Ministry of Trade Industry and Resources

Korea Ramps Up AI Factories to Lead Global Manufacturing by 2030

The Ministry of Trade, Industry and Resources (MOTIR) held the the AI Factory M.AX (Manufacturing AI Transformation) Alliance Strategy Meeting (hereinafter “M.AX Alliance”) on October 1, bringing together leading manufacturers such as Samsung Electronics, Hyundai Motor, LG Energy Solution, and HD Hyundai Heavy Industries to accelerate Korea’s rise as a global leader in manufacturing AI by 2030. The number of AI Factory pilot projects has surpassed 100, with a target of 500 by 2030. These projects apply AI to manufacturing to boost productivity, cut costs, and reduce carbon emissions. Examples include Samsung Electronics using AI for semiconductor inspections, Hyundai Motor deploying AI-powered robotic arms for flexible production, and HD Hyundai Heavy Industries developing AI robots for ship maintenance. Humanoid robots will also begin field demonstrations this year at six sites across the display, shipbuilding, and logistics sectors. Companies including Samsung Display, CJ Logistics, LG Electronics, and SK Energy will test robots for various tasks, with more than 100 projects planned through 2027 to gather data and train AI. MOTIR will further expand the initiative to cover the entire production cycle, from factory design to supply chains and logistics. By integrating robotics, digital twins, and advanced infrastructure, Korea aims to establish fully autonomous “dark factories” and become the world’s leading exporter of AI factories by 2030. Minister Kim emphasized, “The age of AI is a race against time. By leveraging Korea’s manufacturing strengths and data, we can lead the world in AI factories. Through the M.AX Alliance, we will break down regulatory barriers, focus resources, and place Korea firmly on the path to global leadership in manufacturing AI.”   date2025-10-02

Korea and UK Discuss Trade Cooperation Amid Global Trade Shifts

The Ministry of Trade, Industry and Resources (MOTIR) announced that Minister for Trade Yeo Han-koo held a video conference on October 1 with Chris Bryant, the UK Minister of State at the Department for Business and Trade, following Minister Bryant’s request for an introductory meeting. The two sides exchanged views on expanding bilateral cooperation and addressing major trade issues under the current uncertain global trade landscape. The UK is Korea’s sixth-largest trading partner in Europe, with bilateral trade reaching USD 11.21 billion in 2024 under the Korea–UK FTA signed after Brexit. The UK also ranks as Korea’s third-largest European investor (cumulative as of 2024), with active two-way investment between companies serving as a key driver of growth in both economies. Minister Yeo congratulated Minister Bryant on his appointment and expressed hope for close communication amid the uncertain global trade environment. He also discussed compromise measures to ensure a balanced reflection of both sides’ key interests to reach an early conclusion of the Korea–UK FTA FTA amendment negotiations, and exchanged views on the UK’s trade issues, including its trade agreement and large-scale investment agreements. Minister Yeo further emphasized the need for measures to ease corporate burdens, such as adjusting reporting cycles, in relation to the UK’s introduction of a carbon border adjustment mechanism (CBAM). He conveyed Korean industry’s concerns and requests regarding the UK’s strengthened steel safeguard measures and electric vehicle subsidy program, and called for cooperation and support from the UK government, along with continued bilateral consultations.   date2025-10-02

Korea to Strengthen R&D Support System for Global Foreign-Invested Companies

The Ministry of Trade, Industry and Resources (MOTIR) announced that it held the 2nd Korea–Global Innovation Investment Alliance on Wednesday, October 1, at the Toray Advanced Materials Korea Magok R&D Center. The meeting brought together foreign-invested companies newly joining the 2025 FIE-dedicated R&D program, along with Korean public research institutes and investment associations, to strengthen the R&D support system for FIEs. To promote R&D by FIEs in Korea, MOTIR launched the Global Industry–Technology Cooperation R&D Program in 2024 and has steadily expanded its budget (KRW 1.5 billion in 2024 → KRW 4.5 billion in 2025 → KRW 6 billion proposed for 2026). The ministry also plans to diversify the scale and forms of support to improve the quality of R&D outcomes. This meeting expanded participation beyond FIEs and public institutions to include public research institutes and investment-related associations. Through additional R&D investment by FIEs (KRW 25 billion), technology development support, and investor relations (IR) activities, the Alliance will actively support SMEs participating in projects to gain entry into global supply chains. At the same time, an MOU was signed among participating FIEs, research institutes, universities, and industry partners to strengthen cooperation. Key areas include policy measures to expand investment by selected FIEs, stronger R&D collaboration with Korean research institutes, and support for IR activities by Korean SMEs. The initiative aims to encourage the inflow of leading global technologies into Korea and broaden participation in the innovation ecosystem. Yu Beop-min, Director-General for Investment Policy at MOTIR, stated, “The government will continue to expand R&D support for foreign-invested companies as part of Korea’s efforts to become a global R&D hub, contribute not only to revitalizing regional economies and boosting domestic employment, but also to fostering shared growth between global and Korean companies amid supply chain restructuring.”   date2025-10-02

