Ministry of Trade Industry and Resources

Korea to Build Secure System for Storing and Using Manufacturing Data, a Key Strategic Asset in the AI Era

High-quality manufacturing data and the infrastructure to store and use it are essential to successful AI transformation in manufacturing. The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the third M.AX (Manufacturing AI Transformation) Expert Conference on June 5, 2026, to mark the administration’s first anniversary. The conference brought together manufacturing AI experts from industry, academia, and research institutions under the theme “Manufacturing Data, AI Models, and Infrastructure: The Keys to Successful M.AX.” Participants discussed the role of manufacturing data in M.AX and the AI models and infrastructure needed to secure and use high-quality data. Progress to Date As global AI competition intensifies, the success of M.AX depends on close cooperation among manufacturers, AI companies, academia, and research organizations. Korea’s world-class manufacturers and the high-quality data they hold are strategic assets in making the country a global leader in M.AX. The government is working to build a win-win environment and infrastructure needed for manufacturers and AI companies to develop manufacturing AI models that can be deployed directly at production sites. MOTIR is working through the M.AX Alliance, which brings together more than 1,500 manufacturers, AI companies, universities, and research organizations across 11 divisions, to secure manufacturing data and build an ecosystem for its use. The AI Factory Division is establishing a basis for using manufacturing process data through the AI factory project, which applies AI to manufacturing processes to improve productivity. It is also pursuing R&D to develop industry-specific foundation models and, through a new tacit-knowledge AI model project launched in June 2026, will accumulate data capturing the know-how of skilled workers across industries and processes. The AI Robotics Division is selecting flagship tasks where humanoids can be deployed and collecting motion data generated during development and demonstrations. The Autonomous Ship Division launched an AI data platform project in May 2026 to build infrastructure for securing real-world operational data from about 6,000 voyages, while the AI Future Mobility Division has begun developing a data pipeline to collect and process driving data alongside autonomous driving development and demonstrations. Plans Ahead Manufacturing data often contains critical intellectual property (IP), including core technologies and production know-how, as well as sensitive business information. Companies that provide such data therefore have strong concerns about possible leaks. To address this, MOTIR will build a manufacturing data library that will securely store, manage, and use data provided for follow-up R&D projects. Because the library will hold high-quality manufacturing data, MOTIR will put in place dedicated safeguards and procedures to prevent leaks and maintain security. Data may be used only in an isolated clean room and may not be taken outside, while access will be subject to a separate, strict review process. Until the manufacturing data library is completed, MOTIR is using the Manufacturing AI Solution Development Support Center, operated by the Korea Electronics Technology Institute (KETI), as an interim hub. Since May 2026, the ministry has been storing data collected through the AI factory project and other initiatives at the center. Using this data, MOTIR plans to develop a prototype manufacturing AI foundation model by the end of 2026 and work with M.AX Alliance participants to test its field application and performance. It will also continue securing product data and developing product AI models. The AI Robotics Division will collect robot behavior and training data through industrial-site demonstrations and the planned robot data factory, while the Autonomous Ship Division will link real-world voyage data, data already h date2026-06-05

