Ministry of Trade Industry and Resources

Korea and Vietnam Step Up Strategic Cooperation in Advanced and High-Potential Industries

Korea and Vietnam agreed to expand strategic cooperation by developing concrete initiatives in trade and investment, industrial technology, and energy security, as discussed at the two summits held in August 2025 and April 2026 since Korea’s current administration took office. The two countries plan to move forward with projects, including the start of construction on the Korea–Vietnam Critical Minerals Supply Chain Technology Center, cooperation to develop oil stockpiling facilities, and technology transfers through Korea’s technology-sharing model. On August 26, 2026, Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) and Minister Le Manh Hung of Vietnam’s Ministry of Industry and Trade co-chaired the 15th Korea–Vietnam Industrial Joint Committee and the 9th Korea–Vietnam  FTA Joint Committee at Lotte Hotel Seoul. They discussed how to strengthen bilateral cooperation in the real economy. The 15th Korea–Vietnam Industrial Joint Committee  At the Industrial Joint Committee, the two countries discussed specific measures to increase bilateral trade to USD 150 billion by 2030. In the trade subcommittee, they agreed to coordinate closely to simultaneously conclude the quarantine negotiations for Vietnam’s exports of lychees and passion fruit to Korea and Korea’s exports of satsuma mandarins and kiwifruit to Vietnam. They also agreed to further strengthen cooperation on digitalizing distribution and logistics and protecting intellectual property rights, including detecting and cracking down on counterfeits, as well as cooperation between the Korea Fair Trade Commission (KFTC) and the Vietnam Competition Commission (VCC). In the industrial technology subcommittee, the two sides agreed to step up efforts to resolve issues facing Korean companies in Vietnam and accelerate bilateral technology cooperation. Vietnam will work with local governments to help Korean manufacturers recruit workers, while Korea will actively support technology transfers from large Korean corporations operating in Vietnam to their Vietnamese partners through Korea’s technology-sharing model. The two countries also agreed to strengthen cooperation on quality standardization and help expand incentives for Korean companies operating in Vietnam’s automotive industry. In critical minerals in particular, the two countries agreed to expedite the necessary administrative procedures so that construction of the Korea–Vietnam Critical Minerals Supply Chain Technology Center can begin promptly. Vietnam said it would continue to coordinate with relevant agencies to clear investment hurdles for Korean companies, including those involving approval to establish a rare earth metals production plant. The two sides also agreed to continue discussing cooperation across the critical minerals supply chain, including how the two governments could help companies operating in Vietnam secure a stable supply of critical minerals. In the energy and resources subcommittee, Korea and Vietnam agreed to pursue long-term cooperation on resource supply chains, including jointly stockpiling crude oil and establishing an emergency response mechanism. They also agreed to support the smooth implementation of LNG power projects in Vietnam and continue strengthening policy cooperation on power grid infrastructure projects, nuclear power, and renewable energy. At the event, the two ministers witnessed Korea National Oil Corporation (KNOC) and PetroVietnam Oil Stockpile Company Limited (PVOS) sign an MOU to cooperate on developing an oil stockpiling facility in Vietnam. Vietnam is moving to build its first underground oil storage facility in response to recent disruptions to oil supplies from the Middle East. KNOC, which has successfully operated oil stockpiling facilities in Korea, agreed to provide technical consulting across all aspects of facility d date2026-08-27

