Ministry of Trade Industry and Resources

EU CBAM Enters Full Implementation; Government and Industry Coordinate Response

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) convened a meeting with industry stakeholders on the EU’s Carbon Border Adjustment Mechanism (CBAM) on January 8, 2026, at the Korea Iron & Steel Association. On this occasion, MOTIR and the steel industry reviewed the implications of the CBAM’s full implementation and discussed future response strategies. The CBAM entered into full force on January 1, 2026, under which carbon costs will be levied on importers of covered products entering the EU market. The EU completed legislative amendments aimed at simplifying the CBAM in October last year and, in December, enacted or revised nine secondary regulations, including methodologies for calculating carbon emissions. The remaining secondary regulations, which cover issues such as carbon prices paid in third countries, are expected to be released in the first half of this year. Major domestic steelmakers attending the meeting noted that they had established compliance systems in advance during the transitional period and therefore expected to navigate regulatory changes following the CBAM’s full entry into force. They also assessed that the EU’s recent announcements on secondary regulations have helped reduce uncertainty and highlighted that verification can now be conducted through EU-accredited domestic verifiers. At the same time, the industry called for continued intergovernmental cooperation to ensure that Korea’s industrial characteristics are duly reflected in addressing remaining ambiguities. Lee Jae-keun, Director General for New Trade Strategy and Policy at MOTIR, stated, “As the EU plans to pursue further legislative amendments through the end of this year, MOTIR will continue working with the EU to reflect the characteristics of Korean industries.” He added, “The government will communicate with EU authorities on implementation-related uncertainties and promptly provide guidance to industry.” MOTIR will pursue additional consultations with the EU based on the industry feedback gathered at the meeting and, in cooperation with relevant ministries, develop support measures in response to the CBAM’s full implementation. date2026-01-08

Trade Minister Yeo Han-koo Visits Zhongguancun in Beijing

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) visited Zhongguancun, a major hub for advanced technology and innovation, located in Haidian District, Beijing, on Tuesday, December 30, 2025. During the visit, Minister Yeo met with Kim Jong-moon, Head of the Korea Innovation Center (KIC China), and discussed the local startup ecosystem as well as the current status of Korean startups’ entry into the Chinese market. The visit formed part of the government’s efforts to strengthen support for Korean startups seeking to expand into China and to deepen on-the-ground engagement with local innovation ecosystems.    date2026-01-01

Korea–China Trade Ministers’ Meeting

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and Li Chenggang, Vice Minister of Commerce and International Trade Representative of China, held the Korea–China Trade Ministers’ Meeting on Tuesday, December 30, 2025, at China’s Ministry of Commerce. Following opening remarks, the two sides discussed measures to accelerate follow-up negotiations on services and investment under the Korea–China Free Trade Agreement (FTA) and reviewed the status of the FTA’s implementation. The meeting brought together government representatives from Korea and China to exchange views on advancing the implementation of the Korea–China FTA and strengthening bilateral trade cooperation. date2026-01-01

Draft Korean Texts of the Korea–Georgia CEPA and Korea–Malaysia FTA to be Released for Public Comment

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that it will release the draft English and Korean texts of the Korea–Georgia Comprehensive Economic Partnership Agreement (CEPA), concluded in November 2024, and the Korea–Malaysia Free Trade Agreement (FTA), concluded in October 2025. The texts will be available on the government’s FTA website (www.fta.go.kr) from December 31, 2025, to January 19, 2026, during which the ministry will accept public comments. Public comments will be accepted in accordance with MOTIR’s procedural regulations for drafting Korean translations of trade agreements (MOTIR Directive No. 127) to ensure procedural transparency and enhance the reliability of the translations. In consultation with relevant ministries and experts, MOTIR plans to review submitted public input and reflect it, as appropriate, in the final Korean versions. Following reviews by the Ministry of Foreign Affairs and the Ministry of Government Legislation, the agreements will be formally signed after consultations with Georgia and Malaysia, and subsequently submitted to the National Assembly for ratification in accordance with the Trade Treaty Conclusion Procedure Act. date2025-12-31