Minister Yeo Leads OECD Talks on the Future of Industrial Policy and WTO Reform

Minister for Trade Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) represented Korea at the 2026 OECD Ministerial Council Meeting (MCM), held June 3–4, 2026, at OECD headquarters in Paris, as the government’s chief delegate and the lead representative of a vice-chair country. At the meeting, he discussed industrial policy approaches that can support open markets, growth, and prosperity with OECD member and partner countries. As Korea marks the 30th anniversary of its accession to the OECD, Minister Yeo helped lead discussions in three of the MCM’s six sessions: he delivered a keynote statement in the industrial policy session, gave lead remarks in the trade session, and chaired a group discussion in the investment session. Active Contributions to Global Discussions on Balanced Industrial Policy and WTO Reform (1) Korea’s Experience with M.AX, the Energy Transition, and the Five Mega-Regions and Three Special Self-Governing Provinces Initiative At the session on “Balancing the Goals and Impacts of Industrial Policy,” Minister Yeo said that supply chain instability, economic security concerns, the spread of AI and digital technologies, and the low-carbon transition are bringing industrial policy back into focus. He shared Korea’s key policy experience, including Manufacturing AI Transformation (M.AX), AI factories, and physical AI, and stressed that industrial policy should not replace markets but help spread new technologies and raise productivity. Minister Yeo also noted that recent developments in the Middle East have underscored the importance of energy security for energy-importing countries such as Korea. He said Korea is diversifying energy imports in the near term while pursuing an energy transition that balances renewable energy with nuclear power over the medium to long term. He also presented the regional growth-engine strategy under the Five Mega-Regions and Three Special Self-Governing Provinces initiative and emphasized the need for close cooperation with private-sector actors, including industry, academia, and research institutions. As industrial policies can have cross-border effects, he called for avoiding subsidy races, beggar-thy-neighbor policies, and zero-sum competition, and asked the OECD to serve as a platform for dialogue and peer learning based on empirical analysis. (2) The Importance of Aligning Trade and Industrial Policies On the second day, Minister Yeo attended the session on “Open Markets, Free and Fair Trade, and a Level Playing Field,” where he stressed that open markets and the rules-based trading system remain essential foundations for global growth and prosperity. He said trade and industrial policies should be designed and implemented in close coordination as governments make broader use of industrial policies. He also noted that subsidies can support green and digital transitions, the development of critical technology, and supply chain resilience. However, excessive subsidy competition can undermine fair competition and the order of open markets. Minister Yeo called on the OECD to work with the WTO and others to develop international standards and principles on transparency, proportionality, and the risk of market distortion. (3) Discussions on Investment for Sustainable Growth Minister Yeo chaired a session on investment for sustainable growth, where participants discussed how industrial policy can support the green transition and sustainable growth. The discussion focused on the development and deployment of clean and high-efficiency production technologies, as well as market-based incentives to promote clean technology innovation and private investment. Minister Yeo said the green transition can create opportunities for clean technology innovation and new growth engines over the long term, but may also weigh on industrial competitiveness in the short date2026-06-05

The Republic of Korea and Canada Deepen Co-operation on Energy Resources and Critical Minerals

Today, Republic of Korea’s Chief of Staff to the President and Special Envoy for Strategic Economic Cooperation, Kang Hoon-Sik, met with the Canada’s Minister of Energy and Natural Resources, Tim Hodgson.   They highlighted significant opportunities to expand the Korea–Canada commercial relationship in energy and natural resources, with Canada positioned to be a stable, reliable and predictable partner for the Republic of Korea. Energy resources and critical minerals co-operation remain central to our bilateral relationship, anchored by the existing Memorandum of Understanding between Natural Resources Canada and Innovation, Science and Economic Development Canada and the Ministry of Trade, Industry and Resources of the Republic of Korea on Cooperation in Critical Mineral Supply Chains, the Clean Energy Transition and Energy Security.    The Republic of Korea and Canada continued discussions on priority areas, including joint stockpiling of critical minerals, investments in strategic natural resources projects and policy measures to stabilize energy supplies. They agreed that the Republic of Korea’s Ministry of Trade, Industry and Resources and Natural Resources Canada will develop a joint plan on critical minerals stockpiling by the end of 2026 as part of a shift to a more integrated supply chain partnership. They welcomed an implementation agreement between the Geological Survey of Canada (GSC) and the Korea Institute of Geoscience and Mineral Resources (KIGAM) to advance research and development collaboration on naturally occurring hydrogen.   The Republic of Korea and Canada are also deepening energy trade, including increasing Canadian exports of liquefied petroleum gas and liquefied natural gas to Korea. The Korea Gas Corporation remains a key investor in LNG Canada Phase I and a prospective partner for Phase II. A final investment decision for Phase II is expected later this year, after recent progress was made by the Governments of Canada and British Columbia. Once the decision is made and LNG Phase II enters full production — which is expected in the early 2030s — the Republic of Korea plans to import at least 1.4 million tons of Canadian LNG annually for more than 30 years. The Republic of Korea also plans to significantly increase imports of Canadian crude in the coming years and has agreed to facilitate the application of preferential tariff treatment on Canadian crude imports within the framework of the Korea–Canada Free Trade Agreement, furthering strengthening our energy ties.  The Republic of Korea and Canada will continue to build on a strong, forward-looking partnership in energy and natural resources, grounded in shared priorities of resource security, the clean energy transition and sustainable critical mineral development. Quotes “Amidst geopolitical risks, Korea and Canada stand as deeply reliable partners. Built on this trust, our co-operation strengthens our mutual resource security while synergizing perfectly with our resilient industrial base. Moving forward, we are committed to elevating this foundation into a fully integrated energy supply chain partnership.” Kang Hoon-Sik Republic of Korea’s Chief of Staff to the President and Special Envoy for Strategic Economic Cooperation “Canada and the Republic of Korea share a strong and growing partnership built on our mutual interest in energy security, accelerating and diversifying critical minerals supply chains, and responsibly advancing the clean energy transition. As global demand rises, Canada is proud to be a stable and dependable partner to Korea and beyond, ready to deepen collaboration and unlock new opportunities for sustainable economic growth in both our countries.” The Honourable Tim Hodgson Canada’s Minister of Energy and Natural Resources date2026-06-02

