Ministry of Trade Industry and Resources

Korea and ASEAN Hold First Joint Committee Meeting on FTA Upgrade

The first joint committee meeting on upgrading the Korea–ASEAN Free Trade Agreement (FTA) was held by videoconference on April 8, 2026. About 40 representatives from both sides took part, led by Park Geun-oh, Director General for Trade Agreement Policy at Korea’s Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), and Alpana Roy, Director-General for International Trade and ASEAN at Singapore’s Ministry of Trade and Industry. Since entering into force in 2007 as Korea’s fourth FTA, the Korea–ASEAN FTA has helped expand bilateral trade and investment. However, because the agreement still centers on market opening in goods and services, it has had limits in reflecting newer global trade rules in areas such as digital trade, supply chains and critical minerals. In October 2025, the two sides declared on the sidelines of the Korea–ASEAN Summit that they would begin negotiations to upgrade the agreement, formally launching the process. Ahead of full-scale subcommittee talks in June 2026, the two sides discussed the procedural framework for the negotiations, including the Joint Committee’s rules of procedure, the structure of the negotiating subcommittees and their operating guidelines. Park Geun-oh, Director General for Trade Agreement Policy at MOTIR, said, “With the global trade environment growing more uncertain amid rising protectionism and supply chain instability, we will focus the negotiations on new trade rules on digital trade, supply chains and critical minerals to support future sectors such as AI and electric vehicles.” date2026-04-08

MOTIR Selects 10 Middle Market Companies for World Class Plus Project

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced on April 6, 2026, that it had selected 10 new projects under its World Class Plus Project program and two new projects under its technology innovation challenge program for middle market enterprises and public research institutes to help strengthen the technological competitiveness of Korea’s middle market companies. The World Class Plus Project supports middle market companies with the potential to become world-class firms, from technology development to overseas market entry. From 2011 through 2025, a total of 376 companies were selected under the program and have grown into key exporters that continue to play a leading role in Korea’s exports. In 2026, MOTIR selected 10 companies across sectors such as semiconductors and displays, future mobility, bioindustry, and energy storage systems (ESS). The ministry will support them in securing a technological edge in advanced industries and an early foothold in global markets in future-growth sectors such as bioindustry and ESS. Starting this year, the funding cap has been raised to up to KRW 4.0 billion over four years for companies in the capital region and up to KRW 5.0 billion for regional companies. The technology innovation challenge program links middle market companies with public research institutes to tackle technical hurdles in commercialization in new growth sectors. Under the program, two middle market companies will work with the Electronics and Telecommunications Research Institute (ETRI) and the Korea Institute of Industrial Technology (KITECH) to develop core technologies in construction machinery and autonomous ships. Lee Gyu-bong, Director General for Middle Market Enterprise Policy at MOTIR, stressed that technological innovation is more important than ever for Korean companies to sustain growth amid rising global uncertainty. He added that MOTIR will continue to support Korea’s middle market companies as they build on their technological strengths to compete in global markets. date2026-04-06

Korea’s 2026 First-Quarter Foreign Direct Investment Rises 0.1% to $6.4 Billion

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that Korea’s foreign direct investment (FDI) notifications for the first quarter of 2026 rose 0.1 percent year-on-year to USD 6.4 billion, marking the second-highest first-quarter total on record. Actual inflows reached $7.1 billion, the highest first-quarter level on record. Despite a subdued global investment environment and unexpected geopolitical risks, including the conflict in the Middle East, Korea maintained FDI growth in the first quarter. This suggests that foreign investors remain confident in Korea’s investment environment. In particular, foreign investment continued in advanced manufacturing sectors such as semiconductors and secondary batteries, as well as in AI data centers and offshore wind. This indicates that the momentum from last year’s record $36.1 billion in annual FDI notifications has carried into 2026. By type, greenfield investment notifications fell 19.8 percent year-on-year to $3.7 billion amid global investment uncertainty, while M&A notifications rose 53.4 percent to $2.7 billion. By industry, manufacturing investment fell 47.6 percent year-on-year to $1.2 billion. Investment declined in electrical and electronics (down 30.1 percent to $370 million) and in machinery and medical precision equipment (down 75.6 percent to $40 million), but increased in chemicals (up 4.5 percent to $400 million) and non-metallic minerals (up 23.9 percent to $180 million). Meanwhile, services investment rose 21.5 percent year-on-year to $4.3 billion, the highest first-quarter level on record. Growth was led by finance and insurance (up 21.2 percent to $2.6 billion), distribution (up 43.0 percent to $570 million), and information and communications (up 183.6 percent to $240 million). By source country, investment from the United States increased 20.9 percent year-on-year to $1.0 billion, led by information and communications, chemicals, and distribution. Investment from the European Union totaled $1.4 billion (down 4.1 percent), with gains in chemicals and electricity and gas offset by declines in pharmaceuticals and finance and insurance. Investment from Japan fell to $350 million (down 71.1 percent), while investment from China declined to $270 million (down 19.4 percent). In response to external uncertainty, MOTIR will step up investment promotion in strategic sectors, expand regional investment incentives, and address difficulties faced by foreign-invested companies to improve the investment environment. date2026-04-03

