Ministry of Trade Industry and Resources

Korea Gains Prominence in WTO Reform Talks and Pushes IFDA’s Incorporation into the WTO Framework

The Korean delegation, led by Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), is helping steer WTO reform talks, build support for incorporating the Investment Facilitation for Development Agreement (IFDA) into the WTO framework, and broaden strategic engagement with key partners at the 14th WTO Ministerial Conference (MC14) in Yaoundé, Cameroon. As the conference is seen as a pivotal moment to restoring the multilateral trading system and setting the direction of future global trade rules, Korea is playing an increasingly prominent role. Trade Minister Yeo Chairs Key WTO Reform Sessions As Minister Facilitator for WTO reform, Trade Minister Yeo Han-koo chaired four sessions on March 26 and 27, 2026, covering fundamental WTO issues, decision-making and past mandates, development and special and differential treatment, and a level playing field, structuring the key issues under each agenda item and leading constructive exchanges among member states. Türkiye Withdraws Opposition, Boosting Prospects for IFDA’s WTO Incorporation Korea is working to build support for incorporating the Investment Facilitation for Development Agreement (IFDA) into the WTO framework at MC14. As co-chair of the IFDA negotiations with Chile, Korea hosted a ministerial side event on March 25, 2026, bringing together major economies and international organizations to discuss the agreement’s value, its potential contribution to development, and support for implementation. In his opening remarks, Trade Minister Yeo highlighted Korea’s experience in improving its investment environment and stressed the importance of a predictable and transparent investment climate. He said the IFDA could provide a solid institutional foundation for attracting investment amid global uncertainty and serve as a practical model for inclusive cooperation for development. Ahead of MC14, Korea held bilateral consultations with India and Türkiye and exchanged letters with both countries in an effort to persuade them to drop their opposition. On March 26, 2026, Türkiye withdrew its opposition at the opening session of MC14, raising expectations for the IFDA’s incorporation into the WTO framework. Expanding Global Networks Through Bilateral Meetings In his role as facilitator of the WTO reform talks, Trade Minister Yeo Han-koo held a series of bilateral meetings with heads of delegation from key economies to build broader support for the multilateral trading system and address issues affecting Korean businesses. With New Zealand, Singapore, the Netherlands, France, and the United Kingdom, he coordinated positions on the WTO reform work plan and digital trade rules. With Paraguay, Uruguay, and Argentina, he discussed supply chain stability and measures to ease non-tariff barriers. “At a time of growing uncertainty in the global trading environment, the multilateral trading system faces a critical test of whether it can deliver tangible results,” Trade Minister Yeo said. He added, “As facilitator of WTO reform discussions and co-chair of the IFDA negotiations, Korea will work through the close of MC14 to help deliver concrete outcomes.” date2026-03-27

MOTIR Reviews Impact of Prolonged Middle East Conflict on Key Export Items and Delivery of Support Measures

The Korean government has stepped in directly to address difficulties facing key export industries, as it moves to minimize export disruptions from the prolonged conflict in the Middle East. Following the launch of a pan-government export support system on March 11, 2026, it is now taking a closer look at sector-specific impacts and stepping up tailored support, including logistics and liquidity assistance. The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held a meeting with major exporters at the Korea Trade Insurance Corporation (K-SURE) on March 26, 2026, to review conditions across key sectors and the export outlook in the wake of the war in the Middle East. The meeting was chaired by Na Sung-hwa, Director General for International Trade Policy, and was attended by representatives from eight key industries: semiconductors, automobiles, machinery, petroleum products, petrochemicals, steel, biohealth, and displays. Companies voiced concern over rising freight rates and war-risk surcharges tied to uncertainty in the Strait of Hormuz, as well as possible delays in financing and payments and instability in raw material supplies. To address these concerns, the government will accelerate existing logistics and liquidity support and improve implementation on the ground. First, the government will continue rolling out emergency logistics vouchers. MOTIR is accepting applications through the end of March 2026 for KRW 8 billion in emergency vouchers to help cover international shipping costs, return shipping, war-risk surcharges, and rerouting charges. For companies with a high share of exports to the Middle East, the ministry is also operating a fast-track program that issues vouchers within three days of application. As of March 24, 44 companies had received support. The Ministry of SMEs and Startups (MSS) has also been running a KRW 10.5 billion emergency logistics voucher program since March 20, 2026. The government will also move quickly to provide KRW 24.2 trillion in emergency liquidity support through policy finance institutions. K-SURE has expanded working-capital guarantees for exporters to the Middle East and increased import insurance support for sectors facing urgent raw-material needs, including petrochemicals, from KRW 2.8 trillion in 2025 to KRW 3.4 trillion in 2026. The Financial Services Commission (FSC) is operating financial support programs worth KRW 20.3 trillion, while MSS is providing additional support through its emergency management stabilization funds. The government will further strengthen one-stop support for exporters affected by the Middle East crisis. The Korea Trade-Investment Promotion Agency (KOTRA), the Korea International Trade Association (KITA), and MSS’s regional export support centers will continue sharing local information and coordinating responses, while other ministries step up cooperation on logistics and liquidity issues. In addition, MOTIR will use the supply chain support center launched on March 23, 2026, in response to the situation in the Middle East, to closely monitor supply conditions for items highly dependent on the region and products exposed to knock-on effects, while providing focused support to resolve bottlenecks. The government also plans to expand support for exporters facing difficulties from the prolonged conflict through the supplementary budget now being prepared. “Swift action matters, but so does making sure support is delivered smoothly on the ground,” said Director General Na. “We will closely review each stage of implementation and make adjustments where needed so that measures such as the emergency export vouchers and trade insurance package deliver tangible support for exporters.” date2026-03-26

