Ministry of Trade Industry and Resources

MOTIR Approves First Petrochemical Restructuring Project, Unveils Support Package of Over KRW 2.1 Trillion

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced on February 23, 2026, that it approved the final plan for the “Daesan No. 1” restructuring project submitted by HD Hyundai Oilbank, HD Hyundai Chemical, and Lotte Chemical. This marks the first approval under the Petrochemical Industry Restructuring Roadmap released in August 2025. Under the plan, Lotte Chemical will separate its Daesan operations and merge the business with HD Hyundai Chemical to integrate the naphtha cracking center (NCC) and downstream facilities. HD Hyundai Oilbank and Lotte Chemical will inject a combined KRW 1.2 trillion into the newly established entity, adjusting HD Hyundai Chemical’s ownership structure from 60:40 to 50:50. The companies will finalize the setup after signing the merger-related agreements, securing board approvals, and completing the spin-off and merger procedures. In coordination with relevant agencies, MOTIR prepared a tailored support package that includes financing of up to KRW 2 trillion, tax measures, and steps to streamline regulatory approvals—including merger review and permitting/licensing procedures. The package also provides KRW 69–115 billion to ease utility and raw-material cost burdens, as well as measures to address industrial and employment challenges in affected regions. For R&D, MOTIR will fast-track support starting this year for two high-value projects requested by the approved companies, totaling KRW 26 billion. Over the longer term, MOTIR will pursue additional large-scale programs to support the shift to higher value-added and greener production. During the three-year restructuring period, the Daesan No. 1 project is expected to ease oversupply at the complex by suspending one ethylene production facility and scaling back low-margin downstream operations, while improving utilization across remaining assets. In addition, vertical integration across the refining–petrochemical value chain is expected to bolster feedstock security and cost competitiveness, while enabling flexible output adjustments in line with refining margins and naphtha spreads. Once the integrated corporation is in place, the combined business is expected to move away from commodity-driven exports by expanding high-value materials, including high-elastic lightweight materials and organic solvents for electrolytes. The business will also shift to lower-carbon feedstocks and processes by using bio-based naphtha and introducing ethane as a feedstock. Operational integration, backed by shareholder measures, is expected to strengthen the company’s financial position. MOTIR will expedite follow-up restructuring projects, using public-private consultations to refine project-specific proposals submitted in December 2025 and to help companies finalize and file their restructuring plans. The ministry will also promptly draft the enforcement decree for the Special Act on Strengthening and Supporting the Competitiveness of the Petrochemical Industry, establishing the institutional basis to implement approved restructuring plans. In March 2026, the government will launch a Chemical Industry Ecosystem Forum to develop policy measures that limit the impact of restructuring on local economies, employment, and SME suppliers. Building on the forum’s discussions, the government will prepare a comprehensive support package for the sector in the first half of 2026. On February 25, 2026, MOTIR held a CEO roundtable at the Korea Trade-Investment Promotion Agency (KOTRA) to outline the support package and discuss next steps for implementation. At the meeting, Minister JK (Jung-Kwan) Kim thanked the companies behind the first approved project and called for thorough implementation to keep the plan on track. Minister Kim described the Daesan No. 1 project as the first tangible outcome of government–industry coordination, noting that it will help acce date2026-02-25

Government and Industry Step Up Coordination in Response to U.S. IEEPA Ruling and Tariff Measures

