Ministry of Trade Industry and Resources

MOTIE holds conference on promoting R&D of foreign-invested companies

Director-General for Cross-Border Investment Policy Peob-min Ryu at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea visited energy solutions company Danfoss Korea today in Seoul, where he held a conference with foreign-invested companies to discuss issues regarding participation in domestic technology development projects and to seek measures for boosting the R&D investment of advanced technology-holding foreign-invested companies.   date2025-03-06

MOTIR Expands R&D Support for Foreign-Invested Companies

Ryu Peob-min, Director-General for Cross-Border Investment Policy at the Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun), visited energy solutions company Danfoss Korea in Seoul, on March 6, 2025. He met with foreign-invested companies to discuss issues regarding participation in domestic technology development projects and ways to expand R&D investment by foreign-invested companies with advanced technologies. MOTIE is currently pushing measures to catalyze R&D by foreign-invested companies by linking them with Korea’s industrial, academic, and research institutions. In 2024, the ministry rolled out a global industrial technology R&D project exclusively for foreign-invested firms . In 2025, the government increased the budget to KRW 3.5 billion (up KRW 2 billion from KRW 1.5 billion in 2024) and will announce new projects later this month to recruit companies wanting to participate. The government also expanded cash grants by 10 percent (up by 15 percent for noncapital regions) and raised the cash grant limit for R&D centers developing high-tech strategic technologies to 75 percent in 2025 (up from 40 percent in 2024). MOTIR will also step up activities under the Korea-Global Innovation Investment Alliance (“Alliance”), launched to encourage foreign-invested firms’ wider participation in the R&D ecosystem, to promote networking between foreign-invested companies and industrial, academic, and research institutions. date2025-03-06

Korea’s Average Tariff Rate on U.S. Imports is Close to 0%

Following U.S. President Donald Trump’s March 4, 2025, address to a joint session of Congress, in which he said Korea’s average tariff rate is four times higher than the U.S. rate, multiple media outlets reported on the remark. Under the Korea-U.S. Free Trade Agreement (KORUS FTA), which took effect in 2012, Korea and the U.S. have eliminated tariffs on most goods traded between them. As of 2024, Korea’s effective tariff rate for goods imported from the U.S. is approximately 0.79 percent. Korea’s most-favored nation (MFN) applied tariff rate is 13.4, approximately four times higher than the U.S. rate of 3.3 percent. However, the MFN rate is separate from the preferential tariff rates Korea applies to U.S. imports under the KORUS FTA. MFN tariff rates apply to imports from members of the World Trade Organization (WTO) that do not have preferential trade agreements with Korea. date2025-03-05

Korea and Spain Expand Advanced R&D Cooperation for Technological Leadership

The Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun) and Spain’s Ministry of Science, Innovation and Universities (MICIU) held the second Korea-Spain Industrial Technology Cooperation Joint Committee meeting in Madrid, Spain, on March 5, 2025. Since 2015, the two countries have pursued bilateral technology cooperation through the Eureka Network, the world’s largest R&D platform, with 48 participating countries. In 2023, they expanded the scope and scale of bilateral cooperation by establishing a joint R&D program for medium to large-sized projects in line with their respective industrial strategies. The program has supported four bilateral joint R&D projects, including in mobility and renewable energy, with combined funding of KRW 25.6 billion. At the Joint Committee meeting, both sides shared the view that artificial intelligence (AI), advanced materials, and semiconductors are core technologies used across all industries. The two sides selected AI and semiconductors as priority technology collaboration areas for 2025, and advanced materials and nanomaterials for 2026, with plans to fund an estimated ₩27 billion in joint R&D. It is anticipated that technological cooperation among industry, academia, and research institutes in Korea and Spain will create opportunities for both countries to swiftly apply innovative technologies in various sectors to further enhance their industrial competitiveness. Following the Joint Committee, the two sides plan to continue their bilateral technological exchanges through the Korea Eureka Day, scheduled for April in Germany this in 2025, and support promising joint projects. date2025-03-05

Minister Ahn Holds Talks with U.S. Officials in Washington D.C.

Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy (MOTIE) visited Washington D.C. from February 26 to 28 2025, where he met with U.S. government officials and lawmakers to discuss bilateral trade issues and measures to strengthen Korea–U.S. cooperation. Minister Ahn met with Senator Mark Kelly, co-sponsor of the Ships for America Act, to discuss steps to expand Korea-U.S. cooperation in shipbuilding. He also exchanged views on Korea’s response to bilateral trade issues with Kevin Roberts, President of the Heritage Foundation; John Hamre, President and CEO of the Center for Strategic and International Studies (CSIS); and Adam Posen, President of the Peterson Institute for International Economics (PIIE). Minister Ahn also requested their support in facilitating intergovernmental cooperation. Minister Ahn also met U.S. Secretary of Commerce Howard Lutnick to discuss strengthening cooperation in strategic areas such as shipbuilding and advanced industries. During the meeting, he requested for Korea’s exclusion from U.S. tariff measures and conveyed the concerns of Korean businesses. The two sides agreed to establish a working-level consultation channels, one to discuss tariff measures and another to promoting cooperation in shipbuilding. Through these channels, the Korean government aims to continue consultations with relevant U.S. authorities to support the interests of Korean businesses. Minister Ahn also held separate talks with U.S. Secretary of the Interior Doug Burgum and U.S. Trade Representative Jamieson Greer on measures to enhance mutually beneficial cooperation in energy and trade. date2025-03-05

Korea’s exports resume growth in February

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced on March 1 that Korea’s exports and imports for the month of February 2025 increased 1.0 percent and 0.2 percent year-on-year, respectively, to USD 52.6 billion and $48.3 billion. The trade balance stood at a surplus of $4.3 billion. By item, semiconductors (down 3.0 percent to $9.6 billion) suffered a downtick despite the solid performance of high-bandwidth memory (HBM) chips and DDR5s, as the fixed price of general-purpose memory chips like DDR4s and NAND flash plunged. Meanwhile, computers (solid-state drives) grew for the 14th consecutive month (up 28.5 percent to $0.8 billion) and wireless communication devices turned to an expansion (up 42.3 percent to $1.5 billion).  Automobile exports (up 17.8 percent to $6.1 billion) snapped their three-month losing streak, fueled by demand for hybrid electric vehicles (HEVs) (up 74.3 percent to $1.3 billion) and bio-health exports (up 16.1 percent to $1.4 billion) were driven by the steep climb achieved by biopharmaceuticals (up 45.5 percent to $0.6 billion). Exports to four out of Korea’s nine major destinations saw growth in February. To China (down 1.4 percent to $9.5 billion), robust demand for wireless communication devices and general machinery offset the slower exports of semiconductors. Exports to the U.S. inched up 1.0 percent to $9.9 billion. Exports to ASEAN hit $9.6 billion (up 12.6 percent), the second highest for the month of February, led by semiconductors and petroleum products. Exports to India (up 18.6 percent to $1.7 billion) recorded an all-time high for the month and those to the Middle East (up 19.6 percent to $1.7 billion) also broke their three-month downward streak.   date2025-03-04

Korea and Thailand hold 4th negotiating round for bilateral EPA

Korea’s Deputy Minister for FTA Negotiations Roh Keon-ki and Director General of the Department of Trade Negotiations at the Ministry of Commerce of Thailand Chotima Iemsawasdikul led their respective delegations in the fourth official negotiating round for the Korea-Thailand Economic Partnership Agreement (EPA) on March 4 in Seoul. date2025-03-04

Minister Ahn meets U.S. Trade Representative

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea met U.S. Trade Representative Jamieson Greer on February 28 (local time) in Washington D.C. and conveyed Korea’s stance on U.S. trade measures, discussing measures for stronger bilateral cooperation. date2025-03-04

Minister Ahn meets U.S. Senator Mark Kelly

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea met U.S. Senator Mark Kelly on February 28 (local time) in Washington D.C. and discussed measures for stronger cooperation in the shipbuilding industry. date2025-03-04

Minister Ahn meets U.S. Secretary of the Interior

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea met U.S. Secretary of the Interior Doug Burgum on February 28 (local time) in Washington D.C. and discussed measures for stronger cooperation. date2025-03-04