Ministry of Trade Industry and Resources

5th Korea–Saudi Vision 2030 Committee Meeting

Korea and Saudi Arabia, the Middle East’s largest economy and a key Global South market, are set to expand their economic cooperation across core manufacturing industries, advanced sectors such as AI, and culture and entertainment. Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Energy (MOTIE) co-chaired the fifth Korea–Saudi Vision 2030 Committee Meeting with Khalid Al-Falih, Minister of Investment of Saudi Arabia, on September 26, 2025, at Lotte Hotel Seoul. The meeting was the first to be held in Seoul in two years, since the fourth Committee in October 2023, and was attended by 11 ministries of both governments. The Committee was launched in 2017 under the Korea–Saudi Vision 2030 Memorandum of Cooperation (MoC) as an inter-ministerial platform to manage key cooperation projects, address challenges, and support collaboration among governments, institutions, and companies. The Committee is structured around six subcommittees: overall cooperation, manufacturing and energy, smart infrastructure and digital, capacity building, healthcare, and SMEs and investment. At this meeting, the two sides reviewed the implementation status of 46 existing projects and identified 11 new cooperation projects. While Korea–Saudi economic ties had traditionally centered on crude oil imports and construction contracts, the Committee has expanded the scope of cooperation into core manufacturing industries such as automobiles and shipbuilding. For example, HD Hyundai Heavy Industries and Saudi Aramco are jointly building  International Maritime Industries (IMI), the largest shipyard in the Middle East, at the King Salman Maritime Industries Complex (12 million m²), scheduled for completion in the first half of 2026. A joint venture ship engine assembly plant is also expected to be completed by the end of 2026. In addition, Hyundai Motor Company and Saudi Arabia’s Public Investment Fund (PIF) are jointly building an automobile manufacturing plant in King Abdullah Economic City. Construction began in May 2025, with mass production targeted for the first half of 2027. The new shipbuilding and automobile projects identified at this meeting will build on these achievements. In shipbuilding, the two sides agreed to link existing cooperation across the value chain—from engine assembly to vessel construction—with the joint development of advanced eco-friendly technologies to reduce carbon emissions. In automobiles, they agreed to advance cooperation beyond local assembly into the broader industrial ecosystem covering complete vehicles, core technologies, fuels, and standards, including R&D in engine and hybrid vehicle technologies and the establishment of hydrogen vehicle fuel quality management systems. Collaboration in AI and advanced industries, as well as culture and entertainment, is also expected to gain momentum. In February 2025, Naver, through its joint venture with the Saudi National Housing Company (NHC), established digital twin platforms in major cities such as Jeddah, Mecca, and Medina. Naver plans to enhance these platforms by integrating AI to provide comprehensive smart city services spanning transportation, energy, and safety management. Leading Korean AI semiconductor companies such as Rebellions and FuriosaAI are also exploring cooperation in digital transformation and AI innovation with Saudi partners, including the state-owned AI company Humane. In addition, Korea and Saudi Arabia agreed to further specify cooperation in culture and entertainment, including film, e-sports, and tourism. Minister Kim emphasized, “We will establish and operate ongoing communication channels within each subcommittee to ensure seamless implementation of cooperation projects, and closely link existing and new projects to maximize synergy. Going forward, we will broaden the scope of cooperation into AI, advanced industries, and soft power, where the two date2025-09-26

Korea Sought Export Diversification and New Trade Norms at ASEAN Economic Ministers’ Meeting

Yeo Han-koo, Minister for Trade at the Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim), attended the ASEAN Economic Ministers’ (AEM) Meeting in Kuala Lumpur, Malaysia, on September 24–September 25, 2025. The meeting brought together economic and trade ministers from the 10 ASEAN member states and major dialogue partners to discuss economic issues ahead of the ASEAN Summit, scheduled for October 26 to 27, 2025. Korea participated in the ASEAN–Korea, ASEAN+3 (Korea, China, Japan), East Asia Summit (EAS) Economic Ministers’ Meetings, and the Regional Comprehensive Economic Partnership (RCEP) Ministers’ Meeting, engaging in discussions on regional cooperation in areas such as digital transformation, supply chains, and climate change. Minister Yeo also held bilateral meetings on the sidelines with counterparts from the United States, the European Union, Australia, New Zealand, Singapore, and other key ASEAN countries. Trade Minister Yeo Han-koo said, “The AEM Meeting is an important venue for expanding cooperation with ASEAN, a core partner under Korea’s New Southern Policy, in emerging areas such as digital trade.” He added that “the meeting offers bilateral opportunities to discuss economic issues with participating countries, including FTA negotiations and upgrades.” Minister Yeo noted, “Korea will use the meeting to diversify export markets for Korean companies and help shape new trade rules, including in digital trade.” date2025-09-26

