Ministry of Trade Industry and Resources

Minister Ahn Discusses Stronger Korea-U.S. Cooperation with U.S. Embassy Chargé d'Affaires ad Interim

Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy (MOTIE) held talks with Ambassador Joseph Yun, Chargé d'Affaires ad interim at the U.S. Embassy in Seoul, on February 21, 2025, to discuss measures to strengthen Korea-U.S. cooperation in trade, investment, and energy. The two sides also agreed to continue joint efforts to ensure the successful hosting of the Asia-Pacific Economic Cooperation (APEC) 2025 in Korea. Minister Ahn noted that Korea-U.S. relations have developed into an economic and advanced industrial alliance, supported by the steady expansion of bilateral trade and investment. He expressed hope that cooperation between the two countries would continue to expand and deepen under the new U.S. administration. Viewing that the Korea-U.S. partnership has strong potential to deepen cooperation in advanced sectors such as batteries, semiconductors, shipbuilding, and energy, Minister Ahn underscored the need to maintain consistency and stability in key policies and systems on both sides that could affect bilateral trade and investment. Chargé d'Affaires ad interim Yun responded that the U.S. Embassy would do its utmost to bolster the Korea-U.S. alliance, which has developed deep ties in security, the economy, and other areas over the past 70 years. The Korean government plans to maintain close consultation with the U.S. government while monitoring the new administration’s trade and economic measures and their potential impact on bilateral trade and investment. date2025-02-21

Korea and Netherlands Discuss Stronger Industrial Cooperation

Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy (MOTIE) met with Dutch Minister of Economic Affairs Dirk Beljaarts in Seoul on February 20, 2025, to discuss measures to strengthen Korea-Netherlands industrial cooperation. Among EU member states, the Netherlands is Korea’s second largest trading partner, with bilateral trade reaching USD 15.0 billion in 2024, and its largest investor, with cumulative investment pledges totaling $39.9 billion as of September 2024. Businesses from both countries are actively collaborating in advanced industries such as semiconductors and batteries. During today’s talks, the two sides discussed bilateral cooperation, economic security, supply chains, and semiconductors, sharing recent industrial policy developments and progress in cooperation. Noting the active Korea-Netherlands joint R&D cooperation in information and communications technology (ICT) and biotechnology, Minister Ahn expressed hope that technology collaboration would expand through continued in-depth consultations within the bilateral Joint Innovation Committee established between MOTIE and the Netherlands’ Ministry of Economic Affairs. Minister Ahn highlighted the need for continued intergovernmental cooperation on export controls and supply chains, and both sides agreed that economic security is a key issue shared by the two countries amid growing uncertainty in global trade. Commending the smooth progress of the bilateral semiconductor dialogue, the Future Chips Academy, and other joint semiconductor initiatives since the establishment of the Korea-Netherlands Semiconductor Alliance in December 2023, Minister Ahn underscored the importance of close bilateral cooperation amid growing uncertainties in the global semiconductor supply chain. date2025-02-20

Korea and Czech Republic hold 2nd Supply Chain and Energy Dialogue (SCED)

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea held the second Supply Chain and Energy Dialogue (SCED) meeting with the Czech Minister for Industry and Trade Lukáš Vlček today in Seoul to take stock of cooperation progress in trade, investment, supply chains, advanced industries, carbon-free energy, and nuclear power and to hold in-depth discussions on cooperative measures going forward. Following the talks, the two sides also signed an MOU on bilateral semiconductor cooperation. date2025-02-17

Korea and Malaysia Begin Seventh Round of Bilateral FTA Negotiations

Director General for FTA Negotiations Kwon Hye-jin at the Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun) is leading the Korean delegation in the seventh round of official negotiations for the Korea-Malaysia Free Trade Agreement (FTA), being held from February 17 to 20, 2025, in Kuala Lumpur, Malaysia. The Malaysian delegation is led by Senior Director for Strategic Negotiations Sumathi Balakrishnan at the Ministry of Investment, Trade and Industry (MITI).  Since the two countries jointly announced the resumption of bilateral FTA negotiations last March, the two sides have made swift progress through the subsequent fourth, fifth, and sixth rounds. In the seventh round, the Korean government aims to move negotiations forward in areas including goods, services, investment, rules of origin, and economic cooperation, with a focus on expanding bilateral  trade, investment, and promotion, as well as improving market access. date2025-02-17