Major Retailer Sales Up 6.4% in July 2026

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that total sales at 26 major retailers (15 brick-and-mortar retailers and 11 online retailers) rose 6.4 percent year-on-year in July 2026, with offline sales up 3.2 percent and online sales up 8.5 percent. In July 2026, hot weather and the summer holiday season increased the use of delivery services and purchases of travel products. Premium international brands remained strong, while online food purchases continued to grow. Offline sales increased at department stores (up 17.9 percent) and convenience stores (up 1.1 percent), while hypermarkets (down 11.2 percent) and SSMs (down 2.9 percent) declined. Department stores and convenience stores extended their growth streaks to 13 consecutive months since July 2025. Department store sales rose across all categories, including premium international brands, vacation-related goods, and cooling appliances, amid improved consumer sentiment and summer holiday demand. Convenience stores maintained growth as higher average purchase price offset fewer transactions (customer visits) during the hot weather. Hypermarket sales fell year-on-year for the fifth consecutive month, and SSM sales declined for the eighth consecutive month. However, the year-on-year decline in SSM food sales, the main product category for SSMs, eased from 10.6 percent in June 2026 to 2.5 percent in July 2026. Online sales rose as the services/other category (up 17.5 percent) recorded strong growth in delivery services, as well as travel and cultural products. Food sales (up 10.4 percent) and home appliance sales (up 11.4 percent) also posted strong gains as consumers purchased more groceries online and sales of cooling appliances increased. In July 2026, sales shares by channel were 60.8 percent for online retailers, 15.0 percent for convenience stores, 14.1 percent for department stores, 8.1 percent for hypermarkets, and 2.1 percent for SSMs. date2026-08-26

Korea’s Ministries and Agencies Join Forces to Address Trade Issues

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the 59th Trade Promotion Committee on August 26, 2026, at the Government Complex Sejong. Minister for Trade Jung Sung Park of MOTIR chaired the meeting—his first Trade Promotion Committee meeting since taking office—with officials from relevant ministries and agencies in attendance. The agenda covered recent trade issues with the United States and next steps; plans to pursue bilateral agreements with Argentina and Uruguay; and the latest discussions on the G20 trade agenda and Korea’s approach. The Committee first reviewed recent trade issues with the United States and comprehensively discussed how to respond across a range of key areas, including tariffs, non-tariff measures, and strategic investment in the United States. The ministries agreed to share information and coordinate closely so they can respond quickly as conditions change. They also agreed to mobilize the full capabilities of the government to help Korean companies export and invest without disruption. Participants then discussed plans to pursue bilateral agreements with Argentina and Uruguay. They also explored ways to build a stronger foundation for cooperation with major South American countries, where Korea’s trade network remains relatively limited. Ahead of the G20 Trade Ministerial from September 30 to October 1, 2026, Committee members shared updates on the progress of discussions on key agenda items and reviewed how Korea would address those items. “At a time of considerable uncertainty in the trade environment, it is essential that we remain steadfast in addressing trade issues” Minister Park said. “At the same time, we must diversify our trade network by building ties with new markets, including South America, and ensure that Korea’s positions are fully reflected in multilateral forums such as the G20.” He added, “To that end, I ask the relevant ministries to work from a shared understanding of the situation and draw on their capabilities to respond as one team.” Korea will continue to strengthen government-wide coordination through the Trade Promotion Committee and respond effectively to major trade issues.   date2026-08-26

Korea Steps Up CEPA Upgrade Talks with India, the World’s Largest Emerging Market

Korea is stepping up negotiations to upgrade the Korea–India Comprehensive Economic Partnership Agreement (CEPA) to expand bilateral trade and investment. India, the world’s most populous country, has about 1.43 billion people and a GDP of USD 4 trillion.  The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that the 13th round of negotiations to upgrade the Korea–India CEPA will be held in Seoul from August 19 to August 21, 2026. The upgrade talks began in 2016 but were temporarily suspended due to differences in the two countries’ positions. They resumed after the Korea–India summit in April 2026, with the 12th round taking place in New Delhi the following month. An Indian delegation will travel to Seoul for the 13th round, which will bring together approximately 60 government officials from both countries. Korea’s delegation will be headed by Lee Min-young, Acting Director General for Trade Agreement Negotiations at MOTIR, and India’s by Kapil Chaudhary, Joint Secretary at India’s Department of Commerce. The two sides will explore their respective interests regarding market access for key goods and services, rules of origin, and the scope for further market opening. They will also hold detailed discussions on new areas of cooperation, including supply chains and strategic industries. The two sides will also discuss the operational framework and key agenda items for the Korea–India Industrial Cooperation Committee, established following the April summit, including its subcommittee structure and schedule for future meetings. “India is an emerging market with the world’s largest population, yet Korea–India trade totaled only USD 25.6 billion in 2025. That was about one-tenth the value of Korea’s trade with ASEAN, whose economy is similar in size to India’s,” MOTIR said. “There is therefore considerable room to expand bilateral trade and investment. Through the upgrade negotiations, we will lay the foundation for economic cooperation that extends beyond traditional market access to supply chain and industrial cooperation between the two countries.” date2026-08-19

