Ministry of Trade Industry and Resources

Korea Reaches $66.0 Billion in January–November Auto Exports

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced on December 21 that Korea’s cumulative automobile exports for January–November 2025 reached an all-time high of USD 66.0 billion. With exports continuing at the current pace, total automobile exports in 2025 are expected to surpass the previous annual record of $70.9 billion set in 2023.  November automobile exports increased 13.7 percent year-on-year to $6.4 billion, marking the second-highest November figure on record. Eco-friendly vehicle exports totaled 78,000 units, with export value rising 26.3 percent year-on-year to $2.3 billion. Hybrid vehicles accounted for 69 percent of total eco-friendly vehicle exports, at 54,000 units, and 67 percent of export value, at $1.6 billion. On a cumulative basis, hybrid vehicle exports for January–November surpassed 500,000 units, up 27 percent year-on-year. Domestic automobile sales reached 146,000 units in November. Domestically produced vehicle sales declined 5.2 percent year-on-year to 115,000 units, while imported vehicle sales increased 18.2 percent to 31,000 units. Eco-friendly vehicle sales rose year-on-year for 21 consecutive months, totaling 71,000 units and accounting for 48.4 percent of total monthly domestic sales. By type, this included 51,000 hybrid vehicles, 18,000 EVs, 1,000 plug-in hybrid vehicles, and 1,000 hydrogen vehicles. Notably, cumulative domestic EV sales for January–November reached a record high of 207,000 units, up 52.2 percent year-on-year, driven by strong domestic EV demand. This figure has already surpassed the previous annual record of 158,000 units set in 2023. Automobile exports to all regions increased year-on-year in November. Domestic automobile production rose 2.9 percent year-on-year to 354,000 units, largely reflecting a base effect from production disruptions caused by heavy snowfall in the Seoul metropolitan area in November 2024. Cumulative automobile production for January–November totaled 3.74 million units. If current trends continue, Korea is expected to exceed 4 million units in annual production for the third consecutive year. With uncertainties eased following the conclusion of the Korea–United States tariff negotiations, MOTIR will continue to strengthen support for the domestic automobile industry’s growth next year. The ministry will promote the development of AI-based autonomous driving technologies, expand production, investment, and R&D in eco-friendly vehicles, and address export-related challenges. date2025-12-22

Republic of Korea and Japan Strengthen Collaboration on Critical Mineral Supply Chains

The Republic of Korea and Japan are accelerating cooperation to stabilize sustainable supply chains between producer and consumer countries, amid growing instability in the global supply chain for critical minerals. In line with these efforts, the Ministry of Trade, Industry and Resources (hereinafter ‘MOTIR’) held the ‘2nd ROK-Japan Mineral Resources Cooperation Dialogue’ with Japan's Ministry of Economy, Trade and Industry (hereinafter ‘METI') at the Lotte Hotel in Seoul on December 17. Korea and Japan have developed similar industrial frameworks that are focused on advanced manufacturing sectors, such as semiconductors, batteries, and materials and components. Both countries are significant consumers of critical minerals and, as such, rely substantially on imports to fulfill their domestic requirements. In light of the recent segmentation of critical mineral supply chains—particularly between the United States and China—and the enhanced collaboration among producing countries, there is growing recognition of the importance of fostering international cooperation that reflects the perspectives and interests of consuming countries. In celebration of the 60th anniversary of diplomatic relations between Korea and Japan, both countries have recognized the importance of securing global critical mineral supply chains as a pivotal area for collaboration. In this spirit, they convened the inaugural ROK-Japan Mineral Resources Cooperation Dialogue in February of this year, reaffirming their commitment to joint efforts in this essential sector. At that time, the two countries discussed comprehensive cooperation measures, including △joint procurement of critical minerals and △stockpiling cooperation, and agreed to hold this dialogue regularly. Since then, both countries have jointly responded to policy uncertainties by continuing engagements including bilateral meetings on the sidelines of multilateral conferences. This second meeting was arranged as a follow-up to review the outcomes of cooperation over the past year and to deepen collaboration further. At this meeting, the two countries focused on discussing: △ Responding to low copper TC/RC situation, △ Strengthening cooperation within multilateral consultative bodies such as the G7 and the Mineral Security Partnership (MSP), and △ Exploring ways to initiate joint critical mineral development and production projects in third country destinations. A particularly noteworthy aspect of the discussion was the recent rise in copper prices alongside the prevailing instability in the supply of copper concentrate. Both countries underscored the importance of strengthening their collaboration and establishing tangible measures to stabilize global copper supply while promoting sustainable co-prosperity between mining operations and smelters. MOTIR stands ready to facilitate ROK-Japan joint projects, particularly in Latin America, Asia, and Africa, where Korean companies can either expand their engagement or enter into new projects. MOTIR aims further to enhance cooperation with Japan and other like-minded countries to establish a more stable supply chain for critical minerals. It will also actively pursue collaborative models that allow both producing and consuming countries to thrive together in the global critical minerals market. date2025-12-18

