Ministry of Trade Industry and Resources

Experts Discuss M.AX as the Way Forward for Korean Manufacturing

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the first Manufacturing AI Transformation (M.AX) Conference and Industrial Growth Forum on May 20, 2026, bringing together experts in manufacturing and economics to discuss how to advance M.AX and scale up the outcomes. Participants included companies involved in M.AX, such as LG Production Engineering Research Institute (LG PRI) and INTERX, as well as academic experts from KAIST, UNIST, Sungkyunkwan University and Myongji University. Manufacturing has long anchored Korea’s economic growth. But the sector now faces tougher conditions, including a shrinking working-age population and a declining potential growth rate. As AI moves into manufacturing sites and emerges as a game changer for productivity and industrial competitiveness, advancing the M.AX has become essential. As major competitors transform manufacturing with AI through large-scale private investment and strong government-led policies, the Korean government launched the M.AX Alliance to bring together capabilities across manufacturers, AI companies, academia and research institutions. Today, more than 1,500 companies and organizations across 11 divisions are working together on the use of manufacturing data, AX in production processes and the development of AI-embodied innovative products. Key projects include AI factories, on-site demonstrations of industrial robots and humanoids in manufacturing, and on-device AI semiconductors essential for AX products such as autonomous vehicles. In 2026, MOTIR will invest KRW 1.1 trillion in its AX budget to support wider adoption. Since its launch, the Alliance has produced initial results, including productivity gains among AI factory participants through lower defect rates, more efficient predictive equipment maintenance, liquidity support for companies facing financing constraints through closer links with the National Growth Fund, and the creation of a M.AX sub-fund under the Industry Growth Fund. In February 2026, MOTIR added an industrial complex AX division, establishing a foundation for AX at regional manufacturing sites and completing the M.AX Alliance’s “Best Eleven” structure. At the forum, speakers examined how M.AX can strengthen industrial competitiveness, reviewed strategies in different countries, and discussed technical priorities for applying M.AX at manufacturing sites. Participants also discussed upgrades to AI factory technologies, the need to secure technological sovereignty in manufacturing AI, Korea’s strengths in full-stack capabilities, and the importance of strengthening AI skills among the manufacturing workforce. “M.AX, the AI transformation of manufacturing, will be a critical factor in maintaining Korea’s industrial leadership and securing the country’s future competitiveness amid the global race for technological supremacy,” said Kim Sung-youl, Deputy Minister for Industry and Growth at MOTIR. “The government will focus on bringing AI into production processes and developing new AI-embodied products and services, so that manufacturing, one of Korea’s core assets, can secure world-leading competitiveness. We will also work closely with companies in the M.AX Alliance to deliver tangible results on the ground, including higher productivity and greater value added across industry.” Deputy Minister Kim added that MOTIR will also work to address labor shortages in key manufacturing industries and create new jobs through M.AX. Future M.AX conferences will be held as a series on topics such as data and robotics, while the Industrial Growth Forum will continue discussions across advanced technologies to develop a new growth model for Korean industry. date2026-05-20

