Ministry of Trade Industry and Resources

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

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