Ministry of Trade Industry and Resources

MOTIR Minister Heads to Washington, D.C. for Tariff Talks

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) will visit Washington, D.C., on January 29, 2026, after his trip to Canada, to discuss bilateral trade issues, including President Trump’s recent tariff announcement. On January 27, 2026 (KST), President Trump announced on social media that the United States would raise reciprocal tariffs applied to Korea and product-specific tariffs on automobiles, timber, and pharmaceuticals from 15 percent to 25 percent. During his visit, Minister Kim plans to meet with the U.S. Secretary of Commerce and other officials to confirm the rationale behind the announced measures, explain Korea’s efforts to date, and urge an amicable resolution of the issue. Minister Kim will also meet with the U.S. Secretary of Energy and other counterparts to discuss cooperation in energy and resources. “We will work with the U.S. to address outstanding trade issues and continue mutually beneficial cooperation, in close coordination with Korean industry and relevant ministries,” Minister Kim said. date2026-01-29

MOTIR Announces Industrial R&D Innovation Plan Under the New Administration

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the Industrial R&D Strategic Planning and Investment Council’s first meeting of 2026 on January 28, 2026, at the Korea Trade Insurance Corporation (K-SURE). Chaired by Vice Minister Moon Shin-hak, the meeting brought together experts from industry, academia, and research institutes. During the meeting, MOTIR announced the Industrial R&D Innovation Plan and participants discussed an action plan for launching new projects in 2026. Drawing on extensive input from industry, the Industrial R&D Innovation Plan was developed to set a new direction and lay the foundation for industrial technology innovation, as major economies step up their industrial policy initiatives and the global AI race intensifies. Under the plan, MOTIR will move away from a Seoul Capital Area-centric approach and fragmented, small-scale projects and shift the industrial R&D framework toward three innovation pillars: regional R&D, R&D for the M.AX Alliance, and R&D to strengthen industrial competitiveness. First, to strengthen regional R&D and support the “Five Mega-Regions and Three Special Self-Governing Provinces” initiative, MOTIR will roll out a KRW 2.0 trillion R&D package and foster advanced industries in key industrial areas, including the Southern Semiconductor Belt and the Battery Triangle Belt. The ministry will also expand R&D to help regions affected by industrial downturns regain momentum, including through the KRW 1.5 trillion K-Chemistry Industry Transformation R&D Project. When selecting projects, MOTIR will require reviewers to consider regional spillover effects—such as impacts on investment, jobs, and production—and will introduce region-specific project types. In line with the same initiative, the ministry will designate six additional graduate programs specializing in advanced industries and establish 30 joint industry–academia labs by 2030, with regional innovation institutions - including public research institutes – serving as anchors.  Second, MOTIR will restructure R&D around the M.AX Alliance. By 2030, the ministry will build 500 AI factories and develop 15 leading manufacturing AI models through collaboration among large companies, SMEs, and startups. MOTIR will also strengthen embedded-AI R&D to integrate AI into existing products, including autonomous ships and self-driving vehicles. In addition, MOTIR will support the development of humanoids designed for industrial use and fund 10 on-site demonstration projects in 2026. MOTIR will also launch a KRW 0.7 trillion program this year to develop K-On-Device AI semiconductors. Third, MOTIR will strengthen industrial competitiveness through R&D by launching the Industrial Leap Technology Project, led by demand-side anchor companies that serve as the backbone of industrial ecosystems, to open new opportunities for partner firms and maximize the industrial impact of R&D. Pilot projects will begin in 2026, with large-scale projects to follow starting in 2027. In addition, MOTIR will strengthen the foundations for R&D innovation by easing R&D regulations, strengthening innovation capacity, and cutting unnecessary paperwork. The ministry will select 30 priority regulatory reform tasks for advanced and emerging industries and introduce “regulation-free R&D,” which will launch regulatory consultations in parallel with R&D projects to grant special exemptions in a timely manner. MOTIR will establish a KRW 1.0 trillion commercialization fund, direct investment toward initiatives such as the Industrial Leap Technology Project, and incorporate market demand—including investor input—in R&D planning. The ministry will also foster technical talent across the full career pipeline—from postdoctoral researchers to early-career researchers a date2026-01-29