Major Retailer Sales Up 7.9% in February 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) in February 2026 rose 7.9 percent year-on-year, with offline sales up 14.1 percent and online sales up 3.9 percent. Offline sales at hypermarkets (up 15.1 percent), department stores (up 25.6 percent), and convenience stores (up 4.0 percent) posted strong growth during the Lunar New Year holiday season, while super supermarkets (SSMs) (down 0.4 percent) fell slightly. Hypermarket sales returned to growth for the first time in four months since the Chuseok holiday boost in October 2025. Department stores and convenience stores extended their growth streaks to eight consecutive months since July 2025. SSM sales declined for a third consecutive month since December 2025. At hypermarkets, food sales rose 18.8 percent, driven by Lunar New Year demand for holiday gift sets and key seasonal food items. Department store sales increased across all categories, including food (up 65.0 percent), women’s casual wear (up 25.1 percent), and premium international brands (up 22.6 percent), as consumer sentiment improved. Convenience store sales continued to rise, led by processed foods (up 8.1 percent), including beverages, snacks, and desserts. SSM sales, by contrast, fell for the third consecutive month due to weaker non-food sales (down 2.0 percent), including everyday household goods. Online sales rose, driven by food (up 17.4 percent) and cosmetics (up 7.4 percent), while home appliances and electronics (down 4.6 percent) and fashion/apparel (down 3.7 percent) declined. Sales shares by channel were 58.5 percent for online retailers, 15.9 percent for department stores, 13.0 percent for convenience stores, 10.5 percent for hypermarkets, and 2.0 percent for SSMs. date2026-03-25

Korea and Canada Address Risks Together, Create Opportunities Together

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Ministry of Foreign Affairs (MOFA, Minister Cho Hyun) held the second Director-General-level Korea–Canada 2+2 Economic Security Dialogue on March 25, 2026, with visiting officials from Innovation, Science and Economic Development Canada and Global Affairs Canada. This was the second director-general-level meeting between the two countries’ industry and foreign affairs authorities since Korea and Canada elevated ties to a Comprehensive Strategic Partnership in September 2022. The dialogue focused on ways to strengthen coordination in a rapidly changing economic security environment, marked by supply chain realignment and intensifying technology competition. The two sides reviewed key global risk factors, including shifts in the geoeconomic landscape and the spread of protectionist policies, and agreed on the need for closer coordination to address them. They also discussed joint responses to supply chain disruptions, including the use of overseas missions in an early warning system (EWS). Korea also outlined industrial cooperation related to the Canadian Patrol Submarine Project (CPSP) as a means of broadening strategic and economic ties, and conveyed its interest in working with Canada on the project. The two sides agreed to prepare thoroughly for the next Korea–Canada 2+2 Ministerial Economic Security Dialogue and to continue working closely to identify practical projects and deliver concrete outcomes. date2026-03-25

Korea, Mongolia Discuss Accelerating CEPA Talks to Expand Market Access and Strengthen Critical Minerals Supply Chains

