Ministry of Trade Industry and Resources

MOTIR Steps Up Public–Private Cooperation to Stabilize Rare Earth Supply Chains

As part of his trip to the Daegu-Gyeongbuk region, Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) visited Star Group Ind. Co., Ltd.—a rare-earth permanent magnet manufacturer—on February 5, 2026, and met with major rare earth companies and support organizations to hear business challenges and discuss public–private cooperation. Ahead of the meeting, MOTIR released a summary of the comprehensive measures for rare earth supply chains, developed by the Industrial Security Supply Chain Task Force since October 2025 and approved by written resolution at the third Resource Security Council on February 4, 2026. The measures are the first policy initiative of MOTIR’s Office of Industry, Trade and Resource Security, launched in late December 2025. They cover the full rare-earth value chain—from mine development through separation and refining to manufacturing—and are organized around three pillars. First, to manage short-term supply and demand risks, the government will expand trade cooperation through multiple channels, designate all 17 rare earth elements as critical minerals, and refine supply-and-demand analysis by introducing and further subdividing HSK codes for rare earth imports and exports. Second, to diversify sources, the government will strengthen project-based resource diplomacy and expand the public sector’s role in sharing investment risks with the private sector. The government will also step up policy financing by increasing the budget for overseas resource development loans from KRW 39.0 billion in 2025 to KRW 67.5 billion in 2026 (up KRW 28.5 billion) and raising the loan coverage ratio from 50 percent to up to 70 percent. Third, to build domestic rare-earth production capacity, the government will support investment in domestic production facilities, streamline regulations to invigorate the recycling ecosystem, develop an R&D roadmap covering rare-earth substitution, reduction, and recycling, and create a new Rare Earth R&D Fund within the Industrial Technology Innovation Fund.  At the meeting, participating companies voiced support for the government’s policy direction, shared current supply constraints, and called for sustained government attention and policy support to secure a stable rare earth supply chain and foster related industries. “Korea has strong capabilities in advanced industries such as semiconductors, electric vehicles, and batteries. But our heavy reliance on imported resources creates structural challenges in managing supply chains,” Minister Kim said. He added that “Korea’s national competitiveness hinges on industrial and resource security, and the public and private sectors must work closely to ensure stable management of rare earth supply chains.” He also said the government will “concentrate its policy efforts on building the foundations across the full rare earth value chain and strengthening industrial resilience against external shocks.” date2026-02-06

Rare Earth Value Chain Roundtable

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) hosted a meeting at Star Group Ind. Co., Ltd.’s Hyeonpung plant in Daegu on February 5, 2026, with companies and institutions across the rare earth value chain. Participants discussed ways to strengthen public–private cooperation to ensure supply chain stability and toured the plant.   The meeting was attended by representatives from the Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR), the Korea Institute of Geoscience and Mineral Resources (KIGAM), Star Group Ind. Co., Ltd., Korea Zinc, and Hyundai Motor, among others.   Minister Kim said, “Korea’s national competitiveness hinges on industrial resource security, and the public and private sectors must work closely to ensure stable management of rare earth supply chains.” date2026-02-06

Meeting with Graduate Students from Key Universities in Daegu–Gyeongbuk

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) met with graduate students from key universities in the Daegu–Gyeongbuk region at a restaurant in Daegu on February 5, 2026, to discuss the future of the robotics and automotive industries, explore ways to foster young talent, and promote joint growth between local industry and the region. The meeting was attended by graduate students from Kyungpook National University, Keimyung University, and the Daegu Gyeongbuk Institute of Science and Technology, among others. Minister Kim said, “MOTIR will reflect young people’s input and, together with relevant ministries and local governments, refine talent and regional industry policies to build a more effective pipeline from education to industry.”   date2026-02-06

M.AX Roundtable in Daegu

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) chaired the Daegu Regional M.AX roundtable at the Marriott Hotel in Daegu on February 5, 2026, and delivered opening remarks. Participants discussed the way forward for the regional-hub AX program and ways to link it with Manufacturing AI Transformation (M.AX). The roundtable was attended by National Assembly Member Kwon Hyang-yup, Acting Daegu Mayor Kim Jeong-gi, and representatives from relevant institutions and companies. Minister Kim said, “M.AX is a core lever for raising productivity and quality in regional manufacturing at the same time.” He added, “MOTIR will provide policy and program support to expand M.AX, linking local businesses with research institutions.” date2026-02-06