2025 Annual and December Sales Trends for Major Retailers

Over the past five years, Korea’s retail industry has seen rapid growth in online sales and a contraction in large supermarket sales. Sales at the 26 major retailers (15 brick-and-mortar retailers and 11 online retailers) covered in this survey grew by an average of 6.7 percent per year from 2021 to 2025, with offline sales up 2.6 percent and online sales up 10.1 percent. Within offline retail, department stores (up 5.7 percent) and convenience stores (up 5.6 percent) sustained growth, while SSMs (up 1.0 percent) posted modest gains, and large supermarkets (down 4.2 percent) saw a sharp decline.  Sales at the 26 major retailers rose 6.8 percent in 2025, supported by growth in online sales (up 11.8 percent) and a modest increase in offline sales (up 0.4 percent).  Offline sales posted negative growth in the first half but turned positive in the second half of 2025, as the new administration executed a supplementary budget and rolled out domestic-demand measures such as recovery consumption coupons, improving consumer sentiment and supporting gains at department stores (up 4.3 percent), convenience stores (up 0.1 percent), and SSMs (up 0.3 percent). Sales at department stores (up 4.3 percent) and convenience stores (up 0.1 percent) slowed in the first half, but both increased for six consecutive months from July as consumer sentiment improved, ending 2025 with positive growth. Convenience stores, however, saw smaller growth than a year earlier, partly due to a decline in the number of outlets. Large supermarkets (down 4.2 percent) remained weak in every month except January (Lunar New Year) and October (Chuseok), posting negative growth for a second consecutive year following 2024. SSMs (up 0.3 percent) posted positive growth in the first half but turned negative in the second half of 2025. Sluggish food sales—its key revenue segment—pulled down sales per store, which have declined for 13 consecutive months since December 2024. Online sales remained strong, with steady growth across most product categories, including food, services/other, living and household goods, and home appliances. In December 2025, total sales at the 26 major retailers rose 4.4 percent year-on-year, with offline sales up 1.7 percent and online sales up 6.3 percent. Offline sales increased in fashion/accessories (up 5.1 percent) and premium international brands (up 13.7 percent), while declines continued in food (down 1.6 percent) and living and household goods (down 3.4 percent).  Online sales rose in food (up 13.7 percent) and living and household goods (up 6.0 percent). Services/other (down 2.4 percent) declined for the first time, reflecting base effects. date2026-01-28

Korea and Bangladesh Hold Second Round of Official CEPA Negotiations

Son Ho-young, Director of the Trade Agreement Coordination Division at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), attended the second round of official negotiations for the Korea–Bangladesh Comprehensive Economic Partnership Agreement (CEPA) in Dhaka, Bangladesh, on January 26, 2026. He met with Ayesha Akther, Additional Secretary and Head of the Foreign Trade Agreement Wing at Bangladesh’s Ministry of Commerce, and conducted negotiations across 13 areas, including goods market access, services, rules of origin, and economic cooperation. “Bangladesh is a rapidly growing emerging market in South Asia with the world’s eighth-largest population. Concluding a CEPA with Bangladesh would support Korean companies’ expansion into the region,” Director Son said. He added, “Korea will engage constructively in the negotiations with a view to an early conclusion.” date2026-01-27

MOTIR to Invest KRW 268.5 Billion to Accelerate AI-Driven Transformation in Manufacturing

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that it will allocate KRW 268.5 billion this year to Korea’s industrial innovation infrastructure program, which supports the establishment of research facilities and equipment to develop ultra-gap technologies and accelerate commercialization. This marks the program’s largest budget to date, up 11.5 percent from 2025, underscoring the government’s efforts to strengthen technological self-reliance and industrial competitiveness amid intensifying global technology competition. Full-Scale Investment in Core Infrastructure to Strengthen AI Capabilities in Manufacturing MOTIR plans to select 28 new projects this year (12 more than in 2025), with a total budget of KRW 28.0 billion, about 40 percent of which will be allocated to AI-based infrastructure.  By expanding AI facilities and equipment deployable directly at manufacturing sites—including AI autonomous laboratories and Manufacturing AI Transformation (M.AX) infrastructure—the program is expected to help build an industrial base that supports Korea’s transition to AI-driven manufacturing. Transforming Shared Research Spaces into Nationwide Industrial Technology Hubs Starting with this year’s newly selected projects, MOTIR will require the establishment of shared research spaces nationwide, which will serve as regional industrial technology hubs. These spaces will be established at research centers in advanced technology fields, including AI, semiconductors, and secondary batteries, to facilitate collaboration among industry, academia, and research institutions. This framework will bring together anchor companies, small and medium-sized suppliers, universities, and research institutes to advance practical technology development and accelerate commercialization. MOTIR will also pursue additional infrastructure support measures to better reflect on-site needs. These measures include upgrading and maintaining aging equipment at self-sustaining research centers with strong records of shared equipment use, as well as expanding AI autonomous laboratory infrastructure that supports the full experimental process—from virtual testing and experiment design to generating results. The industrial innovation infrastructure program will be announced in three rounds this year, with nine projects to be selected in the first round, scheduled for January 27, 2026. Further details are available on the websites of the Ministry of Trade, Industry and Resources (MOTIR) (www.motir.go.kr) and the Korea Institute for Advancement of Technology (KIAT) (www.kiat.or.kr). Choi Yeon-woo, Director General for Industrial Technology Convergence Policy at MOTIR, stated that “early investment in research facilities and equipment is critical to maintaining competitiveness amid rapid technological advances, including the AI transition.” He added that “through the industrial innovation infrastructure program, the government will support companies in responding to new technologies by building shared infrastructure that is essential to industrial technology development but difficult for small and medium-sized enterprises to establish independently. date2026-01-26

