Ministry of Trade Industry and Resources

Draft Korean Texts of the Korea–Georgia CEPA and Korea–Malaysia FTA to be Released for Public Comment

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that it will release the draft English and Korean texts of the Korea–Georgia Comprehensive Economic Partnership Agreement (CEPA), concluded in November 2024, and the Korea–Malaysia Free Trade Agreement (FTA), concluded in October 2025. The texts will be available on the government’s FTA website (www.fta.go.kr) from December 31, 2025, to January 19, 2026, during which the ministry will accept public comments. Public comments will be accepted in accordance with MOTIR’s procedural regulations for drafting Korean translations of trade agreements (MOTIR Directive No. 127) to ensure procedural transparency and enhance the reliability of the translations. In consultation with relevant ministries and experts, MOTIR plans to review submitted public input and reflect it, as appropriate, in the final Korean versions. Following reviews by the Ministry of Foreign Affairs and the Ministry of Government Legislation, the agreements will be formally signed after consultations with Georgia and Malaysia, and subsequently submitted to the National Assembly for ratification in accordance with the Trade Treaty Conclusion Procedure Act. date2025-12-31

Number of Middle Market Enterprises in Korea Rises 10.3% Year-on-Year to 6,474

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced on Wednesday, December 31, 2025, the release of the 2024 Basic Statistics on Middle Market Enterprise. The statistics are nationally approved data compiled and released annually since 2015 with approval from Statistics Korea/ As of 2024, the number of middle market enterprises in Korea stood at 6,474, an increase of 606 companies (up 10.3 percent) from 2023. During the year, 669 companies exited the middle market category after growing into large enterprises, reverting to SME status, or ceasing operations, while 1,275 companies entered the category after graduating from SME status or through newly established firms.   Middle market enterprises employed a total of 1.76 million workers in 2024, an increase of 53,000 (up 3.1 percent) from the previous year. Employment in the manufacturing sector rose to 687,000 (up 9,000, or 1.3 percent) year-on-year, while employment in the non-manufacturing sector increased by 45,000 (up 4.4 percent) to a total of 1.07 million.   Total sales of middle market enterprises in 2024 amounted to KRW 1,030.5 trillion, an increase of KRW 46.2 trillion (up 4.7 percent) from the previous year. Sales increased in both the manufacturing (up 2.5 percent) and non-manufacturing (up 6.9 percent) sectors. Within manufacturing, strong growth was recorded in sectors such as electrical equipment (up 9.9 percent), bio-health (up 7.9 percent), and food and beverages (up 6.2 percent). In the non-manufacturing sector, transportation (up 17.6 percent) and information and communications (up 15.2 percent) posted robust growth.    Total assets held by middle market enterprises reached KRW 1,322.6 trillion in 2024, an increase of KRW 95.3 trillion (up 7.8 percent) from the previous year. Operating profit totaled KRW 50.3 trillion (up KRW 2.8 trillion, or 5.9 percent) year-on-year.   Total investment by middle market enterprises in 2024 amounted to KRW 36.4 trillion, an increase of KRW 5.3 trillion (up 17.1 percent) from the previous year. Of the total, R&D investment reached KRW 13.0 trillion (up 35.2 percent), while facility investment stood at KRW 23.4 trillion (up 8.9 percent).   The most common areas for new business initiatives pursued by middle market enterprises in 2024 were environmentally friendly industries (25.7 percent), advanced bio industries (23.9 percent), and renewable energy (13.9 percent). In addition, 39.3 percent of middle market enterprises were found to have adopted ESG management practices, representing an increase of 5.2 percentage points from the previous year.   MOTIR assessed that since the end of the COVID-19 period in 2022, Korea’s middle market enterprises have demonstrated steady growth across all major indicators—including the number of companies, employment, sales, assets, and investment—and noted in particular that the 35.2 percent year-on-year increase in R&D investment underscores the sector’s ongoing efforts to strengthen technological innovation. date2025-12-31

