Ministry of Trade Industry and Resources

Korea and Japan Step Up Implementation of Supply Chain Partnership Arrangement (SCPA)

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and Japan’s Ministry of Economy, Trade and Industry (METI) held their first implementation meeting for the Korea–Japan Supply Chain Partnership Arrangement (SCPA) in Tokyo on September 2, 2026, and discussed strengthening bilateral supply chain cooperation. Signed by MOTIR and METI in March 2026, the Korea–Japan SCPA covers joint responses to supply chain disruptions, cooperation on critical minerals and other resources, and coordination on global trade issues. At their summit in May 2026, the leaders of Korea and Japan agreed to further strengthen cooperation under the SCPA to make supply chains in key industries more resilient. At the meeting, the two sides shared their respective key policies for diversifying and stabilizing supply chains for critical minerals and discussed expanding bilateral and multilateral cooperation. They agreed to continue deepening cooperation to ensure stable supplies of LNG, crude oil, and petroleum products in times of crisis. They also exchanged information on their respective responses to major economies’ tightening of carbon emissions and supply chain due diligence regulations, including the Carbon Border Adjustment Mechanism (CBAM), and discussed future coordination. CBAM is designed to prevent carbon leakage by ensuring that selected carbon-intensive imports are subject to a carbon price equivalent to that applied to goods produced in the EU. “Amid continued uncertainty in global supply chains, supply chain cooperation between Korea and Japan, two countries with similar industrial structures, is becoming increasingly important,” said Kim Jang-hee, Director General for Emerging Trade Strategy and Policy at MOTIR. “We will build on this first implementation meeting to develop the SCPA into a communication channel for devising practical measures for bilateral supply chain cooperation and delivering tangible outcomes.” date2026-09-02

Korean Free Economic Zones to Become Hubs for Balanced National Growth

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) hosted Korean Free Economic Zones (KFEZ) Day 2026 in Seoul on September 2, 2026. The event brought together about 300 participants, including foreign diplomats based in Korea; representatives of foreign chambers of commerce; and executives from foreign-invested and global companies. The event introduced Korea’s foreign investment policies and highlighted the country’s strategic value as a global hub for advanced industries and its appeal to investors. It also emphasized KFEZs’ roles as key hubs and the investment incentives they offer. Companies that have successfully invested in the zones also shared their experiences, showcasing the investment value of KFEZs from multiple perspectives. Since Incheon was designated Korea’s first free economic zone in March 2003, KFEZs have expanded over the past two decades to nine zones comprising 101 districts. About 8,500 companies now operate in the zones and have created some 250,000 jobs. KFEZs have strengthened Korea’s industrial competitiveness and become key hubs for attracting global investment. Going forward, KFEZs will align their plans with national growth strategies, including the Three Megaprojects, as well as regional growth engines under the Five Mega-Regions and Three Special Self-Governing Provinces (5+3) initiative. Under this approach, the zones will attract advanced strategic industries suited to each region and large-scale corporate investment to build regional industrial ecosystems and create jobs.  “Free economic zones are key hubs that put national growth strategies into practice on the ground and connect investment in advanced industries with regional growth,” said Lee Min-woo, Acting Deputy Minister for Industry and Growth at MOTIR. “Together with local governments, we will step up efforts to attract investment and support businesses, creating the best possible environment for global companies to invest and grow with confidence.” date2026-09-02

MOTIR Steps Up Battery Triangle Belt Initiative Linking Chungcheong, Gyeongsang, and Jeolla