Korea and Jiangsu Province Step Up Cooperation to Deliver Tangible Results

Minister for Trade Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) attended the seventh Korea–China (Jiangsu) Economic and Trade Cooperation Exchange in Yancheng, Jiangsu Province, China, on May 20, 2026, an event co-hosted by MOTIR and the Jiangsu Provincial Government. On the sidelines, Minister Yeo met with senior provincial officials, including Zhao Yan, Vice Governor of Jiangsu Province. Held under the theme of expanding future-oriented Korea–China cooperation, the conference brought together approximately 400 government officials and business representatives from both sides to discuss trade, investment and supply chain cooperation. Jiangsu Province is China’s second-largest provincial-level economy by gross regional domestic product (GRDP) and Korea’s largest trade and investment partner among Chinese regions. In 2025, Korea–Jiangsu trade reached approximately USD 86.3 billion, a level that would make Jiangsu Korea’s fourth-largest trading partner if counted as a country, following Vietnam at $94.5 billion. The province is also an important base for stable Korea–China supply chains, with more than 3,000 Korean companies operating there in sectors including automobiles, batteries and semiconductors. They include Samsung Electronics in Suzhou, SK hynix in Wuxi, Kia in Yancheng and LG Energy Solution in Nanjing. For the first time, the 2026 conference introduced one-on-one business matching sessions to help Korean companies generate practical export results. Organized by the Korea International Trade Association (KITA), the sessions connected 35 promising Korean consumer goods companies with major Chinese retail platforms, including JD.com, and local buyers. The event also featured a product showcase pavilion, which drew interest from visitors. More than 300 consultations were held, and Korean companies including Kwangcheonkim Co., Ltd. in food products and HS Hyosung Advanced Materials in anode materials signed 11 agreements with Chinese partners, with export agreements worth a combined $2.3 million. The business matching program also utilized the Gmarket–Alibaba MOU, signed on the occasion of the Korea–China summit on January 5, 2026, to support participating companies’ cross-border e-commerce exports. The Korea Trade Insurance Corporation (K-SURE) and the Korea Testing & Research Institute (KTR) operated advisory desks, providing guidance on certification, insurance and other business challenges faced by Korean companies. In his opening remarks, Trade Minister Yeo said, “We will help translate the momentum generated by reciprocal state visits between the leaders of Korea and China into tangible results.” He added, “China’s provincial governments have economies comparable in scale to individual countries, and each has a distinct industrial ecosystem. This makes region-specific cooperation necessary, and we will continue to communicate through exchanges such as this event.” Trade Minister Yeo also met with representatives from Alibaba, China’s largest e-commerce platform, to discuss ways to expand Korean consumer goods’ access to the Chinese market, including through cross-border e-commerce and livestream commerce. He also held a roundtable with Korean-invested companies to hear their concerns and discuss support measures. date2026-05-20

April 2026 Automobile Exports Total $6.2 Billion

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that in April 2026, Korea’s automobile exports fell 5.5 percent year-on-year in value to USD 6.2 billion and 0.8 percent in volume to 245,000 units, while domestic sales edged up 0.7 percent to 152,000 units and production fell 6.1 percent to 362,000 units. Automobile exports reached $6.2 billion in April, down 5.5 percent year-on-year. By region, exports increased to North America (up 2.4 percent), Latin America (up 23.7 percent), and Oceania (up 20.1 percent), but declined in the Middle East (down 38.7 percent), the European Union (down 13.1 percent), and Asia (down 31.7 percent). Despite the overall decline, exports of eco-friendly vehicles continued to grow, led by electric and hybrid vehicles, with export value rising 13.5 percent year-on-year to $2.5 billion. Production totaled 362,000 units in April, down 6.1 percent year-on-year. Production rose at GM Korea (up 15.4 percent), KG Mobility (up 8.6 percent), and Kia (up 0.5 percent), while falling at Hyundai Motor (down 16.2 percent) and Renault Korea (down 32.3 percent). The decline reflected some parts supply-chain issues, as well as delayed purchases ahead of new and facelifted model launches for key vehicle lines. Production disruptions from the supply-chain issues are expected to ease beginning in June. Domestic sales totaled 152,000 units in April, up 0.7 percent year-on-year. Among domestically produced vehicles, Kia sales rose 7.9 percent, while sales of some imported vehicles also increased, mainly among electric models. Eco-friendly vehicle sales totaled 91,000 units, accounting for about 60 percent of total domestic sales and indicating that the industry’s shift toward eco-friendly vehicles is accelerating. date2026-05-20

Good-Price Gas Station Site Visit and Roundtable

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) visited Daewon Self-Service Gas Station, a designated Good-Price Gas Station in Guro-gu, Seoul, on May 19, 2026, and held a roundtable with operators of selected stations. Minister Kim recognized their role in stabilizing fuel prices and took note of concerns over the maximum price system for petroleum products. The roundtable was attended by representatives of Daewon Self-Service Gas Station, Tiger Trading World Cup Gas Station, Bukduchilseong Gas Station, Shinhwa Energy O Happy Gas Station and Gwanghwal Nonghyup Gas Station, among others. “Domestic fuel prices have remained stable largely thanks to the efforts of gas stations on the ground,” Minister Kim said, expressing appreciation to Good-Price Gas Stations and other operators and calling for joint efforts to navigate Middle East-related challenges. date2026-05-19

