Ministry of Trade Industry and Resources

Korea and the Netherlands Discuss Ways to Strengthen Cooperation in Economic Security, AI, and Semiconductors

Minister of Foreign Affairs Cho Hyun and Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources held the first Korea–Netherlands 2+2 Foreign and Industry High-Level Dialogue on February 11 (Wed.) at 12:00 p.m. at the Ministry of Foreign Affairs in Seoul, together with the Minister of Foreign Affairs David van Weel and Minister for Foreign Trade and Development Cooperation Aukje de Vries of the Kingdom of the Netherlands.   As the first meeting convening the foreign and industry authorities of the two countries, which are bound by a Strategic Partnership, the dialogue represents a significant step in addressing political, economic, and industrial issues from a comprehensive and integrated perspective amid the evolving international environment marked by global supply chain restructuring and intensifying technological competition.   During the meeting, the participating ministers exchanged views on the changing global geoeconomic environment and growing spread of protectionism, and discussed ways to deepen bilateral cooperation in key areas including economic security, AI, cyber and emerging technologies, the semiconductor industry, and critical raw materials.   The two countries adopted a joint statement reflecting the outcomes of the discussions and will continue to strengthen strategic cooperation in response to changes in the global economic security environment. date2026-02-11

Korea Reviews Korea–U.S. Non-Tariff Commitments to Maintain Trade Stability

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) convened the 54th Trade Promotion Committee on February 10, 2026, at the Korea Chamber of Commerce and Industry (KCCI) in Seoul. The meeting was chaired by Trade Minister Yeo Han-koo, with relevant ministries in attendance. During the meeting, the ministries shared the outcomes of consultations with the United States—held amid heightened uncertainty after the United States announced plans to raise tariffs—and discussed measures to maintain stability in Korea–U.S. trade relations, including an implementation plan for non-tariff commitments. The government plans to accelerate Korea’s follow-up actions on strategic investments in the United States, including measures under the Special Act for Korea–U.S. Strategic Investment Management. It will also closely review progress on implementing the non-tariff commitments set out in the Korea–U.S. Joint Fact Sheet (JFS) and continue consultations with the Office of the United States Trade Representative (USTR) on implementation plans. Trade Minister Yeo stressed that, “As uncertainty in the Korea–U.S. trade environment continues to intensify, it is critical for the government to respond as one team.” He urged relevant ministries to coordinate closely so that “key non-tariff issues are managed in a stable manner and do not become tied to tariff measures.” He added, “MOTIR will maintain close communication with the United States to seek mutually beneficial solutions for both countries.” date2026-02-11

MOTIR Supports Distributors and Cross-Border E-Commerce to Expand K-Consumer Goods Exports

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that it will provide KRW 47.1 billion in government funding each year for the next three years, starting in 2026, to help distribution companies expand overseas. The program will support small and medium-sized consumer goods companies in entering overseas markets alongside distribution companies, with a focus on overseas distribution hubs. It will also scale up cross-border e-commerce as a new driver for expanding exports of K-consumer goods, drawing on the Korean Wave and growing online transactions.  Distribution companies face constraints from high initial capital outlays and operational burdens when expanding overseas, and online distribution systems that meet foreign consumers’ demand for cross-border purchases of Korean products remain limited. At the same time, demand for K-consumer goods is rising, but access for overseas consumers remains limited. Small and medium-sized consumer goods companies also face difficulties expanding overseas on their own due to burdens across the export process, including customs clearance, certification, and logistics. Starting in 2026, MOTIR will select eight distribution companies and five cross-border e-commerce companies each year for three years and provide tailored support for overseas market research, marketing, and logistics. It will also encourage distribution companies to pursue joint overseas expansion with small and medium-sized consumer goods companies, fostering mutually beneficial growth. With cross-border e-commerce up 143 percent—from USD 1.2 billion in 2020 to USD 2.9 billion in 2024—MOTIR will support the localization of domestic cross-border e-commerce platforms, turning them into global marketplaces that are highly accessible to overseas consumers. MOTIR stated it would review the program’s performance each year and use the findings to refine the program, thereby promoting mutual growth between K-consumer goods manufacturers and distribution companies and expanding exports through new channels. MOTIR will focus its policy efforts on building a sustainable foundation for K-consumer goods exports and enabling the distribution industry to serve as a new export infrastructure under the program. Companies wishing to participate in the support program may apply through the Korea Trade-Investment Promotion Agency (KOTRA) website (www.kotra.or.kr) by February 25, 2026. date2026-02-10

