Ministry of Trade Industry and Resources

UK Export Benefits to See Major Changes: MOTIR Briefs Industry on Outcomes of Korea–UK FTA Upgrade

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held an industry briefing on Thursday, January 8, 2026, at Lotte Hotel Seoul to explain the outcomes of the Korea–UK Free Trade Agreement (FTA) upgrade negotiations concluded on December 15, 2025. The briefing was attended by Kwon Hye-jin, Director General for Trade Negotiations at MOTIR, along with representatives from export-related institutions—including the Korea Trade-Investment Promotion Agency (KOTRA) and the Korea International Trade Association (KITA)—and major companies from the manufacturing and services sectors. The event highlighted the practical benefits of the upgraded Korea–UK FTA, which reflects changes in the trade environment following the United Kingdom’s withdrawal from the European Union (Brexit). The program featured two sessions: one covering achievements in manufacturing and investment, and another focusing on outcomes in the services sector. In addition to gains in traditional manufacturing industries such as automobiles, the briefing underscored key services and investment-related achievements, including eased entry for Korean professionals into the UK, market access for webtoons and online games, and efforts to promote a co-production agreement in the audiovisual services sector. These outcomes are expected to enhance FTA utilization by Korean service companies and expand their access to the UK market. Director General Kwon stated, “More important than concluding an FTA is ensuring that companies can effectively utilize it in practice,” adding that “the government will continue to engage closely with industry and focus policy efforts on supporting and expanding Korean companies’ presence in the UK market.” MOTIR also plans to expedite follow-up procedures required for the agreement’s entry into force, including legal reviews and the Korean translation of the agreement text, to ensure that industry can benefit from the outcomes of the negotiations as early as possible. date2026-01-09

EU CBAM Enters Full Implementation; Government and Industry Coordinate Response

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) convened a meeting with industry stakeholders on the EU’s Carbon Border Adjustment Mechanism (CBAM) on January 8, 2026, at the Korea Iron & Steel Association. On this occasion, MOTIR and the steel industry reviewed the implications of the CBAM’s full implementation and discussed future response strategies. The CBAM entered into full force on January 1, 2026, under which carbon costs will be levied on importers of covered products entering the EU market. The EU completed legislative amendments aimed at simplifying the CBAM in October last year and, in December, enacted or revised nine secondary regulations, including methodologies for calculating carbon emissions. The remaining secondary regulations, which cover issues such as carbon prices paid in third countries, are expected to be released in the first half of this year. Major domestic steelmakers attending the meeting noted that they had established compliance systems in advance during the transitional period and therefore expected to navigate regulatory changes following the CBAM’s full entry into force. They also assessed that the EU’s recent announcements on secondary regulations have helped reduce uncertainty and highlighted that verification can now be conducted through EU-accredited domestic verifiers. At the same time, the industry called for continued intergovernmental cooperation to ensure that Korea’s industrial characteristics are duly reflected in addressing remaining ambiguities. Lee Jae-keun, Director General for New Trade Strategy and Policy at MOTIR, stated, “As the EU plans to pursue further legislative amendments through the end of this year, MOTIR will continue working with the EU to reflect the characteristics of Korean industries.” He added, “The government will communicate with EU authorities on implementation-related uncertainties and promptly provide guidance to industry.” MOTIR will pursue additional consultations with the EU based on the industry feedback gathered at the meeting and, in cooperation with relevant ministries, develop support measures in response to the CBAM’s full implementation. date2026-01-08

2025 Foreign Direct Investment Briefing

Nam Myung-woo, Acting Director General for Cross-Border Investment Policy at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), delivered a briefing to the press on Korea’s 2025 foreign direct investment performance at the Government Complex Sejong on Wednesday, January 7, 2026. During the briefing, Acting Director General Nam noted that Korea’s annual foreign direct investment in 2025, based on investment notifications, rose 4.3 percent year-on-year to USD 36.1 billion, marking the highest level on record, while funds received increased 16.3 percent to $18.0 billion, ranking third highest on record. The briefing was followed by a question-and-answer session with members of the press corps. date2026-01-07