Effective Tariff Rate on U.S. Imports Remains Close to Zero Under the Korea-U.S. FTA

Following the Trump administration’s announcement on its memorandum on reciprocal trade and tariffs on February 14, 2025, several foreign media outlets reported that Korea applies an average tariff rate of approximately 13.6 percent to U.S. imports, behind only Mexico and Canada. According to the World Tariff Profile published in July 2024, Korea's average Most Favored Nation (MFN) tariff rate is approximately 13.4 percent. However, Korea has free trade agreements (FTAs) with many of its major trading partners, which have significantly lowered the effective tariff rates on imports from those countries. Korea signed an FTA with the United States in June 2007, and the agreement took effect in March 2012. As of 2024, the effective tariff rate on U.S. imports is approximately 0.79 percent before duty refunds. The rate is even lower when refunds are taken into account and is expected to decline further in 2025 under the scheduled tariff reductions. Under the Korea-U.S. FTA, tariffs on U.S. manufactured goods enter Korea duty-free. date2025-02-14

Joint press release on the substantial conclusion of discussions for Costa Rica’s accession to the Digital Economy Partnership Agreement

The Parties to the Digital Economy Partnership Agreement (DEPA) are pleased to announce that substantive discussions for Costa Rica to accede to this world-leading digital trade agreement have substantively concluded.   Digitally signed in 2020 by Chile, New Zealand and Singapore, the DEPA is the world’s first standalone digital trade agreement, representing a leading-edge form of economic engagement and trade in the digital era. It reinforces commercially meaningful trade rules, establishes new approaches and collaborations in digital trade issues, promotes interoperability between different settings, and addresses the new issues brought about by digitalisation. It is designed to be an inclusive framework, open to economies that meet the high standards of the Agreement. The Republic of Korea joined the Agreement on 3 May 2024, the first new member economy to do so.   Costa Rica formally requested accession to the DEPA on 23 December 2022, and an Accession Working Group to assess this request was established on 6 October 2023. This Accession Working Group, chaired by New Zealand, has agreed that Costa Rica has demonstrated the means by which it will comply with the DEPA’s high standards, as well as a commitment to working collaboratively on projects of mutual interest, in areas such as electronic invoicing, consumer protection, and cross border data transfers.   The DEPA Parties will now work with Costa Rica to finalise its accession process in a timely manner consistent with each Party’s domestic procedures and the DEPA Accession Process.   Chile’s Vice Minister of International Economic Relations Claudia Sanhueza said, “We are delighted to announce, together with the other DEPA members, the substantive conclusion of Costa Rica's negotiations for its accession. Chile is pleased with this achievement, which will undoubtedly enhance the agreement's impact by extending its high digital economy standards to new members, this time to a Latin American country. Costa Rica has demonstrated remarkable dedication and commitment throughout this process, and we look forward to collaborating on projects of mutual interest for our countries.”   New Zealand’s Minister for Trade Hon. Todd McClay said, “New Zealand is pleased that Costa Rica is on track to become the DEPA’s next member. Costa Rica shares our commitment to progressive, high-quality digital trade rules and aligns with DEPA’s vision. Their accession will strengthen DEPA as a leading agreement and attract other like-minded economies with similar ambitions in the digital economy."   Singapore’s Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said,  “As the second aspirant economy to accede to the DEPA, Costa Rica will add to the dynamism and diversity of the Agreement, reinforcing the DEPA’s standing as an open, relevant, and inclusive plurilateral agreement for digital trade rules. Singapore, together with DEPA Parties, looks forward to collaborating with Costa Rica to foster an enabling environment for digital trade to thrive. I welcome Costa Rica as the fifth Party to the DEPA and look forward to our continued partnership.”   The Republic of Korea’s Minister for Trade Cheong Inkyo said, “Korea is delighted to see the successful conclusion of substantive discussions for Costa Rica’s accession to the DEPA. This milestone highlights the growing importance of the DEPA in shaping global digital trade rules and enhancing cooperation. We expect that Costa Rica’s accession to the DEPA will unlock new opportunities for digital trade cooperation between DEPA member countries and Costa Rica.”   Costa Rica’s Minister of Foreign Trade Manuel Tovar said, “Costa Rica’s successful conclusion of accession negotiations to the DEPA marks a date2025-01-24

