Ministry of Trade Industry and Resources

CEO Roundtable on the Daesan No. 1 Petrochemical Restructuring Project

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) presided over the CEO Roundtable with companies participating in the Daesan No. 1 petrochemical restructuring project on February 25, 2026, at the Korea Trade-Investment Promotion Agency (KOTRA) in Seoul. The meeting was held to support the swift implementation of the project. Participants included the CEO of HD Hyundai Oilbank Son Myung-joon; the CEO of HD Hyundai Chemical Cho Nam-su; and the CEO of LOTTE Chemical Lee Young-jun. During his opening remarks, Minister Kim said, “The Daesan No. 1 project is the first tangible outcome of government–industry coordination” and noted that it will “help accelerate the petrochemical industry’s restructuring.” He added, “The ministry will work closely with companies to advance follow-up projects and will put in place all necessary support to minimize negative impacts on local economies, employment, and SMEs.” date2026-02-26

Meeting with the Minister of Energy and Natural Resources of Türkiye

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) met with Alparslan Bayraktar, Minister of Energy and Natural Resources of Türkiye, on February 25, 2026, at the Korea Trade-Investment Promotion Agency (KOTRA) in Seoul. The two ministers discussed ways to expand bilateral cooperation in trade and investment, nuclear energy, and resource development. Minister Kim welcomed the continued engagement between companies in both countries under the nuclear power cooperation MOU signed in November 2025. He also urged Korea and Türkiye to step up resource cooperation to bolster supply-chain resilience amid rising protectionism and economic fragmentation, including cooperation on critical minerals and the sourcing of materials, parts, and equipment. date2026-02-26

MOTIR and MOEL Meet with Foreign Chambers to Hear Industry Views Ahead of Revised Trade Union Act

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Ministry of Employment and Labor (MOEL, Minister Kim Young-hoon) held a meeting with the heads of foreign chambers of commerce in Korea on February 26, 2026, at KEPCO’s Southern Seoul Headquarters. The meeting was convened ahead of the revised Trade Union Act taking effect on March 10, 2026, to hear views from foreign-invested companies and review workplace conditions. In his opening remarks, Minister JK (Jung-Kwan) Kim explained that MOTIR and MOEL had jointly prepared guidelines for interpreting the revised Act to reduce workplace uncertainty and promote stable labor–management relations through dialogue and cooperation. He added that MOTIR will work with MOEL to step up support for companies by strengthening communication between labor and management as well as setting up a hotline for foreign-invested companies. Minister Kim Young-hoon stated that the revised Act is intended to promote dialogue between labor and management and reinforce the foundations of a sustainable industrial ecosystem built on shared growth. He noted that the government is preparing for implementation, giving top priority to enhancing workplace predictability, while remaining consistent with the purpose of the revision and balancing business activity with the protection of labor rights. At the meeting, major foreign chambers, including the American Chamber of Commerce in Korea (AMCHAM) and the European Chamber of Commerce in Korea (ECCK), offered suggestions on the revised Trade Union Act’s implementation. The government said it will closely review the input and reflect it in the rollout. MOTIR and MOEL will strengthen coordination to boost industrial competitiveness and provide a stable footing for business activity. They will reflect the views of both business and labor in a balanced manner and continue improving the foreign investment climate based on stable labor–management relations, laying the groundwork for increased investment. date2026-02-26

Korea Reviews U.S. Entry and Stay Issues for U.S.-Investing Companies and Steps Up Industry Outreach