Korea’s Exports Hit Record High in September

The Ministry of Trade, Industry and Resources (MOTIR) announced on October 1 that Korea’s exports in September 2025 rose 12.7 percent year-on-year to USD 66.0 billion, while imports increased 8.2 percent to $56.4 billion. The trade balance posted a surplus of $9.6 billion, the largest in seven years since September 2018. Exports reached an all-time monthly high for the first time in three and a half years, continuing growth for the fourth consecutive month. Third-quarter exports also set a record at $185.0 billion, averaging over $60.0 billion per month. On a daily average basis, exports came to $2.8 billion, the second-highest September figure on record, reflecting the impact of more working days. By item, 10 of Korea’s 15 major export categories posted growth. Semiconductor exports jumped 22.0 percent to $16.6 billion, hitting a new record for the second straight month on strong demand for high-value memory such as HBM and DDR5. Automobile exports rose 16.8 percent to $6.4 billion, the highest ever for September, supported by robust sales of electric, hybrid, and internal combustion vehicles, as well as a sharp increase in used car exports. Ship exports grew 21.9 percent to $2.9 billion, marking seven straight months of growth. Biohealth exports also reached a record high of $1.7 billion (up 35.8 percent). By region, exports increased in eight of Korea’s nine major markets. Exports to China rose 0.5 percent to $11.7 billion, ending a four-month decline. Exports to ASEAN climbed 17.8 percent to $11.1 billion, the highest ever for September, while exports to the EU surged 19.3 percent to $7.2 billion, also a record high. Exports to the Middle East, India, Latin America, Japan, and CIS countries all posted strong growth, while exports to the United States fell 1.4 percent to $10.3 billion due to slower shipments amid tariff-related conditions. MOTIR Minister Kim Jung-kwan stated, “Korea’s exports set a new all-time record in September, a valuable achievement despite difficult conditions such as slower shipments to the U.S. amid tariff-related challenges. This demonstrates the ability of Korean companies to quickly diversify their export markets.” He added, “Facing persistent uncertainties, including ongoing tariff negotiations, the government will continue to strengthen policy support to ensure our companies sustain their export competitiveness.”   date2025-10-01

Korea and Uzbekistan Sign MOU to Strengthen Cooperation on Technical Regulations

The Korean Agency for Technology and Standards (KATS, President Kim Dae-ja) under the Ministry of Trade, Industry and Energy signed a Memorandum of Understanding (MOU) on September 30 with the Uzbek Agency for Technical Regulation (Director Akmal Jumanazarov) to strengthen cooperation on technical regulations. The MOU expands bilateral cooperation on exchanging information and resolving issues related to technical regulations into a formal cooperation framework, aimed at easing technical barriers to trade (TBT) and supporting mutual market entry. This marks a significant step forward from the previous practice of relying only on case-by-case consultations. Uzbekistan was the fourth-largest source of technical regulation difficulties for Korean companies last year. As a non-WTO member and a country without a free trade agreement (FTA) with Korea, there had been no official negotiation channel, making companies dependent on individual consultations. For example, in March this year, exports of home appliances faced customs delays due to requirements for “certification by container,” but the issue was resolved through consultations between the two sides by adopting a representative model sampling inspection method. Under the MOU, the two countries will operate an annual joint expert working group with both government and private-sector participation to regularly discuss regulatory issues, focusing on major export items such as textiles and home appliances, and to develop concrete cooperation measures. A business roundtable was also held, with participation from Korean companies such as Samsung Electronics and LG Electronics, where they discussed local regulatory trends, shared challenges, and explored countermeasures. KATS President Kim Dae-ja stated, “This MOU will strengthen Korea–Uzbekistan cooperation on technical regulations, helping to reduce procedural uncertainties and export hurdles for Korean companies. Through regular consultation channels, we will respond more swiftly to local regulations, support business activities, and contribute to enhancing trade and industrial competitiveness.”   date2025-09-30

End-Users, Fabless Firms, and Foundries Link Up to Build Korea’s On-Device AI Semiconductor Ecosystem