Korea, Canada Move Beyond Trade to Build Advanced Industry Partnership

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the Korea–Canada Advanced Industry Cooperation Business Roundtable (BRT) in Toronto on June 1, 2026. Organized by the Korea Trade-Investment Promotion Agency (KOTRA), the roundtable brought together Kang Hoon-sik, Chief of Staff to the President of the Republic of Korea and Special Envoy for Strategic Economic Cooperation; MOTIR Vice Minister Moon Shin-hak; Lee Yong-cheol, Minister of the Defense Acquisition Program Administration (DAPA); Stephen Lecce, Ontario’s Minister of Energy and Mines; and more than 50 business leaders from major defense, space, and hydrogen companies in Korea and Canada. The roundtable focused on practical cooperation projects between companies in future growth industries with significant potential for strategic cooperation between Korea and Canada, including defense, space, and hydrogen. Participants also explored how both governments could support these efforts. Hanwha presented possible defense and space cooperation, while Hyundai Motor outlined hydrogen cooperation opportunities, including projects in Canada. “By combining Canada’s abundant resources and advanced technologies with Korea’s world-class manufacturing capabilities, the two countries can lead global markets in advanced industries,” Special Envoy Kang said. “Industrial cooperation between Korea and Canada should go beyond simple buying and supplying and develop into a broader ecosystem that connects technology, security, and talent.” The delegation then visited Martinrea International Inc., a key party to the MOU signed in April 2026 between Hanwha and the Automotive Parts Manufacturers’ Association (APMA) of Canada. APMA President Flavio Volpe and executives from eight leading Canadian auto parts companies also joined the visit, showing strong interest in defense manufacturing cooperation with Korea. Special Envoy Kang said cooperation between Hanwha and APMA marks an important step for Canada’s automotive industry, a cornerstone of the Ontario economy, to expand into defense. “I hope companies from both countries will build new models for success in Canada and create new opportunities to jointly expand into third-country markets,” he said. MOTIR also announced that Korean and Canadian companies signed three MOUs in space and defense on the sidelines of the roundtable and site visit, covering satellite communications, launch facilities, and defense vehicles. date2026-06-02

MOTIR Discusses Accelerating Economic Cooperation with Oman in Resources, Plant Projects, and Logistics

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) held a video meeting with H.E. Qais bin Mohammed Al Yousef, Chairman of Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ), on June 1, 2026. The two sides discussed key economic issues, including stable resource supplies, plant project opportunities for Korean companies, and facilitating logistics flows. Amid continued uncertainty in the Middle East, the Korean government has taken broad measures to secure stable resources and mitigate potential impacts on supply chains and exports, helping establish a stable supply base for crude oil and naphtha. The meeting built on this progress and sought to accelerate cooperation with Oman, which is located outside the Strait of Hormuz and has potential as both an alternative logistics hub and resource supplier. Minister Kim recognized Oman as a key energy and resource partner for Korea and noted its contribution to stable crude oil and naphtha supplies. He thanked the Omani government for its cooperation following the April 2026 visit by Korea’s Special Envoy for Strategic Economic Cooperation and asked for continued support to ensure that the crude oil and naphtha supplies discussed during the visit proceed without disruption. Minister Kim noted that Korean companies have successfully carried out major plant projects in Oman, including the Duqm Refinery and Manah Solar Power Plant. He asked for Oman’s interest and support in facilitating Korean companies’ participation in new projects in the country, drawing on their proven technology and project experience. The meeting also covered ways to utilize Oman’s major ports as alternative logistics hubs that bypass the Strait of Hormuz. Minister Kim explained that Korean companies shipping cargo to Saudi Arabia through the Port of Duqm face procedural difficulties, including customs payment and refund procedures in Oman and duplicate inspection and quarantine checks at the Saudi border. He asked Oman to help streamline procedures so that cargo transiting through Oman can move quickly to Saudi Arabia and other final destinations. The two sides noted that the Korea–Oman Economic Cooperation Committee, which has served as a forum for discussions on trade, investment, resources, technology, and other key economic issues, has not met since its fifth meeting in 2016. They agreed to continue consultations on the timing and agenda so that the committee can resume at an early date and help expand bilateral cooperation. “Oman is an important partner in the Middle East, given its location outside the Strait of Hormuz and its abundant energy resources,” Minister Kim said. “Korea will build on this meeting and the resumption of the Economic Cooperation Committee to give new momentum to bilateral cooperation and identify practical ways to work together in resource security, plant projects, and logistics.” date2026-06-01