Trade Minister Yeo Meets with Delegation from French Business Group MEDEF

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) met with a delegation from Mouvement des Entreprises de France (MEDEF) in Seoul on April 2, 2026, to step up engagement with major French companies and discuss ways to deepen Korea-France economic, investment, and industrial cooperation. The meeting was attended by François Jackow, chairman of MEDEF’s France–Korea Business Council, and 23 business representatives from 16 French companies, including Air Liquide, TotalEnergies, Veolia, and OPmobility. The participating companies represented a range of sectors, including industrial gases, energy, environmental services, and auto parts. Trade Minister Yeo said Korea and France need closer cooperation in strategic industries such as semiconductors, eco-friendly vehicles, and low-carbon supply chains, as energy transition and rapid technological changes are reshaping the global economy. He added that Korea and France can strengthen their competitiveness in global markets by combining their technological strengths and industrial bases, and noted that Korea would continue to improve the investment environment so that global companies can invest with confidence. date2026-04-02

Meeting with Congressional Study Group on Korea (CSGK) of the U.S. House of Representatives

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) met with a visiting delegation from the Congressional Study Group on Korea (CSGK) of the U.S. House of Representatives in Seoul on April 2, 2026.  The U.S. delegation included Representatives Ami Bera, Ryan Zinke, Mark Pocan, Mary Gay Scanlon, Jill Tokuda, and Pat Harrigan, along with other delegation members. The meeting was arranged to exchange views on key issues with leading members of the U.S. Congress and to explore ways to strengthen bilateral cooperation. Trade Minister Yeo explained that the enactment of the Special Act for Korea–U.S. Strategic Investment Management has helped lay the groundwork for broader strategic investment cooperation, and asked for the CSGK’s continued interest and support to help deepen bilateral cooperation in areas of shared interest. date2026-04-02

MOTIR Meets Major French Companies on Closer Investment and Industrial Cooperation to Deepen Korea-France Economic Ties

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) met with a delegation from Mouvement des Entreprises de France (MEDEF), France’s largest business organization, in Seoul on April 2, 2026, to discuss ways to expand Korea–France economic cooperation. Against a global trade backdrop shaped by U.S.–China strategic competition, instability in the Middle East, and Russia-related geopolitical risks, the meeting focused on stepping up engagement with major French companies, deepening Korea–France investment and industrial cooperation, and expanding cooperation in advanced industries, energy, and supply chains. The meeting was attended by François Jackow, chairman of MEDEF’s France–Korea Business Council, and around 30 business representatives from about 20 French companies, including Air Liquide, TotalEnergies, Veolia, and OPmobility. The participating companies came from a range of industries, including industrial gases, energy, environmental services, and auto parts. At the meeting, the French companies shared their views on investment projects in Korea, Korea’s policies to support foreign investment, the current state and future direction of the energy sector, and energy security, opening broader discussions on expanding bilateral industrial cooperation. Trade Minister Yeo said, “As the global economy is being reshaped by the energy transition and rapid technological change, cooperation between Korea and France in strategic industries such as semiconductors, eco-friendly vehicles, and low-carbon supply chains is essential.” He added, “Korea and France can strengthen their competitiveness in global markets by combining their technological strengths and industrial bases.” He noted that Korea would continue to improve the investment environment so that global companies can invest with confidence. Building on the meeting and the Korea-France summit scheduled for April 3, 2026, MOTIR will broaden engagement with French companies and continue working toward tangible outcomes in key areas such as the energy transition, advanced industries, and supply chain cooperation. date2026-04-02

Korea to Step Up EV and Nickel Ecosystem Cooperation with Indonesia, ASEAN’s Largest Economy

