Ministry of Trade Industry and Resources

KOTRA to Take Over Management of Industrial ODA in September 2026

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK (Jung-Kwan) Kim) announced that the Korea Institute for Advancement of Technology (KIAT) and the Korea Trade-Investment Promotion Agency (KOTRA) signed an agreement on August 31, 2026, to transfer the responsibilities for the Industrial and Trade Cooperation Development Support Program (Industrial Official Development Assistance, or Industrial ODA). Under this agreement, KOTRA will begin managing Industrial ODA from September 1, 2026. This transfer of responsibilities is intended to advance Industrial ODA as a mutually beneficial model that supports economic growth in emerging economies and helps Korean companies to facilitate their business activities in overseas markets. Since the launch of Industrial ODA in 2012, KIAT has successfully established the program and built up management expertise. KOTRA will draw on these achievements and leverage its own overseas trade offices as strategic bases to significantly strengthen on-the-ground project implementation and support Korean companies’ business engagement in overseas markets.  KOTRA expects to strengthen links and create synergy effects among ODA programs by managing Industrial ODA alongside the Knowledge Sharing Program (KSP) and the Economic Innovation Partnership Program (EIPP) led by the Ministry of Finance and Economy (MOFE). MOTIR also expects ODA to serve as a catalyst for Korean companies to explore emerging markets and to further strengthen supply chain cooperation with resource-rich countries. “The transfer of the program to KOTRA is more than a change in the managing agency. It represents a clear policy shift toward advancing national interests and business activities. We look forward to seeing KOTRA develop a new model of ODA,” said Bae Jun-hyoung, Director General for International Trade Relations at MOTIR. date2026-08-31

Korea to Promote National Land Transformation through Local-Led Growth

At the 10th Central-Local Cooperation Council chaired by the President on August 26, 2026, the Korean government announced its plan to promote local-led growth, a set of growth engines selected for each region, and its decision to pursue a new strategy for balanced growth led by local governments. National Land Transformation Strategy Minister Im Ki-geun of the Office for Government Policy Coordination (OPC) presented the plan to promote local-led growth and outlined three strategies and eight tasks under the National Land Transformation Strategy, which calls for local governments to lead the redesign of regional industries and institutional frameworks. 1.    Redesigning the National Spatial Structure     Establishing Sejong as a Fully Functioning Administrative Capital: The government will complete the Presidential Sejong Office by August 2029 and the National Assembly Sejong Complex by the second half of 2033. It will also build the institutional foundation needed to establish Sejong fully as the administrative capital.     Developing Regional Hub Cities: The government will develop corporate-friendly high-tech cities that bring together industrial complexes, R&D facilities, and residential communities. It will also develop self-sufficient cities powered by renewable energy (including RE100 industrial complexes) linked to each region’s specialized industries, and develop Saemangeum as a future industry hub anchored by corporate investment.     Expanding Nationwide Transport Links: The government will upgrade transport networks connecting hub cities to meet regional demand, including by expanding metropolitan rail and express bus services, and strengthen links between mega-regions by building out the high-speed rail network and ensuring the timely opening of major expressways. 2.    Developing Strategic Industries by Region     Specialized Development through Growth Engines Under the “Five Mega-Regions and Three Special Self-Governing Provinces (5+3)” Initiative: The government will designate growth engines for each region and concentrate support on them. It will also launch a government-wide support system to accelerate implementation of the three megaprojects, including those involving semiconductors and AI.     Establishing Mega Special Zones: The government will work with businesses and local governments to establish Mega Special Zones linked to regional growth engines. The zones will offer special regulatory treatment—including menu-based exemptions, demand-responsive deferrals, and upgraded regulatory sandboxes—and policy support packages to drive regional growth.     Developing Regional Talent for Growth Engines: The government will select and support signature colleges for regional growth engines at national flagship universities. The selected colleges will train specialists to meet business needs and serve as research hubs. The government will also utilize vocational high schools, the regional talent development system (ANCHOR), AX research centers run jointly with businesses, and Korea Polytechnics campuses to support regional talent development at every stage. 3.    Laying the Foundation for Regional Vitality     Promoting Investment and the Relocation of Businesses and Public Institutions: The government will expand tax incentives and subsidies for companies that relocate to or invest in the regions and ensure they have timely access to power, water, and other infrastructure. The government will also develop measures covering housing, healthcare, education, care, and culture to help employees of relocated businesses and institutions build stable lives in their new communities.     Overhauling Support Systems to Prioritize the Regio date2026-08-28

