Ministry of Trade Industry and Resources

MOTIR to Fund KRW 120 Billion for High-Tech Materials, Parts, and Equipment Firms, Catalyzing KRW 550 Billion in Investment

The Ministry of Trade, Industry and Resources (MOTIR, Minister Kim Jung-kwan) convened the Technical Subcommittee under the National High-Tech Strategic Industry Committee on Tuesday, November 18, and finalized the selection of 21 companies for the “Investment Fund for Materials, Parts, and Equipment SMEs and Mid-sized Enterprises in National High-Tech Strategic Industries.” Selected major firms include Soulbrain (semiconductor materials), Jusung Engineering (semiconductor equipment), Dongwha Electrolyte (electrolyte for secondary batteries), and Amicogen (biotechnology culture media). The Investment Fund was newly established this year with KRW 70 billion in national funding to promote domestic investment in high-tech industries such as semiconductors and secondary batteries. The government received a total of 62 investment proposals amounting to KRW 1.2 trillion (with requests totaling approximately KRW 210 billion in national funding). Following document screening and presentation evaluations, MOTIR plans to provide KRW 121.1 billion in investment support—including contributions from local governments—to companies across four high-tech sectors: semiconductors, secondary batteries, biotechnology, and displays. Final recipients will receive project funding immediately upon completing administrative procedures, including signing project agreements with the Korea Institute for Advancement of Technology (KIAT), the program’s implementing agency.  During the meeting, Director General for Industrial Policy Park Dong-il stated, “As global competition over supply chains intensifies, the Investment Fund will serve as a catalyst for expanding domestic production and research infrastructure.” He added, “MOTIR will continue to actively expand investment in the materials, parts, and equipment sector—the core foundation of industrial competitiveness—to strengthen the capabilities of Korean firms, increase localization rates, and ensure the stable growth of Korea’s high-tech industrial ecosystem.” MOTIR also noted that, with the program expanding to six eligible sectors beginning next year—including robotics and defense—the ministry is securing KRW 100 billion in national funding for the government budget in consultation with fiscal authorities. date2025-11-18

2025 International Cooperation Meet-up Day for Middle Market Enterprises

Trade Minister Yeo Han-koo delivered welcome remarks at the 2025 International Cooperation Meet-up Day for Middle Market Enterprises on Monday, November 17, at the Fairmont Ambassador Seoul.   The event brought together around 80 participants, including FOMEK Chairman Choi Jin-shik, KOIMA President Youn Young-mi, MOTIR Trade Minister Yeo Han-koo, Dato' Mohd Zamruni bin Khalid, Ambassador of Malaysia to the Republic of Korea, other ASEAN ambassadors stationed in Korea, and representatives from Dongsung and Sempio.   In his welcome remarks, Trade Minister Yeo noted that ASEAN has become Korea’s second-largest trade and investment region, adding that MOTIR will upgrade the Korea–ASEAN FTA with a focus on digital trade while actively addressing non-tariff and other barriers that impede the overseas expansion of Korean middle-market enterprises. date2025-11-18

Middle Market Enterprises Lead Export Diversification to the New Southern Region

The 2025 International Cooperation Meet-up Day for Middle Market Enterprises, hosted by the Federation of Middle Market Enterprises of Korea (FOMEK) and the Korea Importers Association (KOIMA), was held on Monday, November 17, at the Fairmont Ambassador Seoul. The event brought together around 80 participants, including FOMEK Chairman Choi Jin-shik, KOIMA President Youn Young-mi, MOTIR Trade Minister Yeo Han-koo, Dato' Mohd Zamruni bin Khalid, Ambassador of Malaysia to the Republic of Korea, other ASEAN ambassadors stationed in Korea, and representatives from Dongsung and Sempio. Although middle market enterprises (MMEs) account for only 1.3 percent of all Korean companies, they represent 21 percent of Korea’s exports to ASEAN. In 2024, exports by MMEs grew 2.7 percent year-on-year, while their exports to ASEAN increased by 7.6 percent, underscoring their pivotal role in diversifying Korea’s export portfolio toward the New Southern region. Hyundai Research Institute, which delivered a presentation at the event, stated, “To expand MME networks in ASEAN, it is essential for Korea and ASEAN to jointly explore measures such as R&D cooperation in new industries and technologies to respond to the AI revolution, as well as the strengthening of soft-power capabilities in areas such as distribution, logistics, and culture.” Trade Minister Yeo attended the event and discussed follow-up measures to the Korea–ASEAN Summit held in Malaysia in October with Dato' Mohd Zamruni Khalid, Ambassador of Malaysia to the Republic of Korea, and other ASEAN ambassadors stationed in Korea. In his welcome remarks, he emphasized, “ASEAN has emerged as Korea’s second-largest region for trade and investment. As the core of the New Southern region, we will work to upgrade the Korea–ASEAN FTA with a focus on digital trade and actively resolve non-tariff and other trade barriers that hinder the overseas expansion of our middle market enterprises.” date2025-11-17