Removing Obsolete “Spiderweb” Regulations to Accelerate Real Growth in AI and Robotics

The Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim) reviewed and approved 40 regulatory sandbox projects in fields including AI, robotics, and energy at the 3rd Industrial Convergence Regulatory Special Case Review Committee held on September 25, 2025. Among the items deliberated in person was a set of government-designed regulatory sandbox projects prepared jointly with the Personal Information Protection Commission and the Ministry of Employment and Labor. The projects aim to proactively rationalize regulations that have hindered the use of AI in industrial sites. As part of these projects, AeiROBOT will demonstrate an AI-equipped bipedal humanoid robot equipped in industrial settings. Current laws lack relevant standards and safety requirements, limiting the deployment of such robots in workplaces. The demonstration will generate data needed to establish standards and safety criteria, which is expected to accelerate the proliferation of industrial AI, strengthen industrial competitiveness, and reduce occupational risks by enabling robots to perform hazardous and repetitive tasks. iVH will generate synthetic data from real driving video footage and use it to train and evaluate autonomous driving AI models. Synthetic data delivers performance comparable to original data while enabling models to learn rare scenarios, such as multi-vehicle collisions. However, companies have raised concerns about potential violations of the Personal Information Protection Act if individuals are identifiable in synthetic data. This demonstration aims to establish safe standards for the generation of synthetic data, contributing to the advancement of autonomous driving technology. In addition to the government-designed projects, Korea Railway Solar Power Co., Ltd. will demonstrate a “power-generating railway” by installing carpet-type solar panels on railway tracks to produce and supply electricity. Currently, solar power operators must obtain regulatory approvals such as electrical construction permits, file notifications, and undergo pre-use inspections, but no detailed standards exist for solar panels installed on railway tracks. This demonstration marks Korea’s first attempt to deploy railway-based solar power and is expected to contribute to the diversification and expansion of renewable energy. Separately, Minister Kim visited Neubility, a company specializing in outdoor mobile robots, on September 24, 2025, to hear industry concerns. Neubility had requested streamlined safety certification procedures for outdoor mobile robots at the first Core Regulatory Rationalization Strategy Meeting chaired by the President on September 15, 2025. Currently, companies must undergo a two-month process covering 16 evaluation items before operating such robots on sidewalks. MOTIE plans to consolidate or remove certain items without compromising safety, shorten certification periods, and amend relevant laws within the year. Minister Kim stressed, “This round of regulatory exemptions is significant in that it helped break down silos between ministries and proactively removed outdated and unnecessary ‘spiderweb’ regulations. With the launch of the M.AX Alliance, we will mobilize all available measures to swiftly resolve on-site regulatory barriers and fully support efforts to accelerate manufacturing AX.” date2025-09-26

New Free Economic Zone Designated in Ansan, Logistics Land Secured in Busan–Jinhae Bobae District

A new free economic zone (FEZ) will be designated near Hanyang University’s ERICA Campus in Ansan. The Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim ) announced that at the 145th Free Economic Zone Committee Meeting held on September 22, 2025, it approved the designation of a new district within the Gyeonggi FEZ and an amendment to the development plan for the Bobae District in the Busan–Jinhae FEZ. The newly designated Ansan Science Valley (ASV) District (1.66㎢, Sangnok-gu, Ansan) aims to establish a global R&D-based hub for advanced robotics and manufacturing by leveraging the research and industrial capacity of nearby universities, national research institutes, and the Banwol–Sihwa National Industrial Complex. With robust surrounding infrastructure, including an established industry–academia–research ecosystem and residential environment, the district is expected to grow into a center of future global high-tech industries. The amended development plan for the Bobae District in the Busan–Jinhae FEZ responds to changes in investment and tenant demand, including greater logistics demand at Busan New Port. It adds logistics as an eligible industry category for land designated for industrial facilities, calls for the construction of underground cold-chain logistics facilities, and adjusts land use and road layouts to meet tenant demand. These measures will enable the timely supply of logistics land and support the growth of the complex logistics and transport industry, one of the four strategic industries of the Busan–Jinhae FEZ. Lee Hyeon-jo, Director-General of the Free Economic Zone Planning Office at MOTIE, stated, “We will work closely with each free economic zone authority to ensure smooth implementation of the newly designated Ansan Science Valley District and the revised Bobae District development plan.” date2025-09-25