Korea and Vietnam Step Up Strategic Cooperation in Advanced and High-Potential Industries

Korea and Vietnam agreed to expand strategic cooperation by developing concrete initiatives in trade and investment, industrial technology, and energy security, as discussed at the two summits held in August 2025 and April 2026 since Korea’s current administration took office. The two countries plan to move forward with projects, including the start of construction on the Korea–Vietnam Critical Minerals Supply Chain Technology Center, cooperation to develop oil stockpiling facilities, and technology transfers through Korea’s technology-sharing model. On August 26, 2026, Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) and Minister Le Manh Hung of Vietnam’s Ministry of Industry and Trade co-chaired the 15th Korea–Vietnam Industrial Joint Committee and the 9th Korea–Vietnam  FTA Joint Committee at Lotte Hotel Seoul. They discussed how to strengthen bilateral cooperation in the real economy. The 15th Korea–Vietnam Industrial Joint Committee  At the Industrial Joint Committee, the two countries discussed specific measures to increase bilateral trade to USD 150 billion by 2030. In the trade subcommittee, they agreed to coordinate closely to simultaneously conclude the quarantine negotiations for Vietnam’s exports of lychees and passion fruit to Korea and Korea’s exports of satsuma mandarins and kiwifruit to Vietnam. They also agreed to further strengthen cooperation on digitalizing distribution and logistics and protecting intellectual property rights, including detecting and cracking down on counterfeits, as well as cooperation between the Korea Fair Trade Commission (KFTC) and the Vietnam Competition Commission (VCC). In the industrial technology subcommittee, the two sides agreed to step up efforts to resolve issues facing Korean companies in Vietnam and accelerate bilateral technology cooperation. Vietnam will work with local governments to help Korean manufacturers recruit workers, while Korea will actively support technology transfers from large Korean corporations operating in Vietnam to their Vietnamese partners through Korea’s technology-sharing model. The two countries also agreed to strengthen cooperation on quality standardization and help expand incentives for Korean companies operating in Vietnam’s automotive industry. In critical minerals in particular, the two countries agreed to expedite the necessary administrative procedures so that construction of the Korea–Vietnam Critical Minerals Supply Chain Technology Center can begin promptly. Vietnam said it would continue to coordinate with relevant agencies to clear investment hurdles for Korean companies, including those involving approval to establish a rare earth metals production plant. The two sides also agreed to continue discussing cooperation across the critical minerals supply chain, including how the two governments could help companies operating in Vietnam secure a stable supply of critical minerals. In the energy and resources subcommittee, Korea and Vietnam agreed to pursue long-term cooperation on resource supply chains, including jointly stockpiling crude oil and establishing an emergency response mechanism. They also agreed to support the smooth implementation of LNG power projects in Vietnam and continue strengthening policy cooperation on power grid infrastructure projects, nuclear power, and renewable energy. At the event, the two ministers witnessed Korea National Oil Corporation (KNOC) and PetroVietnam Oil Stockpile Company Limited (PVOS) sign an MOU to cooperate on developing an oil stockpiling facility in Vietnam. Vietnam is moving to build its first underground oil storage facility in response to recent disruptions to oil supplies from the Middle East. KNOC, which has successfully operated oil stockpiling facilities in Korea, agreed to provide technical consulting across all aspects of facility d date2026-08-27

Major Retailer Sales Up 6.4% in July 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) rose 6.4 percent year-on-year in July 2026, with offline sales up 3.2 percent and online sales up 8.5 percent. In July 2026, hot weather and the summer holiday season increased the use of delivery services and purchases of travel products. Premium international brands remained strong, while online food purchases continued to grow. Offline sales increased at department stores (up 17.9 percent) and convenience stores (up 1.1 percent), while hypermarkets (down 11.2 percent) and SSMs (down 2.9 percent) declined. Department stores and convenience stores extended their growth streaks to 13 consecutive months since July 2025. Department store sales rose across all categories, including premium international brands, vacation-related goods, and cooling appliances, amid improved consumer sentiment and summer holiday demand. Convenience stores maintained growth as higher average purchase price offset fewer transactions (customer visits) during the hot weather. Hypermarket sales fell year-on-year for the fifth consecutive month, and SSM sales declined for the eighth consecutive month. However, the year-on-year decline in SSM food sales, the main product category for SSMs, eased from 10.6 percent in June 2026 to 2.5 percent in July 2026. Online sales rose as the services/other category (up 17.5 percent) recorded strong growth in delivery services, as well as travel and cultural products. Food sales (up 10.4 percent) and home appliance sales (up 11.4 percent) also posted strong gains as consumers purchased more groceries online and sales of cooling appliances increased. In July 2026, sales shares by channel were 60.8 percent for online retailers, 15.0 percent for convenience stores, 14.1 percent for department stores, 8.1 percent for hypermarkets, and 2.1 percent for SSMs. date2026-08-26

