capital guarantees for exporters to the Middle East and increased import insurance support for sectors facing urgent raw-material needs, including petrochemicals, from KRW 2.8 trillion in 2025 to KRW 3.4 trillion in 2026. The Financial Services Commission (FSC) is operating financial support programs worth KRW 20.3 trillion, while MSS is providing additional support through its emergency management stabilization funds. The government will further strengthen one-stop support for exporters affected by the Middle East crisis. The Korea Trade-Investment Promotion Agency (KOTRA), the Korea International Trade Association (KITA), and MSS’s regional export support centers will continue sharing local information and coordinating responses, while other ministries step up cooperation on logistics and liquidity issues. In addition, MOTIR will use the supply chain support center launched on March 23, 2026, in response to the situation in the Middle East, to closely monitor supply conditions for items highly dependent on the region and products exposed to knock-on effects, while providing focused support to resolve bottlenecks. The government also plans to expand support for exporters facing difficulties from the prolonged conflict through the supplementary budget now being prepared. “Swift action matters, but so does making sure support is delivered smoothly on the ground,” said Director General Na. “We will closely review each stage of implementation and make adjustments where needed so that measures such as the emergency export vouchers and trade insurance package deliver tangible support for exporters.” date2026-03-26

Major Retailer Sales Up 7.9% in February 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 February 2026 rose 7.9 percent year-on-year, with offline sales up 14.1 percent and online sales up 3.9 percent. Offline sales at hypermarkets (up 15.1 percent), department stores (up 25.6 percent), and convenience stores (up 4.0 percent) posted strong growth during the Lunar New Year holiday season, while super supermarkets (SSMs) (down 0.4 percent) fell slightly. Hypermarket sales returned to growth for the first time in four months since the Chuseok holiday boost in October 2025. Department stores and convenience stores extended their growth streaks to eight consecutive months since July 2025. SSM sales declined for a third consecutive month since December 2025. At hypermarkets, food sales rose 18.8 percent, driven by Lunar New Year demand for holiday gift sets and key seasonal food items. Department store sales increased across all categories, including food (up 65.0 percent), women’s casual wear (up 25.1 percent), and premium international brands (up 22.6 percent), as consumer sentiment improved. Convenience store sales continued to rise, led by processed foods (up 8.1 percent), including beverages, snacks, and desserts. SSM sales, by contrast, fell for the third consecutive month due to weaker non-food sales (down 2.0 percent), including everyday household goods. Online sales rose, driven by food (up 17.4 percent) and cosmetics (up 7.4 percent), while home appliances and electronics (down 4.6 percent) and fashion/apparel (down 3.7 percent) declined. Sales shares by channel were 58.5 percent for online retailers, 15.9 percent for department stores, 13.0 percent for convenience stores, 10.5 percent for hypermarkets, and 2.0 percent for SSMs. date2026-03-25

February 2026 Automobile Exports Reach $4.8 Billion

In February 2026, automobile exports (down 18.5 percent), domestic sales (down 7.2 percent), and production (down 21.0 percent) all declined year-on-year, reflecting three fewer working days due to the Lunar New Year holiday. However, cumulative exports of eco-friendly vehicles in January–February 2026 reached a record USD 4.5 billion, up 20.4 percent year-on-year. Automobile exports totaled 190,000 units in February, down 18.5 percent year-on-year, while export value fell 20.8 percent to USD 4.8 billion. Despite fewer working days due to the Lunar New Year holiday, eco-friendly vehicle exports posted only a modest decline, down 2.3 percent year-on-year, thanks to strong hybrid exports. By automaker, GM Korea and Renault Korea posted relatively stable results, led by their main export models. Domestic sales fell 7.2 percent year-on-year to 123,000 units in February. Eco-friendly vehicle sales rose 26.3 percent to 76,000 units, led by electric vehicles, which surged 156.2 percent year-on-year to 36,000 units. Production totaled 278,000 units in February, down 21.0 percent year-on-year. By model, the Trax recorded the highest output, followed by the Avante and Sportage. All automakers posted year-on-year declines, reflecting fewer working days due to the holiday. date2026-03-19

Korea’s National Assembly Passes Special Act for Korea–U.S. Strategic Investment Management

