Ministry of Trade Industry and Resources

End-Users, Fabless Firms, and Foundries Link Up to Build Korea’s On-Device AI Semiconductor Ecosystem

The Ministry of Trade, Industry and Energy (MOTIE, Minister Kim Jung-kwan) hosted a forum on September 30 at the Seongnam Global Convergence Center with semiconductor end-user and supplier companies as the first step in launching the K-On-Device AI Semiconductor Technology Development Project, a core initiative of the AI Semiconductor M.AX Alliance. The Alliance was established to help Korea emerge as a global leader in manufacturing AX (advanced transformation) by 2030. The forum brought together about 150 stakeholders from across the AI semiconductor industry, including end-user companies in the automobile, IoT/appliance, machinery/robotics, and defense sectors; Korean fabless companies (design) and foundries (manufacturing); and global IP firms that supply semiconductor design blocks. The program featured technology demonstrations by fabless firms such as DEEPX, Mobilint, and FuriosaAI; a presentation on the project implementation plan by MOTIE; the signing of MOUs among MOTIE, end-users, fabless firms, foundries, and IP firms; and a discussion led by end-users, Arm, and Samsung Foundry on how to foster Korea’s AI semiconductor ecosystem. Overview of the AI Semiconductor M.AX Alliance Forum  Date/Location: Tuesday, September 30, 2025, 15:00–17:30 / Seongnam Global Convergence Center (1F, Multipurpose Hall 2) Hosted/Organized by: MOTIE / Korea Semiconductor Industry Association, Korea Planning & Evaluation Institute of Industrial Technology (KEIT) Participants: Minister of Trade, Industry and Energy and about 150 representatives from industry, academia, and research, including semiconductor end-users, foundries, and fabless firms  Program: AI semiconductor fabless technology demonstrations, presentation of the project implementation plan, signing of an MOU to ensure project success, and discussions on ways to strengthen Korea’s AI semiconductor ecosystem Background and Implementation Plan for the Project To become a global leader in manufacturing AX, developing AI models is important, but it is equally essential to develop on-device AI semiconductors—the hardware that powers AI within advanced products across industries. To this end, MOTIE is committed to supporting the development of Korean on-device AI semiconductors for integration into advanced products such as autonomous vehicles, smart home appliances, humanoids, and unmanned aerial vehicles, working in close partnership with end-user companies in four key sectors and fabless firms in Korea. In August, a KRW 1 trillion project to develop customized AI semiconductors, AI software, and modules needed for producing advanced products in four key industries was exempted from the preliminary feasibility study. Following an appropriateness review, MOTIE plans to formally launch the project in 2026 through consortia of end-user and fabless companies. The project aims to release Korean-made AI semiconductor prototypes in 2028 and develop 10 types of on-device AI semiconductors for integration into advanced products by 2030.   Scope of the K-On-Device AI Semiconductor Technology Development Project  On-Device AI Semiconductor Full Stack: Development and demonstration of customized on-device AI semiconductors, AI software, modules, and prototypes Application in Advanced Products: Autonomous vehicles, smart home appliances, unmanned aerial vehicles, collaborative robots, humanoids, unmanned agricultural robots Implementation Plan: (2026) Formation of sector-specific consortia and project announcement → Begin AI semiconductor design (2027–2028) Production and verification of AI semiconductor prototypes (2029) Development of modules to be integrated into advanced products using AI semiconductors (2030) Development of advanced prototypes such as autonomous vehicles and humanoids equipped with Korean-made AI semiconductors   Operation of the AI Semiconductor M.AX Alliance The Allia date2025-09-30

3rd Industrial Convergence Regulatory Special Case Review Committee

Kim Jung-kwan, Minister of Trade, Industry and Energy, attended the 3rd Industrial Convergence Regulatory Special Case Review Committee held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, on Thursday, September 25, 2025.  The meeting was attended by government and private committee members, as well as representatives of applicant companies. Before the session, Minister Kim observed a demonstration of AeiROBOT’s AI-powered bipedal humanoid robot.  The committee then deliberated on and approved 40 regulatory sandbox projects in areas including AI, robotics, and energy.   date2025-09-29

13th East Asia Summit (EAS) Economic Ministers’ Meeting

Yeo Han-koo, Minister for Trade at the Ministry of Trade, Industry and Energy (MOTIE), attended the 13th East Asia Summit (EAS) Economic Ministers’ Meeting held at the Kuala Lumpur Convention Centre in Malaysia on Thursday, September 25, 2025.  The meeting brought together economic ministers from 18 countries, including ASEAN member states such as Malaysia, Indonesia, and Singapore, as well as the United States, China, and Japan.  Minister Yeo emphasized the need to focus discussions on practical areas such as open plurilateralism and called for active participation and engagement of EAS members in the upcoming APEC Summit.   date2025-09-29

