Ministry of Trade Industry and Resources

MOTIE Holds Director-Level Meetings with Vietnam

The Ministry of Trade, Industry and Energy (MOTIE, Minister Kim Jung-kwan) announced that it held virtual meetings with Vietnam’s Ministry of Finance on Friday, September 12, and with the Ministry of Industry and Trade on Monday, September 15. The discussions focused on implementing the outcomes of the Korea-Vietnam summit in August, held during General Secretary To Lam’s state visit to Korea, and on follow-up measures.   The first director-level meeting between MOTIE and Vietnam’s Ministry of Finance on September 12 was co-chaired by Kim Jong-chul, Director General for International Trade Relations, and Do Van Su, Director General of the Foreign Investment Agency. Participants included representatives from the Korean Embassy in Vietnam, the Vietnamese Embassy in Korea, and related organizations such as the Korea Electric Power Corporation (KEPCO), the Korea Institute for Advancement of Technology, and the Korea Federation of Textile Industries. Discussions addressed key business challenges, including: (1) prompt resolution of delayed VAT refunds for Korean textile companies operating in Vietnam, (2) succession of special incentives following HD Korea Shipbuilding & Offshore Engineering’s acquisition of Doosan Vina, and (3) timely support for the implementation of the global minimum tax. The two sides also reviewed proposals from the Vietnamese Ministry of Finance on cooperation in supply chains, energy, infrastructure development, and collaboration between public enterprises under both ministries. While the two ministries have previously co-hosted the Korea-Vietnam Business Forum, this meeting marked the establishment of their first regular consultation mechanism. Both sides agreed to use this meeting as a starting point for continued cooperation in foreign investment, corporate support, and infrastructure development, including nuclear power and supply chains. The Vietnamese Ministry of Finance noted that although VAT refunds and incentive succession fall under local government jurisdiction, it is also conducting direct consultations at the ministry level. The ministry added that it will actively support Korean companies on other challenges such as stable power supply and infrastructure expansion. On September 15, the fourth Korea-Vietnam Plus Joint Working Group meeting was held, co-chaired by Kim Jong-chul and Do Quoc Hung, Deputy Director General for Foreign Market Development at Vietnam’s Ministry of Industry and Trade. Participants included officials from both embassies, the Korea Trade-Investment Promotion Agency, GS1 Korea, KEPCO, and other relevant organizations. Launched in September 2023, the Joint Working Group serves as a director-level hotline platform for discussing trade and investment promotion measures toward the shared goal of expanding bilateral trade to USD 150 billion by 2030. In addition to trade and investment cooperation, the platform also addresses challenges faced by Korean companies operating in Vietnam. At the meeting, the two sides reviewed the status of bilateral trade and investment and discussed action plans to achieve the USD 150 billion trade target by 2030. They also examined follow-up measures from the summit, including plans for an MOU on nuclear energy workforce development. The Korean side requested support to address challenges facing Korean renewable energy investors in Vietnam, particularly regarding electricity sales, as well as improvements to the regulatory framework for participation in LNG power projects. The Vietnamese side responded that it is actively seeking solutions with relevant ministries and agencies and will share the results promptly. MOTIE stated that it will continue to actively support Korean investors in Vietnam by operating multilayered consultation channels such as the ministerial-level Korea-Vietnam Joint Industrial Committee and the Korea-Vietnam FTA Joint Committee, enabling date2025-09-16

Korea’s ICT Exports Up 11.1% in August

The Ministry of Trade, Industry and Energy and the Ministry of Science and ICT announced on September 15 that Korea’s exports of ICT goods in August 2025 rose 11.1 percent year-on-year to USD 22.9 billion, while imports grew 7.6 percent to $12.5 billion. The trade balance recorded a surplus of $10.3 billion. Despite new tariff measures, ICT exports reached an all-time high for the month of August, driven by record-breaking semiconductor shipments. Semiconductor exports surged 27.0 percent year-on-year, supported by rising DRAM and NAND contract prices and strong demand for high-value memory products such as DDR5 and HBM. Communication device exports increased 1.8 percent, supported by favorable demand for battlefield communications equipment in the U.S. and Mexico. By contrast, exports of displays (down 9.4 percent), mobile phones (down 15.4 percent), and computers/peripherals (down 16.6 percent) declined. Display exports fell on weak demand for TVs, monitors, and mobile devices. Mobile phone exports were weighed down by slowing parts shipments despite solid demand for new finished models. Computer and peripheral exports were impacted by last year’s high base for SSD shipments, though demand from data centers in China and the Netherlands helped narrow the decline. By destination, exports to Taiwan (up 65.6 percent), Vietnam (up 18.0 percent), the EU (up 8.2 percent), Japan (up 3.9 percent), and China including Hong Kong (up 0.3 percent) all increased, while exports to the U.S. fell 9.9 percent. ICT imports in August rose 7.6 percent year-on-year to $12.5 billion, driven by gains in semiconductors (up 4.7 percent), mobile phones (up 20.2 percent), and computers/peripherals (up 31.1 percent).   date2025-09-16