Korea’s Annual Foreign Direct Investment Hits All-Time High of $36.1 Billion

Korea’s annual foreign direct investment (FDI) on a notification basis reached USD 36.1 billion in 2025, up 4.3 percent year-on-year and marking an all-time high. Actual inflows also increased 16.3 percent year-on-year to $18.0 billion, the third-highest figure on record. Despite a steep decline in investment during the first half of 2025 (down 14.6 percent), overall investor sentiment recovered following the launch of the new administration, which helped restore confidence in Korea’s economy and industries and reduce uncertainty. In particular, the government’s strong policy drive in artificial intelligence (AI), combined with proactive investment promotion efforts surrounding the Gyeongju APEC Summit, proved effective. In addition to quantitative growth, the quality of investment also improved. Greenfield investment, which has a strong impact on regional economic revitalization and job creation, reached its highest level to date. High-quality investments linked to advanced industries such as AI, semiconductors, and biotechnology also expanded, supporting expectations that these inflows will contribute significantly to the development of Korea’s economy and industries. By type, greenfield investment notifications rose 7.1 percent year-on-year to $28.6 billion, the highest level on record. M&A investment totaled $7.5 billion, down 5.1 percent from the previous year; however, the pace of decline narrowed significantly after a sharp drop of 54.0 percent in the third quarter. By industry, manufacturing investment increased 8.8 percent year-on-year to $15.8 billion, led by notable investment in key materials for advanced industries, reflecting efforts to strengthen supply chains amid external uncertainty. Investment rose sharply in chemicals (up 99.5 percent to $5.8 billion) and metals (up 272.2 percent to $2.7 billion), while declines were recorded in electrical and electronics (down 31.6 percent to $3.6 billion), as well as machinery and medical precision equipment (down 63.7 percent to $0.9 billion). Services investment also expanded, rising 6.8 percent year-on-year to $19.1 billion, supported by increased investment in AI data centers and online platforms. Growth was concentrated in distribution (up 71.0 percent to $2.9 billion), information and communications (up 9.2 percent to $2.3 billion), and research and development, professional, and scientific services (up 43.6 percent to $2.0 billion), while finance and insurance recorded a decline (down 10.6 percent to $7.5 billion). By source country, investment from the United States expanded mainly in metals, distribution, and information and communications, reaching $9.8 billion, up 86.6 percent year-on-year. Investment from the European Union increased to $6.9 billion (up 35.7 percent), driven largely by chemicals and distribution. In contrast, investment from Japan declined 28.1 percent to $4.4 billion, while investment from China fell 38.0 percent to $3.6 billion. Building on the momentum from last year’s strong performance, MOTIR will expand incentives for foreign investment linked to regional development in 2026, actively identify and improve unreasonable regulations affecting foreign-invested companies, and continue efforts to create a more predictable and stable investment environment. date2026-01-07

Korea to Establish Largest-Ever Integrated Pavilion at CES 2026

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Ministry of SMEs and Startups (MSS, Minister Han Seong-sook) announced that they will engage in a whole-of-government collaboration to establish the largest-ever Korea Pavilion at CES 2026 (Consumer Electronics Show), to be held in Las Vegas in the United States, from January 6 to 9, 2026 (Tuesday to Friday).   CES is a leading global exhibition showcasing cutting-edge technologies in IT and consumer electronics. Under the theme “Innovators Show Up,” CES 2026 is expected to feature a wide range of innovative products and services applying AI technologies across sectors, including consumer electronics, mobility, and healthcare.   The exhibition will bring together approximately 4,500 companies from more than 150 countries. Korea will be represented by around 1,000 companies, ranging from major conglomerates such as Samsung, LG, Hyundai, and SK to innovative SMEs and promising startups with advanced technologies.   This year, centered on MOTIR’s Integrated Korea Pavilion and MSS’s K-Startup Integrated Pavilion, the government will build and operate a Korea Pavilion with unified booth designs, logos, and other branding elements, involving 38 organizations and 470 companies. Through large-scale national pavilion operations and “Korea Premium” marketing, the initiative is expected to enhance the effectiveness of participating Korean companies’ export marketing efforts.   Participating companies will be offered business networking opportunities with global firms—including Walmart and Intel—through a series of programs, such as an on-site expert seminar on January 5, technology demonstration sessions on January 6 and January 9, and the K-Innovation Pitching Challenge from January 7 to 8.    Meanwhile, according to the first-round results of the CES Innovation Awards announced in early November by the Consumer Technology Association (CTA), 168 Korean companies were named among the 284 overall award-winning companies.   Despite intense competition with more than 3,600 products submitted this year, Korea ranked first in the number of award recipients for the third consecutive year, once again demonstrating its global technological competitiveness on the international stage.   More than 80 percent of the 168 Korean award-winning companies were SMEs, totaling 137 firms. With AI expected to be the core theme of CES this year, Korean companies not only swept all three Best of Innovation Awards in the AI category, but also recorded the highest number of Innovation Awards, with 28 awards.   Minister Kim noted, “Amid intensifying competition for technological leadership in AI, CES—the world’s premier showcase of innovative technologies—will be an opportunity for Korean companies to demonstrate their technological capabilities and potential.” He added, “The government will actively provide support to ensure that innovation translates into export outcomes.”   Minister Han stated, “By delivering strong results at CES 2026, Korea’s venture and startup companies have made a clear impression on the global stage that Korea has the technological capabilities to lead future markets.” She added, “The government will continue to support innovative companies so that they can leverage CES as a stepping stone to expand globally.” date2026-01-05