Korea’s Ministries and Agencies Join Forces to Address Trade Issues

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the 59th Trade Promotion Committee on August 26, 2026, at the Government Complex Sejong. Minister for Trade Jung Sung Park of MOTIR chaired the meeting—his first Trade Promotion Committee meeting since taking office—with officials from relevant ministries and agencies in attendance. The agenda covered recent trade issues with the United States and next steps; plans to pursue bilateral agreements with Argentina and Uruguay; and the latest discussions on the G20 trade agenda and Korea’s approach. The Committee first reviewed recent trade issues with the United States and comprehensively discussed how to respond across a range of key areas, including tariffs, non-tariff measures, and strategic investment in the United States. The ministries agreed to share information and coordinate closely so they can respond quickly as conditions change. They also agreed to mobilize the full capabilities of the government to help Korean companies export and invest without disruption. Participants then discussed plans to pursue bilateral agreements with Argentina and Uruguay. They also explored ways to build a stronger foundation for cooperation with major South American countries, where Korea’s trade network remains relatively limited. Ahead of the G20 Trade Ministerial from September 30 to October 1, 2026, Committee members shared updates on the progress of discussions on key agenda items and reviewed how Korea would address those items. “At a time of considerable uncertainty in the trade environment, it is essential that we remain steadfast in addressing trade issues” Minister Park said. “At the same time, we must diversify our trade network by building ties with new markets, including South America, and ensure that Korea’s positions are fully reflected in multilateral forums such as the G20.” He added, “To that end, I ask the relevant ministries to work from a shared understanding of the situation and draw on their capabilities to respond as one team.” Korea will continue to strengthen government-wide coordination through the Trade Promotion Committee and respond effectively to major trade issues.   date2026-08-26

Korea Steps Up CEPA Upgrade Talks with India, the World’s Largest Emerging Market

Korea is stepping up negotiations to upgrade the Korea–India Comprehensive Economic Partnership Agreement (CEPA) to expand bilateral trade and investment. India, the world’s most populous country, has about 1.43 billion people and a GDP of USD 4 trillion.  The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that the 13th round of negotiations to upgrade the Korea–India CEPA will be held in Seoul from August 19 to August 21, 2026. The upgrade talks began in 2016 but were temporarily suspended due to differences in the two countries’ positions. They resumed after the Korea–India summit in April 2026, with the 12th round taking place in New Delhi the following month. An Indian delegation will travel to Seoul for the 13th round, which will bring together approximately 60 government officials from both countries. Korea’s delegation will be headed by Lee Min-young, Acting Director General for Trade Agreement Negotiations at MOTIR, and India’s by Kapil Chaudhary, Joint Secretary at India’s Department of Commerce. The two sides will explore their respective interests regarding market access for key goods and services, rules of origin, and the scope for further market opening. They will also hold detailed discussions on new areas of cooperation, including supply chains and strategic industries. The two sides will also discuss the operational framework and key agenda items for the Korea–India Industrial Cooperation Committee, established following the April summit, including its subcommittee structure and schedule for future meetings. “India is an emerging market with the world’s largest population, yet Korea–India trade totaled only USD 25.6 billion in 2025. That was about one-tenth the value of Korea’s trade with ASEAN, whose economy is similar in size to India’s,” MOTIR said. “There is therefore considerable room to expand bilateral trade and investment. Through the upgrade negotiations, we will lay the foundation for economic cooperation that extends beyond traditional market access to supply chain and industrial cooperation between the two countries.” date2026-08-19

SMR Cooperation with TerraPower Expands Export Supply Chains for Korean Nuclear Companies