Minister JK Kim Visits Good-Price Gas Stations, Recognizes Efforts to Stabilize Prices

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) visited Daewon Self-Service Gas Station, a designated Good-Price Gas Station in Guro-gu, Seoul, on May 19, 2026. He met with operators of selected stations, recognized their role in stabilizing fuel prices as Middle East-driven oil market volatility puts growing pressure on domestic prices, and took note of concerns raised by the operators over the maximum price system for petroleum products. Good-Price Gas Stations are recognized by Energy Consumer (E Consumer), a civic watchdog group that monitors energy and petroleum markets, for their contribution to fuel price stability following the March 13 launch of the maximum price system for petroleum products.  The group designates stations every two weeks, selecting 10 in Seoul and Gyeonggi Province and five per region elsewhere. The 334 stations selected across four rounds sell fuel at about KRW 14 to 15 per liter below the national average, while the 24 stations selected at least twice sell at about KRW 19 to 21 less per liter. To encourage price-stabilization efforts by gas stations, MOTIR is stepping up public outreach and incentives for the Good-Price Gas Station initiative. A dedicated banner has been added to Opinet, the fuel price information service run by the Korea National Oil Corporation (KNOC), and users can now find nearby Good-Price Gas Stations on major navigation platforms, including TMAP, Naver Map and KakaoMap. Two stations have already been selected three times. Stations selected five times will be designated as “Exemplary Good-Price Gas Stations” and receive incentives, including dedicated online and offline marks and government awards. The maximum price system for petroleum products, together with E Consumer’s selection of Good-Price Gas Stations, has helped keep nationwide average pump prices stable, at around KRW 2,011 per liter for gasoline and KRW 2,006 for diesel. According to the Ministry of Finance and Economy (MOFE), the system eased upward pressure on consumer prices by 0.6 percentage point in March and 1.2 percentage points in April. In March, energy prices across the OECD rose 8.1 percent on average, while Korea's rose only 5.2 percent.. Diesel prices, which directly affect truck drivers and other transport workers, rose 26 percent in Korea from pre-conflict levels, lower than the increases of 44 percent in the United States and 37 percent in the United Kingdom. “Domestic fuel prices have remained stable largely thanks to the efforts of gas stations on the ground,” Minister Kim said. “I extend my sincere appreciation to Good-Price Gas Stations and other gas station operators, and hope the government, businesses and the public will work together to navigate the Middle East-related challenges.” He added, “I also hope the conflict in the Middle East ends as soon as possible and markets return to normal.” date2026-05-19

Anchor Firms and Partner Companies Team Up to Build Low-Carbon Industrial Supply Chains