Korea’s Annual Exports Reach New Highs in 2025

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that Korea’s exports in 2025 reached USD 709.7 billion, up 3.8 percent year-on-year, marking the first time exports surpassed $700 billion and the highest annual performance on record. Daily average exports also climbed 4.6 percent from the previous year to a record $2.64 billion. Korea’s imports in 2025 stood at $631.7 billion, remaining broadly flat (down 0.02 percent year-on-year) as non-energy imports—including semiconductor manufacturing equipment—increased and energy imports declined amid falling global oil prices. The trade balance posted a surplus of $78.0 billion, extending the surplus streak to 11 consecutive months and improving by $26.2 billion year-on-year. This marked Korea’s largest trade surplus since 2017, when the surplus stood at $95.2 billion. Exports continued to be driven by its core industries—including semiconductors, automobiles, and ships—while electrical equipment, agricultural and fishery products, and cosmetics each recorded their highest export values on record, emerging as new growth drivers. By destination, exports became more diversified, with reliance on the United States and China decreasing and exports to ASEAN, Latin America, and the CIS increasing. In 2025, exports increased in six of Korea’s 15 key export items, alongside solid growth in promising items outside the top 15, including electrical equipment, agricultural and fishery products, and cosmetics. Exports of semiconductors, Korea’s largest export item, rose 22.2 percent year-on-year to an all-time high of $173.4 billion, supported by solid demand from AI data centers and a sharp rise in fixed prices for memory chips. Monthly semiconductor exports set new highs for nine consecutive months beginning in April. Automobile exports totaled $72.0 billion, up 1.7 percent, setting a new record (previously $70.9 billion in 2023). While exports to the U.S.—the largest market—declined due to tariff impacts, shipments to the EU and the CIS rose on strong demand for hybrid vehicles and used cars. Bio-health exports rose 7.9 percent to $16.3 billion, extending their growth streak for a second consecutive year. Ship exports surged 24.9 percent to $32.0 billion, while exports of computers ($13.8 billion, up 4.5 percent) and wireless communication devices ($17.3 billion, up 0.4 percent) also increased. Meanwhile, exports of items outside the top 15 increased 5.5 percent to $157.4 billion, marking a new high and further diversifying Korea’s export portfolio. Exports of agricultural and fishery products, cosmetics, and electrical equipment reached record highs, reflecting growing global demand for K-food and K-beauty products as well as rising electricity demand worldwide. By contrast, exports of petroleum products declined due to lower unit prices, while exports of petrochemicals and steel fell amid declining product prices caused by global oversupply. Exports expanded in six of Korea’s nine major export markets in 2025. Exports to China, Korea’s largest export destination, declined 1.7 percent to $130.8 billion, as decreases in petrochemicals, wireless communication devices, and general machinery offset solid semiconductor exports. Exports to the U.S. fell 3.8 percent to $122.9 billion, reflecting declines in automobiles, general machinery, and auto parts. However, double-digit growth in semiconductor exports helped moderate the overall decline. Korea’s trade surplus with the U.S. stood at $49.5 billion, down $6.1 billion from 2024. Exports to ASEAN rose 7.4 percent to $122.5 billion, driven by semiconductors, raising ASEAN’s share of total exports from 16.7 percent in 2024 to 17.3 percent in 2025. Exports to the EU rose 3.0 percent to a record high of $70.1 billion, led by automobiles and ships, with broad- date2026-01-02