Kwon Hye-jin, Director General for Trade Negotiations at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), visited Mongolia on March 24, 2026, to meet with senior officials responsible for trade and mineral resources and discuss how to accelerate the Korea–Mongolia CEPA, broaden market access, and strengthen cooperation on critical mineral supply chains. Mongolia has a relatively small consumer market of 3.5 million people, but more than 60 percent of its population is under 34, making it a promising market for Korean consumer goods. That demographic profile, coupled with the popularity of Korean culture, has driven rapid growth in Korean exports of cosmetics, food products and other consumer goods, while Korean retailers and food franchise brands are also expanding in the market. Korea’s exports of key products such as automobiles, tobacco, petrochemical products and pharmaceuticals have also continued to grow steadily since 2021. The Korea–Mongolia CEPA made progress over four formal rounds of negotiations held between December 2023 and November 2024. The talks were later paused, however, amid concerns in Mongolia about market opening and delays in reaching agreement on goods and rules of origin. In a meeting with Batkhuu Idesh, State Secretary of Mongolia’s Ministry of Economy and Development and Mongolia’s chief negotiator for the CEPA, Director General Kwon explored a broad basis for agreement on goods and rules of origin. The two sides also agreed to narrow remaining differences and accelerate the negotiations. Director General Kwon also proposed expanding the scope of the CEPA to include cooperation on critical mineral supply chains. Mongolia is rich in copper, molybdenum and rare earth elements, making it a promising partner for Korea as it seeks to diversify imports of critical minerals. In a meeting with Dashpurev Buriad, State Secretary of Mongolia’s Ministry of Industry and Mineral Resources, the two sides discussed ways to expand bilateral cooperation in critical minerals and shared the view that the CEPA should include a dedicated cooperation chapter to support that effort. Director General Kwon also held a roundtable with Korean companies operating in distribution, logistics, used cars, medical devices and tobacco to hear trade- and investment-related concerns and gather industry input to help shape the negotiations. “Mongolia is an emerging market where Korean companies have a growing presence, as well as an important partner in resource cooperation,” Director General Kwon said. “We will work to advance the CEPA quickly to support Korean companies’ expansion in the Mongolian market and to broaden cooperation on critical minerals through the agreement.” date2026-03-24

14th WTO Ministerial Conference Opens as WTO Faces Challenges

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) will lead a Korean government delegation to the 14th WTO Ministerial Conference (MC-14), to be held in Yaoundé, Cameroon, on March 26–29, 2026. The delegation will focus on restoring the multilateral trading system and stabilizing the trade environment for Korean industries and businesses. The delegation includes around 30 officials from MOTIR, the Ministry of Foreign Affairs (MOFA, Minister Cho Hyun), the Ministry of Agriculture, Food and Rural Affairs (MAFRA, Minister Song Mi-ryung), the Ministry of Oceans and Fisheries (MOF, Minister Hwang Jong-woo), and Korea’s Permanent Mission in Geneva. Korea Takes a Facilitator Role in WTO Reform Talks MC-14 comes at a time when the WTO faces serious challenges, with members expected to engage in intensive talks on restoring its functions and advancing institutional reform. The outcome of those discussions is likely to shape the WTO’s future role and the broader rules-based trading system. Korea will take part not only as a member but also as a key facilitator in the reform debate. Trade Minister Yeo will serve as one of the Minister Facilitators for the WTO reform session and chair four sessions, helping narrow differences among members and build consensus on tangible reform outcomes. It will be the first time Korea’s chief delegate has served a lead facilitating role in an official session of a WTO Ministerial Conference. Korea Pushes for Outcomes on the E-Commerce Moratorium and IFDA At MC-14, Korea will serve as a bridge on key issues, including the incorporation of the Investment Facilitation for Development Agreement (IFDA) into the WTO legal framework, extension of the moratorium on customs duties on electronic transmissions, and implementation of the e-commerce agreement. On March 25, 2026, Korea will host a ministerial side event on the IFDA—bringing together ministers from key economies and officials from major international organizations—to highlight how the agreement can improve the global investment climate and promote development. Korea will also step up consultations with key economies on extending the moratorium and expediting implementation of the e-commerce agreement. These steps would lower digital trade costs and widen access to global markets for Korean companies. They would also help Korean films, television dramas, music, games, and other digital content stay competitive overseas without additional tariff burdens, while facilitating overseas expansion for small and mid-sized digital firms and supporting growth in exports of digital services and content. Korea will also support early entry into force and full implementation of the Fisheries Subsidies Agreement, progress in follow-up negotiations, and discussions aimed at building a more inclusive trading system, including the extension of preferences after least developed countries (LDCs) graduate from LDC status. Korea Seeks to Turn a Broader Role into Tangible Results “Restoring the multilateral trading system is essential at a time when global supply chains are being reshaped and the rules-based trade order is under strain,” Trade Minister Yeo said. “As a middle power that advanced through trade liberalization and the multilateral system, Korea will work at MC-14 to move reform talks forward, deliver tangible outcomes, and help create a more stable trade environment for Korean businesses.” “Korea is serving for the first time as a facilitator for a core WTO reform session at a WTO Ministerial Conference,” he added. “We will do our part as a responsible middle power to help rebuild trust among members and restore the WTO’s normal functioning.” Bilateral Meetings to Address Trade Issues and Business Bottlenecks During MC-14, the Korean government will hol date2026-03-24