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) chaired a public-private joint response meeting on February 23, 2026, at the Korea Chamber of Commerce and Industry (KCCI) in Seoul. The meeting brought together economic organizations, major industry associations, related institutions, and relevant ministries to discuss next steps following a U.S. Supreme Court ruling that limited executive authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), along with the U.S. administration’s announcement of additional tariff measures. Participants reviewed the potential impact on Korea’s industries and exports after the U.S. administration announced follow-up actions, including the imposition of a global tariff under Section 122 of the Trade Act and plans to initiate investigations under Section 301. They also gathered industry input and discussed possible response measures. Participants noted that, while Section 232 tariffs remain in place after the IEEPA ruling, additional U.S. actions—including a flat 15 percent global tariff imposed under Section 122 on products previously subject to reciprocal tariff measures and the planned initiation of Section 301 investigations—could have overlapping impacts on Korea’s industries and exports. They agreed on the need for close public–private coordination amid growing uncertainty in global trade. Minister Kim stated, “Under the principle of maximizing the national interest, the government will maintain close communication with the U.S. side to ensure that the balance of benefits secured under the Korea–U.S. tariff agreement and conditions for Korean exports to the United States are not undermined.” He added, “We will continue to strengthen companies’ competitiveness and step up export market diversification in light of possible shifts in the export environment. We will also work with relevant institutions and industry associations to provide companies with timely information amid uncertainty over tariff refunds.” Going forward, the government will continue to monitor U.S. follow-up measures and moves by other countries and will work to minimize uncertainty for the Korean economy and businesses. date2026-02-24

Korea–India Trade and Investment Ties to Open New Avenues with New Southern Policy Partners

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) attended the Korea–India Economic Cooperation Conference on February 20, 2026, at Lotte Hotel Seoul. Held under the theme “The Future of Korea–India Economic Cooperation for Shared Prosperity,” the conference examined practical directions for future economic cooperation with India, a country drawing growing attention as a next-generation manufacturing base and key supply chain hub, backed by its vast domestic market and an annual growth rate of 6 to 7 percent. The event brought together approximately 200 participants—including Gourangalal Das, Ambassador of India to the Republic of Korea, and Shri Rajat Kumar Saini, CEO & MD of India’s National Industrial Corridor Development Corporation (NICDC), along with government officials and representatives from companies and institutions, underscoring strong interest on both sides in bilateral economic cooperation. In the presentation session, the Korea Institute for International Economic Policy (KIEP) reviewed recent trends in Korea–India economic and trade cooperation. The institute noted that India has maintained robust growth supported by a large, young population, financial stability, and proactive industrial policies, and emphasized the need to step up collaboration in advanced industries and supply chains. In addition, Korean companies that have successfully entered the Indian market in advanced industries, consumer goods, and content shared their on-the-ground experiences and key outcomes. The Indian government presented India’s investment climate and incentives and outlined policies to foster shipbuilding and maritime industries, suggesting new opportunities for cooperation. A panel discussion followed with participants from the Korea Trade-Investment Promotion Agency (KOTRA), the Korea Institute for Advancement of Technology (KIAT), and the POSCO Research Institute. The panel discussed ways to strengthen Korea–India strategic cooperation and agreed on the need for closer government–industry–research collaboration to maximize synergies in areas where the two countries have complementary strengths, including AI, advanced industries, and aerospace. Trade Minister Yeo underscored that economic cooperation with India “matters more than ever” amid rapid shifts in the global trade environment, describing India as a core New Southern Policy partner and a leading member of the Global South. He added, “India’s GDP—roughly USD 4.0 trillion—is about the same as the combined GDP of the 11 ASEAN countries. Yet Korea’s annual trade with India stands at about USD 25.0 billion, compared with around USD 200.0 billion with ASEAN, which indicates substantial room to expand Korea–India trade.” He said the two countries will broaden their partnership to cover cooperation in AI, digital trade, supply chains, green energy, and manufacturing in response to the new trade environment. He affirmed that “Korea will work with the Indian government to resolve key economic cooperation issues, including the upgrade talks on the Korea–India Comprehensive Economic Partnership Agreement (CEPA), to create the best possible conditions for bilateral cooperation." date2026-02-20

January 2026 Automobile Exports Reach $6.1 Billion, Second-Highest January on Record

