Ministry of Trade Industry and Resources

MOTIR and Philippine DTI Agree to Establish a Standing Ministerial Economic Cooperation Committee

Following the Korea–Philippines summit held during President Lee Jae Myung’s state visit to the Philippines on March 3, 2026, Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) and Cristina A. Roque, Secretary of Trade and Industry of the Philippines, exchanged the Korea–Philippines Memorandum of Understanding (MOU) on Trade, Investment, and Economic Cooperation in the presence of the two leaders. From 2019 to 2025, MOTIR and the Philippine Department of Trade and Industry held three meetings of the Korea–Philippines Economic and Trade Cooperation Committee and discussed a broad range of industrial and trade issues. Since the Korea–Philippines Free Trade Agreement (FTA) entered into force in December 2024, Korean companies have expanded their operations in the Philippines in sectors including electrical and electronics, shipbuilding, critical minerals, and infrastructure. Korea’s investment ranking in the Philippines also rose from outside the top ten in 2023 to fourth in 2025, underscoring closer economic cooperation between the two countries. Building on these developments, the two ministries agreed to refocus the agenda of the Economic Cooperation Committee away from a broad cooperation framework and toward high-potential industries such as shipbuilding, semiconductors, electrical and electronics, and the digital economy. They also agreed to establish a standing consultative mechanism to facilitate timely communication when issues arise and support more flexible, ongoing cooperation. MOTIR will use the committee as a channel to address issues affecting Korean companies in the Philippines in a timely manner. The ministry plans to hold the 4th Korea–Philippines Economic Cooperation Committee in 2026 to discuss follow-up steps from the recent Korea–Philippines summit, including measures to resolve difficulties facing Korean companies in the local market. date2026-03-04

MOTIR Launches Chemical Industry Innovation Alliance to Back the Petrochemical Sector’s Move Up the Value Chain

The Chemical Industry Innovation Alliance (the “Alliance”), launched to drive the chemical industry’s transition toward higher value-added and cleaner production, is now fully operational. On March 4, 2026, the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the Alliance’s general meeting at the Korea Chamber of Commerce and Industry (KCCI), with around 150 participants from across the chemical industry ecosystem in attendance, including petrochemical companies, small and medium-sized enterprises (SMEs), middle market enterprises (MMEs), demand-side companies, and research institutes. The meeting marked the start of the Alliance’s full-scale operations as the implementing platform for the “K-Chemical Next Generation Technology Innovation Roadmap 2030,” unveiled in late 2025 to support the petrochemical industry’s shift toward higher-value products amid ongoing restructuring. Participants discussed the Alliance’s operating plan, the recent trends in large-scale R&D programs, R&D investment priorities among key demand-side companies, and a strategy for developing an R&D agenda under the Roadmap that spans the entire chemical value chain—from feedstocks to materials and applications. During the meeting, major demand-side companies presented their R&D investment priorities to help identify a flagship project for the initiative. These inputs will serve as practical guideposts, helping chemical companies pursuing higher-value and cleaner production to reduce uncertainty by incorporating market demand from the planning stage and to develop a demand-driven technology strategy. Demand-side companies across key sectors—including Samsung Electronics, LG Energy Solution, Taihan Cable & Solution, and HD Hyundai Heavy Industries—also shared their R&D strategies, which are expected to help chemical companies develop flagship projects that integrate the entire value chain from feedstocks to materials and applications, strengthen the technological capabilities of SMEs and MMEs in the materials and applications sectors, and drive innovation across the industry. To drive meaningful outcomes in the private sector, the government announced that it is preparing a large-scale R&D project under the Roadmap to support the transition toward higher value-added and cleaner production. Song Hyeon-ju, Director General for Industrial Supply Chain Policy of MOTIR, stated that “while last year’s launch ceremony set out the goals for chemical industry innovation, today’s meeting marks the first step toward implementation.” She added, “the government will provide large-scale R&D support to underpin the transition toward higher value-added and cleaner production if petrochemical companies move swiftly to restructure through rigorous self-help efforts.” She also said that MOTIR would “ensure strong policy support so that the flagship projects developed through the Alliance can become a new engine of growth for Korea’s chemical industry.” date2026-03-04