May 2026 Exports Reach Monthly Record of $87.8 Billion

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that in May 2026, Korea’s exports rose 53.2 percent year-on-year to USD 87.8 billion, while imports increased 20.8 percent to $60.8 billion, resulting in a $27.0 billion trade surplus. Exports in May reached a monthly record and topped $80.0 billion for the third consecutive month. Semiconductor exports rose 169.4 percent, while exports excluding semiconductors increased 16.0 percent. Average daily exports, adjusted for working days, rose 60.7 percent to $4.3 billion, exceeding $4.0 billion for the first time. By product, exports increased in 12 of Korea’s 20 key export items. Semiconductor exports reached $37.2 billion, up 169.4 percent, setting a new monthly record and topping $30.0 billion for the third consecutive month. DRAM exports rose to $18.6 billion, up 369.8 percent, and NAND exports to $1.7 billion, up 206.8 percent. Other IT items also increased, with computers rising to $4.2 billion, up 290.7 percent; wireless communication devices to $1.5 billion, up 12.6 percent; and displays to $1.5 billion, up 9.4 percent. Automobile exports fell to $5.8 billion, down 5.9 percent, while ship exports rose to $2.6 billion, up 16.7 percent. Petroleum product exports increased to $5.3 billion, up 46.6 percent, although export volumes fell 23.8 percent. Petrochemical exports rose to $3.7 billion, up 11.1 percent, while export volumes declined 25.5 percent. Steel exports edged down to $2.0 billion, down 2.1 percent; nonferrous metals rose to $1.7 billion, up 41.5 percent; and general machinery fell to $3.8 billion, down 6.3 percent. Among consumer goods, biohealth exports rose to $1.4 billion, up 5.2 percent; cosmetics increased to $1.2 billion, up 24.2 percent, setting a new May record; and agricultural and fisheries products rose to $1.1 billion, up 4.7 percent. By destination, exports increased in seven of Korea’s nine major markets. Exports to China rose to $18.9 billion, up 80.9 percent, extending their growth streak to seven consecutive months. Exports to the United States increased to $16.0 billion, up 59.1 percent, while exports to ASEAN rose to $15.9 billion, up 58.4 percent, setting a new monthly record. Exports to the EU increased to $6.2 billion, up 2.4 percent, extending their growth streak to six consecutive months. Exports to the Middle East fell to $1.3 billion, down 7.7 percent. Imports rose 20.8 percent year-on-year to $60.8 billion. Energy imports increased to $11.8 billion, up 15.9 percent, while non-energy imports rose to $49.1 billion, up 22.0 percent. Crude oil imports increased to $8.5 billion, up 25.0 percent, with import volumes rising month-on-month from 62.6 million barrels in April to 69.8 million barrels in May. Among non-energy imports, petroleum products rose to $2.6 billion, up 71.0 percent, and semiconductor equipment to $2.6 billion, also up 71.0 percent. The trade surplus in May reached $27.0 billion, up $20.0 billion from May 2025. Korea’s cumulative trade surplus from January to May reached $101.9 billion, surpassing the previous annual trade surplus record. Minister JK (Jung-Kwan) Kim stated, “With exports increasing again in May, Korea has maintained export growth for 12 consecutive months since the current administration took office. The cumulative trade surplus for January to May has also surpassed Korea’s previous annual trade surplus record.” He added, “This reflects exports growing at a faster pace despite higher imports caused by rising oil prices from the conflict in the Middle East. IT items led by semiconductors, as well as consumer goods such as cosmetics and agricultural and fisheries products, continued to perform well.” Minister Kim also noted that uncertainty remains over the conflict in the Middle East, U.S. tariffs, and the EU’s steel tariff-rate quotas (TRQs). He said the government will continue date2026-06-01