Korea and China Hold Trade Ministers’ Meeting

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and Li Chenggang, Vice Minister of Commerce and International Trade Representative of China, held the Korea–China Trade Ministers’ Meeting on Tuesday, December 30, 2025, at China’s Ministry of Commerce. At the meeting, the two sides discussed ways to accelerate the subsequent negotiations for services and investment under the Korea–China Free Trade Agreement (FTA) and reviewed the status of the FTA’s implementation. To expedite the subsequent negotiations for services and investment, the two sides agreed to regularly convene in-person meetings from 2026 onward, aiming to narrow differences through focused discussions on outstanding issues. They also agreed to hold an additional Trade Ministers’ Meeting in the first half of next year, at which Trade Minister Yeo Han-koo and Representative Li Chenggang will directly review progress in the negotiations and discuss outstanding issues. The discussions further addressed issues related to the implementation of the Korea–China FTA, including those concerning intellectual property rights, the petrochemical sector and government procurement issues. Both sides reaffirmed their commitment to strengthening bilateral cooperation based on the FTA framework. Ahead of the Trade Ministers’ Meeting, Trade Minister Yeo met with Korean stakeholders with business operations in China on December 29, 2025, to review major business trends and hear firsthand about challenges faced by stakeholders on the ground. The Trade Minister and the Korean delegation categorized these concerns by sector, distinguishing between issues that can be addressed in the short term and those requiring mid- to long-term consultations, and exchanged views with stakeholders on future support measures. The Stakeholder concerns raised at the meeting were discussed at the Trade Ministers’ Meeting and will also continue to be addressed in the subsequent negotiations and at the Joint Committee and relevant Committees under the Korea-China FTA as FTA implementation issues. Going forward, MOTIR plans to maintain regular communication with stakeholders to ensure that on-the-ground perspectives are incorporated into policy discussions, while strengthening support to stabilize the business environment and enhance market access for Korean stakeholders in China. During the visit, Trade Minister Yeo held separate meetings with high-level officials (minister-level) from the China Council for the Promotion of International Trade (CCPIT) and the Development Research Center of the State Council (DRC). The discussions covered changes in the global trade environment, the industrial impact of supply chain restructuring and technological innovation, as well as ways to strengthen Korea–China trade cooperation. The need to maintain sustained policy dialogue channels on shared challenges facing stakeholders in both countries, including environmental and digital transitions, evolving global rules, and enhancing the predictability of trade and investment cooperation was underscored during the meetings. Building on this shared understanding, MOTIR plans to gradually establish a practical foundation for cooperation by expanding policy research collaboration and strengthening industry-level communication. In addition, Trade Minister Yeo visited the Korea Innovation Center (KIC) in Zhongguancun to discuss ways to support Korean startups’ entry into the Chinese market. Trade Minister Yeo also visited GALBOT (Beijing Galaxy General Robot Co., Ltd.), an innovative Chinese robotics company, and met with a top executive to observe how robots are deployed in real production settings for quality control, process automation, and digital transformation. The discussions covered key use cases, on-site demand, potential areas for technological cooperation with Korean compan date2025-12-30

MOTIR Holds Public Hearing to Gather Stakeholder Views on Advancing a Korea–Egypt CEPA

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) convened a public hearing on Monday, December 22, at Conrad Seoul to gather stakeholder views on advancing the Korea–Egypt Comprehensive Economic Partnership Agreement (CEPA). Building on the Trade and Economic Partnership MOU signed with Egypt’s Ministry of Investment and Foreign Trade in 2022, MOTIR has jointly conducted a feasibility study to support advancing a Korea–Egypt CEPA. During the Korea–Egypt summit held in November, the two countries agreed to pursue a CEPA as an institutional framework to expand bilateral trade and investment, as well as to strengthen cooperation across diverse areas, including supply chains, the digital sector, and energy. The two sides have since accelerated related procedures, such as concluding the joint economic feasibility study. The public hearing brought together Korean companies operating in Egypt, the Korea Institute for International Economic Policy (KIEP), the Korea International Trade Association (KITA), the Korea Trade-Investment Promotion Agency (KOTRA), and regional experts, who shared views on the expected effects of the Korea–Egypt CEPA and key considerations. One expert panel noted that “advancing a CEPA with Egypt—a key economy in North Africa and a logistics hub anchored by the Suez Canal—carries significant strategic importance, particularly in terms of expanding into emerging export markets amid rapidly shifting global trade conditions.” MOTIR will establish a negotiation roadmap for a Korea–Egypt CEPA by reflecting feedback gathered at the public hearing and will continue domestic and international consultations to facilitate the early launch of negotiations. date2025-12-22