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held a meeting at the Korea Chamber of Commerce and Industry (KCCI) on May 19, 2026, with consortia selected for MOTIR’s 2026 industrial supply chain carbon partnership program. As global carbon regulations increasingly target supply chains, green transformation (GX) has become critical to manufacturing competitiveness. Through the program, MOTIR will work with the lead companies of the eight consortia to help 31 partner SMEs and middle-market companies reduce emissions. Under the program, the government will cover up to 50 to 60 percent of partner companies’ costs for installing carbon-reduction equipment. It will also support consulting on emissions-reduction and product carbon footprint calculations, as well as third-party verification. Lead companies will provide cash support, help cover the required private-sector cost share through tools such as interest-free loans and interest subsidies, cover operating and management costs, and offer consulting and training to strengthen partner capabilities. The selected consortia can be grouped into four models. Hyundai Motor and Kia will use a cascading support structure, in which first-tier partner companies receive cash support and then pass support on to second-tier partner companies. Samsung Electronics, Samsung Display, LG Electronics, HL Mando and SK hynix will use overlapping partner-company networks to spread emissions-reduction results across supply chains. HD Korea Shipbuilding & Offshore Engineering will support partner companies’ operating and management costs and convert their emissions-reduction results into external projects for further use. POSCO will provide personnel and technology to help SME and middle-market customers improve process efficiency. Participating companies aim to cut greenhouse gas emissions by about 20,000 tons per year, encourage voluntary reductions throughout their supply chains, and identify and share best practices in win-win cooperation. The initiative will also help them respond promptly to tightening global carbon rules, including the EU Carbon Border Adjustment Mechanism (CBAM) and Battery Regulation, meet Science Based Targets initiative (SBTi) targets, address global customers’ supply-chain emissions requirements, secure product carbon footprint (PCF) data, and strengthen export competitiveness. “Carbon neutrality and industrial competitiveness are complementary goals that will shape the future of industry,” said Lee Min-woo, Director General for Industrial Policy at MOTIR. “Today’s supply-chain cooperation will help these industries maintain global leadership. The government and companies of all sizes should work together to navigate tightening global carbon rules and identify and scale successful green transformation models that support shared growth.” date2026-05-19

Industrial Growth Fund Launch Ceremony and Industrial Finance Strategy Meeting

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) chaired the Industrial Growth Fund Launch Ceremony and Industrial Finance Strategy Meeting at Korea Growth Investment Corporation in Yeouido, Seoul, on May 18, 2026. At the event, relevant institutions signed agreements to launch the third phase of the Industrial Growth Fund and establish a preferential financing package for R&D-driven innovative companies. The event brought together financial institutions, companies, venture capital firms and R&D institutions, including Hana Bank, Industrial Bank of Korea (IBK), Korea Technology Finance Corporation (KOTEC), Korea Growth Investment Corporation, TESOLLO INC., FRT Robotics., KOLON INVESTMENT, Enlight Ventures, Korea Trade Insurance Corporation (K-SURE), and Korea Planning & Evaluation Institute of Industrial Technology (KEIT). “Investment in innovative companies is a shared commitment by finance, industry and the government to move in the same direction and share both risks and outcomes,” Minister Kim said. “Expanded industrial finance will help Korea advance AI-manufacturing convergence and shared growth with regional economies.” date2026-05-18

Meeting with the ASEAN Committee in Seoul

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) attended a meeting with the ASEAN Committee in Seoul (ACS) at the Korea Chamber of Commerce and Industry (KCCI) in Seoul on May 18, 2026. The meeting was attended by ambassadors to Korea from ASEAN’s 11 member states, including Thailand, Cambodia, Indonesia and Laos. Participants exchanged views on practical cooperation in areas such as trade expansion, the Korea–ASEAN Free Trade Agreement (FTA) upgrade and supply chain cooperation. “ASEAN is one of Korea’s key economic and trade partners, and Korea will work to deliver substantive outcomes by 2027 through the Korea–ASEAN FTA upgrade, including new digital provisions, and stronger supply chain cooperation,” Trade Minister Yeo said. date2026-05-18

Korea Secures ISO Approval to Start Work on Standard for Decommissioning Nuclear Power Plants

