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Industry
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
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Trade/Investment
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
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Trade/Investment
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
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Industry
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
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Industry
Private Sector Experts Propose Policies for Critical Minerals Recycling
The Private Expert Committee on Critical Minerals Recycling, which has been operating since April to support the growth of Korea’s critical minerals recycling industry, has identified 31 policy tasks under four key strategies—building industrial foundations, improving regulations and systems, establishing management frameworks, and fostering technological innovation—and proposed them to the government. The Ministry of Trade, Industry and Energy (MOTIE, Minister Kim Jung-kwan) announced that following the release of the Policy Direction for Promoting Critical Minerals Recycling at the 4th Supply Chain Stabilization Committee Meeting in March, it launched the Private Expert Committee in April to ensure that the views of businesses and experts as policy stakeholders are actively reflected in policy. The committee, chaired by Park Hyun-chul, President of the Critical Minerals Recycling Forum, consists of 22 members across subcommittees on industry support, regulatory improvement, and technology development. Between April and September, the committee held over ten meetings and presented 31 policy tasks to the government. These were classified into top-priority (8), key (8), and follow-up (15) tasks, based on importance, urgency, and industry demand. Top-priority tasks include expanding government support to strengthen industrial competitiveness, broadening the designation of recyclable resources to secure raw materials, easing import restrictions, and developing demonstration technologies for rare earth recycling. MOTIE will actively incorporate these recommendations into the comprehensive Plan to Promote Critical Minerals Recycling, which is being developed this year through a joint task force of three ministries (MOTIE, the Ministry of Economy and Finance, and the Ministry of Environment). The ministry will continue efforts to boost Korea’s critical minerals recycling industry and enhance the stability of critical minerals supply chains. date2025-09-25
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FTA/Economic Cooperation
95th Saudi National Day Celebration
Kim Jung-kwan, Minister of Trade, Industry and Energy, attended the 95th Saudi National Day celebration held at Seoul Dragon City in Yongsan-gu, Seoul on Monday, September 22, 2025. The event was attended by over 400 participants, including Fahad Baraka, Chargé d'Affaires of the Embassy of Saudi Arabia in Korea, government representatives from both countries, ambassadors from key nations, and business leaders. Minister Kim delivered congratulatory remarks at the ceremony. date2025-09-24
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FTA/Economic Cooperation
7th Round of Korea–Thailand Comprehensive Economic Partnership Agreement (CEPA) Negotiations
Noh Geon-gi, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy (MOTIE), attended the 7th round of official negotiations for the Korea–Thailand Comprehensive Economic Partnership Agreement (CEPA) held at Lotte Hotel in Sogong-dong, Seoul on Monday, September 22, 2025. The meeting was attended by Chotima Iemsawasdikul, Director-General of the Department of Trade Negotiations at Thailand’s Ministry of Commerce, along with government delegations from both countries. Following opening remarks, the two sides proceeded with negotiations in seven areas, including goods, services, investment, digital, and finance. date2025-09-24
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Trade/Investment
Tariff Response 119 Expands On-Site Support System
The Ministry of Trade, Industry and Energy (MOTIE, Minister Kim Jung-kwan) announced that Minister Kim chaired a roundtable with steel and aluminum derivative companies and visited the “Tariff Response 119 (1600-7119)” site at KOTRA on Monday, September 22. The visit was arranged to hear directly from companies most affected by U.S. tariff measures on steel and aluminum derivatives and to review the operation of the Tariff Response 119 support system. At the meeting, MOTIE announced plans to upgrade the existing Tariff Response 119 service into “Tariff Response 119 Plus.” Since its launch in February, Tariff Response 119 has received and provided consultations on 7,708 tariff-related cases as of September 18, establishing itself as an integrated consultation channel. However, challenges remained in resolving multi-agency issues and incorporating feedback into new policies and services. To address this, MOTIE will expand the functions of Tariff Response 119 beyond case reception, consultation, and program guidance to include resolving issues through inter-agency collaboration and feeding results back into new services and policies. Agencies attending the event, including the Korea Trade Insurance Corporation, the Korea Institute of Origin Information, and other related organizations, will designate 119 officers to ensure issues that cannot be resolved by KOTRA alone are followed through to completion. MOTIE will continue to expand collaboration with export-related organizations and reflect analysis of tariff issue types and best practices into new services and policies. New services reflecting on-site needs will also be launched this month, including: (1) support for submitting company position papers on tariff issues to the U.S. government, (2) consulting on applications for the U.S. Customs and Border Protection (CBP) e-ruling system, and (3) assistance in responding to CBP post-verification data requests. A specialized