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), the Ministry of Foreign Affairs (MOFA, Minister Cho Hyun), and the Ministry of SMEs and Startups (MSS, Minister Han Seong-sook) held a joint meeting on February 25, 2026, to review entry and stay-related issues faced by Korean companies investing in the United States. Review Meeting on U.S. Entry and Stay Issues for U.S.-Investing Companies Date/Time: February 25, 2026 (Wed.), 15:00–16:30 Venue: Korea Chamber of Commerce and Industry (KCCI), Seoul Participants: Government (Co-chairs) – Director of Korea–U.S. Trade and Cooperation Division at MOTIR, Director of North American Economic Affairs Division at MOFA, Director of International Trade and Cooperation Division at MSS Companies – LG Energy Solution, Samsung SDI, SK On, LG Chem, Dongwha Electrolyte, Enchem, Samsung Electronics, SK Hynix Associations: Korea Battery Industry Association (KBIA), Korea Semiconductor Industry Association (KSIA) The meeting was convened in response to growing demand to dispatch personnel to the United States as Korean companies expand investment in the U.S. battery and semiconductor sectors. Participants reviewed difficulties encountered by companies during visa issuance, immigration inspections, and local stay procedures, and shared suggestions for improvement. The ministries also shared recent developments in U.S. rules and practices.  Based on the suggestions raised, the government will continue consultations with the U.S. side. Reflecting requests for more sector-specific discussions, future meetings will include not only large investors but also partner firms that are expanding into the United States alongside them. Starting with batteries and semiconductors, the government will hold a series of sector-specific meetings in the first half of 2026—including automobiles and shipbuilding—to review challenges across the investment ecosystem and continue working to ensure a stable environment for investment in the United States. date2026-02-26

Total Sales at Major Retailers Rise 4.4% in January 2026

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that total sales at 26 major retailers (15 brick-and-mortar retailers and 11 online retailers) in January 2026 rose 4.4 percent year-on-year, with offline sales down 0.6 percent and online sales up 8.2 percent. Offline sales at department stores (up 13.4 percent) and convenience stores (up 0.8 percent) posted growth, while large supermarkets (down 18.8 percent) and SSMs (down 4.4 percent) declined. Department stores and convenience stores recorded positive growth for seven consecutive months from July 2025. Department store sales rose in fashion/apparel, including winter clothing, and premium international brands, while convenience store sales increased in desserts and ready-to-eat foods. Large supermarket and SSM sales fell from a year earlier, as the Lunar New Year holiday fell on January 29 in 2025 but on February 17 in 2026. Sales declined as seasonal demand for holiday gift sets and key food items did not materialize in January 2026. Online sales have maintained an upward trend since the statistics were first compiled. Sales rose across all product categories, including food (up 7.7 percent), fashion/apparel (up 10.1 percent), and cosmetics (up 15.5 percent). Sales shares by channel were 58.7 percent for online retailers, 16.8 percent for department stores, 12.7 percent for convenience stores, 9.7 percent for large supermarkets, and 2.1 percent for SSMs. Compared with the 2025 annual shares, department stores rose 2.6 percentage points, while online retailers fell 0.3 percentage points. Shares also declined for large supermarkets (down 0.1 percentage points), SSMs (down 0.1 percentage points), and convenience stores (down 2.1 percentage points). date2026-02-26

Korea and Türkiye Discuss Cooperation on Nuclear Power Project Feasibility Study

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) met with Alparslan Bayraktar, Minister of Energy and Natural Resources of Türkiye, on February 25, 2026, at the Korea Trade-Investment Promotion Agency (KOTRA) in Seoul to discuss ways to expand bilateral industrial and trade cooperation. The talks focused on follow-up measures to implement the outcomes of the Korea–Türkiye summit in November 2025. Minister Kim commended the continued expansion of bilateral trade despite heightened global uncertainty, with trade reaching a record USD 10.7 billion in 2025. He expressed hope that the two sides would build on the summit commitments in future strategic areas—nuclear energy, biotechnology, infrastructure, and defense—to further deepen bilateral ties. Turning to nuclear energy, Minister Kim welcomed ongoing engagement between companies in both countries under the nuclear power cooperation MOU signed in November 2025 between Korea Electric Power Corporation (KEPCO) and Türkiye’s Nuclear Energy Company. He noted that the two companies agreed to launch a joint working group to examine the technical and commercial feasibility of Türkiye’s new nuclear power project and have begun a preliminary feasibility study. Minister Kim underscored that Korean companies bring five decades of experience and technical know-how in building and operating nuclear power plants, positioning Korea as a strong partner for Türkiye as it advances new nuclear projects. He also proposed close intergovernmental coordination to help move company-level efforts on nuclear power into the implementation phase. Minister Kim urged Korea and Türkiye to step up resource cooperation to bolster supply-chain resilience amid rising protectionism and economic fragmentation, including cooperation on critical minerals and the sourcing of materials, parts, and equipment. date2026-02-26