SMR Cooperation with TerraPower Expands Export Supply Chains for Korean Nuclear Companies

On August 14, 2026, Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) met in Seoul with TerraPower Founder and Chairman Bill Gates, who arrived in Korea earlier that day. In the meeting, both Minister Kim and Chairman Gates discussed expanding Korean companies’ participation in TerraPower’s small modular reactor (SMR) projects, among other topics. Korean companies, including SK and HD Hyundai, have invested in TerraPower and established partnerships with the company. Several are also seeking roles in equipment supply, operations, construction, and other areas for projects that TerrraPower is pursuing both within the U.S. and abroad. In fact, TerraPower is building its Natrium SMR in Kemmerer, Wyoming, after receiving a construction permit from the U.S. Nuclear Regulatory Commission (NRC) in March 2026, and aims to begin commercial operation in 2031. At the meeting, Minister Kim stressed that overseas expansion requires the ability to deliver projects on time and within budget. “Korean companies have these capabilities and could play a central role in turning TerraPower’s vision into reality,” he said. He noted that making SMRs economically viable will require standardized designs to be deployed at scale. Combining TerraPower’s standard design with Korea’s reliable supply chain for high-volume production will be essential to such deployment. Minister Kim said Korea is an ideal partner because Korea boasts five decades of building and operating nuclear power plants at home and abroad, which has given Korea a “foundry-scale” ecosystem for nuclear manufacturing and construction. He added that Korea’s nuclear supply chain draws strength not only from large companies that can supply main equipment, but also from its sophisticated manufacturing ecosystem of nuclear SMEs and middle-market companies. He called for TerraPower to consider using Korea as a production hub and Korean companies as key suppliers. After the meeting, TerraPower and SK Innovation signed a term sheet for an agreement to pursue joint global projects, witnessed by Minister Kim, Chairman Gates, and SK Group Chairman Chey Tae-won. The term sheet opens opportunities for SK Innovation to help develop TerraPower’s SMR projects in the United States and other countries, and to participate in the company’s U.S. business. Demand for SMRs from big tech companies is rising rapidly as AI infrastructure expands and the number of data centers surges worldwide. More than 100 SMR designs are under development, and companies are forming cross-border alliances as they vie for a share of the emerging market. Amid these changes, Korean companies can also help diversify Korea’s nuclear exports by investing in SMR designs developed overseas, advancing projects, and engaging in overseas supply chains. With SMR supply chains still taking shape, MOTIR views this as the right opportunity for Korean companies to enter the market. The Ministry valued that the meeting not only helped large Korean companies but also nuclear SMEs and middle-market companies in their efforts to join overseas SMR supply chains. date2026-08-14