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that it held a meeting on September 1 at the Marriott Hotel in Sejong with local governments, including Chungcheongbuk-do, Gyeongsangbuk-do, and Jeollabuk-do, as well as relevant organizations, to discuss the development of innovation infrastructure for the Battery Triangle Belt. The Battery Triangle Belt is an integrated battery industry ecosystem that brings together Chungcheong’s battery cell base, Gyeongsang’s key materials base, and Jeolla’s raw materials production base into a single, interconnected network, with the aim of diversifying Korea’s battery supply chains and stabilizing supply and demand. The meeting was organized to comprehensively review challenges raised through regional town hall meetings and the Battery Triangle Belt consultative body, and to discuss effective infrastructure development measures tailored to the needs of each region. Based on these discussions, MOTIR decided to work with the relevant local governments to actively review and pursue the new projects they have proposed, including performance evaluation infrastructure for all-solid-state batteries, a demonstration center to support the commercialization of sodium-ion batteries, safety evaluation infrastructure for batteries using recycled materials, and power supply facilities in specialized complexes for national high-tech strategic industries. For projects requiring further work, detailed plans will be refined through December and then reviewed again. MOTIR also plans to maintain regular consultation channels with local governments to actively identify and support region-led projects that can serve as core engines of growth. “The Battery Triangle Belt is a critical national initiative that goes beyond simply developing individual regional clusters to establish an integrated national battery supply chain network,” said MOTIR’s Director General for High Technology Industry. “We will work closely with local governments to maximize the strengths of each specialized complex, and we will bring national capabilities to bear on ensuring that support projects at each hub proceed smoothly.” date2026-09-01

Minister Kim Visits the U.S. to Attend G20 Innovation Ministerial and Expand Korea–U.S. Economic Cooperation

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) will visit North Carolina, Washington, D.C., and Louisiana from September 1 to 4, 2026 (U.S. local time), to attend the G20 Innovation Ministerial, an investment declaration ceremony, and the groundbreaking ceremony for the HYUNDAI-POSCO Louisiana Steel (HPLS) mill. On September 2, Minister Kim will first attend the G20 Innovation Ministerial in Chapel Hill, North Carolina, where he will discuss global cooperation to advance AI innovation, with a focus on AI-related intellectual property rights, standards, and supply chains. On September 3, Minister Kim will then attend an investment declaration ceremony and roundtable in Washington, D.C. hosted by MOTIR and the Korea Trade-Investment Promotion Agency (KOTRA), marking the foreign direct investments into Korea from U.S. companies in the semiconductor, advanced materials, and offshore wind sectors. Minister Kim will also discuss with the U.S. companies regarding their investments in Korea and listen to their suggestions. On September 4, Minister Kim will also attend the groundbreaking ceremony for the HPLS mill in Donaldsonville, Louisiana. The mill is one of the projects under Hyundai Motor Group’s USD 26 billion U.S. investment plan, which includes USD 5.8 billion for Hyundai Steel. Hyundai Motor Group announced the plan at the White House last year, and it was later expanded by additional investment from Hyundai Motor Company. The mill will contribute to building a stable supply chain in North America. Before the ceremony, Minister Kim will meet with Louisiana Governor Jeff Landry to discuss mutually beneficial, strategic cooperation between Korea and the United States, including energy. “This visit underscores the active two-way investment cooperation between our two countries, demonstrating Korean companies’ commitment to strengthening supply chain cooperation through their investments in the United States, while also attracting U.S. investments into Korea at the same times,” Minister Kim said. date2026-09-01

Amendments to the Public Notice on Trade of Strategic Items Take Effect on September 1