KRW 96.1 Billion in Support for 16 Local Investment Companies

The Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim) announced that at the Third Local Investment Promotion Subsidy Review Committee Meeting held on September 18–19, 2025, it decided to provide KRW 96.1 billion in subsidies, including KRW 58.7 billion in national funds, to 16 local investment companies. This support is expected to attract a total of KRW 612.1 billion in regional investment and create 771 local jobs. The Local Investment Promotion Subsidy program is designed to promote balanced national development and encourage corporate investment in regional areas. It provides subsidies, jointly funded by the central and local governments, covering 4 to 50 percent of investment costs for companies relocating from the Seoul metropolitan area or expanding facilities in regional areas. The 16 companies selected for this round of support were chosen by local governments based on investment scale and employment impact. They include new and expanded investments in Busan, Gwangju, Daejeon, North Gyeongsang, South Gyeongsang, Daegu, North Chungcheong, South Chungcheong, and North Jeolla. By sector, the companies comprise six in automobiles, two in electrical and electronics, three in food, two in pharmaceuticals, and three in chemicals and other fields, reflecting a diverse range of investments centered on regional key industries. As of the first half of 2025, MOTIE had provided KRW 143.8 billion, including KRW 86.0 billion in national funds, in subsidies to 23 local investment companies, attracting a total of KRW 708.0 billion in private investment and creating around 1,010 local jobs. MOTIE also stated that starting in 2026, it will further strengthen support for local investment companies and firms relocating from the Seoul metropolitan area, including expanding subsidy limits and broadening coverage for less developed regions. date2025-09-25

Korea’s Retail Industry Grows 3.7% in August

The Ministry of Trade, Industry and Energy (MOTIE) announced on September 24 that Korea’s retail industry grew 3.7 percent year-on-year in August 2025, with offline sales falling 3.1 percent and online sales rising 10.5 percent. MOTIE's monthly retail sales figures are based on surveys of 23 major retailers, comprising 13 brick-and-mortar retailers and 10 online retailers. By offline retail channel, department stores rose 2.8 percent and convenience stores gained 1.1 percent, while large supermarkets fell 15.6 percent and super supermarkets (SSM) dropped 5.9 percent. This decline was largely due to Chuseok falling 19 days later than last year, which reduced food sales compared with August 2024.  Department stores also saw weaker food sales, but strong indoor marketing campaigns during record late-summer heatwaves boosted luxury goods and fashion/apparel, driving overall growth. By category, offline sales fell in food (down 6.9 percent), electronics/culture (down 18.1 percent), and household goods (down 5.7 percent). Online sales expanded across services such as food delivery, e-coupons, and travel products (up 18.1 percent), as well as food (up 16.3 percent) and cosmetics (up 13.5 percent).   date2025-09-25

Private Sector Experts Propose Policies for Critical Minerals Recycling

The Private Expert Committee on Critical Minerals Recycling, which has operated since April 2025 to support the growth of Korea’s critical minerals recycling industry, has identified 31 policy tasks under four key strategies—building industrial foundations, improving regulations and systems, establishing management frameworks, and fostering technological innovation—and proposed them to the government. The Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim) announced that following the release of the Policy Direction for Promoting Critical Minerals Recycling at the 4th Supply Chain Stabilization Committee Meeting in March 2025, it launched the Private Expert Committee in April 2025 to reflect the views of businesses and experts in policymaking. The committee, chaired by Park Hyun-chul, President of the Critical Minerals Recycling Forum, consists of 22 members across subcommittees on industry support, regulatory improvement, and technology development. Between April and September 2025, the committee held over ten meetings and presented 31 policy tasks to the government. These were classified into top-priority (8), key (8), and follow-up (15) tasks based on importance, urgency, and industry demand. Top-priority tasks include expanding government support to strengthen industrial competitiveness, broadening the designation of recyclable resources to secure raw materials, easing import restrictions, and developing demonstration technologies for rare earth recycling. MOTIE will actively incorporate these recommendations into the comprehensive Plan to Promote Critical Minerals Recycling, which is being developed this year through a joint task force of three ministries—MOTIE, the Ministry of Economy and Finance (MOEF), and the Ministry of Environment (MOE). MOTIE will continue efforts to boost Korea’s critical minerals recycling industry and enhance the stability of critical minerals supply chains. date2025-09-25