Meeting with Participants of the Pilot Industrial Complex AX Initiative

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) met with companies participating in the pilot industrial complex AX initiative at Samhyun Co., Ltd. in Changwon on February 6, 2026. Following opening remarks, Minister Kim and the participants reviewed AX adoption cases in manufacturing and discussed implementation challenges. The meeting brought together representatives from universities, demand and supply-side companies, and related institutions, including Doosan Enerbility, Core Systems Co., Ltd., Gyeongnam Technopark, the Korea Electronics Technology Institute (KETI), and Changwon National University. “AX is not just about productivity. It is also about capturing skilled workers’ know-how in technology and scaling it across sites,” Minister Kim said, adding that MOTIR will validate models in the field through pilot industrial complexes and scale them up to drive manufacturing upgrades across industrial clusters. date2026-02-06

MOTIR Minister Visits Daegu–Gyeongbuk to Discuss Industrial Security, Advanced Manufacturing, and Talent Development

Following visits to Jeonbuk (January 22, 2026), and the Busan-Ulsan-Gyeongnam area (January 23, 2026), Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) visited the Daegu-Gyeongbuk region—a key hub for Korea’s advanced industries—on February 5, 2026, as part of the government’s on-site outreach under the “Five Mega-Regions and Three Special Self-Governing Provinces” initiative. During the trip, Minister Kim visited Star Group Ind. Co., Ltd., a rare earth permanent magnet manufacturer in Daegu, and met with five key companies across the rare earth value chain—including Hyundai Motor, POSCO, and Korea Zinc—along with relevant support organizations to hear about challenges in securing rare earth supplies. MOTIR also presented comprehensive measures on rare earth supply chains, developed through the Industrial Security Supply Chain Task Force since October 2025, and discussed policy support and public–private cooperation to ensure supply chain stability. Minister Kim said, “Korea’s national competitiveness hinges on industrial resource security, and the public and private sectors must work closely to ensure stable management of rare earth supply chains.” Minister Kim then held a lunch meeting with graduate students at leading universities in Daegu and Gyeongbuk to hear their perspectives on the future of the region’s key industries, including robotics and automobiles. The students also proposed government support for talent development, including programs to train talent for AI convergence and to strengthen graduate-level capabilities. Minister Kim said that “MOTIR will incorporate youth perspectives and, together with relevant ministries and local governments, refine talent and regional industry policies to build a more effective pipeline from education to industry.” Minister Kim also held a Manufacturing AI Transformation (M.AX) roundtable with local companies and relevant institutions to discuss building a regional hub to expand M.AX across industrial sites. During the event, the Korea Planning & Evaluation Institute of Industrial Technology (KEIT) and the Daegu Digital Innovation Promotion Agency signed a cooperation MOU to support the smooth implementation of AX innovation technology development projects in the regional hub. Participants discussed the next steps for the regional AX hub program, measures to link regional initiatives with M.AX, and how to expand M.AX in the region’s key industries, including robotics. Minister Kim noted, “M.AX is a core lever for raising productivity and quality in regional manufacturing at the same time.” He added, “MOTIR will provide policy and program support to expand M.AX, linking local businesses with research institutions.” As the final event of the visit, Minister Kim met with regional innovation institutions—including research institutes and technoparks—and local economic organizations, including the Daegu Chamber of Commerce and Industry, to discuss the Daegu–Gyeongbuk region’s industrial vulnerabilities and potential and ways to strengthen competitiveness. Participants also extensively discussed the roles of each organization in revitalizing the regional economy and advancing the “Five Mega-Regions and Three Special Self-Governing Provinces” regional growth initiative. They noted strong interest among local companies in AI-based manufacturing innovation (M.AX) and industrial upgrading, and called on the central government to expand related program budgets and increase participation by local companies. Minister Kim said, “MOTIR will support the expansion of M.AX across industrial sites and strengthen the region’s industrial competitiveness,” and asked the regional innovation institutions and economic organizations to work closely with the ministry to advan date2026-02-05