Korea and Bangladesh Hold Second Round of CEPA Negotiations

The second round of official negotiations on a Korea–Bangladesh Comprehensive Economic Partnership Agreement (CEPA) will take place in Dhaka, Bangladesh, from January 26 to 29, 2026. The talks come as interest grows in expanding economic cooperation with promising emerging markets amid shifting global and domestic trade conditions. The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) said the talks will bring together delegations of around 60 officials from both countries. The Korean delegation will be led by Son Ho-young, Director of the Trade Agreement Coordination Division, while the Bangladeshi delegation will be headed by Ayesha Akther, Additional Secretary and Head of the Foreign Trade Agreement Wing at the Ministry of Commerce. Korea and Bangladesh launched CEPA negotiations in November 2024 and held the first round of talks in August 2025, exchanging views on the draft agreement text and identifying key issues. In the second round, the two sides plan to further advance the negotiations by deepening discussions across 13 areas of agreement—including goods market access, services, rules of origin, and economic cooperation—and by actively exploring ways to narrow remaining differences. Director Son stated that "Bangladesh is a rapidly growing emerging market in South Asia and the world’s eighth most populous country." He noted that "Concluding a CEPA with Bangladesh would support Korean companies' expansion into the region," and added that "Korea will engage constructively in the negotiations with a view to an early conclusion." date2026-01-26

Trade Minister Yeo Expands Outreach at the Davos Forum to Address Trade Issues and Restore Multilateral Order

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) attended the 2026 World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, holding around 50 meetings with trade ministers from major economies, global business leaders, and leading international scholars. At the forum, he addressed key trade issues, expanded trade networks, supported efforts to restore the multilateral trading system, and promoted global investment, including by attending the WTO informal ministerial meeting and chairing the Investment Facilitation for Development Agreement (IFDA) meeting. Held amid heightened global uncertainty under the theme “A Spirit of Dialogue,” the Davos Forum drew record participation from government and business leaders, with discussions covering trade and investment as well as emerging issues such as AI, critical minerals, and digital technologies. Engagements with Government Counterparts On the sidelines, Trade Minister Yeo met with U.S. Trade Representative Jamieson Greer to discuss pending Korea–U.S. trade issues and agreed to maintain close communication to sustain bilateral relations. He also met with Michigan Governor Gretchen Whitmer, California Governor Gavin Newsom, Kentucky Governor Andy Beshear, and Senator Chris Coons to highlight the role of Korean investment in the U.S. and the importance of strengthening mutually beneficial industrial cooperation. Trade Minister Yeo discussed plans for consultations with European Commissioner for Trade and Economic Security Maroš Šefčovič aimed at identifying practical solutions to the EU’s steel import safeguard measures, and urged progress on resolving Canada’s steel import restrictions in talks with Canadian Minister of International Trade Maninder Sidhu. He also exchanged views on the EU’s trade response to the U.S., including Greenland-related issues, with French and Swiss counterparts—France’s Minister Delegate for Foreign Trade and Economic Attractiveness Nicolas Forissier and Switzerland’s Director of the State Secretariat for Economic Affairs (SECO) Helene Budliger Artieda—and discussed expanding bilateral industrial cooperation with Israel’s Minister of Economy and Industry Nir Barkat. Trade Minister Yeo also advanced efforts to diversify Korea’s trade network by accelerating ongoing FTA talks with key economies. He discussed signing the Gulf Cooperation Council (GCC) FTA with GCC Secretary-General Jasem Mohamed AlBudaiwi and Saudi Arabia’s Minister of Commerce Majid bin Abdullah Al-Kassabi; accelerating Korea–Thailand FTA negotiations with Thailand’s Minister of Foreign Affairs Sihasak Phuangketkeow and Minister of Commerce Suphajee Suthumpun; launching Korea–Egypt CEPA talks with Egypt’s Minister of Investment and Foreign Trade Hassan El-Khatib; expediting Korea–Mongolia CEPA negotiations with Mongolia’s Prime Minister Gombojavyn Zandanshatar; advancing a Korea–Bangladesh FTA with Bangladesh’s Special Envoy of the Head of the Interim Government Lutfey Siddiqi; and resuming Korea–MERCOSUR trade agreement discussions with Argentina’s Secretary of International Economic Relations, Foreign Affairs, International Trade and Worship Fernando Brun. He also reviewed progress in the Korea–China FTA services and investment negotiations with China’s International Trade Representative and Vice Minister of Commerce Li Chenggang, and discussed facilitating trade and investment under existing FTAs with Indonesia’s Deputy Minister for Investment Promotion Nurul Ichwan and Cambodia’s Senior Minister of Multilateral Trade and Economic Affairs Sok Siphana. Meetings with Business Leaders and Experts; Participation in Sessions Trade Minister Yeo met with chief executives from major foreign-invested companies, including Merc date2026-01-23