The Korean Agency for Technology and Standards (KATS, President Kim Dae-ja) of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that Korea’s proposal to develop the world’s first international standard for decommissioning nuclear power plants, which was submitted in June 2023, has been approved by the International Organization for Standardization (ISO) as a new work item proposal (NP). After nearly three years of discussions by ISO Technical Committee 85 (TC 85, Nuclear energy, nuclear technologies and radiological protection), it received support from nine ISO member countries, including the United States, China and Japan. The approved proposal sets out general requirements for the decommissioning process, from basic terminology to planning, implementation and management, with Korea leading development of the standard as project leader. The draft will enter the member-country comment phase on May 19, 2026, with publication as an International Standard (IS) targeted for December 2027. KATS also plans to develop nine additional international standards in stages, covering specific technologies required for decommissioning. These will include nuclear power plant decommissioning planning, radioactive waste management, facility characterization, safety assessment, decommissioning work management, decontamination and dismantling, radiation protection and monitoring, application of clearance criteria, and site restoration. IAEA experts will also participate in the standardization process to improve alignment with international nuclear safety standards. KATS expects the Korea-led standards to serve as practical reference points for the global nuclear power plant decommissioning industry and help strengthen the competitiveness of Korean companies in overseas markets. “On nuclear power plant construction and operation, Korea has largely followed international standards,” said KATS President Kim Dae-ja. “This proposal marks a meaningful step, as Korea is now in a position to lead international standardization in decommissioning. To support the export competitiveness of K-nuclear power, we will also lead the development of de facto standards through organizations such as the American Society of Mechanical Engineers (ASME), alongside our work at ISO.” date2026-05-18

Strong Industrial Finance to Support Innovative Companies and Industrial Ecosystems

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) will launch a range of industrial finance programs, including investments, guarantees, and loans, to support technology development, commercialization, and growth by innovative companies and strengthen Korea’s industrial ecosystems. On May 18, 2026, MOTIR held the Industrial Growth Fund Launch Ceremony and the Industrial Finance Strategy Meeting, chaired by Minister Kim. At the event, relevant institutions signed agreements to launch the third phase of the Industrial Growth Fund and establish a preferential financing package for R&D-driven innovative companies.  The Industrial Growth Fund will be created through anchor investments from MOTIR’s R&D partner banks and additional private capital. For its third phase from 2026 to 2028, Hana Bank and Industrial Bank of Korea have committed a record KRW 1.1 trillion in anchor investments. MOTIR plans to realign the fund’s investment focus with major industrial policy priorities, including manufacturing AI transformation (M.AX), balanced regional development, and new growth engines, while expanding its role as a platform for cooperation across industrial ecosystems. The first sub-fund will be the M.AX Industrial Transformation Innovation Fund, which will invest in companies pursuing the convergence of manufacturing and AI in areas such as humanoids, AI factories, future mobility, and autonomous ships. Based on KRW 100 billion in anchor investments, the fund aims to scale up to KRW 500 billion through private matching and other investments, with a call for fund managers scheduled for June. MOTIR will also launch regional industry vitality funds and sector-specific ecosystem funds in phases. A preferential financing package will also be made available to R&D-driven innovative companies over the next three years. Hana Bank and Industrial Bank of Korea will contribute a combined KRW 47 billion to the Korea Technology Finance Corporation (KOTEC) and Korea Trade Insurance Corporation (K-SURE), which will use the funds to provide approximately KRW 700 billion in guarantees and insurance to SMEs and middle-market companies, while companies receiving guarantees will also be eligible for low-interest loans. The package will be offered through KOTEC and K-SURE programs, with support scheduled to begin in July after the relevant institutions finalize detailed agreements. The preferential financing for R&D-driven innovative companies will be offered through two programs: (1) the 'Project-based R&D Commercialization Guarantee' by KOTEC and (2) the 'Export-Import Trade Finance for R&D Innovative Companies' by K-SURE. First, the 'Project-based R&D Commercialization Guarantee' evaluates the market potential of individual R&D projects and provides loan guarantees for the funds needed to commercialize the technology. Second, the 'Export-Import Trade Finance for R&D Innovative Companies' allows companies seeking to export or expand overseas based on MOTIR R&D outcomes to secure loans for manufacturing costs and the importation of raw and subsidiary materials. These two programs are scheduled to launch in July once the relevant institutions finalize detailed agreements. The government also plans to actively promote and provide guidance on these programs so that eligible companies can easily utilize them. At the strategy meeting, companies shared how fund investments had supported key stages of growth, including technology development, business expansion, and preparations for initial public offerings. They also called for broader support to help companies cross the “valley of death.” Investment firms emphasized that industrial finance should help share risk and provide direction for growth-stage companies, while financial institutions reaffirmed their commitment to supporting the real economy and date2026-05-18