The Ministry of Trade, Industry and Energy (MOTIE, Minister Kim Jung-kwan) hosted a forum on September 30 at the Seongnam Global Convergence Center with semiconductor end-user and supplier companies as the first step in launching the K-On-Device AI Semiconductor Technology Development Project, a core initiative of the AI Semiconductor M.AX Alliance. The Alliance was established to help Korea emerge as a global leader in manufacturing AX (advanced transformation) by 2030. The forum brought together about 150 stakeholders from across the AI semiconductor industry, including end-user companies in the automobile, IoT/appliance, machinery/robotics, and defense sectors; Korean fabless companies (design) and foundries (manufacturing); and global IP firms that supply semiconductor design blocks. The program featured technology demonstrations by fabless firms such as DEEPX, Mobilint, and FuriosaAI; a presentation on the project implementation plan by MOTIE; the signing of MOUs among MOTIE, end-users, fabless firms, foundries, and IP firms; and a discussion led by end-users, Arm, and Samsung Foundry on how to foster Korea’s AI semiconductor ecosystem. Overview of the AI Semiconductor M.AX Alliance Forum  Date/Location: Tuesday, September 30, 2025, 15:00–17:30 / Seongnam Global Convergence Center (1F, Multipurpose Hall 2) Hosted/Organized by: MOTIE / Korea Semiconductor Industry Association, Korea Planning & Evaluation Institute of Industrial Technology (KEIT) Participants: Minister of Trade, Industry and Energy and about 150 representatives from industry, academia, and research, including semiconductor end-users, foundries, and fabless firms  Program: AI semiconductor fabless technology demonstrations, presentation of the project implementation plan, signing of an MOU to ensure project success, and discussions on ways to strengthen Korea’s AI semiconductor ecosystem Background and Implementation Plan for the Project To become a global leader in manufacturing AX, developing AI models is important, but it is equally essential to develop on-device AI semiconductors—the hardware that powers AI within advanced products across industries. To this end, MOTIE is committed to supporting the development of Korean on-device AI semiconductors for integration into advanced products such as autonomous vehicles, smart home appliances, humanoids, and unmanned aerial vehicles, working in close partnership with end-user companies in four key sectors and fabless firms in Korea. In August, a KRW 1 trillion project to develop customized AI semiconductors, AI software, and modules needed for producing advanced products in four key industries was exempted from the preliminary feasibility study. Following an appropriateness review, MOTIE plans to formally launch the project in 2026 through consortia of end-user and fabless companies. The project aims to release Korean-made AI semiconductor prototypes in 2028 and develop 10 types of on-device AI semiconductors for integration into advanced products by 2030.   Scope of the K-On-Device AI Semiconductor Technology Development Project  On-Device AI Semiconductor Full Stack: Development and demonstration of customized on-device AI semiconductors, AI software, modules, and prototypes Application in Advanced Products: Autonomous vehicles, smart home appliances, unmanned aerial vehicles, collaborative robots, humanoids, unmanned agricultural robots Implementation Plan: (2026) Formation of sector-specific consortia and project announcement → Begin AI semiconductor design (2027–2028) Production and verification of AI semiconductor prototypes (2029) Development of modules to be integrated into advanced products using AI semiconductors (2030) Development of advanced prototypes such as autonomous vehicles and humanoids equipped with Korean-made AI semiconductors   Operation of the AI Semiconductor M.AX Alliance The Allia date2025-09-30

MOTIE Minister Conducts Emergency Inspection of Response System for Information System Disruptions