In January 2026, automobile export volumes (up 23.4 percent), domestic sales (up 14.0 percent), and production (up 24.1 percent) all increased year-on-year. The gains reflected base effects, as the 2025 Lunar New Year holiday fell on January 25–30, leaving three fewer working days than in 2026, as well as solid exports of eco-friendly vehicles. Automobile exports totaled USD 6.1 billion, up 21.7 percent year-on-year, the second-highest January export value on record. Eco-friendly vehicle exports accounted for 42 percent of the total, led by hybrid vehicles at $1.7 billion (up 85.5 percent) and electric vehicles at $0.8 billion (up 21.2 percent). Export volumes reached 247,000 units, up 23.4 percent year-on-year. Eco-friendly vehicles amounted to 92,000 units (up 51.5 percent), accounting for 37.4 percent of total exports. Domestic sales rose 14.0 percent year-on-year to 121,000 units. Domestically produced vehicles totaled 98,000 units (up 9.6 percent) and imported vehicles totaled 23,000 units (up 37.9 percent). By model, the Sorento, Sportage, and Carnival recorded the highest sales volumes. Eco-friendly vehicle sales increased 48.3 percent year-on-year to 58,000 units, accounting for 47.7 percent of domestic sales. Electric vehicle sales rose to 10,000 units, up 507.2 percent year-on-year. Production rose 24.1 percent year-on-year to 361,000 units on strong exports and domestic sales. By model, the Trax recorded the highest output, followed by the Avante and Kona. Output increased year-on-year across all five domestic automakers, and some automakers that had temporarily suspended plant operations in January 2025 posted production growth of more than 2,000 percent. date2026-02-19

ICT Exports Post Highest-Ever January Performance

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Ministry of Science and ICT (MSIT, Deputy Prime Minister and Minister Bae Kyung-hoon) announced on February 13, 2026, that Korea’s ICT exports in January totaled USD 29.1 billion, up 78.5 percent year-on-year. Imports rose 20.0 percent year-on-year to $14.1 billion, resulting in a trade surplus of $15.0 billion. In January 2026, ICT exports posted the highest January total and year-on-year growth on record. The increase reflected expanding global demand for AI infrastructure and the ongoing shift toward higher-specification ICT devices. ICT products accounted for 44.1 percent of Korea’s total exports, which stood at $65.9 billion. By product, exports recorded double-digit growth across all major ICT categories: semiconductors (up 102.7 percent), displays (up 19.0 percent), mobile phones (up 75.1 percent), computers and peripherals (up 83.7 percent), and communication equipment (up 26.7 percent). Average daily exports, adjusted for the number of working days, reached $1.2 billion, up 51.9 percent from $0.8 billion a year earlier. Semiconductor exports posted triple-digit growth, supported by continued increases in contract prices for memory chips, including DRAM and NAND, and expanding demand for high-value products such as HBM and DDR5. Display exports rebounded as OLED shipments for new mobile devices gained momentum. Mobile phone exports were led by solid demand for premium finished products. Computers and peripherals posted double-digit growth for two consecutive months on strong demand for data center SSDs. Communication equipment exports increased for the seventh straight month, driven by higher automotive equipment exports to the United States and components to Vietnam, Japan, and other Asian markets. By destination, exports increased in all major markets: the United States (up 110.7 percent), China, including Hong Kong (up 94.5 percent), Taiwan (up 91.6 percent), Vietnam (up 63.6 percent), the European Union (up 30.8 percent), Japan (up 21.0 percent), and India (up 4.5 percent). In particular, exports to the United States posted triple-digit growth, led by semiconductors (up 188.7 percent). ICT imports totaled $14.1 billion in January 2026, up 20.0 percent from $11.8 billion a year earlier, as imports increased across all major ICT categories: semiconductors (up 22.2 percent), displays (up 30.4 percent), mobile phones including parts (up 31.4 percent), computers and peripherals (up 11.8 percent), and communication equipment (up 24.4 percent). date2026-02-13

MOTIR and AMCHAM Discuss Cooperation to Maintain a Stable Korea–U.S. Trade Environment