Korea and China Hold Trade Ministers’ Meeting

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and Li Chenggang, Vice Minister of Commerce and International Trade Representative of China, held the Korea–China Trade Ministers’ Meeting on Tuesday, December 30, 2025, at China’s Ministry of Commerce. At the meeting, the two sides discussed ways to accelerate the subsequent negotiations for services and investment under the Korea–China Free Trade Agreement (FTA) and reviewed the status of the FTA’s implementation. To expedite the subsequent negotiations for services and investment, the two sides agreed to regularly convene in-person meetings from 2026 onward, aiming to narrow differences through focused discussions on outstanding issues. They also agreed to hold an additional Trade Ministers’ Meeting in the first half of next year, at which Trade Minister Yeo Han-koo and Representative Li Chenggang will directly review progress in the negotiations and discuss outstanding issues. The discussions further addressed issues related to the implementation of the Korea–China FTA, including those concerning intellectual property rights, the petrochemical sector and government procurement issues. Both sides reaffirmed their commitment to strengthening bilateral cooperation based on the FTA framework. Ahead of the Trade Ministers’ Meeting, Trade Minister Yeo met with Korean stakeholders with business operations in China on December 29, 2025, to review major business trends and hear firsthand about challenges faced by stakeholders on the ground. The Trade Minister and the Korean delegation categorized these concerns by sector, distinguishing between issues that can be addressed in the short term and those requiring mid- to long-term consultations, and exchanged views with stakeholders on future support measures. The Stakeholder concerns raised at the meeting were discussed at the Trade Ministers’ Meeting and will also continue to be addressed in the subsequent negotiations and at the Joint Committee and relevant Committees under the Korea-China FTA as FTA implementation issues. Going forward, MOTIR plans to maintain regular communication with stakeholders to ensure that on-the-ground perspectives are incorporated into policy discussions, while strengthening support to stabilize the business environment and enhance market access for Korean stakeholders in China. During the visit, Trade Minister Yeo held separate meetings with high-level officials (minister-level) from the China Council for the Promotion of International Trade (CCPIT) and the Development Research Center of the State Council (DRC). The discussions covered changes in the global trade environment, the industrial impact of supply chain restructuring and technological innovation, as well as ways to strengthen Korea–China trade cooperation. The need to maintain sustained policy dialogue channels on shared challenges facing stakeholders in both countries, including environmental and digital transitions, evolving global rules, and enhancing the predictability of trade and investment cooperation was underscored during the meetings. Building on this shared understanding, MOTIR plans to gradually establish a practical foundation for cooperation by expanding policy research collaboration and strengthening industry-level communication. In addition, Trade Minister Yeo visited the Korea Innovation Center (KIC) in Zhongguancun to discuss ways to support Korean startups’ entry into the Chinese market. Trade Minister Yeo also visited GALBOT (Beijing Galaxy General Robot Co., Ltd.), an innovative Chinese robotics company, and met with a top executive to observe how robots are deployed in real production settings for quality control, process automation, and digital transformation. The discussions covered key use cases, on-site demand, potential areas for technological cooperation with Korean compan date2025-12-30

M.AX Alliance for Autonomous Ships Enters Full Operation: MOTIR and MOF Join Hands with Shipbuilding and Shipping Industries in a “2+2 Partnership”

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Ministry of Oceans and Fisheries (MOF, Acting Minister Kim Sung-bum) jointly held the Strategic Meeting of the M.AX Alliance for Autonomous Ships on Monday, December 29, at Lotte Hotel Seoul. The meeting brought together approximately 100 participants from around 50 organizations, including shipbuilders, shipping companies, AI firms such as Naver and KT, universities, and research institutes. The meeting was particularly significant, as it marked the first time that key policymakers and industry leaders from Korea’s shipbuilding and shipping sectors convened to discuss a shared vision for the future of the maritime industry. Official Launch of the M.AX (Manufacturing AX) Alliance for Autonomous Ships Autonomous ships are emerging as a key strategic sector for the global shipbuilding and shipping industries as they confront structural shifts driven by tighter carbon-neutrality regulations, higher maritime safety standards, changes in seafaring workforce structures, and intensifying competition from rival countries. While MOTIR and MOF have made substantial progress under Phase I of the Autonomous Ship Technology Development initiative—including successful real-world trials on international shipping routes—acquiring and sharing real-world demonstration data is an essential priority for Phase II development. This industry consensus led to the launch of the Alliance, which brings together the shipbuilding, shipping, and AI industries to develop a shared data foundation and establish a cooperative demonstration framework. Securing a larger volume of demonstration data is critical to achieving technological leadership ahead of the establishment of International Maritime Organization (IMO) standards around 2030. At the meeting, the Alliance outlined its vision around three core pillars: Speed, Engagement, and Alliance (S.E.A.). “Speed” reflects the commitment to rapidly develop and demonstrate autonomous ship technologies to secure early leadership in international standards. “Engagement” emphasizes the Alliance’s role as an industrial cooperation platform that organically integrates shipbuilding and shipping, large enterprises and SMEs, and the public and private sectors. “Alliance” underscores a commitment to shared growth by establishing a virtuous structure that enables outcomes generated within the Alliance to be disseminated across the broader industrial ecosystem. During the event, the Korea Planning and Evaluation Institute of Industrial Technology (KEIT) and the Korea Ocean Business Corporation (KOBC) signed a memorandum of understanding to foster an AI-based autonomous ship ecosystem. By bringing together design and sea-trial data from shipbuilders, operational data accumulated by shipping companies, and algorithmic and data processing capabilities from AI firms, the Alliance will enhance the reliability and technical maturity of AI-enabled autonomous navigation systems. Looking ahead, MOTIR and MOF will launch demonstration projects next year to build the world’s largest public dataset for AI training in autonomous ship technologies, while advancing a project to develop AI-enabled, fully autonomous ships. The Alliance will discuss concrete measures regarding the scope, methods, and targets of data collection, with the outcomes reflected in government-supported programs. The outputs will then be standardized, platformized, and converted into public datasets for broader industry use. The ministries will continue to support these efforts through data sharing, demonstration support, and regulatory improvements. Full-Scale Cooperation Between Korea’s Shipbuilding and Shipping Industries The Korea Offshore & Shipbuilding Association (KOSHIPA) and the Korea Shipowners’ Association (KSA) also signed an agreement to promote share date2025-12-29

