Ministry of Trade Industry and Resources

Korea-Czech Investment and Business Conference

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea attended the Korea-Czech Investment and Business Conference and the MOU signing ceremony held between both countries’ businesses and institutions on February 17 in Seoul with the participation of Czech Minister for Industry and Trade Lukáš Vlček, Confederation of Industry of the Czech Republic President Jan Rafaj among other related representatives and business leaders. date2025-02-18

Korea’s automobile exports record 2nd highest for January

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that Korea’s automobile exports recorded USD 5.0 billion in January 2025, the second highest for the month.  Hybrid electric vehicles (HEVs) set fresh all-time highs in shipments for January, selling 35,701 units (up 35.5 percent year-on-year) in overseas markets, but the export value dropped 19.6 percent owing to last year’s high base effect and this year’s reduced number of working days (-4) from the long Seollal holidays. Korea’s automobile production amounted to 290,590 units in January, down 18.9 percent. In addition to the lower number of working days and high base effect, the decline is also attributed to temporary production suspension at a car manufacturing plant during the month of January for transitioning to EV production. Domestic sales fell 9.0 percent to 105,928 units. By model type, this year saw increasing demand for sedans whereas SUV sales enjoyed growth last year.   date2025-02-18

Korea and Czech Republic Advance Carbon-Free Energy Technology Cooperation at Joint Forum

On February 18, 2025, Vice Minister Choe Nam-ho of the Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun) attended the Korea-Czech Republic Energy Technology Forum, which was co-hosted by MOTIE and the Czech Ministry of Industry and Trade and co-organized by the Korea Energy Technology Evaluation and Planning (KETEP) and the Technology Agency of the Czech Republic (TACR).  The Forum was brought together roughly 150 industry, academic, and research experts and government officials from both countries, including Czech Minister for Industry and Trade Lukáš Vlček, TACR Chairman Petr Konvalinka, and KETEP President Lee SeungJae, to discuss bilateral cooperation in energy technology. During the presentation session, Korean and Czech experts shared the latest technology trends and proposed future technology collaboration, focusing on power grids and energy storage systems (ESS), as well as carbon-free energy areas such as nuclear power and clean hydrogen. In the subsequent panel discussions and networking session, participants broadened their mutual understanding of various technology fields and explored potential joint projects. In his welcome address, Vice Minister Choe noted the Czech Republic’s status as the manufacturing powerhouse of Central Europe and highlighted that the two countries can could create meaningful opportunities in the transition to carbon neutrality by generating synergy between Korean and Czech businesses. He added that MOTIE will continue supporting joint research based on close bilateral cooperation to help create new business opportunities in the energy sector. MOTIE plans to further develop the cooperation measures discussed at today’s Forum through consultations with relevant Czech authorities in selecting new Korea-Czech projects for international joint research. date2025-02-18

Korea and Czech Republic Hold Second Supply Chain and Energy Dialogue (SCED)

Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy (MOTIE) held the second Supply Chain and Energy Dialogue (SCED) meeting with the Czech Minister for Industry and Trade Lukáš Vlček in Seoul on February 17, 2025. Launched in September 2024, the SCED is a Korea-Czech Republic cooperation channel aimed at strengthening bilateral strategic partnership and laying the foundation for comprehensive economic cooperation across trade, industry, and energy, including nuclear power. At the second meeting, the two sides reviewed progress in trade, investment, supply chains, advanced industries, carbon-free energy, and nuclear power and discussed in-depth discussions on future cooperative measures. In view of growing protectionism, both sides shared examples of response to supply chain disruptions and discussed measures to expand bilateral trade. In advanced industries, they discussed steps to establish cooperation centers in batteries, future mobility, and robotics and signed a memorandum of understanding (MOU) on semiconductor cooperation in R&D and workforce training.  Regarding carbon-free energy, the Korean delegation shared Korea’s energy efficiency policies for industrial, energy, and transport sectors, and both sides agreed to strengthen cooperation on clean hydrogen technology development. Noting Korea’s smooth progress in the nuclear reactor contract negotiations in accordance with the predetermined timeline and procedures, the two sides further discussed cooperation in joint R&D and workforce training. At the Korea-Czech Republic investment and business conference held on the sidelines of the SCED, businesses and institutions from the two countries signed a total of six MOUs. Minister Ahn expressed hope that the two countries would expand bilateral trade and investment and broader cooperation across advanced manufacturing, supply chains, and energy and other areas. In light of the two countries’ 35th anniversary of the establishment of diplomatic relations and the 10th anniversary of their bilateral strategic partnership, Minister Ahn called for the smooth conclusion of the final contract for the construction of new reactors in Dukovany and proposed taking bilateral relations to an entirely new level. date2025-02-17

Korea and Czech Republic hold 2nd Supply Chain and Energy Dialogue (SCED)

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea held the second Supply Chain and Energy Dialogue (SCED) meeting with the Czech Minister for Industry and Trade Lukáš Vlček today in Seoul to take stock of cooperation progress in trade, investment, supply chains, advanced industries, carbon-free energy, and nuclear power and to hold in-depth discussions on cooperative measures going forward. Following the talks, the two sides also signed an MOU on bilateral semiconductor cooperation. date2025-02-17

