Ministry of Trade Industry and Resources

Minister for Trade Park Jung-sung of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) attended the G20 Trade Ministerial held in Milwaukee, Wisconsin, from September 30 to October 1, 2026, to discuss responses to global supply chain challenges and key trade issues.

Beginning with the Global Forum on Steel Excess Capacity (GFSEC) Ministerial Meeting on the morning of September 30, 2026, Minister Park participated in four sessions during the two-day G20 plenary: the weaponization of food through coercive trade action; structural excess capacity and overproduction; reforming the Most-Favored-Nation (MFN) principle; and eliminating forced labor in global supply chains. He actively presented the Korean government's positions during the discussions.

During the meeting, Minister Park also held bilateral talks with counterparts from the United States, China, the European Union, the United Kingdom, Japan, India, Türkiye, Australia, Indonesia, Saudi Arabia and Brazil. The talks covered FTAs; supply chains and economic security; industrial and resource cooperation; and trade issues facing Korean companies.

1. Global Forum on Steel Excess Capacity (GFSEC) Ministerial Meeting

Minister Park attended the GFSEC Ministerial Meeting from 8 to 10 a.m. (local time) on September 30, 2026. GFSEC is an international consultative forum launched in 2016 to jointly address global steel excess capacity. It currently has 28 members, including Korea, the United States, the EU and Japan.

According to the OECD, global steel excess capacity is projected to reach 745 million metric tons in 2028, the highest level in the past decade. Members shared the view that overproduction by some non-members had placed steel industries in member countries under serious pressure. In response, member representatives adopted a Ministerial Statement emphasizing the need to address excess capacity and restore fair competition, along with a Framework Agreement setting out the details. The Framework Agreement covers information-sharing on excess capacity, the collection of data on the origin of crude steel, and cooperation on trade remedies.

At the meeting, Minister Park said, “Addressing excess capacity requires adherence to basic principles, including voluntary corporate restructuring and trade remedies consistent with WTO rules.” He particularly stressed that efforts by GFSEC members to maintain a sound and orderly market environment must not lead to excessive protection beyond international rules. Minister Park also outlined Korea's three policy directions for the steel industry: voluntary capacity rationalization by companies; fostering an environment for fair competition; and strengthening the industry's future competitiveness through measures including lower-carbon and higher-value production. He also emphasized cooperation among GFSEC members to build resilient supply chains.

2. G20 Trade Ministerial

At the plenary sessions of the G20 Trade Ministerial held from September 30 to October 1, 2026, Minister Park shared Korea's policy experience concerning the weaponization of food, structural overproduction, MFN reform and forced labor. He emphasized the importance of international cooperation based on market principles and multilateral rules.

Weaponization of Food: Creating a Transparent and Predictable Food Trade Environment

Minister Park first attended the session on the weaponization of food on September 30, noting that the issue has recently emerged as an important and timely item on the international trade agenda.

He stressed that food should under no circumstances be used as a tool of economic or political coercion and that addressing the weaponization of food requires an inclusive approach that takes into account both food-exporting and food-importing countries.

Structural Overproduction: Responding through Market Principles and International Cooperation

On the morning of October 1, 2026, Minister Park attended a plenary session on structural overproduction. He pointed out that global excess capacity is not confined to particular industries and can have effects across global supply chains, and explained that Korea addresses overproduction based on market principles.

Rather than artificially sustaining uncompetitive companies or production facilities, Korea allows market forces to drive exit and restructuring. In industries affected by overproduction, particularly steel and petrochemicals, Korea is putting in place an institutional framework that enables companies to undertake voluntary restructuring and business reorganization. Korea also uses trade remedies consistent with WTO rules, including countervailing duties and safeguards, while providing support for investment, R&D, reemployment and vocational training to mitigate the impact on industry and employment.

Minister Park stressed that existing trade remedies alone cannot fully resolve structural overproduction, but a rules-based approach remains essential. He added that the issue cannot be resolved through the efforts of individual countries alone. International cooperation is therefore essential, as is the sharing of objective information and policy experience that takes into account the market structure and supply-demand conditions of each industry. Minister Park said Korea will continue to participate in discussions through GFSEC and other forums to strengthen market functioning and transparency, and will work with G20 members to identify practical and effective solutions.

MFN Reform: Upholding the Rule of Law in the Multilateral Trading System and Emphasizing Flexible Cooperation

Minister Park then attended a session on reforming the Most-Favored-Nation (MFN) principle. He explained that Korea's economy has developed on the basis of the MFN principle and emphasized its importance. At the same time, he noted that questions arise over whether benefits secured through negotiations should continue to be extended equally to all WTO members even when some members do not fully implement agreed obligations. He said relevant WTO rules need to be modernized in line with the changing trade environment.

Minister Park particularly stressed that while MFN rules can evolve, the rule of law underpinning the international trading order must not be undermined. He explained that sufficient flexibility needs to be secured so that new rules and forms of cooperation can develop while preserving the core value of MFN treatment. He also noted that the WTO's rigid consensus practice makes it difficult for all members to agree from the outset on the same level of cooperation. Open plurilateral cooperation, under which willing members first develop new rules, could therefore provide a practical alternative, he said.