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Embassy of the Republic of Indonesia in South Korea hosted the Korea–Indonesia Business Forum at The Shilla Seoul on April 1, 2026. Held in conjunction with Indonesian President Prabowo Subianto’s official visit to Korea, the forum brought together about 300 participants from the governments, public institutions, and businesses of both countries. At the forum, the two sides discussed industrial ecosystem cooperation in electric vehicles and steel as a means to further deepen bilateral economic cooperation. They also exchanged views on strategies to expand cooperation into new areas such as bioindustry and consumer goods. Indonesia’s Ministry of Investment and Downstream Industry (BKPM), together with Korea’s POSCO, LG Energy Solution, and Hyundai Motor Company, presented plans to establish supply chains and build industrial ecosystems. Indonesia’s Danantara and JAPFA, along with Korea’s SK Plasma and CJ CheilJedang, also discussed strengthening cooperation in bioindustry and consumer goods. The forum included the exchange of nine memoranda of understanding (MOUs) and three letters of intent (LOIs) between Korean and Indonesian companies across industry, energy, construction, and finance. The exchange took place in the presence of Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto and Trade Minister Yeo Han-koo. “Through this business forum, Korea and Indonesia should expand trade and investment, deepen manufacturing cooperation, and strengthen critical mineral supply chains to generate mutually beneficial outcomes and grow together on that basis,” Trade Minister Yeo said. Korea’s innovation capabilities in advanced industries and Indonesia’s abundant resources make the two countries complementary economic partners. The Korea–Indonesia Comprehensive Economic Partnership Agreement (CEPA), which entered into force in 2023, has strengthened that partnership. Under the agreement, Indonesia eliminated tariffs on 93 percent of tariff lines and Korea on 95.5 percent. Since the CEPA entered into force, Korea’s semiconductor exports to Indonesia have risen 12.3 percent, from USD 453.0 million in 2023 to USD 509.0 million in 2025. Over the same period, Indonesia’s exports of ferroalloys and steel scrap to Korea rose 185.7 percent, from USD 98.0 million to USD 280.0 million. The Korean government will continue to monitor private-sector cooperation outcomes from the forum through a task force on summit-linked economic events. It will also support Korean companies so that the MOUs signed with Indonesian partners translate into tangible projects. date2026-04-02

MOTIR Discusses Strengthening Korea–U.S. Economic and Trade Cooperation with the U.S. Congress

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held a roundtable with members of the Congressional Study Group on Korea (CSGK), in Seoul on April 2, 2026. Held during the CSGK’s visit to Korea, the roundtable focused on exchanging views on key issues with leading members of the U.S. Congress and exploring measures to strengthen bilateral cooperation. Trade Minister of MOTIR–CSGK Delegation Roundtable Overview  Date and Venue: 10:00–10:45 a.m., Thursday, April 2, 2026, The Westin Josun Seoul Participants: (Korea) Trade Minister Yeo Han-koo and other MOTIR officials (U.S.) Six* members of the Congressional Study Group on Korea (CSGK) of the U.S. House of Representatives, and other delegation members * Representatives Ami Bera (D-CA), Ryan Zinke (R-MT), Mark Pocan (D-WI), Mary Gay Scanlon (D-PA), Jill Tokuda (D-HI), and Pat Harrigan (R-NC). Noting that Korea–U.S. ties have expanded beyond a traditional security alliance into substantive cooperation in economic and technological areas, the two sides held wide-ranging discussions on their respective policy priorities and on ways to expand cooperation in trade and investment. Trade Minister Yeo explained that the groundwork has been laid for broader strategic investment cooperation, including through the enactment of the Special Act for Korea–U.S. Strategic Investment Management. He also asked for the CSGK’s continued interest and support to help deepen bilateral cooperation in areas of shared interest. The Korean government will continue engaging key U.S. stakeholders to help maintain a stable Korea–U.S. trade environment and foster favorable business conditions for Korean companies in the U.S. market. date2026-04-02

March 2026 Exports Reach Record $86.1 Billion, Surpassing $80 Billion for the First Time