Korea to Discuss Key Bilateral and Multilateral Trade Issues with the EU, Including the Steel TRQ and WTO MC14

Director General for Trade Negotiations Kwon Hye-jin of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) will visit Strasbourg, France, and Brussels, Belgium, from February 9 to 12, 2026, to discuss key Korea–EU trade issues—including the EU’s steel import restrictions—with officials from the European Parliament and the European Commission. She will also attend the EU-hosted high-level meeting on WTO reform on February 11, 2026, to discuss the reform agenda and next steps. The visit follows the EU’s October 2025 announcement of a steel tariff-rate quota (TRQ) measure, which is expected to take effect in the second half of 2026. Director General Kwon will share concerns raised by Korean industry with the European Parliament and the European Commission and explore possible paths toward a mutually acceptable resolution. She will call on the EU to pursue its steel TRQ measure in a manner consistent with international rules and ask the European side to help ensure that the measure does not cause unreasonable disruptions to Korean steel exports, in light of the two sides’ close FTA partnership and their cooperation on shared challenges such as global steel overcapacity. In addition to these meetings, Director General Kwon will attend the EU-hosted high-level meeting on WTO reform in Brussels, ahead of the 14th WTO Ministerial Conference (MC14) scheduled for March 26–29, 2026, in Cameroon. She will exchange views with major economies—including the EU, Japan, and the United Kingdom—on the direction of the reform and the work plan. Through her participation, Korea will join broader international efforts to restore and revitalize the WTO-centered multilateral trading system. Building on this outreach, MOTIR will continue to convey Korea’s position on the EU steel TRQ to the European Parliament and the European Commission through multiple avenues of engagement and act proactively to minimize potential impacts on Korean industry. At the multilateral level, the ministry will coordinate closely with major economies to foster a predictable, WTO-centered trade and investment environment amid growing protectionism. date2026-02-09

MOTIR Maps Out the M.AX Blueprint for Industrial Complexes in Changwon

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) visited the city of Changwon in Gyeongsangnam-do on February 6, 2026, to explore ways industrial complexes—the backbone of the manufacturing sector—can drive regional manufacturing upgrades. The visit included discussions on converting industrial complexes into AI- and robotics-enabled advanced clusters, along with meetings with local companies to hear their views on strengthening the competitiveness of key regional industries, such as defense and shipbuilding. At Changwon National University, Minister Kim signed an MOTIR–Changwon National University cooperation MOU and discussed next steps for industrial complex AX initiatives grounded in industry–academia–research collaboration. “Digital and AI transformation in industrial complexes must move beyond individual firms and become a region-wide innovation effort involving universities and research institutes,” he said. “We will translate cooperation into concrete measures so anchor universities such as Changwon National University can serve as talent and technology hubs for industrial complex AX.” Minister Kim then met with companies participating in the pilot industrial complex AX initiative and visited the Samhyun plant to review AX adoption cases in manufacturing and hear about implementation challenges. “AX is not only about productivity,” he said. “It is also about capturing skilled workers’ know-how in technology and deploying it across sites.” Minister Kim added that “MOTIR will validate models in the field through pilot industrial complexes and scale them up to drive manufacturing upgrades across industrial clusters.” Building on the findings from the Changwon visit, MOTIR will further refine its industrial complex-centered manufacturing upgrade strategy and expand “a regional manufacturing innovation model that works on the ground” by strengthening industry–academia–research collaborations and fostering regional manufacturing ecosystems. Minister Kim also held a breakfast meeting with defense and shipbuilding parts and equipment companies to review policy priorities for sustaining growth as competition for global orders intensifies, and to hear industry concerns and suggestions. “Defense and shipbuilding are more than key industries—they underpin Korea’s economic security,” he said. “With comparative advantages—such as delivery schedules and quality—and advanced technology capabilities increasingly shaping the global market, the government will expand AI integration across production processes and products to upgrade advanced manufacturing capabilities and turn them into sustained orders.” date2026-02-06