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) will implement amendments to the Public Notice on Trade of Strategic Items (Public Notice) on September 1, 2026. MOTIR began the amendment process by issuing an administrative notice on the proposed changes, which ran from July 13 to August 12, 2026. The key changes are as follows. The full text of the amendment is available on the MOTIR website (https://www.motir.go.kr/) and in the Official Gazette. 1. To support international coordination on export controls, the amendment incorporates approximately 80 updates agreed upon by the four major multilateral export control regimes—the Wassenaar Arrangement (WA), the Australia Group (AG), the Nuclear Suppliers Group (NSG), and the Missile Technology Control Regime (MTCR)—into the Public Notice. The four regimes are multilateral and intergovernmental cooperative bodies established to control exports of weapons of mass destruction, including nuclear, chemical, and biological weapons; missiles; conventional arms; and strategic items that can be used in the development, production, or use of such weapons. Each year, members, including Korea, operate their export control systems by incorporating the items designated for control under each regime into their domestic laws. In particular, in recent years, growing global attention to dual-use items that can serve both civilian and military purposes has led to broader international coordination on export controls in advanced industries such as semiconductors and biotechnology. Under the amendment, Korea will also designate advanced dual-use items—including high-performance integrated circuits for AI and semiconductor manufacturing equipment—as strategic items. These items are already subject to export controls in major economies, including the United States, the European Union, and Japan. Starting September 1, 2026, exporters of these newly designated strategic items must obtain an export license from MOTIR. 2. The amendment removes and abolishes the Exporter’s Undertaking form from the documents required for a strategic item export license. It also clarifies terminology in relevant documents and forms and provides more detailed instructions on how to complete them, making the process easier for exporters of strategic items. Reflecting feedback from exporters, the amendment also revises several forms. These include the Expert Classification (Application) Form, used to request a determination on whether an export item is subject to strategic-item controls; the Comprehensive Export License (Application) and the End-User Statement, required when applying to MOTIR or another licensing authority for an export license; and others, including the Import Purpose Confirmation (Application) Form and the Statement by Ultimate Consignee and Purchaser. MOTIR will continue to help companies understand and comply with the export control system. The ministry will brief industry associations on the amendments and provide consultation services through the Export Control Issue Desk (Tel. 02-6000-6496–6499) at the Korean Security Agency of Trade and Industry (KOSTI).   date2026-09-01

August Exports Exceed USD 90 Billion for Third Consecutive Month

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that in August 2026, Korea’s exports rose 68.7 percent year-on-year to USD 98.25 billion. Imports increased 22.5 percent to $63.51 billion, resulting in a trade surplus of $34.75 billion. August exports maintained a strong performance exceeding $90.0 billion for the third consecutive month. Semiconductor exports rose 209 percent, while non-semiconductor exports increased 20 percent. Average daily exports, adjusted for working days, rose 72.5 percent to $4.47 billion, exceeding $4.0 billion for the fourth consecutive month. By item, exports increased in 14 of Korea’s 20 key export items. In IT, semiconductor exports rose 209.0 percent to $46.65 billion, setting an all-time record and topping $40.0 billion for the third consecutive month, supported by solid AI infrastructure demand from expanded capital expenditures (capex) by hyperscalers such as Google and Amazon. Computer exports rose 419.5 percent to $6.24 billion, posting the highest monthly export value on record as the price of NAND, a core component of enterprise SSDs, continued to rise. Wireless communication device exports increased 21.2 percent to $1.88 billion on strong sales of new products such as the Galaxy S26, Z Fold 8, and Z Flip 8, marking 10 consecutive months of growth. Automobile exports fell 29.8 percent to $3.85 billion, a temporary decline attributable to a base effect from major automakers shifting their summer holidays (from late July last year to early August this year) and to production disruptions caused by partial strikes. Ship exports also declined 45.9 percent to $1.69 billion on lower delivery volumes. Petroleum product exports rose 65.3 percent to $6.84 billion and petrochemical exports increased 12.2 percent to $3.86 billion. This double-digit growth was driven by high unit prices linked to rising oil prices amid instability in the Strait of Hormuz. However, export volumes for the two fell 2.2 percent and 7.0 percent, respectively. Meanwhile, secondary battery exports rose 24.0 percent to $0.60 billion, marking a fourth consecutive month of year-on-year growth, fueled by expanding EV orders, a revitalized ESS market, and recovering unit prices linked to rising mineral prices such as lithium. Steel exports rose 7.9 percent to $2.11 billion, marking a third straight month of year-on-year growth, as stronger shipments of flat products and other steel materials amid expanding AI data center construction in the U.S. offset lower exports to the EU following the introduction of its TRQ. General machinery exports saw marginal growth of 1.8 percent to $3.53 billion, influenced by tariff reductions on some items despite U.S. tariffs and intensifying global competition. Biohealth exports rose 22.3 percent to $1.41 billion, setting a record high for August as successful bids in Europe for biosimilar product lines led to expanded volume supplies and increased prescriptions. Cosmetics exports increased 52.1 percent to $1.31 billion, while agricultural and fisheries product exports rose 1.5 percent to $0.98 billion, both setting new August records, driven by heightened awareness of and growing preference for K-beauty and K-food. By destination, exports increased in seven of Korea’s nine major markets. Exports to China surged 119.3 percent to $24.10 billion, topping $20.0 billion for a third straight month. Strong growth in semiconductors and general machinery offset weaknesses across multiple items, including petrochemicals, wireless communication devices, and displays. Exports to the United States increased 89.3 percent to $16.50 billion, led by triple-digit growth in semiconductors and computers, along with strong performances in steel and petroleum products, while automobile exports declined due to lower production from summer holidays and increased local production in the U.S. Exports to ASEAN climbed 75.4 percent to date2026-09-01