Meeting with Indonesia’s Deputy Minister for Trade and Digital Economy

Park Jung-sung, Deputy Minister for Trade at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), met with Ali Murtopo Simbolon, Indonesia’s Deputy Minister for Trade and Digital Economy at the Coordinating Ministry for Economic Affairs, at Lotte Hotel Seoul on January 23, 2026.  The meeting was attended by senior officials from MOTIR and Indonesia’s Coordinating Ministry for Economic Affairs. During the meeting, Deputy Minister Park conveyed requests raised by Korean companies undertaking investment projects in Indonesia and called for progress on outstanding issues discussed at the ministerial level, including reforms to the SNI certification system and challenges related to hydropower project bids. He also proposed resuming the Korea–Indonesia Economic Cooperation Committee as a regular bilateral cooperation platform. date2026-01-23

Korea and Indonesia Hold Talks to Expand Investment Cooperation and Address Business Challenges

Park Jung-sung, Deputy Minister for Trade at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), met with Ali Murtopo Simbolon, Indonesia’s Deputy Minister for Trade and Digital Economy at the Coordinating Ministry for Economic Affairs, on January 23, 2026, at Lotte Hotel Seoul to discuss ways to strengthen bilateral economic and trade ties. The meeting built on the two countries’ ministerial talks held on the sidelines of the APEC Economic Leaders’ Meeting in Gyeongju in October 2025. The two sides discussed ways to expand investment cooperation and to address specific hurdles that businesses face.  The two sides noted that more than 2,300 Korean companies operate in Indonesia across a wide range of sectors, including electric vehicles, batteries, steel, and chemicals, and contribute to the local economy. They agreed to work closely to foster a more investor-friendly environment and to further expand bilateral investment ties. Deputy Minister Park also conveyed requests from Korean companies undertaking investment projects in Indonesia and requested continued attention and support from the Indonesian government. Deputy Minister Park further urged progress in resolving outstanding issues raised at the ministerial meeting last October, including reforms to the SNI certification system and challenges Korean companies face when bidding for hydropower projects. Deputy Minister Simbolon said Indonesia would coordinate with relevant ministries and agencies to help advance work on these issues. Deputy Minister Park also proposed resuming the Korea–Indonesia Economic Cooperation Committee, a regular bilateral consultative platform co-chaired by Korea’s Minister of MOTIR and Indonesia’s Coordinating Minister for Economic Affairs. The two sides agreed to maintain close communication with a view to convening the committee’s third meeting at an early date. date2026-01-23

Trade Minister Yeo Speaks at the Next-Generation Trade Facilitation Panel at the Davos Forum

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) attended the World Economic Forum (WEF) Davos Forum: Next-Generation Trade Facilitation panel on January 21, 2026, at the Congress Centre in Davos, Switzerland. The panel was attended by WEF leadership and board members: the Director-General of the World Trade Organization (WTO), trade ministers from Egypt, the United Arab Emirates, Thailand, Cambodia, and Romania, and representatives from global companies, including Agility. During the panel, Trade Minister Yeo delivered remarks on a global trade facilitation alliance. date2026-01-22