On August 14, 2026, Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) met in Seoul with TerraPower Founder and Chairman Bill Gates, who arrived in Korea earlier that day. In the meeting, both Minister Kim and Chairman Gates discussed expanding Korean companies’ participation in TerraPower’s small modular reactor (SMR) projects, among other topics. Korean companies, including SK and HD Hyundai, have invested in TerraPower and established partnerships with the company. Several are also seeking roles in equipment supply, operations, construction, and other areas for projects that TerrraPower is pursuing both within the U.S. and abroad. In fact, TerraPower is building its Natrium SMR in Kemmerer, Wyoming, after receiving a construction permit from the U.S. Nuclear Regulatory Commission (NRC) in March 2026, and aims to begin commercial operation in 2031. At the meeting, Minister Kim stressed that overseas expansion requires the ability to deliver projects on time and within budget. “Korean companies have these capabilities and could play a central role in turning TerraPower’s vision into reality,” he said. He noted that making SMRs economically viable will require standardized designs to be deployed at scale. Combining TerraPower’s standard design with Korea’s reliable supply chain for high-volume production will be essential to such deployment. Minister Kim said Korea is an ideal partner because Korea boasts five decades of building and operating nuclear power plants at home and abroad, which has given Korea a “foundry-scale” ecosystem for nuclear manufacturing and construction. He added that Korea’s nuclear supply chain draws strength not only from large companies that can supply main equipment, but also from its sophisticated manufacturing ecosystem of nuclear SMEs and middle-market companies. He called for TerraPower to consider using Korea as a production hub and Korean companies as key suppliers. After the meeting, TerraPower and SK Innovation signed a term sheet for an agreement to pursue joint global projects, witnessed by Minister Kim, Chairman Gates, and SK Group Chairman Chey Tae-won. The term sheet opens opportunities for SK Innovation to help develop TerraPower’s SMR projects in the United States and other countries, and to participate in the company’s U.S. business. Demand for SMRs from big tech companies is rising rapidly as AI infrastructure expands and the number of data centers surges worldwide. More than 100 SMR designs are under development, and companies are forming cross-border alliances as they vie for a share of the emerging market. Amid these changes, Korean companies can also help diversify Korea’s nuclear exports by investing in SMR designs developed overseas, advancing projects, and engaging in overseas supply chains. With SMR supply chains still taking shape, MOTIR views this as the right opportunity for Korean companies to enter the market. The Ministry valued that the meeting not only helped large Korean companies but also nuclear SMEs and middle-market companies in their efforts to join overseas SMR supply chains. date2026-08-14

Korea’s ICT Exports Reach Record $53.36 Billion for July

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Ministry of Science and ICT (MSIT, Deputy Prime Minister and Minister Bae Kyung-hoon) announced on August 14, 2026, that Korea’s ICT exports reached USD 53.36 billion in July 2026, up 140.6 percent year-on-year from $22.17 billion. Imports rose 37.3 percent from $13.33 billion to $18.30 billion, resulting in a trade surplus of $35.06 billion. Supported by expanding AI investment worldwide, ICT exports remained above $50.0 billion for a second straight month and reached a record high for July. The ICT trade surplus also remained above $30.0 billion for a third consecutive month, sustaining its upward trend. ICT exports accounted for more than half, or 54.0 percent, of Korea’s total exports of $98.89 billion for a third straight month, underscoring the sector’s role as a key pillar of Korea’s exports. By product, exports increased across all major categories: semiconductors (up 178.8 percent), displays (up 0.5 percent), mobile phones (up 62.6 percent), computers and peripherals (up 353.9 percent), and telecommunications equipment (up 18.7 percent). Semiconductor exports grew by more than 100 percent for a seventh straight month, supported by continued growth in server memory exports amid rising demand for AI inference and expanded supplies of enterprise SSDs. Higher exports of OLED panels for finished products, such as smartphones and televisions, drove growth in display exports. Mobile phone exports rose as demand for new models and increased sales of high-value products lifted shipments of finished phones. Exports of computers and peripherals increased for a ninth straight month, led by higher parts exports and growing demand for SSDs used in AI servers. Telecommunications equipment exports rose on strong shipments of wireless communications equipment to Vietnam and automotive equipment to India. By destination, exports increased in all major markets: the U.S. (up 187.0 percent), China, including Hong Kong (up 194.7 percent), the EU (up 202.0 percent), Taiwan (up 26.3 percent), Vietnam (up 115.7 percent), India (up 128.2 percent), and Japan (up 39.3 percent). ICT imports totaled $18.30 billion in July 2026, up 37.3 percent from $13.33 billion a year earlier, as imports increased in several major categories, including semiconductors (up 57.6 percent), mobile phones (up 44.7 percent), and computers and peripherals (up 31.0 percent). date2026-08-14