Ministry of Trade Industry and Resources

MOTIR Approves 8 Business Restructuring Plans in Semiconductors and Batteries

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that it approved eight business restructuring plans, including those submitted by Seoul Semiconductor and UTI, at the 51st meeting of the Business Restructuring Review Committee. The approved companies plan to invest a combined KRW 249.6 billion and hire 402 people over the next five years as they implement the plans. Among the approved companies, Seoul Semiconductor, a display components maker, will enter the AR glasses display module market based on its core micro-LED technologies. UTI will use its high-precision glassmaking technologies, including ultrathin glass, to move into glass substrates for semiconductor packaging. GSR Tech (Geo Seong Recycling Tech) will extract and recycle lithium from refractories discarded after use in battery cathode material production and supply raw materials for cathodes, moving beyond its current business of installing refractories in steel blast furnaces. Kunwoo Metal will use an AI-based autonomous manufacturing model to upgrade its production process and develop annular gears for electric vehicles, leveraging its manufacturing expertise in bearings and transmission components for internal combustion engine vehicles. Kim Ju-hoon, the Committee’s private-sector chair, commended the companies for their efforts to enter new markets and seek new sources of growth despite difficult conditions at home and abroad, and said the Committee will continue to support business restructuring. A MOTIR official said, “Business restructuring gives companies a fresh opportunity for growth and remains a key tool for upgrading Korea’s industrial structure. MOTIR will strengthen support measures, including institutional improvements, to help facilitate business restructuring.” date2026-04-14

MOTIR Minister Conducts a Series of On-Site Inspections of Petrochemical Production Sites

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) visited four companies on April 13, 2026, to inspect the production and supply conditions of essential petrochemical products directly related to public health, daily necessities, and key industries. The companies use petrochemical materials to manufacture packaging for syringes and IV solutions, food packaging, paint, and semiconductor components. At AD CHEMTECH, Minister Kim explained how MOTIR, in cooperation with relevant ministries and petrochemical companies, resolved potential supply disruptions affecting packaging materials for IV solutions and syringes. He said the government would ensure that supplies of health and medical products essential to public health remain uninterrupted. At Lotte Packaging Solutions, Minister Kim said the government would closely monitor the supply of packaging materials through an interagency task force comprising MOTIR, the Ministry of SMEs and Startups (MSS), and the Ministry of Food and Drug Safety (MFDS) to prevent shortages affecting food packaging and other everyday consumer products. At SP Samhwa, Minister Kim noted that the government had streamlined import registration procedures under the Act on the Registration and Evaluation, etc. of Chemical Substances on April 10, 2026, thereby facilitating faster imports of raw materials. He also called on the industry to cooperate in stabilizing the supply and prices of paint. At Daeduck Electronics, Minister Kim said the government would ensure a stable supply of petrochemical products so that the production of daily necessities and operations of key national industries are not disrupted. Minister Kim stressed, “We are giving top priority to preventing even a single day of disruption in the supply of health and medical products, daily necessities, and inputs for key national industries. MOTIR and the relevant ministries remain in close coordination and are prepared to take immediate action whenever necessary.” MOTIR has established a task force of approximately 40 members to manage the supply and demand of key petrochemical items and is monitoring daily inventory levels and supply trends for each item. The ministry also plans to support rapid import of naphtha through an import cost-offset program included in the supplementary budget passed by the National Assembly at a plenary session on April 10, 2026, in response to war in Iran In addition, MOTIR will introduce a regulation prohibiting the hoarding of petrochemical products and feedstocks, and authorizing prompt and appropriate supply-and-demand adjustment measures in the event of disruptions. date2026-04-13

Korea and Bangladesh Hold Third Round of CEPA Negotiations

With trade uncertainty rising at home and abroad and the need to diversify export markets growing, Korea will hold the third round of formal negotiations in Seoul from April 12 to 17, 2026, on a Comprehensive Economic Partnership Agreement (CEPA) with Bangladesh, the world’s eighth-most populous country and a key potential market in South Asia. The Office of Trade Negotiations at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) said around 60 delegates from both sides will take part in the negotiations. The Korean delegation will be led by Park Geun-oh, Director General for Trade Agreement Policy at MOTIR, and the Bangladeshi delegation by Ayesha Akther, Additional Secretary and Head of the Foreign Trade Agreement Wing at Bangladesh’s Ministry of Commerce. Since launching negotiations in November 2024, the two sides have held two formal rounds, outlining their positions in each working group and identifying key issues. In the third round, they will build on the groundwork and hold in-depth talks in 13 areas, including goods market access, services, and rules of origin, to narrow differences over the draft agreement text. On the sidelines of the WTO ministerial conference held in Cameroon in March 2026, Trade Minister Yeo Han-koo met with Khandaker Abdul Muktadir, Bangladesh’s Commerce Minister, and agreed to push for an early conclusion of the CEPA with Bangladesh, a market of 170 million people. Director General Park said, “A CEPA with Bangladesh, a fast-growing emerging market of 170 million people, would help Korean companies compete more effectively in South Asia. We will work to conclude the negotiations early.” date2026-04-13

