Ministry of Trade Industry and Resources

Korea and Bangladesh Hold Second Round of CEPA Negotiations

The second round of official negotiations on a Korea–Bangladesh Comprehensive Economic Partnership Agreement (CEPA) will take place in Dhaka, Bangladesh, from January 26 to 29, 2026. The talks come as interest grows in expanding economic cooperation with promising emerging markets amid shifting global and domestic trade conditions. The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) said the talks will bring together delegations of around 60 officials from both countries. The Korean delegation will be led by Son Ho-young, Director of the Trade Agreement Coordination Division, while the Bangladeshi delegation will be headed by Ayesha Akther, Additional Secretary and Head of the Foreign Trade Agreement Wing at the Ministry of Commerce. Korea and Bangladesh launched CEPA negotiations in November 2024 and held the first round of talks in August 2025, exchanging views on the draft agreement text and identifying key issues. In the second round, the two sides plan to further advance the negotiations by deepening discussions across 13 areas of agreement—including goods market access, services, rules of origin, and economic cooperation—and by actively exploring ways to narrow remaining differences. Director Son stated that "Bangladesh is a rapidly growing emerging market in South Asia and the world’s eighth most populous country." He noted that "Concluding a CEPA with Bangladesh would support Korean companies' expansion into the region," and added that "Korea will engage constructively in the negotiations with a view to an early conclusion." date2026-01-26

Trade Minister Yeo Expands Outreach at the Davos Forum to Address Trade Issues and Restore Multilateral Order

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) attended the 2026 World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, holding around 50 meetings with trade ministers from major economies, global business leaders, and leading international scholars. At the forum, he addressed key trade issues, expanded trade networks, supported efforts to restore the multilateral trading system, and promoted global investment, including by attending the WTO informal ministerial meeting and chairing the Investment Facilitation for Development Agreement (IFDA) meeting. Held amid heightened global uncertainty under the theme “A Spirit of Dialogue,” the Davos Forum drew record participation from government and business leaders, with discussions covering trade and investment as well as emerging issues such as AI, critical minerals, and digital technologies. Engagements with Government Counterparts On the sidelines, Trade Minister Yeo met with U.S. Trade Representative Jamieson Greer to discuss pending Korea–U.S. trade issues and agreed to maintain close communication to sustain bilateral relations. He also met with Michigan Governor Gretchen Whitmer, California Governor Gavin Newsom, Kentucky Governor Andy Beshear, and Senator Chris Coons to highlight the role of Korean investment in the U.S. and the importance of strengthening mutually beneficial industrial cooperation. Trade Minister Yeo discussed plans for consultations with European Commissioner for Trade and Economic Security Maroš Šefčovič aimed at identifying practical solutions to the EU’s steel import safeguard measures, and urged progress on resolving Canada’s steel import restrictions in talks with Canadian Minister of International Trade Maninder Sidhu. He also exchanged views on the EU’s trade response to the U.S., including Greenland-related issues, with French and Swiss counterparts—France’s Minister Delegate for Foreign Trade and Economic Attractiveness Nicolas Forissier and Switzerland’s Director of the State Secretariat for Economic Affairs (SECO) Helene Budliger Artieda—and discussed expanding bilateral industrial cooperation with Israel’s Minister of Economy and Industry Nir Barkat. Trade Minister Yeo also advanced efforts to diversify Korea’s trade network by accelerating ongoing FTA talks with key economies. He discussed signing the Gulf Cooperation Council (GCC) FTA with GCC Secretary-General Jasem Mohamed AlBudaiwi and Saudi Arabia’s Minister of Commerce Majid bin Abdullah Al-Kassabi; accelerating Korea–Thailand FTA negotiations with Thailand’s Minister of Foreign Affairs Sihasak Phuangketkeow and Minister of Commerce Suphajee Suthumpun; launching Korea–Egypt CEPA talks with Egypt’s Minister of Investment and Foreign Trade Hassan El-Khatib; expediting Korea–Mongolia CEPA negotiations with Mongolia’s Prime Minister Gombojavyn Zandanshatar; advancing a Korea–Bangladesh FTA with Bangladesh’s Special Envoy of the Head of the Interim Government Lutfey Siddiqi; and resuming Korea–MERCOSUR trade agreement discussions with Argentina’s Secretary of International Economic Relations, Foreign Affairs, International Trade and Worship Fernando Brun. He also reviewed progress in the Korea–China FTA services and investment negotiations with China’s International Trade Representative and Vice Minister of Commerce Li Chenggang, and discussed facilitating trade and investment under existing FTAs with Indonesia’s Deputy Minister for Investment Promotion Nurul Ichwan and Cambodia’s Senior Minister of Multilateral Trade and Economic Affairs Sok Siphana. Meetings with Business Leaders and Experts; Participation in Sessions Trade Minister Yeo met with chief executives from major foreign-invested companies, including Merc date2026-01-23