On Sunday, September 28, Minister of Trade, Industry and Energy Kim Jung-kwan assessed the damage to MOTIE’s information systems caused by the fire at the National Information Resources Service and discussed key measures and response plans. The meeting focused on ensuring uninterrupted public services such as strategic goods export reviews, applications for investigations into unfair trade practices, and applications for electricity business licenses, which were expected to be affected by the disruptions. For services that cannot be processed online due to the outage, applications such as licenses will be accepted manually, with results notified by mail or fax, and status checks available via telephone or related agency websites. For strategic goods export reviews, temporary public application and processing methods will be posted on the Korea Security Agency of Trade and Industry (KOSTI) website (kosti.or.kr), and guidance emails will be sent to all Yestrade members (about 50,000 companies). Applications for determinations and export licenses will temporarily be accepted by email, and MOTIE will expand review personnel to minimize delays caused by offline processing. Applications and investigation notices for unfair trade practice cases will be handled in writing, and closure notices will be sent by fax or mail. Mining rights permit applications will be processed manually after being submitted by visit or fax, with applicants guided accordingly by phone. Electricity business licenses will be processed through phone guidance and in-person submission, and results will be announced on the Korea Electric Power Corporation (KEPCO) and Korea Power Exchange websites. In connection with this, MOTIE will post contact information for each service area on its social media channels, including Instagram, X, and YouTube, so that the public can directly contact the relevant offices. Immediately after the incident on Friday, September 26, MOTIE organized an emergency response team (headed by Deputy Minister for Planning and Coordination) and activated a 24-hour emergency duty system. The ministry is also using its official blog and social media channels to promptly share updates on the disruption, while providing the main service hotline (1577-0900) and direct contact numbers for affected services to minimize public inconvenience, difficulties, and damages. A full review of MOTIE’s information systems revealed that 21 systems (11 public services and 10 internal)—including the ministry’s main website and those of many affiliated agencies—were inaccessible or not functioning. The Korean Standards & Certification Information System is currently operating through an alternative page offering equivalent services. Minister Kim also ordered a comprehensive review of ongoing project notices and announcements to prepare for the possibility of a prolonged system recovery, deciding to extend application deadlines and notice periods as needed. Before the damage assessment meeting, Minister Kim visited the KTNET Electronic Trade Control Center to examine its operations and emphasized the need to prevent internet service disruptions, ensure swift responses in the event of incidents, strengthen cybersecurity and personal data protection, and guarantee the reliable use of information networks to minimize public inconvenience during government system outages.   date2025-09-29

5th Korea–Saudi Vision 2030 Committee Meeting

Korea and Saudi Arabia, the Middle East’s largest economy and a key Global South market, are set to expand their economic cooperation across core manufacturing industries, AI and other advanced sectors, and culture and entertainment. Kim Jung-kwan, Minister of Trade, Industry and Energy of Korea, and Khalid Al-Falih, Minister of Investment of Saudi Arabia, co-chaired the 5th Korea–Saudi Vision 2030 Committee Meeting on Friday, September 26 at Lotte Hotel Seoul, with participation from 11 ministries of both governments. This was the first meeting held in Seoul in two years, since the 4th Committee in October 2023. The Committee was launched in 2017 under the Korea–Saudi Vision 2030 Memorandum of Cooperation (MoC) as an inter-ministerial platform to manage key cooperation projects, address challenges, and support collaboration among governments, institutions, and companies. The Committee is structured around six subcommittees: overall cooperation, manufacturing and energy, smart infrastructure and digital, capacity building, healthcare, and SMEs and investment. At this meeting, the two sides reviewed the implementation status of 46 existing projects and identified 11 new cooperation projects. While Korea–Saudi economic ties have traditionally centered on crude oil imports and construction contracts, the Committee has expanded the scope of cooperation to include core manufacturing industries such as automobiles and shipbuilding. For example, HD Hyundai Heavy Industries and Saudi Aramco are jointly building the region’s largest shipyard, International Maritime Industries (IMI), at the King Salman Maritime Industries Complex (12 million m²), scheduled for completion in the first half of next year. A joint venture ship engine assembly plant is also expected to be completed by the end of next year. In addition, Hyundai Motor Company and Saudi Arabia’s Public Investment Fund (PIF) broke ground in May this year on an automobile manufacturing plant in King Abdullah Economic City, aiming for mass production in the first half of 2027. The new projects identified at this meeting in shipbuilding and automobiles will build on these achievements. In shipbuilding, cooperation across the value chain—from engine assembly to vessel construction—will be extended to the joint development of advanced eco-friendly technologies to reduce carbon emissions. In automobiles, cooperation will deepen beyond local assembly to encompass R&D in engine and hybrid vehicle technologies, establishment of hydrogen vehicle fuel quality management systems, and other areas, together forming a comprehensive ecosystem covering complete vehicles, core technologies, fuels, and standards. Collaboration in AI and advanced industries, as well as culture and entertainment, is also expected to accelerate. In February, Naver, through its joint venture with the Saudi National Housing Company (NHC), established digital twin platforms in major cities such as Jeddah, Mecca, and Medina. Naver plans to enhance these platforms by integrating AI to provide comprehensive smart city services spanning transportation, energy, and safety management. Leading Korean AI semiconductor companies such as Rebellions and FuriosaAI are also exploring cooperation with Saudi Arabia’s state-owned AI company, Humane, in digital transformation and AI innovation. Meanwhile, projects in film, e-sports, and tourism will further strengthen bilateral ties in culture and entertainment. Minister Kim emphasized, “We will establish and operate ongoing communication channels within each subcommittee to ensure seamless implementation of cooperation projects, and closely link existing and new projects to maximize synergy. Going forward, we will broaden the scope of cooperation into AI, advanced industries, and soft power, where the two countries hold significant potential.”   date2025-09-26