February 2026 Exports Hit Record High for Any February at $67.5 Billion

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that in February 2026, Korea’s exports rose 29.0 percent year-on-year to USD 67.5 billion, while imports increased 7.5 percent to $51.9 billion, resulting in a $15.5 billion surplus. Exports reached the highest level on record for any February, despite three fewer working days following the shift of the Lunar New Year holiday. Average daily exports (adjusted for working days) increased 49.3 percent to $3.6 billion, exceeding $3.0 billion for the first time. By product, exports increased in five of Korea’s 15 key export items. Semiconductor exports rose to $25.2 billion (up 160.8 percent), posting the highest monthly figure on record and extending exports above $20.0 billion for a third consecutive month. Wireless communication devices reached $1.5 billion (up 12.7 percent), led by mobile phones ($0.5 billion, up 131.6 percent), while computers increased to $2.6 billion (up 221.6 percent), and bio-health products to $1.3 billion (up 7.1 percent). By contrast, automobiles fell to $4.8 billion (down 20.8 percent) and auto parts to $1.5 billion (down 22.4 percent), reflecting fewer working days due to the holiday shift. Petroleum products fell to $3.7 billion (down 3.9 percent) as lower export prices offset higher shipment volumes, while petrochemicals dropped to $3.3 billion (down 15.4 percent), steel to $2.4 billion (down 7.8 percent), and general machinery to $3.3 billion (down 16.3 percent). By destination, exports increased in seven of Korea’s nine major markets. Shipments to the United States rose to $12.9 billion (up 29.9 percent), the highest on record for any February. Exports to China grew 34.1 percent to $12.8 billion, led by semiconductors, computers, and petroleum products. Exports to ASEAN increased to $12.5 billion (up 30.4 percent), while exports to the EU rose to $5.6 billion (up 10.3 percent). Imports rose 7.5 percent year-on-year to $51.9 billion. Energy imports edged down to $9.3 billion (down 1.4 percent), as crude oil imports fell to $5.4 billion (down 11.4 percent), while gas imports increased to $2.6 billion (up 15.9 percent). Non-energy imports rose 9.6 percent to $42.6 billion, including semiconductors ($6.8 billion, up 19.1 percent), semiconductor equipment ($2.6 billion, up 43.4 percent), and mobile phones ($1.0 billion, up 80.2 percent). The trade surplus in February reached $15.5 billion, up $11.6 billion from 2025, marking the largest on record for any month and extending Korea’s surplus streak to 13 consecutive months since February 2025. Minister JK (Jung-Kwan) Kim stated, “Despite fewer working days following the Lunar New Year shift, exports extended their growth streak to nine consecutive months, led by key items such as semiconductors, computers, and ships.” He noted that export uncertainty is rising amid heightened tensions in the Middle East and recent U.S. tariff measures and said the government will monitor trade flows and take measures as needed to limit potential disruptions. He added that the government will continue consultations with the United States to ensure that the benefits secured under the Korea–U.S. tariff agreement are maintained and that conditions for exports to the U.S. market are not adversely affected. He added that the government will strengthen the trade structure to remain resilient to external shifts, based on the government-wide export expansion package announced on February 25, 2026. The package focuses on diversifying export items and markets, upgrading export support—including finance, trade fairs, and infrastructure—and broadening the exporter base through step-by-step support for SMEs and regional companies. The government will pursue these measures to help Korea rank among the world’s top five exporters this year. date2026-03-03

Korea and Singapore Advance Trade and Civil Nuclear Cooperation

During President Lee Jae Myung’s state visit to Singapore, a global hub for technology, energy, and logistics, the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) agreed with Singapore to expand forward-looking cooperation in trade and nuclear energy. Joint Declaration on the Launch of Korea–Singapore FTA Upgrade Negotiations On March 2, 2026, Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) exchanged a Joint Declaration on the Launch of Negotiations to Upgrade the Korea–Singapore Free Trade Agreement (FTA) with Singapore’s Ministry of Trade and Industry (MTI). The exchange took place in the presence of the two leaders on the sidelines of the summit between President Lee Jae Myung and Prime Minister Lawrence Wong. Singapore was Korea’s first FTA partner among ASEAN members. As the Korea–Singapore FTA marks the 20th anniversary of its entry into force on March 2, 2026, the two sides agreed to modernize the agreement by adding modular provisions covering new trade areas such as supply chains and the green economy. In supply chains, Korea and Singapore will set out cooperation measures, particularly in the bio and pharmaceutical sectors, and establish a stronger framework for bilateral supply chain cooperation. In the green economy, the two governments will advance cooperation on decarbonization, helping lay the groundwork for Korean companies to expand into ASEAN markets. In trade facilitation, the two sides will improve procedures to speed up customs clearance. They will also step up cooperation in aviation maintenance, repair, and overhaul (MRO), helping strengthen Korea’s competitiveness in the sector. Korea and Singapore Sign an MOU on SMR Cooperation Korea Hydro & Nuclear Power (KHNP) and Singapore’s Energy Market Authority (EMA) exchanged a Memorandum of Understanding (MOU) on small modular reactor (SMR) cooperation in the presence of the two leaders. This marks the first civil nuclear cooperation MOU between a Korean nuclear power company and a Singapore government agency. In 2025, the Singapore government allocated about KRW 5 trillion under its Future Energy Fund for SMR-related projects to better respond to rising energy demand and energy transition challenges, including those linked to the expansion of AI data centers and carbon neutrality goals. Given Singapore’s limited land area and high population density, SMRs are seen as a viable option because they present fewer siting constraints. KHNP is currently developing the Korean Innovative Small Modular Reactor (i-SMR) for commercialization by the mid-2030s. Under the MOU, KHNP and EMA will cooperate on feasibility studies on SMR adoption, workforce training, and the sharing of technical information and nuclear best practices in the nuclear sector. KHNP will participate in EMA’s ongoing review of SMR technologies to showcase Korea’s next-generation nuclear technology and explore opportunities to take part in related projects. MOTIR will support the implementation of the MOU to ensure that the outcomes lead to tangible business and project opportunities. date2026-03-02