Korea and Malaysia Begin Seventh Round of Bilateral FTA Negotiations

Director General for FTA Negotiations Kwon Hye-jin at the Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun) is leading the Korean delegation in the seventh round of official negotiations for the Korea-Malaysia Free Trade Agreement (FTA), being held from February 17 to 20, 2025, in Kuala Lumpur, Malaysia. The Malaysian delegation is led by Senior Director for Strategic Negotiations Sumathi Balakrishnan at the Ministry of Investment, Trade and Industry (MITI).  Since the two countries jointly announced the resumption of bilateral FTA negotiations last March, the two sides have made swift progress through the subsequent fourth, fifth, and sixth rounds. In the seventh round, the Korean government aims to move negotiations forward in areas including goods, services, investment, rules of origin, and economic cooperation, with a focus on expanding bilateral  trade, investment, and promotion, as well as improving market access. date2025-02-17

Effective Tariff Rate on U.S. Imports Remains Close to Zero Under the Korea-U.S. FTA

Following the Trump administration’s announcement on its memorandum on reciprocal trade and tariffs on February 14, 2025, several foreign media outlets reported that Korea applies an average tariff rate of approximately 13.6 percent to U.S. imports, behind only Mexico and Canada. According to the World Tariff Profile published in July 2024, Korea's average Most Favored Nation (MFN) tariff rate is approximately 13.4 percent. However, Korea has free trade agreements (FTAs) with many of its major trading partners, which have significantly lowered the effective tariff rates on imports from those countries. Korea signed an FTA with the United States in June 2007, and the agreement took effect in March 2012. As of 2024, the effective tariff rate on U.S. imports is approximately 0.79 percent before duty refunds. The rate is even lower when refunds are taken into account and is expected to decline further in 2025 under the scheduled tariff reductions. Under the Korea-U.S. FTA, tariffs on U.S. manufactured goods enter Korea duty-free. date2025-02-14

Minister Ahn chairs 5th Industrial Investment Strategy meeting

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea held the fifth Industrial Investment Strategy meeting on February 12 in Seoul with the participation of Korea’s 10 major manufacturing sectors, the Korea Chamber of Commerce and Industry (KCCI), and the Korea Institute for Industrial Economics & Trade (KIET) to discuss investment performance, investment plans for 2025, and measures to stimulate businesses’ domestic investment. Attending the meeting were representatives of companies including POSCO, S-OIL, and Hyundai Motor.   date2025-02-13

Korea’s ICT exports drop 0.4% in January

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced on February 13 that exports and imports of Korea’s information and communications technology (ICT) goods for the month of January 2025 reached USD 16.3 billion and $13.5 billion, respectively. The trade balance stood at an estimated surplus of $2.8 billion. January ICT exports inched down 0.4 percent year-on-year, affected by the reduced number of working days (-4) from this year’s long Seollal holidays (January 25–30), but sharp demand for semiconductors and computers/peripherals softened the fall. Semiconductor exports grew 7.7 percent to $10.1 billion despite the drop in system chip exports (down 4.3 percent to $3.5 billion), as the rapidly expanding AI market and robust memory chip exports (up 17.2 percent to $6.2 billion) drove overall demand. Computers/peripherals (up 10.0 percent to $0.9 billion) maintained their upward trajectory for the 13th consecutive month as solid-state drive (SSD) exports (up 27.1 percent to $0.6 billion) achieved solid growth. By region, ICT exports to China (including Hong Kong) declined (down 19.5 percent to $6.0 billion) in spite of increased shipments of mobile phones, as semiconductor and display exports shrank. Exports to Vietnam (up 12.2 percent to $2.9 billion) climbed for the 18th consecutive month even as mobile phones and other items in general contracted, thanks to semiconductors’ strong growth. U.S.-bound ICT exports (up 24.6 percent to $2.2 billion) rose for the 15th consecutive month as shipments of semiconductors and computers/peripherals jumped on the backs of demand for servers and datacenters. To the EU (down 18.9 percent to $0.7 billion), semiconductor exports increased, whereas mobile phones and displays diminished. To Japan (down 4.9 percent to $0.3 billion), ICT goods like displays, mobile phones, and computers/peripherals advanced, while semiconductor exports slackened.   date2025-02-13

Korea’s Top 10 Manufacturing Industries to Invest $82 Billion in 2025

Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy (MOTIE) held the fifth Industrial Investment Strategy meeting in Seoul on February 12, 2025. Representatives from Korea’s 10 major manufacturing sectors attended the meeting, along with the Korea Chamber of Commerce and Industry (KCCI), and the Korea Institute for Industrial Economics & Trade (KIET). They reviewed the industries’ investment performance in 2024, investment plans for 2025, and measures to stimulate domestic investment by sector. Korea’s top 10 manufacturing industries invested a combined KRW 114 trillion in 2024, surpassing their initial target of KRW 110 trillion. Despite challenging conditions, including financing costs caused by higher-for-longer interest rates and rising import prices due to high exchange rates, semiconductors and automobiles led the overall investment performance on an upward trajectory. Korea’s 10 leading manufacturing industries plan to invest approximately KRW 119 trillion in 2025, seven percent higher than the KRW 110 trillion that had been planned for 2024. that the continued increase in planned investment by Korea’s major manufacturing sectors is particularly significant  amid intensifying global tariff war and other external and internal uncertainties. The semiconductor industry plans to raise investments in advanced memory chips in response to the growing worldwide demand for artificial intelligence (AI), while the automobile industry is aiming to expand investment for its EV transition. Investments in secondary battery and steel, however, are expected to decline due to slowing demand and oversupply. At the meeting, companies called for an extension of the investment tax credit, which failed to pass the National Assembly in 2024, as well as more drastic financial support  and active government measures to minimize trade uncertainties. Noting the importance of domestic investment in job creation and overcoming supply chain uncertainties, Minister Ahn stated that full support will be given to foster a more favorable environment for businesses, allowing Korean companies to steadily increase domestic investments. date2025-02-12