Korea and the EU Launch Efforts to Operationalize Supply Chain and Economic Security Partnership

Park Jung-sung, Deputy Minister for Trade at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), met with Denis Redonnet, Deputy Director-General of the European Commission’s Directorate-General for Trade and Economic Security, in Seoul on Wednesday, December 17, 2025. As the EU’s top trade enforcement official, Deputy Director-General Redonnet oversees key trade agendas, including free trade agreements, trade remedies, and economic security. The meeting followed the December 2, 2025 talks between Trade Minister Yeo Han-koo and European Commissioner for Trade and Economic Security Maroš Šefčovič. It focused on implementing the Korea–EU Next Generation Strategic Dialogue agreed during those talks, as well as strengthening cooperation on economic security, supply chains, and technology. Deputy Minister Park noted that growing protectionism, intensifying technological competition, and disruptions in global supply chains are increasing uncertainty in the global economy. He stated that economic security alliances and strategic coordination among like-minded countries are emerging as key drivers of competitiveness. While underscoring that Korea and the EU have built their partnership on free trade, he emphasized the need to further strengthen cooperation to develop the bilateral partnership into a future-oriented one encompassing economic security and advanced industries. Against this backdrop, the two sides welcomed the elevation of the ministerial-level Korea–EU FTA Trade Committee, which previously focused on goods and services, into the Next Generation Strategic Dialogue on Trade, Supply Chains, and Technology, as agreed during the trade ministers’ meeting on December 2, 2025. They shared the view that this dialogue framework would enable more comprehensive and higher-level cooperation and agreed to work closely toward holding its first meeting in the first half of 2026. The Korean side also conveyed the concerns and requests of Korean companies regarding key industrial issues, including steel, nuclear power, and batteries, and called for the EU’s active cooperation. On steel, Korea expressed concerns over the EU’s plan to introduce new steel import measures and emphasized the need to secure sufficient export allocation for Korean steel products. Regarding the EU’s Foreign Subsidies Regulation (FSR) investigation related to the Czech nuclear power project, the Korean side emphasized that Korea Hydro & Nuclear Power was selected through a transparent and fair bidding process in compliance with EU rules and reaffirmed that no subsidies inconsistent with market principles were provided, requesting that the investigation be conducted fairly and reasonably. On batteries, Korea requested that the EU support expanding demand for EV and ESS batteries produced within the EU, consider including the battery industry in the Energy Intensive Industry sector, and advance the delayed follow-up legislation under the Battery Regulation promptly and predictably. The Korean side also welcomed the European Commission’s efforts to simplify the Carbon Border Adjustment Mechanism (CBAM) and noted that recent revisions reflected Korea’s concerns, including the partial easing of certification requirements and the introduction of exemption criteria for SMEs. It called for continued bilateral communication to ensure that the mechanism becomes more reasonable and predictable. Following the meeting, the two sides agreed to establish a standing communication channel on key trade issues to ensure that the Korea–EU Next Generation Strategic Dialogue delivers tangible outcomes.. date2025-12-18

MOTIR Discusses Measures to Expand Industrial Cooperation Following the UAE State Visit