support program for steel and aluminum derivative companies will also be introduced, featuring a dedicated consultation desk and one-on-one advisory services with local U.S. experts. During the roundtable, industry representatives raised three main concerns: (1) declining price competitiveness due to tariffs, (2) difficulties in calculating content value for derivative products, and (3) limited access to tariff-related information. In response, MOTIE and related agencies pledged to accelerate implementation of the “Post-U.S. Tariff Negotiation Support Measures” announced on September 3 and to strengthen policy feedback through Tariff Response 119 Plus. Following the roundtable, Minister Kim visited the Steel Derivatives Tariff Response Briefing and Consultation Session held at KOTRA. The event provided around 200 steel and aluminum derivative companies with accurate updates on U.S. tariff policies and strategies to mitigate tariff burdens. More than 100 affected companies also took part in one-on-one consultations with lawyers and customs experts from Korea and the United States for tailored advice. Furthermore, a dedicated support booth was set up to showcase the “Ten On-Site Support Programs” announced on September 3, covering short-term management support, steel derivatives, burden reduction, and alternative market development, giving companies hands-on access to government services. Minister Kim toured the booth with a participating company (STU), checking tariff rates by HS code through the online tariff system and reviewing content value calculations for steel and aluminum derivatives. He then visited the consultation area to hear directly from company representatives. Minister Kim stressed, “In today’s changing trade environment, the priority is to develop support measures that reflect companies’ on-site needs. We will steadily implement the expansion of Tariff Response 119 into Tariff Response 119 date2025-09-23
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FTA/Economic Cooperation
7th Round of Korea–Thailand Comprehensive Economic Partnership Agreement (CEPA)
Amid the global rise of protectionism and the prioritization of domestic industries, Korea is seeking to diversify its export markets and strengthen the competitiveness of its companies through a bilateral trade agreement with Thailand, one of ASEAN’s largest economies and its most promising markets. The 7th round of official negotiations for the Korea–Thailand Comprehensive Economic Partnership Agreement (CEPA) is being held in Seoul from Monday, September 22, to Friday, September 25. The Ministry of Trade, Industry and Energy (MOTIE, Minister Kim Jung-kwan) announced that the negotiations are being led by Noh Geon-gi, Director-General for Trade Negotiations at MOTIE, and Chotima Iemsawasdikul, Director-General of the Department of Trade Negotiations at Thailand’s Ministry of Commerce, heading delegations of around 70 officials from both sides. Since launching the first round last July, Korea and Thailand have held six official negotiations and an intersessional meeting in July this year, maintaining positive momentum in their discussions. In August, the two sides agreed to upgrade the title of the existing Economic Partnership Agreement (EPA) to the Comprehensive Economic Partnership Agreement (CEPA), reflecting the expanded scope of economic cooperation under discussion, including supply chains, SMEs, tourism, healthcare, labor, and the environment. At the 7th round, the two sides will continue discussions across seven areas, including goods, services, investment, digital, finance, and others, with the aim of laying the groundwork for an early conclusion of the negotiations. Director-General Noh stated, “The Korea–Thailand CEPA, true to its name, will not only expand market access between the two countries but also provide an institutional basis to promote cooperation in a wide range of sectors. The agreement will serve as a driving force to further boost bilateral trade and investment, build a broad foundation for economic cooperation, enhance consumer welfare in both countries, and deliver practical benefits to businesses by strengthening export competitiveness and diversifying overseas markets.” date2025-09-23
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Energy
11th International Conference on Hydrogen Safety
The Ministry of Trade, Industry and Energy (MOTIE, Minister Kim Jung-kwan) announced that the 11th International Conference on Hydrogen Safety (ICHS) will be held at Lotte Hotel World in Seoul from Monday, September 22, to Friday, September 26. The conference will bring together experts from around the world to share the latest technologies and research developments in hydrogen safety and explore avenues for policy cooperation. Approximately 300 participants are expected to attend, including speakers from 24 countries and representatives from major governments and organizations. As the host country, Korea will use this opportunity to demonstrate its strong commitment to building a safe hydrogen economy—ensuring that hydrogen, as a core clean energy source of the future, develops in tandem with safety. Beginning Tuesday, September 23, the conference will feature keynote speeches from government and industry leaders, 163 research paper presentations, a site visit to the Incheon liquefied hydrogen plant, and promotional booths from eight Korean and international companies. These programs will facilitate discussions on hydrogen safety policies and technologies while highlighting the competitive strengths of Korean companies. In his keynote address, Park Deok-yeol, Director-General of the Hydrogen Economy Policy Bureau, stressed, “A hydrogen economy grounded in safety is essential to addressing the global climate crisis and achieving carbon neutrality. Hydrogen safety is not an issue for any single nation to handle alone; it requires close international cooperation. We hope this conference will serve as a turning point toward a safer, cleaner hydrogen society.” date2025-09-23