MOTIE Minister Conducts Emergency Inspection of Response System for Information System Disruptions

On Sunday, September 28, Minister of Trade, Industry and Energy Kim Jung-kwan assessed the damage to MOTIE’s information systems caused by the fire at the National Information Resources Service and discussed key measures and response plans. The meeting focused on ensuring uninterrupted public services such as strategic goods export reviews, applications for investigations into unfair trade practices, and applications for electricity business licenses, which were expected to be affected by the disruptions. For services that cannot be processed online due to the outage, applications such as licenses will be accepted manually, with results notified by mail or fax, and status checks available via telephone or related agency websites. For strategic goods export reviews, temporary public application and processing methods will be posted on the Korea Security Agency of Trade and Industry (KOSTI) website (kosti.or.kr), and guidance emails will be sent to all Yestrade members (about 50,000 companies). Applications for determinations and export licenses will temporarily be accepted by email, and MOTIE will expand review personnel to minimize delays caused by offline processing. Applications and investigation notices for unfair trade practice cases will be handled in writing, and closure notices will be sent by fax or mail. Mining rights permit applications will be processed manually after being submitted by visit or fax, with applicants guided accordingly by phone. Electricity business licenses will be processed through phone guidance and in-person submission, and results will be announced on the Korea Electric Power Corporation (KEPCO) and Korea Power Exchange websites. In connection with this, MOTIE will post contact information for each service area on its social media channels, including Instagram, X, and YouTube, so that the public can directly contact the relevant offices. Immediately after the incident on Friday, September 26, MOTIE organized an emergency response team (headed by Deputy Minister for Planning and Coordination) and activated a 24-hour emergency duty system. The ministry is also using its official blog and social media channels to promptly share updates on the disruption, while providing the main service hotline (1577-0900) and direct contact numbers for affected services to minimize public inconvenience, difficulties, and damages. A full review of MOTIE’s information systems revealed that 21 systems (11 public services and 10 internal)—including the ministry’s main website and those of many affiliated agencies—were inaccessible or not functioning. The Korean Standards & Certification Information System is currently operating through an alternative page offering equivalent services. Minister Kim also ordered a comprehensive review of ongoing project notices and announcements to prepare for the possibility of a prolonged system recovery, deciding to extend application deadlines and notice periods as needed. Before the damage assessment meeting, Minister Kim visited the KTNET Electronic Trade Control Center to examine its operations and emphasized the need to prevent internet service disruptions, ensure swift responses in the event of incidents, strengthen cybersecurity and personal data protection, and guarantee the reliable use of information networks to minimize public inconvenience during government system outages.   date2025-09-29

5th Korea–Saudi Vision 2030 Committee Meeting

Korea and Saudi Arabia, the Middle East’s largest economy and a key Global South market, are set to expand their economic cooperation across core manufacturing industries, AI and other advanced sectors, and culture and entertainment. Kim Jung-kwan, Minister of Trade, Industry and Energy of Korea, and Khalid Al-Falih, Minister of Investment of Saudi Arabia, co-chaired the 5th Korea–Saudi Vision 2030 Committee Meeting on Friday, September 26 at Lotte Hotel Seoul, with participation from 11 ministries of both governments. This was the first meeting held in Seoul in two years, since the 4th Committee in October 2023. The Committee was launched in 2017 under the Korea–Saudi Vision 2030 Memorandum of Cooperation (MoC) as an inter-ministerial platform to manage key cooperation projects, address challenges, and support collaboration among governments, institutions, and companies. The Committee is structured around six subcommittees: overall cooperation, manufacturing and energy, smart infrastructure and digital, capacity building, healthcare, and SMEs and investment. At this meeting, the two sides reviewed the implementation status of 46 existing projects and identified 11 new cooperation projects. While Korea–Saudi economic ties have traditionally centered on crude oil imports and construction contracts, the Committee has expanded the scope of cooperation to include core manufacturing industries such as automobiles and shipbuilding. For example, HD Hyundai Heavy Industries and Saudi Aramco are jointly building the region’s largest shipyard, International Maritime Industries (IMI), at the King Salman Maritime Industries Complex (12 million m²), scheduled for completion in the first half of next year. A joint venture ship engine assembly plant is also expected to be completed by the end of next year. In addition, Hyundai Motor Company and Saudi Arabia’s Public Investment Fund (PIF) broke ground in May this year on an automobile manufacturing plant in King Abdullah Economic City, aiming for mass production in the first half of 2027. The new projects identified at this meeting in shipbuilding and automobiles will build on these achievements. In shipbuilding, cooperation across the value chain—from engine assembly to vessel construction—will be extended to the joint development of advanced eco-friendly technologies to reduce carbon emissions. In automobiles, cooperation will deepen beyond local assembly to encompass R&D in engine and hybrid vehicle technologies, establishment of hydrogen vehicle fuel quality management systems, and other areas, together forming a comprehensive ecosystem covering complete vehicles, core technologies, fuels, and standards. Collaboration in AI and advanced industries, as well as culture and entertainment, is also expected to accelerate. In February, Naver, through its joint venture with the Saudi National Housing Company (NHC), established digital twin platforms in major cities such as Jeddah, Mecca, and Medina. Naver plans to enhance these platforms by integrating AI to provide comprehensive smart city services spanning transportation, energy, and safety management. Leading Korean AI semiconductor companies such as Rebellions and FuriosaAI are also exploring cooperation with Saudi Arabia’s state-owned AI company, Humane, in digital transformation and AI innovation. Meanwhile, projects in film, e-sports, and tourism will further strengthen bilateral ties in culture and entertainment. Minister Kim emphasized, “We will establish and operate ongoing communication channels within each subcommittee to ensure seamless implementation of cooperation projects, and closely link existing and new projects to maximize synergy. Going forward, we will broaden the scope of cooperation into AI, advanced industries, and soft power, where the two countries hold significant potential.”   date2025-09-26