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) met with Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology of the United Arab Emirates (UAE) and Group CEO of the Abu Dhabi National Oil Company (ADNOC), in Seoul on Thursday, December 18, 2025, to discuss measures to expand industrial cooperation aimed at translating the economic outcomes of the recent Korea–UAE summit into concrete projects. The meeting followed the first round of industrial ministers’ talks held in Abu Dhabi in November 2025 and was convened during Minister Al Jaber’s visit to Korea this week. The two sides exchanged views on key areas of bilateral cooperation, including collaboration on AI data centers, joint oil stockpiling, and broader engagement across the oil and gas industry. Noting that Korea and the UAE agreed to work together on the Stargate UAE Project—which aims to build a next-generation, large-scale AI data center in Abu Dhabi—the ministers discussed ways to strengthen cooperation in advanced industries through the project. Minister Kim explained that MOTIR is coordinating with relevant ministries on follow-up initiatives with the UAE in new industries. He emphasized that bilateral cooperation could help accelerate development of the UAE’s AI infrastructure, as Korea has a broad base of competitive companies across semiconductors; data center construction and operation; cooling technologies; engineering, procurement, and construction (EPC); and power generation. To facilitate smooth implementation, he also requested that the UAE provide more detailed information on the Stargate UAE Project and support discussions between companies from both sides. The two ministers also recognized that the Korea–UAE joint oil stockpiling project, which has been under way since 2013, represents a model case of bilateral energy cooperation. They assessed that the project is mutually beneficial, as Korea enhances its emergency oil supply capacity through priority purchase rights for stored crude oil, while the UAE establishes a strategic base for responding to oil demand in Northeast Asia. Accordingly, the two sides agreed to continue discussions on cooperation measures, including expanding the scale of joint stockpiling, to strengthen energy supply chain stability. Both sides reaffirmed that trade and investment in the oil and gas sector remain a core pillar of bilateral economic cooperation. Minister Kim highlighted that in the upstream sector, the Korea National Oil Corporation and GS Energy are successfully implementing oilfield development projects with ADNOC in the UAE, while in the downstream sector, large-scale joint projects are being advanced in areas such as plant construction, petrochemicals, and shipbuilding. They acknowledged that collaboration in the oil and gas sector has contributed significantly to bilateral economic development and agreed to continue working together to expand business outcomes. MOTIR noted that the meeting provided an opportunity to translate the outcomes of the Korea–UAE summit into concrete industrial cooperation projects. Going forward, the ministry plans to activate high-level consultation channels with the UAE and pursue follow-up measures to ensure that substantive cooperation continues to deepen in strategic industries, including AI data centers and across the full value chain of the oil and gas industry. date2025-12-18

Korea and the UK Conclude Upgrade Negotiations for the Korea–UK Free Trade Agreement

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and Sir Chris Bryant, Minister of State at the United Kingdom’s Department for Business and Trade, met in London on Monday, December 15, 2025, and signed a joint declaration confirming the conclusion of the Korea–UK Free Trade Agreement (FTA) upgrade negotiations. Key Developments Following the UK’s decision to withdraw from the European Union (Brexit), Korea and the UK concluded the Korea–UK FTA in 2021 on terms identical to the Korea–EU FTA, which entered into force in 2011, to ensure continuity in trade and investment and to maintain a stable and predictable business environment. In line with a provision of the original agreement calling for follow-up negotiations within two years of its entry into force, both sides have held six rounds of upgrade negotiations and five rounds of trade ministers’ meetings, along with multiple intersessional meetings, since January 2024. At a bilateral meeting held on the margins of the G7 Summit in Canada in June 2025, the leaders of Korea and the UK agreed to accelerate talks to conclude the FTA upgrade negotiations within the year. After outstanding issues were resolved through additional discussions on services and investment held this month, the two sides formally declared the negotiations concluded at the trade ministers’ meeting in London. Significance and Assessment of the Korea–UK FTA The UK is the world’s sixth-largest economy and Europe’s second-largest by nominal GDP. It is also a global hub for finance and investment, accounting for the largest shares of international bank lending and foreign exchange transactions worldwide. However, bilateral trade volumes and Korea’s exports to the UK rank only around 20th globally, underscoring the need to enhance market access through the upgrade negotiations. The revised Korea–UK FTA is expected to expand bilateral trade by easing the stringent rules of origin for Korea’s key export products and by further opening the UK’s high-speed rail procurement market and major service sectors. It also reflects a broad range of new trade rules aimed at expanding exchanges and cooperation across diverse areas. Trade Minister Yeo emphasized that “the conclusion of the Korea–UK FTA upgrade negotiations will consolidate the free-market order amid growing uncertainty in the trade environment and strengthen economic cooperation with the UK, a key partner in Europe.” He further noted that “the upgraded Korea–UK FTA includes extensive cooperation norms, such as market liberalization, digital trade, and cooperation on supply chain stabilization, to strengthen the Korea–UK trading relationship.” Minister Bryant remarked, “Korean culture has taken off in the UK, with millions of Brits already binge-watching great Korean TV and streaming K-pop artists. Today’s agreement boosts the UK’s world-class services sector and supports iconic brands to speed up our economic growth.” Next Steps Following the declaration of the conclusion of the negotiations, the government will promptly complete the procedures required for formal signature, including legal review and Korean-language translation of the agreement text. After the formal signature, it will proceed with steps necessary for the agreement’s entry into force, including an economic impact assessment and securing the National Assembly’s consent to ratification. date2025-12-17

Korea and Norway Discuss Ways to Build a Practical Partnership Amid Changes in the Global Trade Environment

