Ministry of Trade Industry and Resources

Trade Minister Yeo to Attend Davos Forum on Restoring the Global Multilateral Order and Revitalizing Trade and Investment

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) will attend the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, from January 19 to 22, 2026 (local time). Held under the theme “A Spirit of Dialogue,” this year’s Davos Forum will bring together world leaders, global business leaders, and opinion leaders from around 70 countries for in-depth discussions on strengthening cooperation, revitalizing global trade and investment, and identifying new engines of growth. Trade Minister Yeo will participate as a speaker in sessions on global trade and investment, addressing next-generation global trade facilitation, the expansion of multilateral trade and investment, and growth strategies for emerging economies such as ASEAN. He will also meet with senior executives from major global companies—including Merck, Amazon Web Services (AWS), and Maersk—to discuss ways to expand investment in Korea and deepen cooperation. Trade Minister Yeo will also attend the informal WTO ministerial meeting on January 22, where participants will discuss WTO reform directions and ways to deliver concrete outcomes at the 14th WTO Ministerial Conference (MC14), scheduled for March 2026 in Cameroon. In particular, he plans to lead discussions on incorporating the Investment Facilitation for Development (IFD) Agreement—an initiative led by Korea—into the WTO framework. He will also hold bilateral meetings with trade ministers from key economies, including the EU, Argentina, and Switzerland, to address market-entry challenges faced by Korean companies and explore ways to further strengthen Korea’s trade network. Trade Minister Yeo emphasized that “the Davos Forum is a global platform for political and economic dialogue among world leaders, and an opportunity to highlight Korea’s return to the international community through the resilience of its democracy.” He added that “as a middle power drawing global attention, Korea will demonstrate global leadership by contributing to restoring international economic and trade order amid complex challenges.” He further noted that “MOTIR will leverage the Davos Forum to step up trade and investment outreach, with a focus on attracting global investment and addressing key trade issues in line with Korea’s national interests.” date2026-01-20

The First Korea–China FTA Services and Investment Follow-up Talks of 2026 to Be Held in Beijing

The Trade Ministry at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that the 13th round of follow-up negotiations on services and investment under the Korea–China Free Trade Agreement (FTA) will take place in Beijing from January 19 to 23, 2026.  The talks will bring together around 30 officials from both countries, with the Korean delegation led by Kwon Hye-jin, Director General for Trade Negotiations, and the Chinese delegation headed by Lin Feng, Director General for International Trade and Economic Affairs at China’s Ministry of Commerce. Since the Korea–China FTA entered into force in 2015, the two countries have conducted follow-up negotiations on services and investment in line with the agreed guidelines. Formal negotiations were launched in March 2018, and discussions have continued through 12 official rounds and multiple intersessional meetings. At the Korea–China summit held in Beijing on January 5, 2026, the two sides agreed to pursue meaningful progress in the follow-up negotiations within the year. Building on this understanding, the upcoming round will focus on negotiations on agreement texts and market access across three working groups—services, investment, and financial services. MOTIR stated it will maintain negotiation momentum by holding official rounds on a regular basis, including on a bimonthly schedule, with the participation of all relevant ministries. It added that the negotiations aim to ensure the follow-up agreement serves as a foundation for a freer and more open environment for bilateral services trade and investment. date2026-01-20

Free Economic Zones See Strong Growth in Foreign-Invested Companies, Employment, and Investment

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced the results of the 2024 survey on businesses located in Free Economic Zones (FEZs), a nationally approved statistical survey jointly conducted with nine FEZ authorities since 2017. The survey provides a comprehensive overview of businesses operating in FEZs, covering investment status, employment, business activities (including sales, procurement, R&D, and production), the business environment and access to support programs, and operational challenges. According to the survey, Korea’s FEZs continued to expand in 2024, posting solid growth in the number of foreign-invested companies, employment, and investment, underscoring their role as key growth hubs for regional economies. Major indicators across the survey pointed to a favorable trend, with the number of foreign-invested companies in FEZs rising 8.2 percent year-on-year, while employment and investment increased 8.8 percent and 14.4 percent, respectively. As of 2024, a total of 8,590 companies were operating in FEZs, up 4.4 percent from the previous year. By region, Incheon accounted for 44.9 percent of the total, followed by Busan–Jinhae (28.4 percent) and Daegu–Gyeongbuk (12.2 percent). Notably, the number of tenant companies rose sharply in Gwangju (up 107 percent), Chungbuk (up 24 percent), and Gyeonggi (up 10 percent). Reflecting the increase in tenant companies, total employment in FEZs reached 254,775, marking an 8.8 percent rise from a year earlier. This growth significantly outpaced the nationwide increase in the employment rate (up 0.1 percentage points). Total investment in FEZs amounted to KRW 5.9 trillion (up 14.4 percent), while total sales reached KRW 189.7 trillion (up 2.0 percent), contributing greatly to regional economic activity. The number of foreign-invested companies operating in FEZs totaled 690 in 2024, an increase of 8.2 percent from the previous year. Of these, 84.6 percent were located in Incheon (53.2 percent) and Busan–Jinhae (31.4 percent), with Incheon recording particularly strong growth of 18 percent. Employment at foreign-invested companies stood at 57,389 (up 1.4 percent). Investment by these companies reached KRW 3.8 trillion (up 4.3 percent), while sales rose to KRW 56.2 trillion (up 11.6 percent), demonstrating steady momentum. FEZs are pursuing five-year development plans focused on building regional innovation ecosystems by fostering core strategic industries tailored to local strengths. In 2024, the number of companies in these core industries increased by 6.8 percent from the previous year. Employment in these sectors surged 27.0 percent, and sales rose 17.2 percent, marking robust growth. Je Kyung-hee, Director General of the Free Economic Zone Planning Office, noted that “despite challenging conditions, FEZs have sustained steady growth and continue to serve as key hubs for foreign investment and regional economic development.” She added that “the government will continue to develop and implement policies tailored to regional and industry-specific needs to support further investment and business activity.” date2026-01-20