MOTIR Launches Industrial Complex AX Initiative to Expand M.AX Nationwide

A region-led framework to scale AI transformation (AX) across industrial complexes is now underway. On February 26, 2026, the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the launch ceremony for the Industrial Complex AX Subcommittee, the 11th subcommittee under the M.AX Alliance, at the Changwon National Industrial Complex. Manufacturers, AI companies, universities, research institutes, and local governments attended the event and discussed the direction of the industrial complex AX and the subcommittee’s operating plan. The new subcommittee brings together more than 500 institutions from industry, academia, and research, and is chaired by Park Min-won, President of Changwon National University. The subcommittee will coordinate industrial complex AX projects and policies, connect tenant firms with the Alliance’s 10 existing subcommittees, share best practices and on-the-ground challenges across complexes, and build a system to collect, share, and use manufacturing data. It will serve as a private sector–led platform that aligns regional growth strategies with M.AX policy and drives AX through industry–academia–research collaboration. The Industrial Complex AX Subcommittee includes the chairs of 10 regional “M.AX Innovation Network in Industrial Complexes (MINI) Alliances” as subcommittee members. The MINI Alliances will serve as the subcommittee’s implementation arm and will be rolled out in phases—starting with the Changwon MINI Alliance launched the same day as the subcommittee—with further expansion depending on the designation of AX pilot industrial complexes. They will identify AX priorities tailored to local industries and develop demonstration models for immediate on-site use and wider adoption. At the event, the government also released its Industrial Complex AX Strategy. Korea’s 1,341 industrial complexes cluster companies by industry and supply chain, making them well-suited to scaling manufacturing AX. The strategy sets out three priorities to make industrial complexes the main hubs for this effort. First, MOTIR will upgrade key regional industrial complexes into M.AX clusters and support anchor firms under the “Five Mega-Regions and Three Special Self-Governing Provinces” initiative in building world-leading lights-out manufacturing facilities (dark factories), foster AX ecosystems, and integrate them with mega regulatory sandbox districts. MOTIR will also select three additional AX pilot industrial complexes in 2026 to build demonstration testbeds and integrated support centers for large-scale AI deployment. Second, MOTIR will build an industry–academia–research ecosystem around industrial complexes to develop and deploy shared AI models for tenant firms. It will also run regular M.AX Caravan programs to match manufacturers with AI specialists. In addition, the ministry will work with local universities on demand-driven R&D and workforce training. Third, MOTIR will expand essential infrastructure for industrial complex AX by continuing to attract AI data centers—following the 2025 placements in the Osong Industrial Complex and the Busan Myeongji–Noksan National Industrial Complex—and building dedicated 5G networks. The ministry will pilot the 5G network in one industrial complex in 2026 before scaling it nationwide. Minister JK (Jung-Kwan) Kim said, “Industrial complex AX goes beyond individual companies adopting AI. The focus is on testing and scaling AI innovation models through industry–academia–research collaboration within industrial complexes.” He added, “The Industrial Complex AX Subcommittee will serve as a platform to support regional growth and deliver tangible M.AX results.” date2026-02-27

MOTIR and MOEL Meet with Foreign Chambers to Hear Industry Views Ahead of Revised Trade Union Act