MOTIR Takes Systematic, Measured Approach to U.S. Trade Issues

On March 20, 2026, Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) chaired the 55th Trade Promotion Committee in Seoul with relevant ministries in attendance. On the same day, he also led a meeting with major business groups, industry associations, and experts to launch a public-private joint task force on U.S. Section 301 matters. The meetings were convened to review U.S. tariff and non-tariff issues and coordinate a systematic response by the government and private sector. They came as uncertainty over U.S. tariff measures persists following a ruling that limited executive authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), as well as the subsequent launch of Section 301 investigations. “The U.S. Section 301 investigations into overcapacity and forced labor appear aimed primarily at restoring tariff levels under existing trade arrangements, but we cannot rule out the possibility that the United States may initiate additional Section 301 investigations on other issues. We will remain fully vigilant in our response,” Trade Minister Yeo said. “MOTIR will launch a public-private joint task force on U.S. Section 301 matters, bringing together relevant ministries, industry, and experts, and respond systematically through written submissions, public hearings, and other procedures.” Trade Minister Yeo added, “Korea has remained in close contact with the United States regarding its implementation of the non-tariff commitments set out in the Korea–U.S. Joint Fact Sheet. The two sides are also coordinating the timing of a Korea–U.S. FTA Joint Committee meeting. We will prepare thoroughly to adopt a bilateral implementation plan on non-tariff matters at the meeting and help stabilize the trade environment.” The government will continue to respond systematically to current trade issues with the United States under two guiding principles: preserving the balance of interests under the existing Korea–U.S. tariff agreement and ensuring Korea is not placed at a disadvantage relative to other major economies. It will also work to minimize uncertainty for the Korean economy and businesses. date2026-03-20

Korea-China Advance Summit (Jan 5) Follow-Up Through Mutually Beneficial Cooperation

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) visited Beijing on March 18, 2026, and held successive Korea–China ministerial meetings on commerce and industry. Minister Kim first met with Wang Wentao, China’s Minister of Commerce, and agreed to focus on implementing the agreements reached by the two leaders and stabilizing supply chains amid rapid shifts in the global trade environment. In the event of logistics delays or raw material shortages, the two countries will immediately activate communication channels, including the supply chain hotline, and coordinate a joint response. For critical items such as rare earths and permanent magnets, they will use the export control dialogue and expedited and standardized licensing arrangements to improve predictability in bilateral supply chains. On trade, the two ministers discussed ways to expand bilateral cooperation into new areas, including consumer goods, by leveraging China’s drive to boost domestic demand. They agreed to increase business engagement through exchange events and trade fairs with China’s major economic provinces. The Korea–China FTA Joint Committee will be convened in the first half of 2026 to work toward practical outcomes in the services and investment negotiations. The two sides also recognized the need for effective measures to protect Korean music, films, and other intellectual property in China, including through the resumption of the intellectual property implementation committee. Minister Kim then held the fifth Korea–China Industrial Ministers’ Meeting with Li Lecheng, China’s Minister of Industry and Information Technology. It was the first Korea–China industrial ministerial meeting in four years since the virtual meeting in January 2022, and the first in-person meeting in eight years since the Seoul meeting in May 2018. Recognizing how the structure of Korea–China industrial cooperation has evolved, the two ministers agreed that future cooperation should move toward a more equal and mutually beneficial footing. They will deepen cooperation in advanced sectors such as semiconductors and batteries, while exploring new opportunities in the green transition of industry and the silver economy. The two sides also discussed ways to stabilize the tightly interconnected industrial and supply chains in the battery sector. In semiconductors, which account for 26 percent of bilateral trade, they will step up policy communication and actively support the smooth operation of Korean semiconductor plants in China. They reached a shared understanding on the need for cooperation on the green transition of industry and the silver economy in response to the shared challenges of climate change and population aging. To that end, they will exchange technologies and experience and promote cooperation between companies and research institutions. They will also share experience in building industrial supply chain data platforms as a digital foundation for the green transition of industry. Minister Kim stressed that although competition between the two countries’ industrial sectors has intensified, the mutual benefits of cooperation remain unchanged. He called for continued efforts to identify promising areas for cooperation and address shared challenges together. date2026-03-19