Korea and Egypt Sign Joint Declaration to Advance CEPA Talks

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) visited Cairo on Sunday, January 18, 2026, and held meetings with Hassan El-Khatib, Egypt’s Minister of Investment and Foreign Trade, and Walid Gamal El-Din, ministerial-level Chairman of the Suez Canal Economic Zone (SCZONE). The two sides discussed follow-up measures and implementation plans for key trade and industrial agendas raised at the Korea–Egypt summit in November last year, including advancing a Comprehensive Economic Partnership Agreement (CEPA) and exploring support measures to facilitate Korean companies’ entry into the SCZONE. In addition, Trade Minister Yeo met with Korean companies operating in Egypt to hear their on-the-ground challenges and discuss support measures. He also visited the Suez Canal Economic Zone to assess the investment environment for Korean firms. During his meeting with Minister El-Khatib, Trade Minister Yeo signed a joint declaration on advancing the Korea–Egypt CEPA, formally confirming both sides’ commitment to pursue the agreement and clarifying the direction of the negotiations. The two ministers also reviewed progress in their respective domestic procedures required to launch CEPA negotiations and agreed to work closely toward an early launch of talks. Trade Minister Yeo also met with Chairman Gamal El-Din and was briefed on the SCZONE’s investment and infrastructure environment, before discussing ways to facilitate Korean companies’ entry into the zone. The two sides agreed that the SCZONE offers strong potential as a future manufacturing and logistics hub for Korean firms, given its strategic location linking the Middle East, Europe, and Africa; Egypt’s abundant labor force; and its extensive free trade agreement network. Trade Minister Yeo noted that products manufactured in the SCZONE could be exported to the United States under preferential terms through the U.S.–Egypt–Israel Qualifying Industrial Zone (QIZ) agreement, positioning the zone as a potential production base for Korean manufacturers targeting the U.S. market. He proposed establishing a regular consultative channel between KOTRA and the SCZONE Authority to support smooth entry by Korean firms. Trade Minister Yeo also visited the Sokhna Industrial Zone—the largest of the SCZONE’s four industrial zones—and the adjacent Sokhna Port, together with Korean companies operating in Egypt, KOTRA, and the Korea Institute for International Economic Policy (KIEP). The delegation assessed tenant occupancy, industrial infrastructure, and other investment-related conditions within the SCZONE relevant to Korean firms. In a separate dinner meeting with Korean companies operating in Egypt, Trade Minister Yeo heard business concerns and requests related to financing and streamlined administrative procedures, and discussed practical measures for addressing operational challenges in a timely manner. Trade Minister Yeo stated, “The visit marked a significant step in formally advancing CEPA talks with Egypt, a key economic hub in North Africa and a logistics gateway linking Europe, the Middle East, and Africa.” He added that “the government will expedite negotiations, from launch through conclusion, to provide institutional support for stable trade and investment activities by Korean companies.” MOTIR plans to strengthen support for Korean companies’ expansion into Egypt by providing essential market-entry information, including an investment guidebook reflecting the findings from the recent visit to the Suez Canal Economic Zone. date2026-01-19