Korea to Reform U-Turn Policy to Promote Regional Investment

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced measures to redefine and promote Korea’s U-turn policy at the Ministerial Meeting on Economic Affairs on May 29, 2026. In response to rising global protectionism and supply chain realignments, the measures form part of a key national policy task to move beyond the simple relocation of overseas operations, promote regional investment, and secure domestic production and innovation capacity in advanced strategic sectors. The government will focus on four priorities: redefining eligibility for U-turn companies, reforming the U-turn subsidy system, strengthening screening and management while rationalizing implementation requirements, and providing targeted support to attract companies and facilitate investment execution. 1. Redefining Eligibility for U-Turn Companies Korea’s initial U-turn policy focused on helping Korean companies with overseas operations return home when business conditions deteriorated, leaving eligibility narrowly defined. Reflecting a broader shift in major economies such as the United States and Japan, which are expanding reshoring support to secure production capacity in advanced strategic sectors, the government plans to revise relevant laws and regulations on U-turn companies in 2026 and implement the revised framework in 2027. First, the government will ease the same-or-similar product and service requirement by broadening how similarity is assessed. In addition to materials, parts, and production processes, assessments will also consider function, use, core technologies, and supply chains. This will help companies invest in new industries and upgrade their business structures. The government will also broaden the exemption cases in which companies can qualify for U-turn recognition without closing, selling, or downsizing their overseas operations. Companies in advanced industries or supply chain sectors will also qualify for this exemption if their investment in Korea is recognized as a core production facility, or “mother factory.” Through these changes, the government aims to move beyond formal requirements and secure advanced manufacturing and innovation capacity in Korea. 2. Reforming the U-Turn Subsidy System The current U-turn subsidy system applies preset subsidy rates under a fixed table, limiting its ability to attract high-quality returning companies to regions outside the capital area. To promote regional investment and U-turn investment in advanced strategic sectors, the government will shift to a case-by-case negotiation model for subsidies. Under the new model, the government and companies will consult on support levels for strategic sectors such as advanced industries and supply chains, as well as large-scale investment projects. Support will vary based on factors including non-capital region investment, youth employment, advanced strategic technologies, and whether the project involves a mother factory. The government will also replace fixed subsidy caps with maximum subsidy rates, while keeping the current system for general industries and small-scale investments. 3. Strengthening Screening and Follow-Up Management Some designated U-turn companies have lost their status after failing to make domestic investments as planned. To improve follow-through and keep unqualified companies out of the system, the government will screen investment plans and companies’ execution capacity more closely from the selection stage. It will also establish a working-level committee on domestic return to systematize company selection and subsidy reviews and set procedures for the negotiated subsidy model. For subsidized companies, the implementation period will be extended beyond the current three years based on the scale of support. Post-designation requirements will also be adjusted to reflect automation at manufacturing sites and changes in the in date2026-05-29

Trade Minister Reviews Export Operations for Korea’s Leading Electrical Equipment Industry

Korea’s exports topped USD 80.0 billion in both March and April 2026, marking new export milestones. In particular, Korean electrical equipment exports are expected to reach a record high in 2026 as global demand grows, driven by AI infrastructure expansion, green energy transition policies, and replacement demand for aging U.S. power grids. Marking the administration’s first anniversary, Minister for Trade Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) visited HD Hyundai Electric on May 29, 2026. During the visit, Minister Yeo reviewed the company’s export operations and met with the electrical equipment industry to hear directly from companies and discuss government support for expanding Korean electrical equipment exports. At the roundtable, participating companies asked MOTIR to help stabilize supply chains, including those for raw and subsidiary materials, and support continued business operations and exports amid global uncertainty. MOTIR will provide wide-ranging support to help Korean industries, including electrical equipment, sustain export growth. In 2026, the ministry will expand trade insurance to a record KRW 275.0 trillion, including KRW 114.0 trillion for SMEs and middle-market companies, to support balanced growth between large companies and smaller firms. MOTIR will also provide KRW 127.0 trillion over the next five years in financing, performance guarantees, and other support for medium- to long-term, large-scale projects in areas such as nuclear power, defense, and electrical equipment. For electrical equipment, MOTIR will help Korean companies win energy infrastructure projects worldwide by identifying opportunities, matching companies with projects, and arranging early financing as demand rises from AI data centers and other sources. “Even amid global uncertainty, Korea’s electrical equipment industry continues to lead global markets with highly competitive technologies,” Minister Yeo said. “The government will expand trade finance and utilize trade channels with major economies to help Korean companies expand their global reach.” Minister Yeo also met with local Ulsan companies, including Hanjoo Light Metal, INPRO E&C, LIHAON, Colorant Corea, Yetgan, ECOCAB, and Rinno Aluminum, at a working lunch to hear their business concerns. He highlighted that the government will continue supporting local and small businesses as they take their first steps into export markets and provide sustained support for promising SMEs to become key contributors to Korea’s exports. date2026-05-29