Korea Sought Export Diversification and New Trade Norms at ASEAN Economic Ministers’ Meeting

Yeo Han-koo, Minister for Trade at the Ministry of Trade, Industry and Energy (MOTIE), attended the ASEAN Economic Ministers’ (AEM) Meeting in Kuala Lumpur, Malaysia, from Tuesday, September 24, to Wednesday, September 25. The meeting brought together economic and trade ministers from the 10 ASEAN member states and major dialogue partners to discuss economic issues ahead of the ASEAN Summit, scheduled for October 26 to 27. Korea participated in the ASEAN–Korea, ASEAN+3 (Korea, China, Japan), East Asia Summit (EAS) Economic Ministers’ Meetings, and the Regional Comprehensive Economic Partnership (RCEP) Ministers’ Meeting, engaging in discussions on regional cooperation in areas such as digital transformation, supply chains, and climate change. Minister Yeo also held bilateral meetings on the sidelines with counterparts from the United States, the European Union, Australia, New Zealand, Singapore, and other key ASEAN countries.   date2025-09-26

Removing Obsolete “Spiderweb” Regulations to Accelerate Real Growth in AI and Robotics

The Ministry of Trade, Industry and Energy (MOTIE, Minister Kim Jung-kwan) announced that at the 3rd Industrial Convergence Regulatory Special Case Review Committee, held on Thursday, September 25, it reviewed and approved 40 regulatory sandbox projects in fields including AI, robotics, and energy. Among the items deliberated in person was a set of planned regulatory sandbox projects, prepared jointly with the Personal Information Protection Commission and the Ministry of Employment and Labor, to proactively rationalize regulations that have hindered the use of AI in industrial sites. As part of these projects, AeiROBOT will demonstrate a bipedal humanoid robot equipped with AI in industrial settings. Current laws lack relevant standards and safety requirements, limiting the deployment of such robots in workplaces. Through this demonstration, data will be gathered to develop appropriate standards and safety criteria, which is expected to accelerate the proliferation of industrial AI, strengthen industrial competitiveness, and reduce occupational risks by replacing hazardous and repetitive tasks with robots. Another project will be carried out by iVH, which will generate synthetic data from real driving video footage for use in training and evaluating autonomous driving AI models. Synthetic data delivers performance comparable to original data while also enabling training on rare scenarios such as multi-vehicle collisions. However, companies have raised concerns about potential violations of the Personal Information Protection Act if individuals could be identified in synthetic data. This demonstration aims to establish safe standards for synthetic data generation, contributing to the advancement of autonomous driving technology. Beyond the planned projects, Korea Railway Solar Power Co., Ltd. will demonstrate a “power-generating railway” by installing carpet-type solar panels on railway tracks to produce and supply electricity. Currently, solar power operators must undergo regulatory approvals such as electrical construction permits, notifications, and pre-use inspections, but no detailed standards exist for railway-based solar panels. This demonstration marks the first attempt at railway-based solar power in Korea and is expected to contribute to the diversification and expansion of renewable energy. Separately, on September 24, Minister Kim visited Neubility, a company specializing in outdoor mobile robots, to hear industry concerns. Neubility had requested streamlined safety certification procedures for outdoor mobile robots at the 1st Core Regulatory Rationalization Strategy Meeting chaired by the President on September 15. At present, companies must undergo a two-month process covering 16 evaluation items before operating on sidewalks. MOTIE plans to consolidate and simplify certain items without compromising safety, shorten certification periods, and amend relevant laws within the year. Minister Kim stressed, “This round of regulatory exemptions is significant in that it has broken down silos between ministries and proactively removed outdated and unnecessary ‘spiderweb’ regulations. With the launch of the M.AX Alliance, we will mobilize every available measure to swiftly resolve on-site regulatory barriers and fully support efforts to accelerate manufacturing AX.”   date2025-09-26