Automobile Exports Hit Record High of $72 Billion in 2025

Korea’s automobile exports in 2025 totaled USD 72.0 billion, exceeding the previous record of $70.9 billion set in 2023. This marked a new all-time high and the third consecutive year in which automobile exports surpassed $70 billion. Exports of eco-friendly vehicles amounted to $25.8 billion, up 11 percent year-on-year. Hybrid-vehicle exports reached a record high of $14.8 billion (up 30 percent year-on-year), contributing significantly to overall growth. Used-car exports also hit a new high of $8.9 billion (up 75.1 percent year-on-year), reflecting an improved reputation of Korean vehicles and favorable exchange-rate conditions. Domestic automobile production in 2025 totaled 4.1 million units (down 0.6 percent year-on-year), remaining above 4.0 million units for the third consecutive year. By model, production was led by the Trax (308,000 units), followed by the Kona (270,000), Avante (269,000), Sportage (226,000), Tucson (201,000), and Carnival (186,000). Of total production, 67 percent, or 2.7 million units, were exported (down 1.7 percent year-on-year). Domestic automobile sales in 2025 reached 1.7 million units, up 3.3 percent from 2024. Sales of domestically produced vehicles totaled 1.4 million units (up 0.8 percent), accounting for 81 percent of the total, while imported vehicle sales came to 320,000 units (up 15.3 percent), representing 19 percent of the total. Eco-friendly vehicle sales rose to 813,000 units (up 25 percent from 2024), accounting for 48 percent of new vehicle sales. Among them, electric-vehicle sales increased to 216,000 units (up 52 percent from 2024). In December 2025, automobile exports totaled $6.0 billion, down 1.5 percent from a year earlier, reflecting base effects from strong performance in December 2024. Automobile production in December came to 362,000 units (down 2.9 percent), driven primarily by the Trax, Kona, and Avante. Domestic sales totaled 145,000 units (up 1.4 percent), including 115,000 units of domestically produced vehicles and 30,000 units of imported vehicles. Although U.S. tariff measures cast a shadow over the automobile industry in 2025, uncertainty was eased through a combination of policy measures—including efforts to strengthen competitiveness in eco-friendly vehicles and secondary batteries, as well as emergency responses to U.S. auto tariffs—together with the successful conclusion of tariff negotiations with the U.S., enabling automobile exports to reach a record high of $72 billion. Looking ahead to 2026, the automobile industry is expected to face challenges such as increased localization of production due to rising global protectionism and intensifying competition. The ministry stated that it will continue to support the industry by steadily implementing initiatives centered on the AI Future Vehicle M.AX Alliance and the K-Mobility Leadership Strategy, with the aim of strengthening future industrial competitiveness and reinforcing export momentum. date2026-01-15

ICT Exports Post Record Annual Performance in 2025

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Ministry of Science and ICT (MSIT, Deputy Prime Minister and Minister Bae Kyung-hoon) announced on January 15, 2026, that Korea’s ICT exports in 2025 totaled USD 264.3 billion, up 12.4 percent from a year earlier. Imports rose 5.8 percent year-on-year to $151.3 billion, resulting in a trade surplus of $113.0 billion. Annual ICT exports reached an all-time high, as the global expansion of AI data centers boosted demand for semiconductors and solid-state drives (SSDs), despite continued uncertainties in the global trade environment. By product, exports of semiconductors rose 22.1 percent year-on-year, while computers and peripherals increased 3.8 percent and communication equipment climbed 3.9 percent. By contrast, display exports declined 9.5 percent, and mobile phone exports edged down 0.5 percent. Semiconductor exports reached a record high, supported by expanding demand for high-value memory products and sustained price increases for general-purpose semiconductors, including DRAM. Exports of computers and peripherals increased on strong demand for SSDs shipped to China (including Hong Kong), the Netherlands, and Taiwan. Communication equipment exports rebounded for the first time in three years, driven by double-digit growth in shipments to the United States and solid demand from India and Mexico. Display exports declined as falling unit prices and weaker downstream demand for LCD products outweighed increased adoption of OLED displays in IT devices. Meanwhile, mobile phone exports edged down as subdued demand for components offset a recovery in global smartphone demand. By destination, exports increased to Taiwan (up 64.8 percent), Vietnam (up 14.5 percent), India (up 11.3 percent), the European Union (up 10.2 percent), the United States (up 9.8 percent), and Japan (up 5.5 percent), while exports to China, including Hong Kong, declined 0.9 percent. In December 2025, Korea’s ICT exports and imports amounted to $30.0 billion and $14.9 billion, respectively, and the trade balance posted a surplus of $15.1 billion. ICT exports extended their upward trend for 11 consecutive months since February 2025, recording an all-time monthly high. For the first time on a monthly basis, ICT exports surpassed the $30 billion mark. Semiconductor exports, as well as exports of computers and peripherals, also reached record highs, underscoring strong export momentum toward year-end. date2026-01-15

Korea and the Netherlands Strengthen Cooperation on Semiconductor and Quantum Technologies Amid Global Tech Competition