Korea Launches “K-Export One-Team” to Reach USD 1 Trillion in Exports and Top Five Global Exporter Status

The government launched a public–private “K-Export One-Team” initiative to sustain export momentum amid heightened uncertainty in the global trade environment. The initiative follows a U.S. Supreme Court ruling that limited executive authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), as well as the U.S. administration’s announcement of additional tariff measures. On February 25, 2026, the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the first Public–Private Export Expansion Meeting and announced the 2026 All-Government Export Promotion Plan—which targets USD 740.0 billion in exports in 2026—and the Trade Finance Innovation Plan for “Exports for All.” The meeting brought together major business associations, industry-leading companies, and heads of export support agencies to discuss next steps to sustain export momentum. In his opening remarks, Minister JK (Jung-Kwan) Kim noted increasing uncertainty in Korea’s export conditions, adding, “We will turn this crisis into an opportunity through proactive export diversification.” He said, “The government will adapt to global trends such as the Korean Wave, AI, and population aging, and step up summit diplomacy and trade cooperation to focus support on eight priority export categories, including consumer goods and defense.” He added, “The government will expand the export base by supporting regional companies and smaller firms as they enter export markets and by building a step-by-step ladder for promising SMEs to grow into leading exporters.” MOTIR will provide a record KRW 275.0 trillion in trade insurance in 2026. Minister Kim emphasized that the ministry will expand inclusive trade finance for SMEs, mid-sized firms, and regional companies to address financing gaps. He stated, “We will also strengthen tailored support to boost exports and secure overseas contracts in promising industries such as K-consumer goods and defense.” At the meeting, Hana Bank (CEO Lee Ho-sung) and the Korea Trade Insurance Corporation (K-SURE, President Jang Young-jin) signed an MOU to provide KRW 5.0 trillion in preferential financing for exporting SMEs and mid-sized firms. The two institutions will strengthen cooperation on trade finance support, including raising mid- to long-term insurance limits for partner companies joining overseas joint expansion projects and sharing credit information on overseas buyers. date2026-02-25

MOTIR Approves First Petrochemical Restructuring Project, Unveils Support Package of Over KRW 2.1 Trillion

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced on February 23, 2026, that it approved the final plan for the “Daesan No. 1” restructuring project submitted by HD Hyundai Oilbank, HD Hyundai Chemical, and Lotte Chemical. This marks the first approval under the Petrochemical Industry Restructuring Roadmap released in August 2025. Under the plan, Lotte Chemical will separate its Daesan operations and merge the business with HD Hyundai Chemical to integrate the naphtha cracking center (NCC) and downstream facilities. HD Hyundai Oilbank and Lotte Chemical will inject a combined KRW 1.2 trillion into the newly established entity, adjusting HD Hyundai Chemical’s ownership structure from 60:40 to 50:50. The companies will finalize the setup after signing the merger-related agreements, securing board approvals, and completing the spin-off and merger procedures. In coordination with relevant agencies, MOTIR prepared a tailored support package that includes financing of up to KRW 2 trillion, tax measures, and steps to streamline regulatory approvals—including merger review and permitting/licensing procedures. The package also provides KRW 69–115 billion to ease utility and raw-material cost burdens, as well as measures to address industrial and employment challenges in affected regions. For R&D, MOTIR will fast-track support starting this year for two high-value projects requested by the approved companies, totaling KRW 26 billion. Over the longer term, MOTIR will pursue additional large-scale programs to support the shift to higher value-added and greener production. During the three-year restructuring period, the Daesan No. 1 project is expected to ease oversupply at the complex by suspending one ethylene production facility and scaling back low-margin downstream operations, while improving utilization across remaining assets. In addition, vertical integration across the refining–petrochemical value chain is expected to bolster feedstock security and cost competitiveness, while enabling flexible output adjustments in line with refining margins and naphtha spreads. Once the integrated corporation is in place, the combined business is expected to move away from commodity-driven exports by expanding high-value materials, including high-elastic lightweight materials and organic solvents for electrolytes. The business will also shift to lower-carbon feedstocks and processes by using bio-based naphtha and introducing ethane as a feedstock. Operational integration, backed by shareholder measures, is expected to strengthen the company’s financial position. MOTIR will expedite follow-up restructuring projects, using public-private consultations to refine project-specific proposals submitted in December 2025 and to help companies finalize and file their restructuring plans. The ministry will also promptly draft the enforcement decree for the Special Act on Strengthening and Supporting the Competitiveness of the Petrochemical Industry, establishing the institutional basis to implement approved restructuring plans. In March 2026, the government will launch a Chemical Industry Ecosystem Forum to develop policy measures that limit the impact of restructuring on local economies, employment, and SME suppliers. Building on the forum’s discussions, the government will prepare a comprehensive support package for the sector in the first half of 2026. On February 25, 2026, MOTIR held a CEO roundtable at the Korea Trade-Investment Promotion Agency (KOTRA) to outline the support package and discuss next steps for implementation. At the meeting, Minister JK (Jung-Kwan) Kim thanked the companies behind the first approved project and called for thorough implementation to keep the plan on track. Minister Kim described the Daesan No. 1 project as the first tangible outcome of government–industry coordination, noting that it will help acce date2026-02-25