MOTIR to Invest KRW 464.5 Billion in Korea’s Automotive Industry in 2026

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced on February 6, 2026, that it will invest KRW 464.5 billion this year in R&D and infrastructure-building programs for the automotive sector. Korea’s automotive exports reached a record high of USD 72.0 billion in 2025 despite intense global competition, marking a third consecutive year above $70.0 billion. With greater trade uncertainty, rapid advances in AI and autonomous driving technologies, and tighter environmental regulations, securing both technological and price competitiveness has become increasingly critical. MOTIR will invest KRW 382.7 billion in 2026 in core-technology R&D for autonomous driving and electric and hydrogen vehicles. Of this amount, KRW 104.4 billion will be allocated to 44 new projects. Within the funding for new projects, MOTIR plans to invest KRW 49.5 billion in 14 autonomous driving projects (34 subprojects) to support the shift from rule-based systems to End-to-End (E2E) AI autonomous driving. Led by the AI Future Vehicle M.AX Alliance, the projects focus on early commercialization of AI-based future vehicles. They will advance multimodal E2E-AI technology for situational awareness in complex driving conditions, develop and demonstrate a national standards-based SDV system, and build an open-source AI-SDV platform and integrated drive chassis modules tailored to global OEMs, while supporting localization of automotive semiconductors. These efforts aim to build self-reliance in core autonomous driving technologies and strengthen supply-chain stability across the full development-to-production cycle through phased measures. MOTIR will also step up support to accelerate development of world-class next-generation vehicle technologies, allocating KRW 54.8 billion to 30 new projects (55 subprojects) in the electric and hydrogen vehicle sector. Key areas include a highly integrated gallium nitride (GaN)-based power conversion system to improve power density, a Cell to Chassis (CTC) battery system to increase energy density and streamline the manufacturing process, and an Extended Range Electric Vehicle (EREV) powertrain system with a driving range of more than 1,500 km.  Commercial vehicles remain less competitive than passenger cars in global markets. To close that gap, MOTIR will fund development of heavy-duty hydrogen trucks equipped with liquid hydrogen storage systems and hydrogen engine-based commercial vehicles. MOTIR will also promote localization of load-distribution actuators for commercial vehicles. This year, MOTIR will provide KRW 7.0 billion for two demand-linked projects to demonstrate and commercialize R&D output as market-ready products. The projects will be selected through an open call jointly prepared by local governments and regional firms. Local governments will utilize demand for public vehicles to support on-road testing and connect the resulting products to public procurement. MOTIR will also provide KRW 81.8 billion for infrastructure-building programs. In line with the region-specific specialization strategy under the K-Mobility Global Leadership Strategy (November 2025), MOTIR will allocate KRW 11.6 billion to seven new infrastructure-building projects to help auto parts suppliers strengthen their capabilities. For the new projects and programs announced on February 6, 2026, applicants can find the full notice and download application forms on the Industrial Technology R&D Researcher Support System (srome.keit.re.kr) for R&D projects, or on the Korea Institute for Advancement of Technology (KIAT) website (www.kiat.or.kr) for infrastructure-building programs. date2026-02-06

MOTIR Steps Up Public–Private Cooperation to Stabilize Rare Earth Supply Chains

As part of his trip to the Daegu-Gyeongbuk region, Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) visited Star Group Ind. Co., Ltd.—a rare-earth permanent magnet manufacturer—on February 5, 2026, and met with major rare earth companies and support organizations to hear business challenges and discuss public–private cooperation. Ahead of the meeting, MOTIR released a summary of the comprehensive measures for rare earth supply chains, developed by the Industrial Security Supply Chain Task Force since October 2025 and approved by written resolution at the third Resource Security Council on February 4, 2026. The measures are the first policy initiative of MOTIR’s Office of Industry, Trade and Resource Security, launched in late December 2025. They cover the full rare-earth value chain—from mine development through separation and refining to manufacturing—and are organized around three pillars. First, to manage short-term supply and demand risks, the government will expand trade cooperation through multiple channels, designate all 17 rare earth elements as critical minerals, and refine supply-and-demand analysis by introducing and further subdividing HSK codes for rare earth imports and exports. Second, to diversify sources, the government will strengthen project-based resource diplomacy and expand the public sector’s role in sharing investment risks with the private sector. The government will also step up policy financing by increasing the budget for overseas resource development loans from KRW 39.0 billion in 2025 to KRW 67.5 billion in 2026 (up KRW 28.5 billion) and raising the loan coverage ratio from 50 percent to up to 70 percent. Third, to build domestic rare-earth production capacity, the government will support investment in domestic production facilities, streamline regulations to invigorate the recycling ecosystem, develop an R&D roadmap covering rare-earth substitution, reduction, and recycling, and create a new Rare Earth R&D Fund within the Industrial Technology Innovation Fund.  At the meeting, participating companies voiced support for the government’s policy direction, shared current supply constraints, and called for sustained government attention and policy support to secure a stable rare earth supply chain and foster related industries. “Korea has strong capabilities in advanced industries such as semiconductors, electric vehicles, and batteries. But our heavy reliance on imported resources creates structural challenges in managing supply chains,” Minister Kim said. He added that “Korea’s national competitiveness hinges on industrial and resource security, and the public and private sectors must work closely to ensure stable management of rare earth supply chains.” He also said the government will “concentrate its policy efforts on building the foundations across the full rare earth value chain and strengthening industrial resilience against external shocks.” date2026-02-06