Park Jung-sung, Deputy Minister for Trade at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), met with Ragnhild Sjoner Syrstad, State Secretary at Norway’s Ministry of Trade, Industry and Fisheries, at Lotte Hotel in Seoul on Tuesday, December 16, 2025, to discuss ways to strengthen substantive bilateral cooperation between Korea and Norway in response to recent changes in the global trade environment. Both sides recognized that rising protectionism and the weakening of the World Trade Organization (WTO) system have increased global trade uncertainty and underscored the importance of closer cooperation between Korea and Norway to stabilize supply chains and enhance industrial competitiveness. They agreed to continue discussions on building a practical partnership to deliver tangible outcomes. The two sides welcomed the resumption of the Korea–Norway Economic Cooperation Committee (KNECC), a private-sector consultative body inactive since 2016, noting that its revival after a decade strengthens the foundation for business-to-business exchanges and the development of joint projects. They agreed to expand government-level support and to pursue more concrete cooperation models and project-based MOUs based on corporate demand. Deputy Minister Park stated, “Building on the complementary industrial structures of Korea and Norway, bilateral trade has expanded in both scale and quality since the FTA’s entry into force.” He noted that “practical cooperation is already advancing in the shipbuilding sector, particularly in areas such as autonomous navigation and AI-based future ship technologies,” emphasizing that “combining Korea’s strengths in manufacturing and ICT with Norway’s maritime and energy technologies could create substantial added value.” He added that “Korea hopes to further expand bilateral cooperation into advanced industries, including the green transition and critical supply chains." date2025-12-17

MOTIR Reviews Agenda Items for the Successful Convening of the 14th WTO Ministerial Conference

Director General for Trade Negotiations Kwon Hye-jin of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) will serve as Korea’s chief representative at the World Trade Organization (WTO) Senior Officials Meeting (SOM) to be held in Geneva, Switzerland, from Monday, December 15 to Wednesday, December 17, 2025. The SOM is convened approximately three months prior to the 14th WTO Ministerial Conference (MC14), scheduled for March 2026 in Cameroon. The meeting will bring together senior officials from WTO members to review the MC14 agenda, identify key deliverables, and engage in high-level consultations on current WTO issues.  Director General Kwon will also participate in the WTO General Council to discuss ways to deliver outcomes on key MC14 agenda items, including WTO reform; the incorporation of the Agreement on Electronic Commerce; the extension of the moratorium on customs duties on electronic transmissions; and the incorporation of the Investment Facilitation for Development (IFD) Agreement into the WTO system. Additionally, she will consult with WTO members on major issues, such as the continued development of the Industrial Policy Dialogue. On the margins of the meeting, Director General Kwon will meet with representatives of key trading partners, including South Africa and the European Union, to advance cooperation on the accession and expansion of the IFD Agreement, which Korea co-chairs with Chile. MOTIR underscored the importance of restoring the WTO’s functions to ensure a predictable trade and investment environment and reaffirmed its commitment to working closely with relevant ministries to deliver meaningful outcomes at the MC14. date2025-12-16

MOTIR Reviews Request for Additional Designation of Ganghwa Southern District in Incheon Free Economic Zone

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the 146th Free Economic Zone (FEZ) Committee on Monday, December 15, 2025. At the meeting, MOTIR reported on a request to designate the Ganghwa Southern District as an additional zone within the Incheon FEZ, and the Committee approved an amendment to the development plan for the Sindae Hinterland Complex in the Gwangyang Bay Area FEZ, including an extension of the project period. Under the Special Act on Designation and Management of Free Economic Zones, local governments seeking free economic zone designation are required to submit a development plan to MOTIR. The ministry then reports the request to the FEZ Committee and, following consultations with relevant ministries and expert evaluations, makes a final determination through the Committee’s deliberation and resolution. Incheon plans to develop the Ganghwa Southern District into a global advanced industrial city integrating future technologies with regional resources. The plan will leverage local agri-food and marine specialties, along with the area’s cultural and natural assets and international airport infrastructure, to foster new growth engines in advanced industries and cultural tourism—including bio, physical AI, and integrated tourism—while establishing a strategic base to respond to the reorganization of global supply chains. The proposed amendment to the development plan for the Sindae Hinterland Complex extends the project period through 2026 to ensure smooth implementation of follow-up projects and adjusts the project area to reflect finalized land survey results. Je Kyung-hee, Director-General of the Free Economic Zone Planning Office, stated, “The Committee will actively reflect the views of local governments and, in close consultation with experts and relevant ministries, create tailored development strategies to position free economic zones as key hubs for foreign investment attraction and regional development." date2025-12-16