The National Assembly of Korea passed the Special Act for Korea–U.S. Strategic Investment Management (the “Korea–U.S. Strategic Investment Special Act”) at its plenary session on March 12, 2026.  Following the signing of the Memorandum of Understanding (MOU) on Korea–U.S. Strategic Investment on November 14, 2025, the Korean government and the National Assembly moved swiftly to prepare special legislation to establish the legal and institutional basis for its implementation. The first bill was introduced on November 26, 2025, and was followed by eight additional bills. To expedite deliberations, the National Assembly, by bipartisan agreement, set up a special committee for a one-month term beginning on February 9, 2026. After intensively reviewing all nine bills, the National Assembly passed the final bill at today’s plenary session, about four months after the governments of Korea and the United States signed the MOU. The Korea–U.S. Strategic Investment Special Act gives domestic legal effect to the MOU by defining the scope and principles of strategic investment and setting out the implementation framework and safeguards. Under the Act, “strategic investment” refers to Korea’s USD 200 billion commitment to invest in strategic industries in the United States and a separate USD 150 billion shipbuilding cooperation package approved by the United States. The Act provides that U.S.-bound investment must, in principle, be carried out on a commercially reasonable basis and in a manner consistent with the national interest, including the development of the national economy and stronger industrial competitiveness. It also allows exceptions, subject to prior consent from the relevant standing committees of the National Assembly, when unavoidable grounds exist, such as national security or supply chain stability. The Act establishes a dual-track implementation structure for strategic investment. Candidate projects will first be reviewed by the Project Management Committee under the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) for commercial reasonableness as well as strategic and legal considerations. The Operating Committee under the Korea–U.S. Strategic Investment Corporation will then decide whether to proceed, taking into account the review results and the fund’s financial position. The Korean government will report the matter to the relevant standing committees of the National Assembly before consulting with the United States. Final decisions on investment and execution will be made by the Operating Committee following bilateral consultations and the relevant U.S. procedures. The Act also includes safeguards and a funding framework for implementation. U.S.-bound investment will be capped at USD 20 billion per year and executed in line with project progress. If there are concerns about foreign exchange market instability or possible disruptions to the recovery of principal and interest, the Korean government must consult with the U.S. on adjustments to the timing and scale of execution or to the distribution of cash flows. Furthermore, the Act provides for the establishment of the Korea–U.S. Strategic Investment Fund within the Korea–U.S. Strategic Investment Corporation. Separate accounts will be maintained for U.S.-bound investment and support for shipbuilding cooperation investment. Minister JK (Jung-Kwan) Kim of MOTIR said, “The passage of the Act reflects the shared commitment of the Korean government and the National Assembly to keep the bilateral tariff agreement on track and further strengthen the Korea–U.S. strategic partnership.” He added that the ministry will work closely with the U.S. to ensure that implementation of the MOU helps deepen cooperation in strategic industries, expand opportunities for Korean companies in the U.S. market, and strengthen bilateral sup date2026-03-16

USTR Launches Section 301 Investigation into Manufacturing Overcapacity

On March 12, 2026, the Office of the United States Trade Representative (USTR) announced in the Federal Register that it is initiating an investigation under Section 301 of the Trade Act of 1974 into acts, policies, and practices related to structural excess capacity and production in manufacturing sectors covering a total of 16 trading partners, including Korea, China, the European Union (EU), and Japan.  According to the notice, the investigation will examine whether those acts, policies, and practices are unreasonable or discriminatory and burden or restrict U.S. commerce. The economies subject to the investigation are China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India. USTR also requested consultations with the economies concerned in connection with the Section 301 process. Written comments from interested parties on the investigation must be submitted between March 17 and April 15, 2026, and USTR announced that public hearings are scheduled to begin on May 5, 2026. Since the IEEPA (International Emergency Economic Powers Act) ruling, the U.S. government has said it plans to restore U.S. tariff levels to their pre-ruling levels through measures under Sections 122 and 301 of the Trade Act. During the investigation, the Korean government will remain in close consultations with the U.S. side to ensure that the balance of benefits under the existing Korea–U.S. tariff agreement is not undermined and that Korean exporters are not placed at a disadvantage relative to other major trading partners. date2026-03-13