Korea and Indonesia Hold Talks to Expand Investment Cooperation and Address Business Challenges

Park Jung-sung, Deputy Minister for Trade at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), met with Ali Murtopo Simbolon, Indonesia’s Deputy Minister for Trade and Digital Economy at the Coordinating Ministry for Economic Affairs, on January 23, 2026, at Lotte Hotel Seoul to discuss ways to strengthen bilateral economic and trade ties. The meeting built on the two countries’ ministerial talks held on the sidelines of the APEC Economic Leaders’ Meeting in Gyeongju in October 2025. The two sides discussed ways to expand investment cooperation and to address specific hurdles that businesses face.  The two sides noted that more than 2,300 Korean companies operate in Indonesia across a wide range of sectors, including electric vehicles, batteries, steel, and chemicals, and contribute to the local economy. They agreed to work closely to foster a more investor-friendly environment and to further expand bilateral investment ties. Deputy Minister Park also conveyed requests from Korean companies undertaking investment projects in Indonesia and requested continued attention and support from the Indonesian government. Deputy Minister Park further urged progress in resolving outstanding issues raised at the ministerial meeting last October, including reforms to the SNI certification system and challenges Korean companies face when bidding for hydropower projects. Deputy Minister Simbolon said Indonesia would coordinate with relevant ministries and agencies to help advance work on these issues. Deputy Minister Park also proposed resuming the Korea–Indonesia Economic Cooperation Committee, a regular bilateral consultative platform co-chaired by Korea’s Minister of MOTIR and Indonesia’s Coordinating Minister for Economic Affairs. The two sides agreed to maintain close communication with a view to convening the committee’s third meeting at an early date. date2026-01-23

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, January 19-22, 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 approximately 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, strengthening 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 increase 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 priorities and ways to deliver concrete outcomes at the 14th WTO Ministerial Conference (MC14), scheduled to be held in Cameroon in March 2026. 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 and partners, 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 underscoring the resilience of its democracy.” He added that “as a middle power drawing global attention, Korea will demonstrate global leadership by contributing to restoring the international economic and trade order amid an increasingly complex global environment.” 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 met with Hassan El-Khatib, Egypt’s Minister of Investment and Foreign Trade, and Walid Gamal El-Din, Chairman of the Suez Canal Economic Zone (SCZONE). The two sides discussed implementation plans and follow-up measures on key trade and industrial agendas raised at the Korea–Egypt summit in November last year, including advancing negotiations on a Comprehensive Economic Partnership Agreement (CEPA) and exploring measures to support 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 ways to strengthen government support. 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 setting out 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, and discussed 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 Korean firms’ smooth entry. Trade Minister Yeo also visited the Sokhna Industrial Zone—the largest of the SCZONE’s four industrial zones—and the adjacent Sokhna Port, along with Korean companies operating in Egypt, KOTRA, and the Korea Institute for International Economic Policy (KIEP). The delegation assessed occupancy rates, industrial infrastructure, and other investment-related conditions within the SCZONE that are relevant to Korean firms. In a separate dinner meeting with Korean companies operating in Egypt, Trade Minister Yeo heard concerns and requests related to financing and streamlined administrative procedures, and discussed practical measures to address operational challenges promptly. Trade Minister Yeo stated, “The visit marked a significant step toward 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 to conclusion, to provide institutional support for Korean companies’ stable trade and investment activities.” MOTIR plans to strengthen support for Korean companies’ expansion into Egypt by providing essential market-entry information, including an investment guidebook incorporating 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