Ministry of Trade Industry and Resources

Minister for Trade Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) represented Korea at the 2026 OECD Ministerial Council Meeting (MCM), held June 3–4, 2026, at OECD headquarters in Paris, as the government’s chief delegate and the lead representative of a vice-chair country. At the meeting, he discussed industrial policy approaches that can support open markets, growth, and prosperity with OECD member and partner countries. As Korea marks the 30th anniversary of its accession to the OECD, Minister Yeo helped lead discussions in three of the MCM’s six sessions: he delivered a keynote statement in the industrial policy session, gave lead remarks in the trade session, and chaired a group discussion in the investment session.

Active Contributions to Global Discussions on Balanced Industrial Policy and WTO Reform

(1) Korea’s Experience with M.AX, the Energy Transition, and the Five Mega-Regions and Three Special Self-Governing Provinces Initiative

At the session on “Balancing the Goals and Impacts of Industrial Policy,” Minister Yeo said that supply chain instability, economic security concerns, the spread of AI and digital technologies, and the low-carbon transition are bringing industrial policy back into focus. He shared Korea’s key policy experience, including Manufacturing AI Transformation (M.AX), AI factories, and physical AI, and stressed that industrial policy should not replace markets but help spread new technologies and raise productivity.

Minister Yeo also noted that recent developments in the Middle East have underscored the importance of energy security for energy-importing countries such as Korea. He said Korea is diversifying energy imports in the near term while pursuing an energy transition that balances renewable energy with nuclear power over the medium to long term. He also presented the regional growth-engine strategy under the Five Mega-Regions and Three Special Self-Governing Provinces initiative and emphasized the need for close cooperation with private-sector actors, including industry, academia, and research institutions. As industrial policies can have cross-border effects, he called for avoiding subsidy races, beggar-thy-neighbor policies, and zero-sum competition, and asked the OECD to serve as a platform for dialogue and peer learning based on empirical analysis.

(2) The Importance of Aligning Trade and Industrial Policies

On the second day, Minister Yeo attended the session on “Open Markets, Free and Fair Trade, and a Level Playing Field,” where he stressed that open markets and the rules-based trading system remain essential foundations for global growth and prosperity. He said trade and industrial policies should be designed and implemented in close coordination as governments make broader use of industrial policies. He also noted that subsidies can support green and digital transitions, the development of critical technology, and supply chain resilience. However, excessive subsidy competition can undermine fair competition and the order of open markets. Minister Yeo called on the OECD to work with the WTO and others to develop international standards and principles on transparency, proportionality, and the risk of market distortion.

(3) Discussions on Investment for Sustainable Growth

Minister Yeo chaired a session on investment for sustainable growth, where participants discussed how industrial policy can support the green transition and sustainable growth. The discussion focused on the development and deployment of clean and high-efficiency production technologies, as well as market-based incentives to promote clean technology innovation and private investment.

Minister Yeo said the green transition can create opportunities for clean technology innovation and new growth engines over the long term, but may also weigh on industrial competitiveness in the short term by raising energy costs and capital investment burdens. He emphasized that policy tools such as supply chain carbon data, green public procurement, and green transition finance should be used in coordination with market-based incentives. He also outlined Korea’s efforts under the Framework Act on Carbon Neutrality and Green Growth to lay the groundwork for carbon neutrality by 2050 and provide financial and tax support to companies adopting green technologies.

(4) Informal WTO Trade Ministers’ Meeting and WTO Experts’ Roundtable

On June 3, Minister Yeo joined an informal WTO trade ministers’ meeting to discuss reforming WTO decision-making. Drawing on his experience as Minister Facilitator for the reform session at the 14th WTO Ministerial Conference (MC14), he said the WTO’s difficulty in reaching meaningful decisions should be turned into momentum for reform. He noted that despite broad support for WTO reform at MC14, deadlock over extending the moratorium on customs duties on electronic transmissions prevented members from formally adopting even a reform work program. 

Minister Yeo also said plurilateral agreements could help the WTO restore its rulemaking function in a changing trade environment shaped by digitalization and AI. He encouraged members to join a joint statement calling for a permanent extension of the moratorium on customs duties on electronic transmissions, and called for active consideration of available options, including interim implementation approaches, to bring the Investment Facilitation for Development Agreement (IFDA) into force and implement it promptly. He also proposed holding a small ministerial meeting in 2027 to review progress and keep discussions moving ahead of the next ministerial conference.