MOTIR and Relevant Ministries Discuss Trade Follow-up Measures after Korea–U.S. Tariff Negotiations

The Ministry of Trade, Industry and Resources (MOTIR, Minister Kim Jung-kwan) convened the 51st Trade Promotion Committee meeting on Monday, November 17, at the Korea Chamber of Commerce and Industry (KCCI) in Seoul. Relevant ministries participated in the meeting, which was chaired by Trade Minister Yeo Han-koo, to discuss follow-up measures for trade-related commitments outlined in the “Korea–U.S. Joint Fact Sheet” released on November 14. The Joint Fact Sheet covers issues related to non-tariff measures and economic security cooperation in various areas, including automobiles, agriculture, digital services, competition, intellectual property, labor, and the environment. In the meeting, the MOTIR explained the outcome of the Korea–U.S. tariff negotiations and reviewed the follow-up actions required from relevant agencies with the participants. Based on the discussions, the MOTIR will discuss implementation measures with the Office of the U.S. Trade Representative (USTR) in the Korea–U.S. FTA Joint Committee meeting tentatively planned for December. Trade Minister Yeo stated, “The tariff negotiations went through an arduous process before reaching the final agreement. It is essential that we thoroughly implement the follow-up measures with regard to non-tariff issues to ensure that the Korea–U.S. trade environment is managed in a stable and predictable manner.” He added, “As Korea’s chief representative to the Korea–U.S. FTA Joint Committee, I ask for the close cooperation of all relevant ministries to bring the non-tariff consultations to a smooth conclusion. date2025-11-17

Minister Urges Continued Foreign Investment in Korea

The Ministry of Trade, Industry, and Resources (MOTIR) hosted the 2025 Foreign Company Day on Thursday, November 13, to honor foreign-invested companies and partner institutions that have contributed to attracting foreign investment to Korea, as well as to encourage continued interest and investment in the country. At the event, which marks its 25th anniversary, Minister Kim Jung-kwan congratulated the award recipients and urged foreign-invested companies to further expand their investment. Many of this year’s awardees were recognized for attracting investment to advanced industries such as semiconductors and secondary batteries. They are expected to continue strengthening Korea’s high-tech industrial base and enhancing supply chain stability through active business operations in the country. A total of 40 awardees were recognized at the ceremony. Anwar A. Al-Hejazi, CEO of S-OIL—Korea’s largest foreign-invested company—received the Gold Tower Order of Industrial Service Merit. No Seong, Executive Director at onsemi Korea—a global leader in power semiconductors and silicon carbide (SiC) that is expanding investment in Korea—received the Silver Tower Order of Industrial Service Merit. Minister Kim emphasized that “foreign investment has long played a pivotal role in Korea’s economic development,” and reaffirmed that “the government is committed to fostering a reliable and attractive investment environment that enables foreign-invested companies to succeed through sustained investment in Korea.” He called for continued interest and cooperation from foreign-invested companies in expanding investment in the country. In addition to the awards, the event featured a panel discussion to share successful foreign investment cases and explore strategies to expand foreign investment amid global supply chain restructuring. MOTIR will continue advancing policies to enhance industrial competitiveness and promote foreign investment, while improving the investment environment by actively reflecting industry feedback from the field.   date2025-11-14