MOTIR Minister Visits Daegu–Gyeongbuk to Discuss Industrial Security, Advanced Manufacturing, and Talent Development

Following visits to Jeonbuk (January 22, 2026), and the Busan-Ulsan-Gyeongnam area (January 23, 2026), Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) visited the Daegu-Gyeongbuk region—a key hub for Korea’s advanced industries—on February 5, 2026, as part of the government’s on-site outreach under the “Five Mega-Regions and Three Special Self-Governing Provinces” initiative. During the trip, Minister Kim visited Star Group Ind. Co., Ltd., a rare earth permanent magnet manufacturer in Daegu, and met with five key companies across the rare earth value chain—including Hyundai Motor, POSCO, and Korea Zinc—along with relevant support organizations to hear about challenges in securing rare earth supplies. MOTIR also presented comprehensive measures on rare earth supply chains, developed through the Industrial Security Supply Chain Task Force since October 2025, and discussed policy support and public–private cooperation to ensure supply chain stability. Minister Kim said, “Korea’s national competitiveness hinges on industrial resource security, and the public and private sectors must work closely to ensure stable management of rare earth supply chains.” Minister Kim then held a lunch meeting with graduate students at leading universities in Daegu and Gyeongbuk to hear their perspectives on the future of the region’s key industries, including robotics and automobiles. The students also proposed government support for talent development, including programs to train talent for AI convergence and to strengthen graduate-level capabilities. Minister Kim said that “MOTIR will incorporate youth perspectives and, together with relevant ministries and local governments, refine talent and regional industry policies to build a more effective pipeline from education to industry.” Minister Kim also held a Manufacturing AI Transformation (M.AX) roundtable with local companies and relevant institutions to discuss building a regional hub to expand M.AX across industrial sites. During the event, the Korea Planning & Evaluation Institute of Industrial Technology (KEIT) and the Daegu Digital Innovation Promotion Agency signed a cooperation MOU to support the smooth implementation of AX innovation technology development projects in the regional hub. Participants discussed the next steps for the regional AX hub program, measures to link regional initiatives with M.AX, and how to expand M.AX in the region’s key industries, including robotics. Minister Kim noted, “M.AX is a core lever for raising productivity and quality in regional manufacturing at the same time.” He added, “MOTIR will provide policy and program support to expand M.AX, linking local businesses with research institutions.” As the final event of the visit, Minister Kim met with regional innovation institutions—including research institutes and technoparks—and local economic organizations, including the Daegu Chamber of Commerce and Industry, to discuss the Daegu–Gyeongbuk region’s industrial vulnerabilities and potential and ways to strengthen competitiveness. Participants also extensively discussed the roles of each organization in revitalizing the regional economy and advancing the “Five Mega-Regions and Three Special Self-Governing Provinces” regional growth initiative. They noted strong interest among local companies in AI-based manufacturing innovation (M.AX) and industrial upgrading, and called on the central government to expand related program budgets and increase participation by local companies. Minister Kim said, “MOTIR will support the expansion of M.AX across industrial sites and strengthen the region’s industrial competitiveness,” and asked the regional innovation institutions and economic organizations to work closely with the ministry to advan date2026-02-05