Ministry of Trade Industry and Resources

Korea Highlights Crisis Management and Growth Opportunities in First-Year Policy Review

On the first anniversary of the launch of the People’s Sovereignty Government, the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) reviewed its policy record over the past year and presented five key achievements. The past year was marked by overlapping crises. Global trade uncertainty and risks to energy and resource supplies from the Middle East weighed on the real economy; global oversupply put key industries, including petrochemicals, under pressure to restructure; and competition for global industrial leadership intensified around AI. MOTIR managed these risks closely while moving decisively to capture future growth opportunities. In November 2025, Korea concluded the Korea–U.S. tariff deal after months of sustained negotiations guided by a clear national-interest-first principle, reducing uncertainty for exporters. The agreement eased tariff burdens on key U.S.-bound exports, including automobiles and pharmaceuticals, and secured semiconductor treatment no less favorable than that of major competitors. Korea also laid the groundwork for strategic industry cooperation with the United States through the Korea–U.S. Strategic Investment MOU, Korea–U.S. shipbuilding cooperation under MASGA, and the Special Act on U.S.-Bound Investment. For the petrochemical industry, MOTIR moved early to restructure the sector and prevent its difficulties from spreading to regional economies. The ministry approved the first restructuring project between HD Hyundai Chemical and Lotte Chemical in Daesan and backed its implementation with more than KRW 2.1 trillion in financing, tax incentives, and regulatory streamlining. The Special Act on Strengthening and Supporting the Competitiveness of the Petrochemical Industry also created a legal basis for restructuring and a shift toward higher-value products. Following the outbreak of the war in the Middle East, the government and industry activated a coordinated public-private response to stabilize supplies of crude oil, naphtha, and other key materials, minimizing disruption to the real economy and people’s daily lives. By May 2026, Korea had secured crude oil and naphtha imports at around 90 percent of the 2025 level, reduced the share of Middle Eastern crude in total crude imports from 70 percent to around 50 percent, and helped restore petrochemical operating rates to about 75 percent. Despite trade and Middle East-related risks, Korea stepped up export support, with exports reaching a record USD 709.3 billion in 2025. Korea became the sixth country in the world to surpass $700 billion in annual exports. Exports have remained on an upward path in 2026, reaching a record $306.5 billion through April, up 40.9 percent year-on-year, putting Korea’s first entry into the world’s top five exporters increasingly within reach. Korea also broadened its export base through emerging-market diversification, growth in K-consumer goods exports, win-win trade finance, preferential loans for exporters, and the launch of K-Export Star 500. Foreign direct investment reached a record $36.1 billion in 2025. Finally, MOTIR began accelerating AI transformation in manufacturing. The ministry launched the Manufacturing AI Transformation (M.AX) Alliance to drive change across Korea’s manufacturing ecosystem. Within about eight months, participation grew to around 1,500 companies and institutions. In 2026, MOTIR will promote 100 new AI factories by applying AI to manufacturing processes in 12 key industries, including semiconductors and shipbuilding, and plans to deploy more than 200 by year-end. The ministry is also expanding AX across processes, products, and regions by operating the Industrial Complex AX Division, linking 10 AX demonstration industrial complexes with regional universities, and developing technologies and core components for AX products such as autonomous vehicles and humanoids. date2026-05-28

Roundtable with Shipbuilding Equipment Suppliers and Small and Medium-Sized Shipbuilders

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) chaired a roundtable with shipbuilding equipment suppliers and small and medium-sized shipbuilders at Hanla IMS in Busan on May 27, 2026. Minister Kim delivered opening remarks and listened to industry challenges and policy suggestions. Participants included Kim Young-gu, CEO of Hanla IMS; Lee Min-geol, CEO of PANASIA; Kim Dong-geon, CEO of DongHwa Entec; Yoo Sang-cheol, CEO of HJ Shipbuilding & Construction; Youn Seog-Bong, CEO of Woori Marine; Lee Young-il, CEO of DTEC; and Choo Jin-hun, head of division at the Korea Marine Equipment Research Institute (KOMERI), along with representatives from shipbuilding equipment suppliers, small and medium-sized shipbuilders, and related institutions. Minister Kim said shipbuilding equipment suppliers and small and medium-sized shipbuilders form the foundation of the K-shipbuilding supply chain and are critical to Korea’s maritime security, adding that MOTIR will respond swiftly to on-the-ground needs, including equipment demonstrations, super-gap technology development, and order opportunities. date2026-05-27