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the 4th Korea–Netherlands Joint Committee on Innovation with the Dutch Ministry of Economic Affairs on Wednesday, January 14, 2026, in The Hague. Since 2016, the two countries have advanced technological cooperation through the Eureka Network—the world’s largest intergovernmental network supporting international R&D and innovation, spanning 48 countries—with efforts led by their respective R&D agencies, the Korea Institute for Advancement of Technology (KIAT) and the Netherlands Enterprise Agency (RVO). Since 2019, the two sides have also convened the Joint Committee on Innovation every two years at the director-general level. At this year’s meeting, Choi Yeon-woo, Director General for Industrial Technology Convergence Policy at MOTIR, and Tjerk Opmeer, Director General for Business and Innovation at the Dutch Ministry of Economic Affairs, headed their respective delegations.  The two sides acknowledged each other’s strong technological competitiveness in semiconductors and quantum technologies, underscoring the policy importance of these fields. Building on this shared understanding, the two sides signed a Letter of Intent (LOI) to strengthen cooperation in these priority areas. The two sides also agreed to expand international cooperation to include advanced strategic technologies. In this context, the meeting is expected to further reinforce the foundation for a joint response to global supply chain restructuring. Director General Choi noted that “Korea and the Netherlands have steadily expanded industrial technology cooperation over the past decade,” adding that “this Joint Committee will build on those achievements and chart a shared course for the decade ahead.” He further emphasized that “MOTIR will continue to support international cooperation in industrial technology, to create new growth opportunities for companies and research institutions in both countries, as we jointly respond to intensifying global technology competition.” date2026-01-15

Joint Press Release on the Substantive Conclusion of Discussions for the Republic of Peru’s Accession to the Digital Economy Partnership Agreement

The Parties to the Digital Economy Partnership Agreement (DEPA) are pleased to announce the substantive conclusion of discussions for the Republic of Peru’s accession to this world-leading digital trade agreement. Digitally signed in 2020 by Chile, New Zealand and Singapore, the DEPA is the world’s first standalone digital economy agreement and represents a forward-looking model for economic engagement and trade in the digital era. The Agreement reinforces commercially meaningful digital trade rules, fosters new approaches and collaborations in digital trade, promotes interoperability across different regulatory frameworks, and addresses emerging challenges arising from digitalisation. Designed as an open and inclusive framework, the DEPA is open to economies that are able to meet its high standards. The Republic of Korea joined the DEPA on 3 May 2024 as the first new member economy. Peru formally requested accession to the DEPA on 23 May 2023, and an Accession Working Group was established on 7 November 2024 to assess the request. Following a comprehensive assessment, the Accession Working Group, chaired by the Republic of Korea, agreed that, based on Peru’s existing legal framework, policies and practices, Peru has demonstrated its capacity to comply with the DEPA’s provisions. Peru has also shown a strong commitment to engaging constructively with DEPA Parties on areas of shared interest, including digital trade facilitation, consumer protection and cross-border data flows. The DEPA Parties will now continue to work with Peru to advance the remaining steps of the accession process in a timely manner, consistent with each Party’s domestic procedures and the DEPA Accession Process. Chile’s Vice Minister of International Economic Relations Claudia Sanhueza said, “Chile and Peru share a long history of economic integration and forward-looking trade cooperation. In this context, Chile warmly welcomes the substantive conclusion of discussions for Peru’s accession to the DEPA, a step that strengthens our joint commitment to building a high-quality regulatory framework that promotes digital trade. This milestone deepens our shared vision for a modern and inclusive digital economy and opens new opportunities for regional cooperation and innovation.” New Zealand’s Minister for Trade and Investment Todd McClay said, “New Zealand is pleased to join Parties in inviting Peru to accede to the DEPA. Throughout the process, Peru has demonstrated that it shares our commitment to progressive, high-quality digital trade rules and the DEPA’s vision. Peru’s accession will strengthen DEPA as a leading high standards digital economy agreement and we look forward to working closely with them to advance its objectives.” Singapore’s Minister-in-charge of Trade Relations and Minister for Sustainability and the Environment Grace Fu said, “Singapore warmly welcomes the substantive conclusion of Peru’s accession negotiations to the DEPA. This marks another important milestone for the DEPA. The expansion of the DEPA’s membership will unlock more opportunities and add further weight to the DEPA’s ambition to foster more open digital markets. We look forward to partnerships with Peru through the DEPA to expand and enhance collaborations in digital trade. We are hopeful that the DEPA will continue to attract like-minded partners who share our vision in digital economy cooperation.” The Republic of Korea’s Minister for Trade Yeo Han-Koo said, “We welcome the substantial conclusion of Peru’s accession negotiations to Digital Economy Partnership Agreement. Peru is an important partner that shares DEPA’s vision of an open and inclusive digital trade order. Peru’s accession represents a meaningful step forward in advancing the DEPA as a global platform for digital trade cooperation date2026-01-14