MOTIR Reviews Measures to Help Korean Companies Respond to Revised U.S. Section 232 Tariffs on Steel and Aluminum

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that Trade Minister Yeo Han-koo chaired a public-private joint review meeting at the Korea Chamber of Commerce and Industry (KCCI) in Seoul on April 9, 2026, on revisions to U.S. tariffs under Section 232 of the Trade Expansion Act covering steel, aluminum, copper and derivative products. The meeting followed the U.S. government’s revision of how Section 232 tariffs are applied to steel and other covered products for goods cleared from 12:01 a.m. local time on April 6, 2026. It was held to explain the changes in detail, assess sector-specific implications, hear industry concerns, and discuss response measures for Korean companies, as confusion in the industry has grown since the revision took effect. At the meeting, Trade Minister Yeo said, “The latest revisions reflect, at least in part, concerns the government and industry have raised through high-level consultations, written communications and related procedures involving additional derivative products. While the overall administrative burden is expected to ease, some products may still be affected. Further changes also remain possible, as the U.S. Department of Commerce will conduct an additional review within 90 days of implementation. We therefore need to stay alert and continue our response.” He added, “We will carefully review the concerns raised today and convey them in consultations with the United States and through other channels. We will also take steps to minimize the burden on Korean companies, including by issuing a call for applications in April for an interest subsidy program for companies in the steel, aluminum, copper and derivative-product sectors to help reduce trade uncertainty and support business stability.” Participants said that although the tariff regime has been streamlined, compliance remains difficult in practice because the products covered and the criteria for applying the tariffs have changed. They noted that small and medium-sized enterprises and mid-sized companies could face unexpected disadvantages if they do not fully understand the revised rules. They also pointed to significant uncertainty over how the rules will be applied and enforced, given the rapid pace of recent changes in trade policy. MOTIR said it will strengthen information services and support for companies to minimize confusion. The ministry has already enabled companies to check the HS codes covered by the revised rules and the applicable tariff rates through the Korea Trade-Investment Promotion Agency (KOTRA)’s Trade Barrier 119 website. On April 17, 2026, KCCI will host a practical briefing on the key changes and response measures for companies, and similar sessions will later be held across the country. date2026-04-09

Korea and China Hold 14th Round of FTA Subsequent Negotiations on Services and Investment

The 14th Round of Subsequent Negotiations on Services and Investment under the Korea–China Free Trade Agreement (FTA) is underway in Seoul from April 6 to 10, 2026. Around 40 officials from both sides are taking part, with the Korean delegation led by Kwon Hye-jin, Deputy Minister for Trade Negotiations at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), and the Chinese delegation headed by Lin Feng, Director General for International Trade and Economic Affairs at China’s Ministry of Commerce. After the Korea–China FTA entered into force in 2015, the two sides launched follow-up negotiations on services and investment in March 2018 under the “Guidelines for Subsequent Negotiation”. Since then, they have held 13 formal rounds of negotiations and multiple intersessional meetings. At the Korea–China summit in January 2026, the two sides agreed to pursue meaningful progress in the Korea–China FTA follow-up negotiations within the year. The negotiations were discussed again at the Korea–China Trade Ministers’ Meeting on March 18, 2026 and substantive talks are expected to continue at the Korea–China FTA Joint Commission at the ministerial level, which is due to meet in the first half of 2026. With high-level channels between the two sides restored, the negotiating teams will build on this momentum and accelerate negotiations on the Agreement text and market access across the three working groups on services, investment, and finance. Deputy Minister Kwon said, “We will accelerate the negotiations to deliver outcomes that can support Korean companies facing uncertainty at home and abroad. We will also ensure that the subsequent negotiations lay the groundwork for a freer and more open environment for services trade and investment." date2026-04-08