Public and Private Sectors Join Forces in Preparations for APEC 2025

Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy (MOTIE) attended the launch ceremony of the private steering committee (“Committee”) for the Asia-Pacific Economic Cooperation (APEC) CEO Summit Korea 2025 to review preparations and the Committee’s plans. He also encouraged business leaders to actively cooperate in ensuring Korea’s successful hosting of this year’s APEC Economic Leaders' Meeting (AELM). The Korea Chamber of Commerce and Industry (KCCI) plans to establish a private-sector support system for the successful hosting of the APEC CEO Summit and other AELM events held on the margins of the 2025 APEC Summit in Gyeongju. Led by KCCI Chairman Chey Tae-won, the Committee is composed of Korea’s leading CEOs representing the country’s major industries. Committee members will leverage the global networks developed through their companies’ overseas operations and supply chains to encourage promising global business leaders to participate. To increase the participation of global business leaders in this year’s AELM events, MOTIE plans to conduct promotion activities at home and abroad through relevant organizations, including Korea’s overseas diplomatic missions and the Korea Trade-Investment Promotion Agency (KOTRA). With Korea resuming the APEC chairmanship in 20 years, MOTIE aims to use this opportunity to facilitate discussions on cooperation in emerging trade areas such as sustainable development, supply chains, artificial intelligence (AI), and the digital economy. It will also advance existing discourse on trade cooperation, including ways to strengthen the multilateral trade system and promote free trade. date2025-01-23

Experts Discuss Future Korea-ASEAN Cooperation at Indo-Pacific Policy Forum

The Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun) held an Indo-Pacific policy forum in Seoul on January 23, 2025, to discuss measures for Korea-ASEAN cooperation in light of the inauguration of the new U.S. administration and assess its overall impact on ASEAN. ASEAN is not only a key region in the Global South but also home to approximately 40 percent of all Korean companies operating overseas. Hosted by MOTIE and organized by the Korea University ASEAN Center (KUAC), the forum brought together ASEAN experts from academia and research institutes to take stock of the outcomes of the Korea-ASEAN economic cooperation and discuss future cooperation. Participants also addressed issues such as global oversupply and strategic response measures against trade risks. Following the launch of the ASEAN-ROK Think Tank Dialogue on Economic and Trade Policy (AKTD) in the first quarter of 2025, MOTIE will utilize the dialogue as a new channel for Korea-ASEAN trade and economic cooperation. The ministry will also continue to support the stable business operations of Korean companies in the ASEAN market by closely communicating with relevant governments and industries. date2025-01-23

10th subsequent negotiating round of Korea-China FTA for services and investment

Director General for FTA Negotiations Kwon Hye-jin at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea led the Korean delegation in the 10th subsequent negotiating round of the Korea-China Free Trade Agreement (FTA) for services and investment through January 15–17 in Seoul. date2025-01-21

Korea and China Hold 10th Round of FTA Follow-Up Negotiations on Services and Investment

Director General for FTA Negotiations Kwon Hye-jin of the Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun) is leading the Korean delegation at the 10th round of Korea-China Free Trade Agreement (FTA) follow-up negotiations on services and investment, to be held from January 15 to 17, 2025, in Seoul. Chen Zhiyang, Deputy Division Director of the Department of International Trade and Economic Affairs at China’s Ministry of Commerce, will lead the Chinese delegation. A total of 40 delegates from both countries are participating in the negotiations. Following the bilateral FTA’s entry into force in 2015, Korea and China launched follow-up negotiations on services and investment in March 2018, as provided in the FTA guideline. The two countries have continued discussions through official negotiating rounds, intersessional meetings, and chief delegate meetings. The 10th round is the first official round since the ninth round was held in 2020. In this round, the Korean government aims to accelerate discussions on upgrading the bilateral FTA in areas including service, investment, and finance. date2025-01-16