Public–Private Joint Response Meeting on U.S. IEEPA Ruling and Additional Tariff Measures

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) chaired a public–private joint response meeting on the U.S. International Emergency Economic Powers Act (IEEPA) ruling and additional tariff measures on February 23, 2026, at the Korea Chamber of Commerce and Industry (KCCI) in Seoul.    The meeting was attended by officials from the Ministry of Foreign Affairs (MOFA), the Ministry of Economy and Finance (MOEF), and the Ministry of Agriculture, Food and Rural Affairs (MAFRA), as well as representatives from the Korea International Trade Association (KITA), the Korea Federation of SMEs (KBIZ), the Korea Trade-Investment Promotion Agency (KOTRA), and other relevant organizations. Minister Kim stated, “Guided by the principle of maximizing the national interest, the government will stay in close communication with the U.S. side so that the balance of benefits secured under the Korea–U.S. tariff agreement and market conditions for Korean exports to the United States are not undermined.” date2026-02-24

Government and Industry Step Up Coordination in Response to U.S. IEEPA Ruling and Tariff Measures

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) chaired a public-private joint response meeting on February 23, 2026, at the Korea Chamber of Commerce and Industry (KCCI) in Seoul. The meeting brought together economic organizations, major industry associations, related institutions, and relevant ministries to discuss next steps following a U.S. Supreme Court ruling that limited executive authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), along with the U.S. administration’s announcement of additional tariff measures. Participants reviewed the potential impact on Korea’s industries and exports after the U.S. administration announced follow-up actions, including the imposition of a global tariff under Section 122 of the Trade Act and plans to initiate investigations under Section 301. They also gathered industry input and discussed possible response measures. Participants noted that, while Section 232 tariffs remain in place after the IEEPA ruling, additional U.S. actions—including a flat 15 percent global tariff imposed under Section 122 on products previously subject to reciprocal tariff measures and the planned initiation of Section 301 investigations—could have overlapping impacts on Korea’s industries and exports. They agreed on the need for close public–private coordination amid growing uncertainty in global trade. Minister Kim stated, “Under the principle of maximizing the national interest, the government will maintain close communication with the U.S. side to ensure that the balance of benefits secured under the Korea–U.S. tariff agreement and conditions for Korean exports to the United States are not undermined.” He added, “We will continue to strengthen companies’ competitiveness and step up export market diversification in light of possible shifts in the export environment. We will also work with relevant institutions and industry associations to provide companies with timely information amid uncertainty over tariff refunds.” Going forward, the government will continue to monitor U.S. follow-up measures and moves by other countries and will work to minimize uncertainty for the Korean economy and businesses. date2026-02-24