Korea’s ICT Exports Reach Record $53.36 Billion for July

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 August 14, 2026, that Korea’s ICT exports reached USD 53.36 billion in July 2026, up 140.6 percent year-on-year from $22.17 billion. Imports rose 37.3 percent from $13.33 billion to $18.30 billion, resulting in a trade surplus of $35.06 billion. Supported by expanding AI investment worldwide, ICT exports remained above $50.0 billion for a second straight month and reached a record high for July. The ICT trade surplus also remained above $30.0 billion for a third consecutive month, sustaining its upward trend. ICT exports accounted for more than half, or 54.0 percent, of Korea’s total exports of $98.89 billion for a third straight month, underscoring the sector’s role as a key pillar of Korea’s exports. By product, exports increased across all major categories: semiconductors (up 178.8 percent), displays (up 0.5 percent), mobile phones (up 62.6 percent), computers and peripherals (up 353.9 percent), and telecommunications equipment (up 18.7 percent). Semiconductor exports grew by more than 100 percent for a seventh straight month, supported by continued growth in server memory exports amid rising demand for AI inference and expanded supplies of enterprise SSDs. Higher exports of OLED panels for finished products, such as smartphones and televisions, drove growth in display exports. Mobile phone exports rose as demand for new models and increased sales of high-value products lifted shipments of finished phones. Exports of computers and peripherals increased for a ninth straight month, led by higher parts exports and growing demand for SSDs used in AI servers. Telecommunications equipment exports rose on strong shipments of wireless communications equipment to Vietnam and automotive equipment to India. By destination, exports increased in all major markets: the U.S. (up 187.0 percent), China, including Hong Kong (up 194.7 percent), the EU (up 202.0 percent), Taiwan (up 26.3 percent), Vietnam (up 115.7 percent), India (up 128.2 percent), and Japan (up 39.3 percent). ICT imports totaled $18.30 billion in July 2026, up 37.3 percent from $13.33 billion a year earlier, as imports increased in several major categories, including semiconductors (up 57.6 percent), mobile phones (up 44.7 percent), and computers and peripherals (up 31.0 percent). date2026-08-14

Automobile Exports Hit Record High for July; Government and Industry Join Forces on Future-Vehicle Transition and Mutual Growth

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held an automobile industry roundtable on August 13, 2026, at the Korea Automobile & Mobility Association (KAMA), with Park Dong-il, Deputy Minister for Industrial Policy at MOTIR, in attendance. Participants included representatives of four automakers—Hyundai Motor, GM Korea, KG Mobility, and Renault Korea—and four industry and research organizations: KAMA; the Korea Auto Industries Cooperative Association (KAICA); the Korea Automotive Technology Institute (KATECH); and the Korea Institute for Industrial Economics and Trade (KIET). They discussed key issues, including automobile industry trends in July and the outlook for the second half of 2026, the transition to future vehicles, and how to foster mutually beneficial cooperation across the industry ecosystem. Automobile Industry Trends in July Korea’s automobile exports rose 7.0 percent year-on-year to USD 6.24 billion in July 2026, the highest July figure on record. Domestic sales and production also increased 0.5 percent and 11.3 percent, respectively, to 139,000 and 352,000 units. Eco-friendly vehicles led export growth, with their export value rising 25.5 percent year-on-year to $2.59 billion. Exports of electric and hydrogen vehicles increased 31.9 percent to $0.94 billion, while hybrid vehicle exports rose 22.2 percent to $1.65 billion. By contrast, exports of internal combustion engine vehicles fell 3.1 percent to $3.65 billion. By region, export growth was led by key markets, with North America up 18.0 percent year-on-year to $3.25 billion and the European Union up 23.5 percent to $0.88 billion. The increase appears to reflect more working days after major automakers moved their annual summer shutdowns from July in 2025 to August in 2026, along with solid global demand for eco-friendly vehicles and SUVs. Exports to the Middle East rose 12.7 percent to $0.43 billion, returning to year-on-year growth after eight months. Domestic sales in July rose 0.5 percent year-on-year to 139,000 units. Demand for eco-friendly vehicles remained solid, with sales reaching 84,000 units, or approximately 60 percent of the total. Sales of electric vehicles rose 47.5 percent to 36,000 units. Automobile production rose 11.3 percent year-on-year to 352,000 units, supported by additional working days after major automakers shifted their summer shutdowns. Key Roundtable Discussions Automakers called for policy support from the government, saying it is essential to maintain a stable domestic production base of at least 4 million vehicles a year to safeguard Korea’s automobile ecosystem as the rapid rise of foreign companies intensifies competition for survival in the global EV market. Participants also agreed that the parts industry needs to make an early transition to future vehicles in response to electrification and other changes reshaping the automobile industry, while building an ecosystem in which automakers and suppliers can grow together. Government and industry agreed to work together toward these goals. Deputy Minister Park said, “The global automobile industry is being reshaped by the transition to future vehicles and other changes. At this critical time, the government, automakers, and parts suppliers must work as one team to overcome the challenges.” He said MOTIR would remain in close contact with the industry, carefully monitor issues including production and export conditions, and provide hands-on support. He also asked automakers to strengthen labor-management communication and cooperation and take the lead in fostering mutually beneficial collaboration with parts suppliers as they shift their businesses toward future vehicles and undergo AI transformation (AX).   ▶ View Video: https://www.youtube.com/shorts/0V6esjo3n_c date2026-08-14