New Free Economic Zone Designated in Ansan, Logistics Land Secured in Busan–Jinhae Bobae District

A new free economic zone has been designated near Hanyang University’s ERICA Campus in Ansan. The Ministry of Trade, Industry and Energy (MOTIE, Minister Kim Jung-kwan) announced that at the 145th Free Economic Zone Committee Meeting held on September 22, it approved the designation of a new district within the Gyeonggi Free Economic Zone and an amendment to the development plan for the Bobae District in the Busan–Jinhae Free Economic Zone. The newly designated Ansan Science Valley (ASV) District (1.66㎢, Sangnok-gu, Ansan) aims to establish a global R&D-based hub for advanced robotics and manufacturing by leveraging the research and industrial capacity of nearby universities, national research institutes, and the Banwol–Sihwa National Industrial Complex. With robust surrounding infrastructure, including an established industry–academia–research ecosystem and residential environment, the district is expected to grow into a center of future global high-tech industries. The amended development plan for the Bobae District in the Busan–Jinhae Free Economic Zone responds to changes in investment and tenant demand, particularly the need for greater logistics capacity at Busan New Port. It adds logistics as an eligible industry for industrial-use land, calls for the construction of underground cold-chain logistics facilities, and adjusts land use and road layouts to meet tenant demand. These measures will enable the timely supply of logistics land and support the growth of the complex logistics and transport industry, one of the four strategic industries of the Busan–Jinhae Free Economic Zone. Lee Hyeon-jo, Director-General of the Free Economic Zone Planning Office at MOTIE, stated, “We will work closely with each free economic zone authority to ensure that the newly designated Ansan Science Valley District and the revised Bobae District development plan proceed smoothly.”   date2025-09-25

KRW 96.1 Billion in Support for 16 Local Investment Companies

The Ministry of Trade, Industry and Energy (MOTIE, Minister Kim Jung-kwan) announced that at the 3rd Local Investment Promotion Subsidy Review Committee Meeting, held from September 18 to 19, it decided to provide KRW 96.1 billion in subsidies (including KRW 58.7 billion in national funds) to 16 local investment companies. This support is expected to attract a total of KRW 612.1 billion in regional investment and create 771 local jobs. The Local Investment Promotion Subsidy program is designed to promote balanced national development and encourage corporate investment in regional areas. It provides subsidies, jointly funded by the central and local governments, covering 4 to 50 percent of investment costs for companies relocating from the Seoul metropolitan area or expanding facilities in regional areas. The 16 companies selected for this round of support were chosen by local governments based on investment scale and employment impact. They include new and expanded investments in Busan, Gwangju, Daejeon, North Gyeongsang, South Gyeongsang, Daegu, North Chungcheong, South Chungcheong, and North Jeolla. By sector, the companies comprise six in automobiles, two in electrical and electronics, three in food, two in pharmaceuticals, and three in chemicals and other fields, reflecting diverse investments centered on regional key industries. As of the first half of 2025, MOTIE had provided KRW 143.8 billion (including KRW 86.0 billion in national funds) in subsidies to 23 local investment companies, attracting a total of KRW 708.0 billion in private investment and creating around 1,010 local jobs. MOTIE also stated that starting in 2026, it will further strengthen support for local investment companies and firms relocating from the Seoul metropolitan area, including expanding subsidy limits and broadening coverage for regions with lower levels of development.   date2025-09-25

Korea’s Retail Industry Grows 3.7% in August

The Ministry of Trade, Industry and Energy (MOTIE) announced on September 24 that Korea’s retail industry grew 3.7 percent year-on-year in August 2025, with offline sales falling 3.1 percent and online sales rising 10.5 percent. MOTIE's monthly retail sales figures are based on surveys of 23 major retailers, comprising 13 brick-and-mortar retailers and 10 online retailers. By offline retail channel, department stores rose 2.8 percent and convenience stores gained 1.1 percent, while large supermarkets fell 15.6 percent and super supermarkets (SSM) dropped 5.9 percent. This decline was largely due to Chuseok falling 19 days later than last year, which reduced food sales compared with August 2024.  Department stores also saw weaker food sales, but strong indoor marketing campaigns during record late-summer heatwaves boosted luxury goods and fashion/apparel, driving overall growth. By category, offline sales fell in food (down 6.9 percent), electronics/culture (down 18.1 percent), and household goods (down 5.7 percent). Online sales expanded across services such as food delivery, e-coupons, and travel products (up 18.1 percent), as well as food (up 16.3 percent) and cosmetics (up 13.5 percent).   date2025-09-25