January Exports Top $60 Billion for the First Time

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that in January 2026, Korea’s exports rose 33.9 percent year-on-year to USD 65.9 billion, while imports increased 11.7 percent to $57.1 billion, resulting in an $8.7 billion surplus. Exports hit the highest level on record for any January, topping $60.0 billion for the first time. Average daily exports (adjusted for working days) rose 14.0 percent year-on-year to $2.8 billion, also a record for any January. By product, exports increased in 13 of Korea’s 15 key export items. Semiconductors rose to $20.5 billion (up 102.7 percent), followed by wireless communication devices ($2.0 billion, up 66.9 percent), computers ($1.6 billion, up 89.2 percent), displays ($1.4 billion, up 26.1 percent), automobiles ($6.1 billion, up 21.7 percent), petroleum products ($3.7 billion, up 8.5 percent), and bio-health products ($1.4 billion, up 18.3 percent). By contrast, petrochemicals fell to $3.5 billion (down 1.5 percent) and ships slipped to $2.5 billion (down 0.4 percent). Beyond the 15 major items, exports of electrical equipment ($1.4 billion, up 19.8 percent), agri-fishery products ($1.0 billion, up 19.3 percent), and cosmetics ($1.0 billion, up 36.4 percent) each posted record highs for January. By destination, exports increased in seven of Korea’s nine major markets, including China ($13.5 billion, up 46.7 percent), the United States ($12.0 billion, up 29.5 percent), ASEAN ($12.1 billion, up 40.7 percent), and the EU ($5.4 billion, up 6.9 percent). Imports rose 11.7 percent year-on-year to $57.1 billion. Energy imports fell to $10.0 billion (down 11.9 percent), while non-energy imports rose to $47.1 billion (up 18.4 percent). The trade surplus in January came to $8.7 billion, up $10.7 billion from a year earlier, marking the largest on record for any January and extending Korea’s surplus streak to 12 consecutive months since February 2025. Minister JK (Jung-Kwan) Kim stated, “Exports in January posted double-digit growth, marking a solid start to the year.” He added, “It is encouraging that growth was broad-based across major items such as semiconductors and automobiles, as well as promising consumer goods.” Noting that “uncertainty in the trade environment is increasing amid recent U.S. tariff policy and spreading protectionism,” Minister Kim said, “the government will continue consultations with the United States while keeping Korea’s national interests as the top priority.” He added, “the government will mobilize all available resources to build a more resilient trade structure by diversifying products and markets and broadening the exporter base.” date2026-02-03

Minister JK Kim Meets U.S. Energy Secretary

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) met with U.S. Secretary of Energy Chris Wright on January 29, 2026, at the U.S. Department of Energy in Washington, D.C., to discuss cooperation in the energy and resources sectors. During the meeting, the two sides agreed to establish a working-level consultation channel to expedite discussions on bilateral cooperation in energy and resources. date2026-02-03

Minister JK Kim Meets U.S. Commerce Secretary

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) met with U.S. Secretary of Commerce Howard Lutnick on January 29, 2026, at the U.S. Department of Commerce in Washington, D.C., to discuss key trade issues, including tariffs. During the meeting, Minister Kim emphasized Korea’s commitment to swift, smooth implementation of the Korea–U.S. tariff agreement and outlined steps toward prompt enactment of the Special Act for Korea–U.S. Strategic Investment Management. The two sides also agreed that U.S.-bound investment projects under the Special Act should deliver mutual benefits for industries in both countries. date2026-02-03

Minister of MOTIR Calls for Swift and Smooth Implementation of Korea–U.S. Tariff Agreement

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) met with U.S. Secretary of Commerce Howard Lutnick in Washington, D.C., on January 30 and 31, 2026, for in-depth talks on key trade issues, including the United States’ recently announced plans to raise tariffs. During the meetings, Minister Kim underscored Korea’s commitment to implement the Korea–U.S. tariff agreement smoothly and without interruption. He explained that the government will work closely with the National Assembly to swiftly enact the Special Act for Korea–U.S. Strategic Investment Management through proper legislative procedures. The two sides shared the view that U.S.-bound investment projects under the Special Act should be mutually beneficial to industries in both countries. Minister Kim also met with U.S. Secretary of Energy Chris Wright, and the two sides agreed to establish a working-level consultation channel in the energy and resources sectors to expedite discussions on bilateral cooperation. Minister Kim stated that “while the talks provided an opportunity to deepen mutual understanding of the U.S. intent behind the planned tariff increase and find middle ground, additional discussions with the U.S. side are still needed.” He added that “the government will fully implement the Korea–U.S. tariff agreement to minimize trade uncertainties for Korean companies operating in the U.S. market." date2026-02-02