95th Saudi National Day Celebration

Kim Jung-kwan, Minister of Trade, Industry and Energy, attended the 95th Saudi National Day celebration held at Seoul Dragon City in Yongsan-gu, Seoul on Monday, September 22, 2025. The event was attended by over 400 participants, including Fahad Baraka, Chargé d'Affaires of the Embassy of Saudi Arabia in Korea, government representatives from both countries, ambassadors from key nations, and business leaders. Minister Kim delivered congratulatory remarks at the ceremony.   date2025-09-24

7th Round of Korea–Thailand Comprehensive Economic Partnership Agreement (CEPA) Negotiations

Noh Geon-gi, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy (MOTIE), attended the 7th round of official negotiations for the Korea–Thailand Comprehensive Economic Partnership Agreement (CEPA) held at Lotte Hotel in Sogong-dong, Seoul on Monday, September 22, 2025. The meeting was attended by Chotima Iemsawasdikul, Director-General of the Department of Trade Negotiations at Thailand’s Ministry of Commerce, along with government delegations from both countries. Following opening remarks, the two sides proceeded with negotiations in seven areas, including goods, services, investment, digital, and finance. date2025-09-24

Tariff Response 119 Expands On-Site Support System

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Energy (MOTIE) chaired a roundtable with steel and aluminum derivative companies and visited the “Tariff Response 119 (1600-7119)” site at KOTRA on September 22, 2025. The visit was arranged to hear directly from companies most affected by U.S. tariff measures on steel and aluminum derivatives and to review the operation of the Tariff Response 119 support system. At the meeting, MOTIE announced plans to upgrade the existing Tariff Response 119 service into “Tariff Response 119 Plus.” Since its launch in February 2025, Tariff Response 119 has received and provided consultations on 7,708 tariff-related cases as of September 18, establishing itself as an integrated consultation channel. However, challenges remained in resolving multi-agency issues and incorporating feedback into new policies and services. To address this, MOTIE will expand the functions of Tariff Response 119 beyond case reception, consultation, and program guidance to include case resolution through inter-agency collaboration and feeding results back into new services and policies. Agencies attending the event, including the Korea Trade Insurance Corporation (K-SURE), the Korea Institute of Origin Information (KIOI), and other related organizations, will designate 119 officers to ensure issues KOTRA cannot resolve on its own can be handled jointly. MOTIE will continue to expand collaboration with export-related organizations and reflect analysis of tariff issue types and best practices into new services and policies. New services reflecting on-site needs will also be launched this month, including: (1) support for submitting company position papers on tariff issues to the U.S. government, (2) consulting on applications for the U.S. Customs and Border Protection (CBP) e-ruling system, and (3) assistance in responding to CBP post-verification data requests. A specialized support program for steel and aluminum derivative companies will also be introduced, featuring a dedicated consultation desk and one-on-one advisory services with local U.S. experts. During the roundtable, industry representatives raised three main concerns: (1) declining price competitiveness due to tariffs, (2) difficulties in calculating content value for derivative products, and (3) limited access to tariff-related information. In response, MOTIE and relevant agencies pledged to accelerate implementation of the “Post-U.S. Tariff Negotiation Support Measures” announced on September 3, 2025, and to strengthen policy feedback through Tariff Response 119 Plus. Following the roundtable, Minister Kim visited the Steel Derivatives Tariff Response Briefing and Consultation Session held at KOTRA. The event provided around 200 steel and aluminum derivative companies with accurate updates on U.S. tariff policies and strategies to mitigate tariff burdens. More than 100 affected companies also took part in one-on-one consultations with lawyers and customs experts from Korea and the United States for tailored advice. Furthermore, a dedicated support booth was set up to showcase the “Ten On-Site Support Programs” announced on September 3, 2025. The programs covered short-term management support, steel derivatives, burden reduction, and alternative market development, giving companies hands-on access to government services. Minister Kim toured the booth with a participating company (STU), checking tariff rates by HS code through the online tariff system and reviewing content value calculations for steel and aluminum derivatives. He then visited the consultation area to hear directly from company representatives. Minister Kim stressed, “In today’s changing trade environment, the priority is to develop support measures that reflect companies’ on-site needs. We will move ahead with the expansion of Tariff Response 119 into Tariff Response 119 date2025-09-23