Korea Launches “K-Chemistry Roadmap 2030” to Drive a New Leap Forward for Korea’s Chemical Industry

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the inauguration ceremony for the Chemical Industry Innovation Alliance and unveiled the “K-Chemistry Next-Generation Technology Innovation Roadmap 2030” on Tuesday, December 23, at Lotte Hotel Seoul. The event was attended by approximately 150 representatives from local governments, industry, academia, and research institutions. The launch of the Alliance and the announcement of the Roadmap underscore the urgent need to strengthen the chemical industry’s future competitiveness through both the rationalization of production facilities and a shift from commodity-based materials toward high value-added specialty products. Notably, the Roadmap adopts a one-team approach that moves away from fragmented, material-by-material R&D and instead supports the entire chemical industry value chain—from feedstocks and materials to applications and end-demand—by linking it with downstream demand industries such as semiconductors and future mobility. As stated at the petrochemical industry meeting held the previous day, the government will prioritize companies participating in business restructuring when providing R&D support. The “K-Chemistry Next-Generation Technology Innovation Roadmap 2030” outlines implementation strategies to elevate Korea’s chemical industry from fifth place globally to fourth by 2030. The Roadmap seeks to advance R&D and infrastructure to secure core materials and process technologies through three pillars: high value-added transformation, eco-friendly transformation, and strengthened responses to global environmental regulations. To promote the adoption of M.AX within the K-Chemistry industry, the government will support AI-driven technology development and foundational infrastructure across all stages of material design and manufacturing processes. The Roadmap includes plans to establish autonomous experimentation systems that integrate AI with automated equipment to shorten new material development timelines, as well as to implement intelligent process control systems that apply AI at every stage of production—from raw material input through polymerization, separation, post-processing, and fabrication—to optimize process conditions and minimize energy consumption in real time. The Roadmap was developed over six months with the participation of more than 80 domestic experts in technology identification and capability assessment. Following reviews by R&D leaders from petrochemical companies, 217 viable component technologies were identified. These technologies will be classified into four categories based on market potential and technological maturity, with tailored support measures to follow. Based on the Roadmap, MOTIR will design projects through the Alliance and launch large-scale R&D programs in the first quarter of next year. The newly established Chemical Industry Innovation Alliance will serve as both the command center and the engine for implementation, operating as a collaborative model that spans the entire value chain—from feedstocks and materials to applications and end-demand. The Alliance will also coordinate nine flagship projects across nine key sectors, including semiconductors and future mobility. Under this framework, demand-side anchor companies will specify performance requirements for key materials, while ecosystem participants—including SMEs at the feedstock, material, and application stages—will form consortia to develop technologies that meet those requirements and link them to commercialization. Park Dong-il, Director General for Industrial Policy, noted that “petrochemical companies submitted their restructuring plans on December 19 and reaffirmed their commitment to full-scale implementation at a meeting chaired by the Minister yesterday.” He added, “The Roadmap marks a date2025-12-23