K-Mobility Drives the Future of Innovation

Korea’s Prime Minister Kim Min-seok visited Kia’s Hwaseong plant on November 14 to commemorate the new EVO Plant facilities and chair the first Future Mobility Industry Strategy Dialogue. While the Korea–U.S. tariff agreement has lowered auto and parts tariffs to 15 percent and eased market uncertainty, the automotive industry continues to face major challenges, including intensifying global competition in AI-based autonomous driving, maintaining domestic manufacturing capabilities, achieving carbon neutrality, transforming the parts ecosystem, and diversifying export markets. To drive a new leap forward for Korea’s automotive sector, the government unveiled the K-Mobility Global Leadership Strategy with the following key elements: 1.    Overcoming U.S. Tariff Challenges – To ease exporters’ remaining burden despite tariff reduction, the government will expand policy finance to more than KRW 15 trillion in 2026 and apply tariff quotas to raw materials used for vehicle and parts production. Korea will also boost EV subsidies to KRW 936 billion in 2026 (up from KRW 715 billion in 2025) and launch a new financing program for transport operators adopting electric and hydrogen buses.  2.    Establishing the K-Mobility Mother Factory – In response to global protectionism and Korean companies’ overseas market expansion, the government will strengthen policy support to maintain domestic production at more than 4 million vehicles and enhance manufacturing quality. It will also restructure the incentive framework for production, investment, and R&D in eco-friendly and advanced automotive components, provide up to KRW 1 million in additional EV transition incentives, and promote auto and parts workplace innovation through HTC-Bootcamp. The government also aims to transition 70 percent of internal combustion engine (ICE) parts companies into future mobility suppliers, designate 200 specialized parts companies by 2030, advance Industrial GX R&D, and foster 70,000 future mobility specialists by 2033. 3.    Readiness for the AI Autonomous Era – Korea will scale up autonomous vehicle R&D to close the technology gap with the U.S. and China by 2030, develop an E2E-AI autonomous driving model by 2027, and establish standard platforms for Software-Defined Vehicles (SDVs) and AI-Defined Vehicles (AIDVs). The government aims to mass-produce autonomous vehicles by 2028 and will finalize all related legal and institutional improvements by 2026. Korea will also establish a comprehensive AI mobility test complex to support real-world autonomous driving demonstrations in urban environments, develop guidelines for autonomous-driving data sharing, and prioritize regulatory improvements, such as permitting the use of original video data, easing temporary operation-zone restrictions, and expanding pilot zones. 4.    Expanding K-Future Mobility Globally – To accelerate global expansion, the government will strengthen market development across seven high-potential countries. Domestically, it will establish a KRW 50 billion future mobility industrial technology innovation fund and leverage the National Growth Fund. Korea will further enhance regional competitiveness through industry–academia–research clusters, supporting the global growth of its future mobility industry. date2025-11-14

Korea Seeks to Resolve Challenges Caused by Overseas Technical Regulations at the WTO

The Korean Agency for Technology and Standards (KATS, President Kim Dae-ja) under the Ministry of Trade, Industry and Resources (MOTIR) and the Ministry of Food and Drug Safety (MFDS, Minister Oh Yu-kyoung) attended the third meeting of the WTO Committee on Technical Barriers to Trade (TBT) from November 10 to 14. They held multilateral and bilateral discussions to address export-impeding overseas technical regulations encountered by Korean companies and participated in topic sessions covering technical regulations for emerging industries, such as AI and semiconductors. At the committee meeting, the Korean government raised eight technical regulations as Specific Trade Concerns (STCs), as they may hinder trade in Korea’s key export products— such as home appliances, petrochemicals, and cosmetics—through excessive certification requirements. These regulations include Indonesia’s mandatory SNI certification for home appliances; India’s toluene quality control order; the EU’s F-gas regulation; India’s writing and printing paper, coated paper, and board quality control order; and China’s regulation on the supervision and administration of cosmetics and medical devices. Experts from Korea also chaired and spoke in the topic sessions, presenting recent trends in AI and semiconductor standardization, sharing policy experiences on technical regulations, and leading discussions on how technical regulation frameworks can promote global trade. Furthermore, the Korean government reiterated its intent to proactively engage in global discourse on technical regulations for emerging industries and to assume a leading role in establishing relevant international norms. President Kim Dae-ja of KATS emphasized that “through multilateral and bilateral discussions at the WTO TBT Committee, we have in the past resolved numerous technical-barrier-to-trade issues, such as India’s steel product certification hurdles and Australia’s ban on brominated flame retardants.” He also encouraged businesses to “actively utilize the government’s TBT discussion channels to resolve export challenges caused by overseas technical regulations.” date2025-11-14

Korea–EU Discuss Key Trade Issues, Including New EU Steel Import Measures and Cosmetics Export Concerns