Korea Discusses Enhanced Industrial and Energy Cooperation with Saskatchewan, Canada

  Korea’s Deputy Minister for Trade Park Jong-won met with Saskatchewan’s Minister of Trade and Export Development Warren Kaeding in Seoul on Monday, September 8, to discuss ways to strengthen bilateral cooperation in industries, critical minerals, and energy. The Canadian province of Saskatchewan is rich in natural resources, including uranium, natural gas, oil, and critical minerals. The region ranks first globally in both potash reserves and production, third in uranium reserves, and second in uranium production. It is also pursuing the introduction of small modular reactors (SMRs) to decarbonize up to 80 percent of its electricity supply by 2030. The two sides noted that since the Korea-Canada Free Trade Agreement entered into force in 2015, bilateral economic and trade relations have grown significantly, with trade nearly doubling over the past decade (from USD 8.6 billion to 17.2 billion). They agreed on the importance of expanding cooperation amid growing uncertainty in the global trade environment, driven by rising protectionism worldwide. Regarding enhanced energy cooperation between Korea and Saskatchewan, Deputy Minister Park stated, “This creates mutual benefits from an energy security perspective, enabling Korea to secure stable energy sources and Canada to diversify its energy exports.” He also expressed hopes for the provincial government’s continued support for bilateral cooperation in future-oriented strategic industries and eco-friendly energy sectors, such as batteries, SMRs, hydrogen, and critical minerals, in light of active Korean investment in Canada.   date2025-09-08

Korea Holds K-FEZ Day 2025 to Boost Global Investment in Free Economic Zones

The Ministry of Trade, Industry and Energy (MOTIE) hosted K-FEZ Day 2025 at the Shilla Hotel in Seoul on Thursday, September 4, to expand global investment in Korean Free Economic Zones (KFEZs). The event drew nearly 240 participants, including members of the diplomatic corps, representatives from foreign chambers of commerce, and foreign-invested enterprises (FIEs) in Korea. It served as a platform to promote the investment appeal and future growth visions of KFEZs by highlighting strategic industries within the zones, the Korean government’s AI policy and outlook, and success stories from FIEs. The Korean government’s key policy initiatives include stimulating investment through regulatory innovation; fostering cutting-edge technologies and future industries; and establishing an investment environment that meets global standards. Accordingly, KFEZs are being developed into clusters for future high-tech industries, such as semiconductors, rechargeable batteries, bio, and clean energy, while offering new investment opportunities to global investors. Speaking at the event, Industries and Enterprises Deputy Minister Oh Seung-cheol stated, “Korea strives to establish an open and reliable investment environment where global businesses can invest with confidence, leveraging our world-class manufacturing competitiveness and exceptional human resources.” He also called for continued interest in KFEZs as major economic hubs and encouraged active promotion of these zones to potential investors. K-FEZ Day 2025 marks the second consecutive year for the event. MOTIE plans to continue leveraging its network with the diplomatic corps and global companies to develop tailored promotional strategies, positioning KFEZs as both Korea’s premier investment hubs and global innovation clusters. date2025-09-05

Korea Discusses Trade Network and Supply Chain Cooperation with Latin America and the Caribbean

Korea’s Minister for Trade Yeo Han-koo met with ambassadors from 18 member states of the Group of Latin America and the Caribbean (GRULAC) in Seoul on Wednesday, September 3, to discuss the global trade environment and explore ways to strengthen economic and trade cooperation between Korea and GRULAC. Attendees included ambassadors from Mexico, Brazil, Argentina, Chile, and Peru. During the meeting, Trade Minister Yeo stated that the multilateral trading system was facing a fundamental challenge amid intensifying geopolitical competition and rising protectionism. He stressed the need to actively expand trade networks with GRULAC members to respond to these shifts. With a population of nearly 690 million and GDP of around USD 7 trillion, Latin America and the Caribbean (LAC) represent a core part of the Global South and a key market for Korea to diversify exports and reduce regional dependency. Korea currently has free trade agreements (FTAs) with seven GRULAC members, including Chile, Peru, and Colombia. Additionally, it formally signed the Strategic Economic Cooperation Agreement with Ecuador on September 2 and the Protocol on the Accession of Guatemala to the Korea-Central America FTA in January 2024. Both agreements will enter into force following completion of remaining procedures, including ratification by the National Assembly. Minister Yeo also highlighted that LAC is a major source of critical minerals such as lithium, nickel, copper, and graphite. Given Korea’s strengths in advanced manufacturing technologies for electric vehicles, batteries, and semiconductors, he emphasized the importance of strengthening supply chain cooperation between Korea and the region. Furthermore, Minister Yeo added that as Chair of APEC 2025, Korea aims to achieve meaningful outcomes on global issues such as AI cooperation and demographic change. He noted that Korea will also host a series of business events, including the APEC CEO Summit Korea 2025, to promote exchange and collaboration among global business leaders. He requested active interest and support from GRULAC members to help ensure the successful hosting of APEC 2025. date2025-09-05

Korea and Ecuador Sign Strategic Economic Cooperation Agreement for Market Diversification