February ICT Exports and Trade Surplus Hit Record Highs, with Exports Up 103.3%

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Ministry of Science and ICT (MSIT, Deputy Prime Minister and Minister Bae Kyung-hoon) announced on March 13, 2026, that Korea’s ICT exports in February totaled USD 33.6 billion, up 103.3 percent year-on-year. Imports rose 19.6 percent year-on-year to $13.1 billion, resulting in a trade surplus of $20.6 billion. In February 2026, ICT exports posted the highest February total on record and recorded triple-digit growth for the first time for the month, despite three fewer working days than a year earlier due to the Lunar New Year holiday. ICT products accounted for 49.8 percent of Korea’s total exports, which stood at $67.5 billion. By product, exports increased for semiconductors (up 160.8 percent), mobile phones (up 16.9 percent), and computers and peripherals (up 187.8 percent), but decreased for displays (down 7.5 percent) and communication equipment (down 9.0 percent). Semiconductor exports remained above $20 billion for the third consecutive month, as memory prices continued to rise and exports of high-value products increased amid expanding global demand for AI servers. Mobile phone exports rose on initial shipments following new product launches and stronger demand for premium smartphones. Computers and peripherals posted triple-digit growth for the fourth consecutive month, reflecting solid SSD demand and higher prices amid continued investment in AI infrastructure. Display exports declined despite expanded OLED supply for smartphones, as demand for IT devices remained weak and competition in the LCD market intensified. Communication equipment exports also fell, as shipments of automotive electronics equipment and wireless communications device parts to key markets, including the United States and Vietnam, declined. By destination, exports increased in all major markets: the United States (up 200.7 percent), China, including Hong Kong (up 109.9 percent), Taiwan (up 98.8 percent), the European Union (up 78.1 percent), Vietnam (up 44.0 percent), Japan (up 37.3 percent), and India (up 9.9 percent). ICT imports totaled $13.1 billion in February 2026, up 19.6 percent from $10.9 billion a year earlier, as imports increased across most major ICT categories: semiconductors (up 19.3 percent), displays (up 13.6 percent), mobile phones including parts (up 96.0 percent), and computers and peripherals (up 52.2 percent). date2026-03-12

Minister JK Kim Attends Korea–Philippines Business Partnership Event

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) visited the Korea–Philippines Business Partnership event at the SMX Convention Center in Manila on March 4, 2026, during President Lee Jae Myung’s state visit to the Philippines.  The event brought together Korean companies in consumer-goods sectors such as food, beauty, and healthcare to expand business cooperation with Philippine partners. Minister Kim stated, “Korean products, including beauty and food, are gaining popularity in the Philippines. MOTIR will work closely with relevant ministries and agencies to support Korean companies as they expand their business in the Philippines and the wider Southeast Asian market.” date2026-03-04

February 2026 Exports Hit Record High for Any February at $67.5 Billion

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that in February 2026, Korea’s exports rose 29.0 percent year-on-year to USD 67.5 billion, while imports increased 7.5 percent to $51.9 billion, resulting in a $15.5 billion surplus. Exports reached the highest level on record for any February, despite three fewer working days following the shift of the Lunar New Year holiday. Average daily exports (adjusted for working days) increased 49.3 percent to $3.6 billion, exceeding $3.0 billion for the first time. By product, exports increased in five of Korea’s 15 key export items. Semiconductor exports rose to $25.2 billion (up 160.8 percent), posting the highest monthly figure on record and extending exports above $20.0 billion for a third consecutive month. Wireless communication devices reached $1.5 billion (up 12.7 percent), led by mobile phones ($0.5 billion, up 131.6 percent), while computers increased to $2.6 billion (up 221.6 percent), and bio-health products to $1.3 billion (up 7.1 percent). By contrast, automobiles fell to $4.8 billion (down 20.8 percent) and auto parts to $1.5 billion (down 22.4 percent), reflecting fewer working days due to the holiday shift. Petroleum products fell to $3.7 billion (down 3.9 percent) as lower export prices offset higher shipment volumes, while petrochemicals dropped to $3.3 billion (down 15.4 percent), steel to $2.4 billion (down 7.8 percent), and general machinery to $3.3 billion (down 16.3 percent). By destination, exports increased in seven of Korea’s nine major markets. Shipments to the United States rose to $12.9 billion (up 29.9 percent), the highest on record for any February. Exports to China grew 34.1 percent to $12.8 billion, led by semiconductors, computers, and petroleum products. Exports to ASEAN increased to $12.5 billion (up 30.4 percent), while exports to the EU rose to $5.6 billion (up 10.3 percent). Imports rose 7.5 percent year-on-year to $51.9 billion. Energy imports edged down to $9.3 billion (down 1.4 percent), as crude oil imports fell to $5.4 billion (down 11.4 percent), while gas imports increased to $2.6 billion (up 15.9 percent). Non-energy imports rose 9.6 percent to $42.6 billion, including semiconductors ($6.8 billion, up 19.1 percent), semiconductor equipment ($2.6 billion, up 43.4 percent), and mobile phones ($1.0 billion, up 80.2 percent). The trade surplus in February reached $15.5 billion, up $11.6 billion from 2025, marking the largest on record for any month and extending Korea’s surplus streak to 13 consecutive months since February 2025. Minister JK (Jung-Kwan) Kim stated, “Despite fewer working days following the Lunar New Year shift, exports extended their growth streak to nine consecutive months, led by key items such as semiconductors, computers, and ships.” He noted that export uncertainty is rising amid heightened tensions in the Middle East and recent U.S. tariff measures and said the government will monitor trade flows and take measures as needed to limit potential disruptions. He added that the government will continue consultations with the United States to ensure that the benefits secured under the Korea–U.S. tariff agreement are maintained and that conditions for exports to the U.S. market are not adversely affected. He added that the government will strengthen the trade structure to remain resilient to external shifts, based on the government-wide export expansion package announced on February 25, 2026. The package focuses on diversifying export items and markets, upgrading export support—including finance, trade fairs, and infrastructure—and broadening the exporter base through step-by-step support for SMEs and regional companies. The government will pursue these measures to help Korea rank among the world’s top five exporters this year. date2026-03-03