Republic of Korea and Japan Strengthen Collaboration on Critical Mineral Supply Chains

The Republic of Korea and Japan are accelerating cooperation to stabilize sustainable supply chains between producer and consumer countries, amid growing instability in the global supply chain for critical minerals. In line with these efforts, the Ministry of Trade, Industry and Resources (hereinafter ‘MOTIR’) held the ‘2nd ROK-Japan Mineral Resources Cooperation Dialogue’ with Japan's Ministry of Economy, Trade and Industry (hereinafter ‘METI') at the Lotte Hotel in Seoul on December 17. Korea and Japan have developed similar industrial frameworks that are focused on advanced manufacturing sectors, such as semiconductors, batteries, and materials and components. Both countries are significant consumers of critical minerals and, as such, rely substantially on imports to fulfill their domestic requirements. In light of the recent segmentation of critical mineral supply chains—particularly between the United States and China—and the enhanced collaboration among producing countries, there is growing recognition of the importance of fostering international cooperation that reflects the perspectives and interests of consuming countries. In celebration of the 60th anniversary of diplomatic relations between Korea and Japan, both countries have recognized the importance of securing global critical mineral supply chains as a pivotal area for collaboration. In this spirit, they convened the inaugural ROK-Japan Mineral Resources Cooperation Dialogue in February of this year, reaffirming their commitment to joint efforts in this essential sector. At that time, the two countries discussed comprehensive cooperation measures, including △joint procurement of critical minerals and △stockpiling cooperation, and agreed to hold this dialogue regularly. Since then, both countries have jointly responded to policy uncertainties by continuing engagements including bilateral meetings on the sidelines of multilateral conferences. This second meeting was arranged as a follow-up to review the outcomes of cooperation over the past year and to deepen collaboration further. At this meeting, the two countries focused on discussing: △ Responding to low copper TC/RC situation, △ Strengthening cooperation within multilateral consultative bodies such as the G7 and the Mineral Security Partnership (MSP), and △ Exploring ways to initiate joint critical mineral development and production projects in third country destinations. A particularly noteworthy aspect of the discussion was the recent rise in copper prices alongside the prevailing instability in the supply of copper concentrate. Both countries underscored the importance of strengthening their collaboration and establishing tangible measures to stabilize global copper supply while promoting sustainable co-prosperity between mining operations and smelters. MOTIR stands ready to facilitate ROK-Japan joint projects, particularly in Latin America, Asia, and Africa, where Korean companies can either expand their engagement or enter into new projects. MOTIR aims further to enhance cooperation with Japan and other like-minded countries to establish a more stable supply chain for critical minerals. It will also actively pursue collaborative models that allow both producing and consuming countries to thrive together in the global critical minerals market. date2025-12-18

Korea and the EU Launch Efforts to Operationalize Supply Chain and Economic Security Partnership