Industrial Technology Workforce Reaches 1.74 Million, Posting Growth for a Fourth Consecutive Year

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced the results of the 2025 Survey on Supply and Demand of the Industrial Technology Workforce, which was conducted by the Korea Institute for Advancement of Technology (KIAT) from August 11 to October 24, 2025. The survey covered 21,327 sampled business establishments nationwide with 10 or more employees and collected data on workforce levels and shortages by industry, occupation, and region, as well as recruitment, hiring, and employee separations during 2024. According to the findings, the total industrial technology workforce reached approximately 1.74 million, representing a 1.1 percent increase from 1.72 million in the previous year and marking the fourth consecutive year of growth. Employment in the twelve key industries totaled approximately 1.16 million workers, accounting for 66.6 percent of the overall industrial technology workforce. The semiconductor (up 4.3 percent) and bio-health (up 4.0 percent) industries recorded higher workforce growth than other major sectors. The shipbuilding industry, after experiencing workforce declines for eight consecutive years, has now recorded increases for the second year in a row, reaching 59,213 workers in 2024 (up 1.2 percent). Regionally, the industrial technology workforce in the Seoul metropolitan area has accounted for more than half of the national total since 2023, reaching 50.34 percent in 2024, with concentration in the metropolitan area continuing to intensify. The estimated shortage of industrial technology workers stood at approximately 40,000, representing a 1.6 percent increase from the previous year. Recruitment and hiring of both experienced workers and new entrants were more prevalent among non-metropolitan establishments. In recruitment, non-metropolitan shares stood at 50.1 percent for experienced workers and 57.8 percent for new entrants, while in hiring, the figures rose to 50.3 percent and 58.6 percent, respectively, exceeding those of the metropolitan area. The number of employees leaving their jobs declined year-on-year (down 0.7 percent), and the early turnover rate within one year of employment has continued to fall steadily over the past five years. date2026-01-02

Trade Minister Yeo Han-koo Visits Zhongguancun in Beijing

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) visited Zhongguancun, a major hub for advanced technology and innovation, located in Haidian District, Beijing, on Tuesday, December 30, 2025. During the visit, Minister Yeo met with Kim Jong-moon, Head of the Korea Innovation Center (KIC China), and discussed the local startup ecosystem as well as the current status of Korean startups’ entry into the Chinese market. The visit formed part of the government’s efforts to strengthen support for Korean startups seeking to expand into China and to deepen on-the-ground engagement with local innovation ecosystems.    date2026-01-01

Korea–China Trade Ministers’ Meeting

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and Li Chenggang, Vice Minister of Commerce and International Trade Representative of China, held the Korea–China Trade Ministers’ Meeting on Tuesday, December 30, 2025, at China’s Ministry of Commerce. Following opening remarks, the two sides discussed measures to accelerate follow-up negotiations on services and investment under the Korea–China Free Trade Agreement (FTA) and reviewed the status of the FTA’s implementation. The meeting brought together government representatives from Korea and China to exchange views on advancing the implementation of the Korea–China FTA and strengthening bilateral trade cooperation. date2026-01-01

Draft Korean Texts of the Korea–Georgia CEPA and Korea–Malaysia FTA to be Released for Public Comment

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that it will release the draft English and Korean texts of the Korea–Georgia Comprehensive Economic Partnership Agreement (CEPA), concluded in November 2024, and the Korea–Malaysia Free Trade Agreement (FTA), concluded in October 2025. The texts will be available on the government’s FTA website (www.fta.go.kr) from December 31, 2025, to January 19, 2026, during which the ministry will accept public comments. Public comments will be accepted in accordance with MOTIR’s procedural regulations for drafting Korean translations of trade agreements (MOTIR Directive No. 127) to ensure procedural transparency and enhance the reliability of the translations. In consultation with relevant ministries and experts, MOTIR plans to review submitted public input and reflect it, as appropriate, in the final Korean versions. Following reviews by the Ministry of Foreign Affairs and the Ministry of Government Legislation, the agreements will be formally signed after consultations with Georgia and Malaysia, and subsequently submitted to the National Assembly for ratification in accordance with the Trade Treaty Conclusion Procedure Act. date2025-12-31