Eliminating Forced Labor: Strengthening Public–Private Cooperation to Build Responsible Supply Chains

Finally, on the afternoon of October 1, 2026, Minister Park attended a session on eliminating forced labor from global supply chains. He stressed that forced labor concerns human dignity and fundamental rights and is also an issue that the international community must address together to ensure fair competition and reliable global supply chains.

Minister Park also emphasized that, to effectively address forced-labor risks in complex global supply chains, companies’ voluntary supply chain due diligence and risk-management efforts should be accompanied by efforts to build a reliable information base. He also proposed that G20 members continue to share policy experience and relevant information, while drawing on analysis by specialized organizations such as the International Labour Organization (ILO), WTO and OECD.

3. Addressing Trade Issues and Expanding Economic Cooperation through Bilateral Consultations with Major Partners

On the sidelines of the G20 Trade Ministerial, Minister Park held bilateral meetings with representatives from major partners, including the United States, the EU, the United Kingdom, Türkiye, India, China, Australia, Indonesia, Japan, Saudi Arabia and Brazil. The meetings addressed key trade issues as well as ways to expand cooperation on supply chains, industry and investment.

① United States and Europe: Addressing Key Trade Issues and Strengthening the Foundation for Economic Cooperation

Minister Park met with U.S. Trade Representative Jamieson Greer to request and confirm continued adherence to the 15 percent tariff agreement. With the first U.S.-bound investment project now announced, the two sides also agreed to coordinate a specific schedule for the Korea–U.S. Joint Committee. With European Commissioner for Trade and Economic Security Maroš Šefčovič, Minister Park reviewed progress on the Korea–EU Competitiveness Partnership and the High-Level Economic Dialogue agreed at the Korea–EU Summit in June 2026. They also discussed legislative developments concerning the EU's Industrial Accelerator Act (IAA) and ways to reduce uncertainty for Korean companies.

Meanwhile, UK Secretary of State for Business, Innovation, Science and Trade Jonathan Reynolds informed Minister Park that, following the Korea–UK videoconferences held on August 6 and September 11, 2026, a general license covering Korean companies' existing contracts had been formally issued on October 1, 2026, in connection with the full ban on shipping and insurance services for Russian LNG that takes effect in 2027. Minister Park thanked the UK side for its cooperation. Regarding the UK's new steel measures, Minister Park requested a reasonable quota allocation for Korean steel and stable access to the UK market for Korean companies. The two sides also reviewed follow-up procedures for the signing and entry into force of the upgraded Korea–UK FTA. With Türkiye's Minister of Trade Ömer Bolat, Minister Park proposed holding an FTA Joint Committee meeting to discuss bilateral trade issues, including the trade imbalance. He also asked for Türkiye's active cooperation in easing import restrictions on Korean products and resolving difficulties faced by Korean companies operating in the country.

② Asia and Oceania: Expanding Supply Chain and Industrial Cooperation and Economic Partnerships

With Indian Minister of Commerce and Industry Piyush Goyal, Minister Park proposed advancing the negotiations to upgrade the Korea–India Comprehensive Economic Partnership Agreement (CEPA) toward a high-standard outcome. He also requested India’s cooperation in creating a favorable investment environment for Korean companies seeking to enter the Indian market and expand their investment. With China International Trade Representative and Vice Minister of Commerce Li Chenggang, Minister Park discussed cooperation on critical mineral supply chains, including rare earths. The two sides agreed to strengthen support for companies investing in the Saemangeum Korea–China Industrial Complex and accelerate follow-up negotiations on services and investment under the Korea–China FTA.

With Australian Minister for Trade and Tourism Don Farrell, Minister Park requested support for 18 mineral investment projects currently under way. He also asked for Australia's attention and cooperation in ensuring that Korean companies' existing LNG import contracts remain stable as Australia reforms its gas-market policy. With Indonesian Minister of Industry Agus Gumiwang Kartasasmita, Minister Park discussed expanding cooperation in shipbuilding and confirmed Indonesia's willingness to actively support efforts to resolve business difficulties faced by Korean companies in connection with reforms to Indonesia's national standards (SNI) certification system. Minister Park also confirmed Indonesia's willingness to support POSCO's local joint-venture steel project, PTKP, as well as its willingness to give favorable consideration to including Korean companies among those eligible for special relief from the export-proceeds deposit requirement in the mining sector. With Japanese State Minister of Economy, Trade and Industry Miyamoto Shuji, Minister Park discussed ways to enhance energy security and supply chain resilience in response to geopolitical uncertainty. Building on Japan's interest in K-beauty, the two sides also explored opportunities to expand industrial cooperation in areas including cosmetics. 

③ Emerging Markets: Expanding Trade Networks and Strategic Investment and Resource Cooperation

With Saudi Minister of Commerce Majid bin Abdullah Al-Kassabi, Minister Park reviewed the domestic procedures on both sides needed for the prompt formal signing of the Korea–GCC FTA. He also requested attention and support to ensure the smooth progress of bilateral investment cooperation in areas including automobiles and shipbuilding. With Brazilian Minister of Foreign Affairs Mauro Vieira and Minister of Development, Industry, Trade and Services Márcio Elias Rosa, Minister Park requested cooperation to ensure that the resumption of negotiations on the Korea–MERCOSUR Trade Agreement (TA) proceeds without disruption. They also discussed expanding follow-up cooperation on critical minerals, building on the foundation laid through the presidential visit.