16 Companies from Three Petrochemical Complexes Submit Business Restructuring Plans, Successfully Completing the First Step of Structural Reform

All 16 petrochemical companies operating Naphtha Cracking Centers (NCCs) and Propane Dehydrogenation (PDH) facilities across three petrochemical complexes in Yeosu, Daesan, and Ulsan submitted their draft business restructuring plans by December 19, in line with the end-December deadline set out in the government’s roadmap to revitalize the petrochemical industry announced in August.  Following the completion of the first phase of structural reform, the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) chaired a meeting with the petrochemical industry at the Korea Chamber of Commerce and Industry in Seoul on December 22. The meeting was convened to gather industry feedback on the submitted restructuring plans and to encourage their prompt implementation. Minister JK (Jung-Kwan) Kim stated, “The timely submission of restructuring plans by all companies puts the industry on track to meet its voluntary capacity reduction target of 2.7 to 3.7 million tons, provided the plans are fully implemented.” He emphasized that “structural reform must move forward at a faster pace starting next year to deliver tangible results” and urged companies to “promptly establish their final business restructuring plans based on the drafts.” Once companies submit their final plans, MOTIR will review them for approval through a dedicated Business Restructuring Review Committee. Upon approval, the ministry will announce a comprehensive support package—covering finance, tax incentives, R&D, and regulatory easing—to support implementation. To support the shift toward higher value-added production, the Chemical Industry Innovation Alliance will be launched on December 23. The Alliance will bring together all key stakeholders across the chemical industry ecosystem—including demand-anchor companies, small and medium-sized chemical firms, academia, and research institutions—and serve as a collaborative platform to explore R&D programs and infrastructure support measures for core materials, with a view to advancing the industry’s main sectors and accelerating its transition toward more environmentally sustainable production. In advancing such R&D efforts, the government will give priority to the R&D needs of companies participating in the restructuring. The meeting also discussed the “Daesan Project No. 1,” for which HD and Lotte applied for restructuring approval on November 26. The project is currently undergoing preliminary review, with approval targeted for January next year, while the government’s support package has entered its final review stage. Creditor financial institutions are also working to coordinate and finalize financial support measures based on ongoing due diligence. Minister Kim assessed that “despite a tight schedule, all companies had submitted their draft restructuring plans by the end-December deadline set at the August ministerial meeting on strengthening industrial competitiveness, marking a solid start to structural reform.” He added that “while this year focused on laying the strategic groundwork for reform, next year will be decisive in determining its success through execution,” and stressed that “the government and industry will work together as one team toward the successful restructuring of the petrochemical sector.” Minister Kim also emphasized that “the government will pay close attention to potential challenges affecting regional SMEs and employment during the restructuring process,” and said that “a comprehensive support plan for the chemical industry ecosystem will be announced in the first half of next year.” date2025-12-23

MOTIR Holds Public Hearing to Gather Stakeholder Views on Advancing a Korea–Egypt CEPA

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) convened a public hearing on Monday, December 22, at Conrad Seoul to gather stakeholder views on advancing the Korea–Egypt Comprehensive Economic Partnership Agreement (CEPA). Building on the Trade and Economic Partnership MOU signed with Egypt’s Ministry of Investment and Foreign Trade in 2022, MOTIR has jointly conducted a feasibility study to support advancing a Korea–Egypt CEPA. During the Korea–Egypt summit held in November, the two countries agreed to pursue a CEPA as an institutional framework to expand bilateral trade and investment, as well as to strengthen cooperation across diverse areas, including supply chains, the digital sector, and energy. The two sides have since accelerated related procedures, such as concluding the joint economic feasibility study. The public hearing brought together Korean companies operating in Egypt, the Korea Institute for International Economic Policy (KIEP), the Korea International Trade Association (KITA), the Korea Trade-Investment Promotion Agency (KOTRA), and regional experts, who shared views on the expected effects of the Korea–Egypt CEPA and key considerations. One expert panel noted that “advancing a CEPA with Egypt—a key economy in North Africa and a logistics hub anchored by the Suez Canal—carries significant strategic importance, particularly in terms of expanding into emerging export markets amid rapidly shifting global trade conditions.” MOTIR will establish a negotiation roadmap for a Korea–Egypt CEPA by reflecting feedback gathered at the public hearing and will continue domestic and international consultations to facilitate the early launch of negotiations. date2025-12-22

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