MOTIR Hosts First Public–Private Export Expansion Meeting

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) chaired the first Public–Private Export Expansion Meeting on February 25, 2026, at the KOTRA headquarters in Seoul. Prior to the meeting, he attended the signing ceremony of an MOU between the Korea Trade Insurance Corporation (K-SURE) and Hana Bank to provide KRW 5.0 trillion in preferential financing for exporting SMEs and mid-sized firms.  Participants included officials from the Ministry of Economy and Finance (MOEF) and the Ministry of Health and Welfare (MOHW), as well as representatives from K-SURE, Hana Bank, and leading companies across key industries such as automobiles, bio, nuclear power, defense, power equipment, steel, and shipbuilding. The meeting focused on public–private cooperation measures to sustain export momentum amid a rapidly changing global trade environment. In his remarks, Minister Kim stressed the need to maintain export momentum despite heightened uncertainty and reaffirmed the government’s commitment to proactive export diversification. He also highlighted plans to expand support for priority export sectors and strengthen inclusive trade finance to broaden the export base. date2026-02-27

Korea Reviews U.S. Entry and Stay Issues for U.S.-Investing Companies and Steps Up Industry Outreach

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), the Ministry of Foreign Affairs (MOFA, Minister Cho Hyun), and the Ministry of SMEs and Startups (MSS, Minister Han Seong-sook) held a joint meeting on February 25, 2026, to review entry and stay-related issues faced by Korean companies investing in the United States. Review Meeting on U.S. Entry and Stay Issues for U.S.-Investing Companies Date/Time: February 25, 2026 (Wed.), 15:00–16:30 Venue: Korea Chamber of Commerce and Industry (KCCI), Seoul Participants: Government (Co-chairs) – Director of Korea–U.S. Trade and Cooperation Division at MOTIR, Director of North American Economic Affairs Division at MOFA, Director of International Trade and Cooperation Division at MSS Companies – LG Energy Solution, Samsung SDI, SK On, LG Chem, Dongwha Electrolyte, Enchem, Samsung Electronics, SK Hynix Associations: Korea Battery Industry Association (KBIA), Korea Semiconductor Industry Association (KSIA) The meeting was convened in response to growing demand to dispatch personnel to the United States as Korean companies expand investment in the U.S. battery and semiconductor sectors. Participants reviewed difficulties encountered by companies during visa issuance, immigration inspections, and local stay procedures, and shared suggestions for improvement. The ministries also shared recent developments in U.S. rules and practices.  Based on the suggestions raised, the government will continue consultations with the U.S. side. Reflecting requests for more sector-specific discussions, future meetings will include not only large investors but also partner firms that are expanding into the United States alongside them. Starting with batteries and semiconductors, the government will hold a series of sector-specific meetings in the first half of 2026—including automobiles and shipbuilding—to review challenges across the investment ecosystem and continue working to ensure a stable environment for investment in the United States. date2026-02-26