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Ministry of Employment and Labor (MOEL, Minister Kim Young-hoon) held a meeting with the heads of foreign chambers of commerce in Korea on February 26, 2026, at KEPCO’s Southern Seoul Headquarters. The meeting was convened ahead of the revised Trade Union Act taking effect on March 10, 2026, to hear views from foreign-invested companies and review workplace conditions. In his opening remarks, Minister JK (Jung-Kwan) Kim explained that MOTIR and MOEL had jointly prepared guidelines for interpreting the revised Act to reduce workplace uncertainty and promote stable labor–management relations through dialogue and cooperation. He added that MOTIR will work with MOEL to step up support for companies by strengthening communication between labor and management as well as setting up a hotline for foreign-invested companies. Minister Kim Young-hoon stated that the revised Act is intended to promote dialogue between labor and management and reinforce the foundations of a sustainable industrial ecosystem built on shared growth. He noted that the government is preparing for implementation, giving top priority to enhancing workplace predictability, while remaining consistent with the purpose of the revision and balancing business activity with the protection of labor rights. At the meeting, major foreign chambers, including the American Chamber of Commerce in Korea (AMCHAM) and the European Chamber of Commerce in Korea (ECCK), offered suggestions on the revised Trade Union Act’s implementation. The government said it will closely review the input and reflect it in the rollout. MOTIR and MOEL will strengthen coordination to boost industrial competitiveness and provide a stable footing for business activity. They will reflect the views of both business and labor in a balanced manner and continue improving the foreign investment climate based on stable labor–management relations, laying the groundwork for increased investment. date2026-02-26

Korea Reviews U.S. Entry and Stay Issues for U.S.-Investing Companies and Steps Up Industry Outreach

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), the Ministry of Foreign Affairs (MOFA, Minister Cho Hyun), and the Ministry of SMEs and Startups (MSS, Minister Han Seong-sook) held a joint meeting on February 25, 2026, to review entry and stay-related issues faced by Korean companies investing in the United States. Review Meeting on U.S. Entry and Stay Issues for U.S.-Investing Companies Date/Time: February 25, 2026 (Wed.), 15:00–16:30 Venue: Korea Chamber of Commerce and Industry (KCCI), Seoul Participants: Government (Co-chairs) – Director of Korea–U.S. Trade and Cooperation Division at MOTIR, Director of North American Economic Affairs Division at MOFA, Director of International Trade and Cooperation Division at MSS Companies – LG Energy Solution, Samsung SDI, SK On, LG Chem, Dongwha Electrolyte, Enchem, Samsung Electronics, SK Hynix Associations: Korea Battery Industry Association (KBIA), Korea Semiconductor Industry Association (KSIA) The meeting was convened in response to growing demand to dispatch personnel to the United States as Korean companies expand investment in the U.S. battery and semiconductor sectors. Participants reviewed difficulties encountered by companies during visa issuance, immigration inspections, and local stay procedures, and shared suggestions for improvement. The ministries also shared recent developments in U.S. rules and practices.  Based on the suggestions raised, the government will continue consultations with the U.S. side. Reflecting requests for more sector-specific discussions, future meetings will include not only large investors but also partner firms that are expanding into the United States alongside them. Starting with batteries and semiconductors, the government will hold a series of sector-specific meetings in the first half of 2026—including automobiles and shipbuilding—to review challenges across the investment ecosystem and continue working to ensure a stable environment for investment in the United States. date2026-02-26

Total Sales at Major Retailers Rise 4.4% in January 2026

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that total sales at 26 major retailers (15 brick-and-mortar retailers and 11 online retailers) in January 2026 rose 4.4 percent year-on-year, with offline sales down 0.6 percent and online sales up 8.2 percent. Offline sales at department stores (up 13.4 percent) and convenience stores (up 0.8 percent) posted growth, while large supermarkets (down 18.8 percent) and SSMs (down 4.4 percent) declined. Department stores and convenience stores recorded positive growth for seven consecutive months from July 2025. Department store sales rose in fashion/apparel, including winter clothing, and premium international brands, while convenience store sales increased in desserts and ready-to-eat foods. Large supermarket and SSM sales fell from a year earlier, as the Lunar New Year holiday fell on January 29 in 2025 but on February 17 in 2026. Sales declined as seasonal demand for holiday gift sets and key food items did not materialize in January 2026. Online sales have maintained an upward trend since the statistics were first compiled. Sales rose across all product categories, including food (up 7.7 percent), fashion/apparel (up 10.1 percent), and cosmetics (up 15.5 percent). Sales shares by channel were 58.7 percent for online retailers, 16.8 percent for department stores, 12.7 percent for convenience stores, 9.7 percent for large supermarkets, and 2.1 percent for SSMs. Compared with the 2025 annual shares, department stores rose 2.6 percentage points, while online retailers fell 0.3 percentage points. Shares also declined for large supermarkets (down 0.1 percentage points), SSMs (down 0.1 percentage points), and convenience stores (down 2.1 percentage points). date2026-02-26