Park Jung-sung, Deputy Minister for Trade at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), met with Denis Redonnet, Deputy Director-General of the European Commission’s Directorate-General for Trade and Economic Security, in Seoul on Wednesday, December 17. As the EU’s top trade enforcement official, Deputy Director-General Redonnet oversees key trade agendas, including free trade agreements, trade remedies, and economic security. The meeting followed the December 2 meeting between Trade Minister Yeo Han-koo and European Commissioner for Trade and Economic Security Maroš Šefčovič and was held to discuss the implementation of the Korea–EU Next Generation Strategic Dialogue agreed at that time, as well as ways to strengthen cooperation on economic security, supply chains, and technology. Deputy Minister Park noted that growing protectionism, intensifying technological competition, and disruptions in global supply chains are increasing uncertainty in the global economy. He stated that economic security alliances and strategic coordination among like-minded countries are emerging as key drivers of competitiveness. While underscoring that Korea and the EU have grown together on the basis of free trade, he emphasized the need to further strengthen cooperation to develop the bilateral partnership into a future-oriented one encompassing economic security and advanced industries. Against this backdrop, the two sides welcomed the elevation of the ministerial-level Korea–EU FTA Trade Committee, which previously focused on goods and services, into the Next Generation Strategic Dialogue on Trade, Supply Chains, and Technology, as agreed during the trade ministers’ meeting on December 2. They shared the view that this dialogue framework would enable more comprehensive and higher-level cooperation and agreed to work closely toward holding its first meeting in the first half of 2026. The Korean side also conveyed the concerns and requests of Korean companies regarding key industrial issues, including steel, nuclear power, and batteries, and called for the EU’s active cooperation. On steel, the Korean side expressed concerns over the EU’s plan to introduce new steel import measures and emphasized the need to secure the maximum possible export allocation for Korean steel products. Regarding the EU’s Foreign Subsidies Regulation (FSR) investigation related to the Czech nuclear power project, the Korean side emphasized that Korea Hydro & Nuclear Power was selected through a transparent and fair bidding process in compliance with EU rules and reaffirmed that no subsidies inconsistent with market principles were provided, requesting that the investigation be conducted fairly and reasonably. On batteries, the Korean side requested that the EU support expanding demand for EV and ESS batteries produced within the EU, consider including the battery industry in the Energy Intensive Industry sector, and advance the delayed follow-up legislation under the Battery Regulation promptly and predictably. The Korean side also welcomed the European Commission’s efforts to simplify the Carbon Border Adjustment Mechanism (CBAM), positively noting that recent revisions reflected Korea’s concerns, including the partial easing of certification requirements and the introduction of exemption criteria for SMEs. It called for continued bilateral communication to ensure that the mechanism becomes more reasonable and predictable. Based on the meeting outcomes, the two sides agreed to operate a standing communication channel on key trade issues to ensure that the Korea–EU Next Generation Strategic Dialogue delivers tangible outcomes. date2025-12-18

Meeting with Norway’s State Secretary for Trade, Industry and Fisheries

Park Jung-sung, Deputy Minister for Trade at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK (Jung-Kwan) Kim), met with Ragnhild Sjoner Syrstad, State Secretary at Norway’s Ministry of Trade, Industry and Fisheries, at Lotte Hotel in Seoul on Tuesday, December 16, to discuss ways to strengthen substantive bilateral cooperation between Korea and Norway in response to recent changes in the global trade environment.   Deputy Minister Park noted that bilateral trade has expanded both in scale and in quality since the entry into force of the FTA and emphasized that practical cooperation between Korea and Norway is advancing in the shipbuilding sector, particularly in autonomous navigation and AI-based future ship technologies. He added that Korea hopes to further expand bilateral cooperation into advanced industries, including the green transition and critical supply chains. date2025-12-18

Signing Ceremony for the Conclusion of the Korea–UK Free Trade Agreement (FTA) Upgrade Negotiations

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK (Jung-Kwan) Kim) and Sir Chris Bryant, Minister of State at the United Kingdom’s Department for Business and Trade, met in London on Monday, December 15, and signed a joint declaration confirming the conclusion of the Korea–UK Free Trade Agreement (FTA) upgrade negotiations.   Trade Minister Yeo emphasized that “the upgraded Korea–UK FTA will strengthen the free-market system in a trade environment with heightened uncertainty,” noting that it would provide an opportunity to enhance economic cooperation ties with the UK, a key partner in Europe. Sir Chris Bryant remarked that the agreement would boost the UK’s world-class services sector and support iconic brands, helping to accelerate economic growth. date2025-12-18