Under the Korea–EU Free Trade Agreement (Korea–EU FTA), the Ministry of Trade, Industry and Resources (MOTIR, Minister Kim Jung-kwan) held the 13th Korea–EU Committee on Trade in Goods meeting in Seoul on Thursday, November 13. As the consultative channel for tariff and non-tariff issues related to trade in goods, the committee reviewed the implementation of the Korea–EU FTA and discussed ways to resolve market-access challenges for companies on both sides. Now in its 13th year, the Korea–EU FTA continues to provide a solid foundation for creating an open and transparent market and fostering a mutually beneficial trade relationship between Korea and the EU. Building on this framework, the two sides have maintained steady economic exchanges despite rising global trade uncertainties, including heightened protectionism and supply-chain instability. The Korean side emphasized that strengthened EU regulations—such as the EU Battery Regulation, Carbon Border Adjustment Mechanism (CBAM), Corporate Sustainability Due Diligence Directive (CSDDD), and the F-gas Regulation—should not place excessive burdens on businesses and must be applied in a non-discriminatory manner to both EU and non-EU companies. Regarding the steel import measures recently proposed by the European Commission, Korea emphasized that it is an FTA partner rather than a target of the restrictions and a trusted counterpart working with the EU to address global steel overcapacity. It also noted that the measure should not undermine the principles of free and fair trade between Korea and the EU and called for a mutually agreeable solution. As the EU tightens regulations on packaging and packaging waste in the cosmetics sector—an industry of growing importance for Korea—the Korean side requested clear communication of the relevant rules and sufficient preparation time for companies before enforcement. It further highlighted the need for continued dialogue during the revision of the Cosmetic Products Regulation (CPR). On issues of interest to the EU—such as labeling and online sales regulations for alcoholic beverages, offshore wind power systems, and safety regulations for children’s products—the Korean delegation shared its ongoing engagement with relevant industries and provided detailed explanations in response to the EU’s inquiries. Both sides agreed to maintain close discussions and cooperation to achieve meaningful outcomes at the Trade Committee meeting scheduled for the first quarter of next year. date2025-11-14

MOTIR Discusses Corporate Support Measures with Vietnam’s Ministry of Finance

Park Jung-sung, Deputy Minister for Trade at the Ministry of Trade, Industry and Resources (MOTIR, Minister Kim Jung-kwan), met with Tran Quoc Phuong, Vietnam’s Vice Minister of Finance, on Thursday, November 13, at Lotte Hotel Seoul. The two officials discussed practical ways to strengthen economic cooperation, including measures to address challenges faced by Korean companies operating in Vietnam and cooperation in the nuclear energy sector. Minister Kim and the Vietnamese Minister of Finance previously held a minister-level meeting in August during the state visit of Vietnamese General Secretary To Lam. As a follow-up, the two sides convened a director-general-level meeting in September and then this deputy-minister-level meeting in November, continuing a series of discussions to enhance bilateral cooperation. Deputy Minister Park noted that large-scale investments by Korean companies in Vietnam have continued despite the rapidly changing global trade environment, with investment in the first half of 2025 more than doubling year-on-year. He added that bilateral cooperation has deepened under the Comprehensive Strategic Partnership, highlighted by two summit meetings held this year (in August and at the APEC Summit in October) following the inauguration of the new Vietnamese government. During the discussions, Korea raised several key issues faced by Korean businesses in Vietnam and requested swift and effective solutions to these challenges: ①    delayed refunds of value-added tax (VAT), ②    the need for smooth implementation support for the global minimum tax, ③    reduced electricity payments to renewable energy companies, and ④    support for LNG power generation investment projects. The two sides also agreed on the need for close policy dialogue and cooperation between their ministries on nuclear energy. Building on this meeting, Vietnam’s Ministry of Finance—which oversees public investment and foreign investment policy—and Korea’s MOTIR—which oversees the real economy—plan to continue strengthening cooperation across relevant sectors. date2025-11-14

Korea’s ICT Exports Extend Growth Streak in October

The Ministry of Trade, Industry and Resources and the Ministry of Science and ICT announced on November 14 that Korea’s ICT exports in October 2025 rose 12.2 percent year-on-year to USD 23.3 billion, the highest October figure on record. Imports fell 2.9 percent to $13.0 billion, resulting in a $10.4 billion surplus. ICT exports grew for the ninth consecutive month despite fewer working days and global trade uncertainty, driven by strong semiconductor performance. Semiconductor exports increased 25.4 percent as DRAM and NAND prices continued to rise and demand for high-value memory for AI servers remained strong. Communication equipment exports also rose 2.5 percent on higher demand from Vietnam and India. Displays (down 8.8 percent), mobile phones (down 11.8 percent), and computers/peripherals (down 1.0 percent) declined. Display exports fell on lower unit prices, mobile phone exports weakened due to reduced component shipments to China, and computers/peripherals narrowed their decline as SSD demand improved. By destination, exports increased to China including Hong Kong (up 4.9 percent), Vietnam (up 3.8 percent), the EU (up 29.2 percent), and the United States (up 5.8 percent), while exports to Japan fell 4.6 percent. ICT imports fell 2.9 percent to $13.0 billion, driven by declines in mobile phones and displays, while imports of GPUs and mid-to-large-scale computers continued to rise on expanding AI infrastructure demand. date2025-11-14