MOTIR Releases Draft Korean Translation of Upgraded Korea–UK FTA for Public Comment

Following the conclusion of the Korea–UK Free Trade Agreement (FTA) upgrade negotiations in December 2025, the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) will make the agreement text in English and a draft Korean translation available on the government’s FTA website (www.fta.go.kr) from September 1 to 11, 2026, and invite public comments. The public comment process will follow MOTIR’s procedural regulations for drafting Korean translations of trade agreements (MOTIR Directive No. 127) to make trade agreement procedures more transparent and enhance the reliability of the Korean translation. In consultation with relevant ministries and experts, MOTIR will consider the comments in the course of finalizing the Korean translation. After the Ministry of Foreign Affairs (MOFA) and the Ministry of Government Legislation (MOLEG) complete their reviews, the government plans to consult with the UK before formally signing the agreement and then seek the National Assembly’s consent to ratification under the Act on the Conclusion Procedure and Implementation of Commercial Treaties.   date2026-09-01

Korea and China Hold 16th Round of FTA Follow-up Negotiations on Services and Investment

The 16th round of follow-up negotiations on services and investment under the Korea–China Free Trade Agreement (FTA) will take place in Beijing from August 31 to September 4, 2026. The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that around 30 officials from the two countries will take part in the talks. The Korean delegation will be led by Kwon Hye-jin, Deputy Minister for Trade Negotiations at MOTIR, and the Chinese delegation by Chen Chao, Director General of the Department of International Trade and Economic Affairs at China’s Ministry of Commerce. Under the Korea–China FTA, which entered into force in 2015, the two countries agreed to hold follow-up negotiations to further liberalize services and investment. They launched the talks in March 2018 and have since held 15 formal rounds. Through the follow-up negotiations, the two sides aim to facilitate trade in services and investment by opening more service sectors to each other and making market access conditions clearer and more predictable. This would lay the groundwork for bilateral trade to expand beyond goods into services. Progress in the talks would therefore carry symbolic significance, showing that bilateral economic cooperation can be sustained and continue to evolve. Against this backdrop, the leaders of Korea and China agreed in January 2026 to work toward meaningful progress in the talks within the year. The two sides have since continued their high-level dialogue on how to advance the negotiations, including at the Korea–China Trade Ministers’ Meeting in March and a June meeting between Korea’s Minister for Trade and China’s International Trade Representative. Building on this positive momentum, the Korean delegation plans to accelerate the talks and make substantive progress. “Amid continued uncertainty in the trade environment at home and abroad, concluding the Korea–China FTA follow-up talks could expand bilateral services trade and investment. MOTIR will spare no effort to secure a durable outcome that brings practical benefits to Korean companies,” Deputy Minister Kwon said.   date2026-09-01