On June 4, he met with French economic and trade experts, including Arancha González Laya, Dean of the Paris School of International Affairs at Sciences Po, to discuss WTO reform amid rising protectionism and emerging trade issues such as digitalization and AI.

Bilateral Economic Cooperation and Trade Issues with Key Partners

On the margins of the MCM, Minister Yeo held about 20 bilateral meetings with counterparts from the United States, the EU, France, Finland, the United Kingdom, Argentina, Brazil, the IDB, and others. The meetings focused on trade issues, challenges facing Korean companies overseas, and ways to expand industrial and trade cooperation. With U.S. Trade Representative Jamieson Greer, Minister Yeo discussed a broad range of bilateral trade issues, including the results of Section 301 investigations under the Trade Act of 1974 and progress in implementing commitments in the Korea-U.S. leaders’ Joint Fact Sheet. 

Minister Yeo met with Maroš Šefčovič, European Commissioner for Trade and Economic Security, and conveyed Korea’s concerns over the Industrial Accelerator Act and the new EU steel measure scheduled to take effect on July 1, 2026. The meeting followed in-depth Korea-EU consultations on the steel measure held in Brussels on June 1, 2026. He noted that the measure could affect not only market access for Korean steelmakers, but also supply chains and production at EU companies that use Korean steel to make final goods such as automobiles, home appliances, and machinery. He stressed that Korean steel has long underpinned stable supply chains for EU manufacturing. On that basis, he urged that sufficient market access for Korean steel be guaranteed even as the new measure is introduced.

In allocating country-specific tariff-rate quotas, Minister Yeo called on the EU to give Korea favorable and special consideration, noting that Korea is a key economic partner that has an FTA with the EU and has contributed to international efforts to address excess steel capacity.

He also asked Nicolas Forissier, France’s Minister Delegate for Foreign Trade and Economic Attractiveness, to ensure fair treatment for Korean companies and a stable trade environment in relation to EV subsidies and other trade issues. With Ville Tavio, Finland’s Minister for Foreign Trade and Development, he discussed cooperation on critical mineral supply chains and quantum computing. With Sir Chris Bryant, the United Kingdom’s Minister of State (Minister for Trade), he reviewed progress in Korea-UK FTA upgrade negotiations and conveyed Korea’s concerns over moves to expand steel-related import restrictions, including higher tariffs and anti-dumping investigations.

On cooperation with Latin America, Minister Yeo met with Pablo Quirno Magrane, Argentina’s Minister of Foreign Affairs, International Trade and Worship, to discuss ways to pursue a trade agreement and upgrade bilateral trade and investment relations,, and the two sides agreed to strengthen follow-up working-level consultations to that end. He also met with Mauro Vieira, Brazil’s Minister of Foreign Affairs, and shared the need to cooperate on critical mineral supply chains and resume negotiations on the Korea-MERCOSUR Trade Agreement (TA). With Anabel González, Vice President for Countries and Regional Integration at the Inter-American Development Bank (IDB), he explored ways to expand Korea-Latin America trade and investment cooperation and official development assistance (ODA) projects between MOTIR and the IDB. Minister Yeo also met with OECD Secretary-General Mathias Cormann to discuss the 30th anniversary of Korea’s accession to the OECD and ways to expand MOTIR-OECD cooperation. He noted that the OECD provides a foundation for international coordination on major trade issues based on reliable data and objective analysis, and said Korea will continue to actively contribute to related discussions and research.

Meetings with Korean and French Companies

On June 3, Minister Yeo held a breakfast meeting with Korean automotive and aviation companies operating in France and related organizations to gather feedback on local business conditions, trade issues, and business challenges. He said MOTIR will continue consultations with France to help ensure fair treatment for Korean companies. On June 4, he met with major French companies operating in Korea, underscored the importance of bilateral economic cooperation, and said Korea will continue efforts to improve its investment environment and advance regulatory reform. Minister Yeo also attended an MCM side event marking the publication of a report on Korea’s contributions, where he introduced Korea’s digital trade infrastructure, including electronic customs clearance and AI-based risk management, and said Korea will contribute to OECD discussions on digital trade systems and interoperability.