Korea and ASEAN Hold First Joint Committee Meeting on FTA Upgrade

The first joint committee meeting on upgrading the Korea–ASEAN Free Trade Agreement (FTA) was held by videoconference on April 8, 2026. About 40 representatives from both sides took part, led by Park Geun-oh, Director General for Trade Agreement Policy at Korea’s Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), and Alpana Roy, Director-General for International Trade and ASEAN at Singapore’s Ministry of Trade and Industry. Since entering into force in 2007 as Korea’s fourth FTA, the Korea–ASEAN FTA has helped expand bilateral trade and investment. However, because the agreement still centers on market opening in goods and services, it has had limits in reflecting newer global trade rules in areas such as digital trade, supply chains and critical minerals. In October 2025, the two sides declared on the sidelines of the Korea–ASEAN Summit that they would begin negotiations to upgrade the agreement, formally launching the process. Ahead of full-scale subcommittee talks in June 2026, the two sides discussed the procedural framework for the negotiations, including the Joint Committee’s rules of procedure, the structure of the negotiating subcommittees and their operating guidelines. Park Geun-oh, Director General for Trade Agreement Policy at MOTIR, said, “With the global trade environment growing more uncertain amid rising protectionism and supply chain instability, we will focus the negotiations on new trade rules on digital trade, supply chains and critical minerals to support future sectors such as AI and electric vehicles.” date2026-04-08

MOTIR Selects 10 Middle Market Companies for World Class Plus Project

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced on April 6, 2026, that it had selected 10 new projects under its World Class Plus Project program and two new projects under its technology innovation challenge program for middle market enterprises and public research institutes to help strengthen the technological competitiveness of Korea’s middle market companies. The World Class Plus Project supports middle market companies with the potential to become world-class firms, from technology development to overseas market entry. From 2011 through 2025, a total of 376 companies were selected under the program and have grown into key exporters that continue to play a leading role in Korea’s exports. In 2026, MOTIR selected 10 companies across sectors such as semiconductors and displays, future mobility, bioindustry, and energy storage systems (ESS). The ministry will support them in securing a technological edge in advanced industries and an early foothold in global markets in future-growth sectors such as bioindustry and ESS. Starting this year, the funding cap has been raised to up to KRW 4.0 billion over four years for companies in the capital region and up to KRW 5.0 billion for regional companies. The technology innovation challenge program links middle market companies with public research institutes to tackle technical hurdles in commercialization in new growth sectors. Under the program, two middle market companies will work with the Electronics and Telecommunications Research Institute (ETRI) and the Korea Institute of Industrial Technology (KITECH) to develop core technologies in construction machinery and autonomous ships. Lee Gyu-bong, Director General for Middle Market Enterprise Policy at MOTIR, stressed that technological innovation is more important than ever for Korean companies to sustain growth amid rising global uncertainty. He added that MOTIR will continue to support Korea’s middle market companies as they build on their technological strengths to compete in global markets. date2026-04-06

Korea’s 2026 First-Quarter Foreign Direct Investment Rises 0.1% to $6.4 Billion

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that Korea’s foreign direct investment (FDI) notifications for the first quarter of 2026 rose 0.1 percent year-on-year to USD 6.4 billion, marking the second-highest first-quarter total on record. Actual inflows reached $7.1 billion, the highest first-quarter level on record. Despite a subdued global investment environment and unexpected geopolitical risks, including the conflict in the Middle East, Korea maintained FDI growth in the first quarter. This suggests that foreign investors remain confident in Korea’s investment environment. In particular, foreign investment continued in advanced manufacturing sectors such as semiconductors and secondary batteries, as well as in AI data centers and offshore wind. This indicates that the momentum from last year’s record $36.1 billion in annual FDI notifications has carried into 2026. By type, greenfield investment notifications fell 19.8 percent year-on-year to $3.7 billion amid global investment uncertainty, while M&A notifications rose 53.4 percent to $2.7 billion. By industry, manufacturing investment fell 47.6 percent year-on-year to $1.2 billion. Investment declined in electrical and electronics (down 30.1 percent to $370 million) and in machinery and medical precision equipment (down 75.6 percent to $40 million), but increased in chemicals (up 4.5 percent to $400 million) and non-metallic minerals (up 23.9 percent to $180 million). Meanwhile, services investment rose 21.5 percent year-on-year to $4.3 billion, the highest first-quarter level on record. Growth was led by finance and insurance (up 21.2 percent to $2.6 billion), distribution (up 43.0 percent to $570 million), and information and communications (up 183.6 percent to $240 million). By source country, investment from the United States increased 20.9 percent year-on-year to $1.0 billion, led by information and communications, chemicals, and distribution. Investment from the European Union totaled $1.4 billion (down 4.1 percent), with gains in chemicals and electricity and gas offset by declines in pharmaceuticals and finance and insurance. Investment from Japan fell to $350 million (down 71.1 percent), while investment from China declined to $270 million (down 19.4 percent). In response to external uncertainty, MOTIR will step up investment promotion in strategic sectors, expand regional investment incentives, and address difficulties faced by foreign-invested companies to improve the investment environment. date2026-04-03