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that in March 2026, Korea’s exports rose 48.3 percent year-on-year to USD 86.1 billion, while imports increased 13.2 percent to $60.4 billion, resulting in a $25.7 billion surplus. Exports in March rose 48.3 percent to $86.1 billion despite the conflict in the Middle East, surpassing $80.0 billion for the first time. Average daily exports, adjusted for working days, increased 41.9 percent to $3.7 billion, also reaching a record high. By product, exports increased in 10 of Korea’s 15 key export items. Semiconductor exports rose to $32.8 billion (up 151.4 percent), posting the highest monthly figure on record and topping $30.0 billion for the first time. Automobiles edged up to $6.4 billion (up 2.2 percent), as gains in eco-friendly vehicles offset the impact of some logistics disruptions linked to the conflict in the Middle East. Petroleum products rose to $5.1 billion (up 54.9 percent), while petrochemicals increased 5.8 percent. Computers rose to $3.4 billion (up 189.2 percent), reaching the highest level on record, and secondary battery exports increased to $0.9 billion (up 36.0 percent). Among items outside the 15 key export categories, electrical equipment, cosmetics, and agricultural and fisheries products also reached record highs for March. By destination, exports increased in seven of Korea’s nine major markets. Exports to China rose 64.0 percent to $16.5 billion, extending their growth streak to five consecutive months. Exports to the United States rose to $16.3 billion (up 47.1 percent), led by semiconductors and computers. Exports to ASEAN increased to $13.8 billion (up 34.3 percent), while exports to the EU rose to $7.5 billion (up 19.3 percent). By contrast, exports to the Middle East fell 49.1 percent to $0.9 billion amid logistics disruptions linked to the conflict. Imports rose 13.2 percent year-on-year to $60.4 billion. Energy imports edged down to $9.4 billion (down 7.0 percent), while non-energy imports rose 17.9 percent to $51.0 billion. Crude oil imports fell 5.0 percent to $6.0 billion, as supply disruptions from the closure of the Strait of Hormuz reduced import volumes, more than offsetting the rise in unit prices. Among non-energy imports, semiconductors rose to $8.6 billion (up 34.8 percent) and semiconductor equipment to $2.9 billion (up 4.4 percent). The trade surplus in March reached $25.7 billion, up $21.0 billion from March 2025, marking the largest monthly surplus on record and extending Korea’s surplus streak to 14 consecutive months since February 2025. Minister JK (Jung-Kwan) Kim stated, “Despite challenging external conditions, including the conflict in the Middle East and the spread of protectionism, exports in March surpassed $80 billion for the first time, led by semiconductors and by broad-based gains in other key export items and promising categories, including consumer goods.” He noted that export uncertainty is rising as the conflict in the Middle East continues to push up oil prices and heighten supply chain risks. He added that the government will maintain a government-wide response system, closely monitor supply chains across energy, raw materials, and logistics, promptly implement stabilization measures, and help exporters address difficulties in marketing, logistics, and financing. It will also support diversification across export items and markets to sustain export momentum. date2026-04-01

Korea, EU Step Up High-Level Coordination on Critical Minerals, Supply Chains and Regulatory Proposals

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the inaugural Korea–EU special committee on emerging trade issues in Seoul on March 31, 2026, with Park Jung-sung, Deputy Minister for Trade at MOTIR, and Sabine Weyand, Director-General for Trade and Economic Security at the European Commission, as chief delegates. This was the first meeting under a new vice minister-level consultative body created in response to a rapidly changing trade environment amid global supply chain realignment and growing protectionism. The two sides discussed key issues including critical minerals, supply chain resilience, advanced technologies, and security. On critical minerals, Korea and the EU noted that both have limited production bases and remain heavily dependent on external supply chains, leaving them structurally vulnerable. They agreed to expand strategic dialogue and continue discussions on specific areas for cooperation. The two sides shared their assessments of recent developments in the Middle East and their respective response systems. They underscored the importance of close Korea–EU coordination for an effective response and agreed to stay in close contact on related issues. Korea briefed the EU on developments and its position in areas the EU had expressed interest in, including its supply chain management system, technology security framework, and cooperation on semiconductor and connected-vehicle security and safety. Korea also set out its position on major industrial policies and regulations currently under discussion in the EU. Korea welcomed the March 4, 2026, final text of the Industrial Accelerator Act (IAA), which treats content originating in FTA partner countries as equivalent to EU origin. Korea noted, however, that some provisions remain unclear and that concerns raised by the Korean government and industry have yet to be fully addressed. Korea noted that it had already submitted a document on March 20, 2026, setting out its questions and requests, and asked the EU to take them into account so that the measure can be introduced in a way that strengthens bilateral cooperation. On the tariff-rate quotas (TRQs) the EU is considering on steel imports, Korea acknowledged the need to address global steel overcapacity, but stressed that any measure should remain consistent with the Korea–EU FTA and WTO rules and should not unduly restrict market access for Korean companies. The two sides said the meeting had strengthened the basis for cooperation on key issues including critical minerals, supply chains, and economic security. They agreed to pursue tangible outcomes through follow-up channels, including the Korea-EU Next-Generation Strategic Dialogue at the ministerial level, scheduled for April 2026. date2026-04-01