Korea’s Minister for Trade Yeo Han-koo met with Ecuador’s Minister of Production, Foreign Trade, Investments, and Fisheries Luis Alberto Jaramillo in Seoul on Tuesday, September 2. The two sides held bilateral talks and formally signed the Strategic Economic Cooperation Agreement (SECA). Since launching negotiations in 2016, Korea and Ecuador have held nine rounds of formal discussions, concluding the agreement in October 2023. With the official signing completed, the SECA will enter into force following remaining procedures, including ratification by the National Assembly. Once the SECA takes effect, Ecuador will phase out tariffs of up to 40 percent on Korean automobiles within 15 years, including eliminating the 35-percent tariff on hybrid vehicles within five years. This is expected to give Korea an advantage over major competitors, including China and Japan. Additional sectors such as online gaming, distribution, film, and music will also open up, which raises prospects for growth in local consumption and exports of Korean cultural content. The SECA will include various means to support companies in resolving difficulties and protecting rights. For example, when technical regulations are amended, grace periods will be provided to enable businesses to prepare for those changes. Enhanced remedies for intellectual property infringements will be offered as well. Ahead of the signing ceremony, Trade Minister Yeo emphasized during talks with his Ecuadorian counterpart, “the SECA will serve as a solid safeguard for the bilateral economies in this time when factors such as rising protectionism have led to growing uncertainty in the global trade environment.” He expressed hope that the SECA would help companies from both countries build future-oriented cooperation, facilitating export expansion, market diversification, and joint efforts during supply chain crises. Both sides agreed to accelerate remaining procedures for the SECA’s implementation, including ratification by the National Assembly. date2025-09-04

Korea’s Trade Minister Discusses Economic Cooperation and Trade Issues with UK Counterpart

Korea’s Minister for Trade Yeo Han-koo met with the UK’s Minister of State at the Department for Business and Trade Douglas Alexander in Seoul on September 1. The two sides exchanged views on industrial and trade policy directions in the current global trade environment and discussed ways to expand bilateral cooperation. The UK is Korea’s 25th-largest trading partner, with bilateral trade totaling $11.2 billion in 2024. Since the Korea-UK Free Trade Agreement (FTA) entered into force in January 2011, trade between the two countries has remained strong. The UK is also one of Korea’s major investment partners, ranking 3rd among European countries in cumulative investment in Korea as of 2024. Active investment and technological partnerships between companies from both countries serve as the foundation for bilateral cooperation. During the meeting, Trade Minister Yeo confirmed active industrial and trade cooperation between the two countries, citing ongoing Korea-UK FTA upgrade negotiations and supply chain dialogues. He emphasized the importance of building on shared values, such as liberal democracy and the market economy, to sustain a strong economic partnership. Furthermore, he expressed hope that the UK’s industrial and trade strategies announced in June would further strengthen bilateral ties. Regarding the introduction of the UK Carbon Border Adjustment Mechanism, Trade Minister Yeo highlighted the need for sufficient preparation time and measures to ease burdens on businesses. He also requested the UK government to support Korean companies in adapting to recently strengthened steel safeguard measures and the Electric Car Grant system. date2025-09-03

Korea’s Exports Rise 1.3% in August

The Ministry of Trade, Industry and Energy (MOTIE) announced on September 1 that Korea’s exports in August 2025 grew 1.3 percent year-on-year to USD 58.4 billion, while imports fell 4.0 percent to $51.9 billion. The trade balance recorded a surplus of $6.5 billion. Daily average exports for the month, factoring in the number of working days, also rose 5.8 percent to $2.6 billion. Despite having one fewer working day than a year earlier, August exports maintained an upward trajectory and set a monthly record for the third consecutive month. Of Korea’s 15 major export categories, three posted growth in August. Semiconductor exports surged 27.1 percent to $15.1 billion, setting a new all-time high just two months after the previous record. This growth was driven by rising contract prices and sustained global demand from downstream industries, such as the server market. Automobile exports rose 8.6 percent to $5.5 billion for the third consecutive month, supported by increased exports of used cars and eco-friendly vehicles, including electric and hybrid models. Ship exports grew for the sixth straight month (up 11.8 percent to $3.1 billion), fueled by deliveries of vessels ordered in 2022 and 2023. By region, exports increased in three out of nine major markets. Exports to ASEAN climbed 11.9 percent to $10.9 billion, the highest August figure on record and the third straight month of growth, driven by strong performance in semiconductors and ships. Exports to CIS countries (up 9.2 percent to $1.1 billion) grew for the sixth consecutive month, while those to the Middle East edged up 1.0 percent to $1.4 billion, returning to positive growth after one month. MOTIE Minister Kim Jung-kwan stated, “To minimize tariff impacts on small- and mid-sized companies, the ministry plans to announce and implement supportive measures in early September, focusing on three areas: ①easing burdens through short-term operation assistance and boosting domestic demand, ②diversifying export markets to sustain momentum, and ③strengthening the fundamental competitiveness of core and promising industries.” date2025-09-02