Minister Kim Visits Hanla IMS

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) visited Hanla IMS, a shipbuilding equipment company in Busan, on May 27, 2026. During the visit, Minister Kim received a briefing from company officials on its operations and on-the-ground challenges. Minister Kim toured the company’s manufacturing and R&D facilities and reviewed progress on its intelligent integrated system for autonomous maintenance. He also inspected the development site for core equipment technologies designed for the era of AI-enabled autonomous ships. date2026-05-27

Opening Ceremony for Korea–India CEPA Upgrade Negotiations

Park Geun-oh, Director General for Trade Agreement Policy at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), attended the opening ceremony for the Korea–India Comprehensive Economic Partnership Agreement (CEPA) upgrade negotiations in New Delhi, India, on May 25, 2026. After delivering opening remarks, participants began negotiations in seven areas, including goods, services, rules of origin, and emerging trade rules. The ceremony was attended by government delegations from both countries, including Kapil Chaudhary, Joint Secretary at India’s Department of Commerce. Director General Park said Korea will work to modernize the CEPA so it helps create a more business-friendly trade environment for Korean companies operating in India and covers emerging trade issues, including digital trade and supply chain cooperation. date2026-05-27

Meeting with Viet Nam’s Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan

Minister for Trade Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) met with Viet Nam’s Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan in Suzhou, China, on May 23, 2026, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting. The two sides discussed key trade issues, including Korea–Viet Nam trade and investment cooperation and supply chain issues. They also discussed expanding bilateral trade by implementing the Action Plan to Achieve USD 150 Billion in Trade and continuing multilateral cooperation with Viet Nam. date2026-05-27

Visit to Chinese Autonomous Driving Company Momenta

Minister for Trade Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) visited Momenta, a Chinese autonomous driving technology company, in Suzhou, China, on May 21, 2026, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting. Minister Yeo received a briefing on the company’s operations from Momenta officials and toured its autonomous vehicle site. date2026-05-27

Digital Economy Partnership Agreement (DEPA) Ministers’ Meeting

Minister for Trade Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) attended the Digital Economy Partnership Agreement (DEPA) Ministers’ Meeting in Suzhou, China, on May 21, 2026, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting. The meeting brought together trade ministers from DEPA members, including New Zealand, Singapore, and Chile. Participants discussed key agenda items for the DEPA and reviewed the domestic procedures underway in Peru and Costa Rica, whose accession negotiations concluded in 2025. date2026-05-27

Meeting with New Zealand Minister for Trade and Investment Todd McClay

Minister for Trade Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) met with New Zealand Minister for Trade and Investment Todd McClay in Suzhou, China, on May 21, 2026, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting. The two ministers discussed key trade issues, including Korea–New Zealand trade and investment cooperation and supply chain issues. They also agreed to strengthen cooperation on digital trade and supply chains through multilateral trade channels, including the Digital Economy Partnership Agreement (DEPA). date2026-05-27

Meeting with Suzhou Party Secretary Fan Bo

Minister for Trade Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) met with Fan Bo, Secretary of the CPC Suzhou Municipal Committee, in Suzhou, China, on May 21, 2026, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting. The two sides discussed ways to strengthen cooperation between Korea and Suzhou, including investment and exchanges. date2026-05-27

Meeting with Singapore Minister-in-Charge of Trade Relations Grace Fu

Minister for Trade Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) met with Singapore’s Minister-in-charge of Trade Relations Grace Fu in Suzhou, China, on May 21, 2026, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting. The two ministers discussed key trade issues, including Korea–Singapore trade and investment cooperation and supply chain issues. date2026-05-27