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) met with representatives of member companies of the American Chamber of Commerce in Korea (AMCHAM Korea), including U.S.-invested companies, on February 12, 2026, to discuss the Korean government’s approach to maintaining a stable Korea–U.S. trade relationship and strengthening bilateral cooperation. Held at AMCHAM Korea’s invitation, the meeting featured a Q&A session between Trade Minister Yeo and James Kim, Chairman & CEO of AMCHAM Korea. In his opening remarks, Trade Minister Yeo thanked U.S. companies for their continued investment, noting that U.S. investment in Korea reached a record high in 2025. He stated, “The Korean government will faithfully implement the Korea–U.S. tariff agreement and share key updates with the U.S. government and businesses to maintain a stable bilateral trade environment and strengthen economic cooperation.” Chairman Kim said, “AMCHAM fully supports the Korean government’s efforts and will continue to coordinate closely with the government so that companies in both countries can operate in a stable and future-oriented environment.” In the Q&A session, the discussion focused on the Korean government’s policy direction in response to recent changes in the trade environment, efforts to strengthen Korea–U.S. investment cooperation, and measures to improve the foreign direct investment climate. The Korean government reiterated its commitment to gather views from foreign-invested companies and other stakeholders throughout the rollout of related policies. In 2026, MOTIR will continue to foster a predictable investment environment for foreign investors and maintain close communication with the United States to ensure stable Korea–U.S. trade relations. date2026-02-12

Korea and Italy Discuss Measures to Improve Trade Conditions and Expand Cooperation in Advanced Industries

Park Jung-sung, Deputy Minister for Trade at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim), met with Maria Tripodi, Italy’s Undersecretary of State for Foreign Affairs and International Cooperation, on February 11, 2026, at the Seoul Government Complex to discuss follow-up measures to implement the outcomes of the Korea–Italy summit held on January 19, 2026. The two sides shared the view that a sustainable business platform is needed to deepen collaboration between the private sectors, along with improved investment conditions to facilitate market entry. They also exchanged views on priority areas and timelines for stepping up cooperation in advanced industries, including semiconductors and AI. They discussed cooperation to jointly engage in third countries, including Africa, to strengthen critical mineral supply chains. The two sides agreed to keep communication channels open and to regularly review progress in implementing the summit outcomes, further solidifying their strategic partnership in trade and industry. Deputy Minister Park noted that “the meeting marked an important step toward implementing the outcomes of Italy’s first visit by an Italian prime minister to Korea in 19 years.” He added that “the Italian government has indicated that it will review its newly introduced tax credit scheme to ensure that partner countries, including Korea, are not excluded,” expressing his hope that the matter would be resolved promptly. He also asked for Italy’s active cooperation to ease uncertainty for Korean companies entering the Italian market and to help joint initiatives on future industries highlighted at the summit deliver tangible results. date2026-02-11

SEMICON Korea 2026 Connects Korea’s MPE Firms with Global Semiconductor Supply Chains

SEMICON Korea 2026, Korea’s largest semiconductor exhibition, will take place from February 11 to 13, 2026, at COEX and other venues. Hosted by SEMI, a global association representing the advanced electronics industry, the event brings together around 550 Korean and international semiconductor companies across 2,409 booths. Beyond the exhibition, the event features more than 30 side programs, including an AI summit co-hosted by SEMI and the Korea Advanced Institute of Science and Technology (KAIST), a U.S. investment forum held with SelectUSA, a Korea–Netherlands technology cooperation seminar, and mentoring sessions for university students. AI-driven demand is expected to push the global semiconductor market above USD 1 trillion for the first time in 2026, with growth also expected in semiconductor materials, parts, and equipment (MPE). Semiconductor competition is shifting from firm-to-firm rivalry over performance gains to rivalry between ecosystems. This shift underscores the growing importance of an integrated value chain spanning design, manufacturing, packaging, and MPE. Against this backdrop, SEMICON Korea 2026 invites semiconductor companies to share the latest technology and market trends, take stock of where the ecosystem stands and where it is heading, and explore opportunities for collaboration. The event also offers business-matching sessions to support the global expansion of Korea’s semiconductor MPE companies. In his opening remarks, Vice Minister Moon Shin-hak of the Ministry of Trade, Industry and Resources said, “The government will offer incentives aligned with global standards, following the recent enactment of the Special Act on Semiconductors,” adding, “We will stand firmly behind the industry so stakeholders can continue research without disruption and invest boldly.” date2026-02-11