MOTIR and NSSC to Pair Nuclear Power Exports with Regulatory Cooperation

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) and the Nuclear Safety and Security Commission (NSSC, Chairperson Choi Won-ho) signed a memorandum of understanding (MOU) on August 13, 2026, at the Korea Trade Insurance Corporation (K-SURE) in Seoul to support the successful overseas deployment of Korean-designed nuclear power plants. Amid continued global instability, including the Russia-Ukraine war and the closure of the Strait of Hormuz, and with climate action now a pressing international priority, nuclear power is drawing renewed attention for its ability to provide a reliable energy supply and contribute to carbon neutrality. As a result, plans to introduce new nuclear power plants are gaining momentum in the United States and Europe, as well as in Southeast Asian countries such as Vietnam and the Philippines. In response to these market developments, the Korean government is actively pursuing nuclear power exports, with a focus on promising Southeast Asian markets, including Vietnam. Countries introducing nuclear power for the first time must establish the necessary regulatory infrastructure alongside plant construction. This includes relevant laws, licensing procedures, technical standards, capable regulatory bodies, and a workforce specializing in nuclear safety and security. Entering these emerging markets therefore requires comprehensive cooperation that combines technology and project execution capabilities with Korea’s regulatory experience and expertise across the entire nuclear power plant lifecycle. Previously, MOTIR referred regulatory cooperation requests from potential buyer countries to NSSC, which handled them case by case with relevant technical organizations. The International Atomic Energy Agency (IAEA), however, advises buyer countries to develop their regulatory frameworks and licensing capacity before choosing a technology supplier. This has highlighted the need to link nuclear power exports with regulatory cooperation in a more systematic and sustainable manner. MOTIR and NSSC signed the MOU to jointly address potential buyer countries’ regulatory cooperation needs, providing systematic support as they establish their nuclear safety regulatory frameworks and strengthen their regulatory capacity. The two agencies will regularly share updates on overseas nuclear power projects, as well as information on each country’s regulatory environment and cooperation needs. Drawing on Korea’s experience regulating nuclear power plants from design and construction through operation, they will tailor cooperation to each potential buyer country’s circumstances and project stage. Five organizations—the Korea Electric Power Corporation (KEPCO), Korea Hydro & Nuclear Power (KHNP), Korea Nuclear Association for International Cooperation (KNA), Korea Institute of Nuclear Safety (KINS), and Korea Institute of Nuclear Nonproliferation and Control (KINAC)—also signed a separate MOU. Under the MOUs, MOTIR and NSSC will set the government’s overall direction for cooperation, while the participating organizations undertake projects tailored to each country’s needs. This is expected to integrate regulatory cooperation into overseas nuclear power projects from the outset and enable a systematic response to potential buyer countries’ regulatory needs. After the signing, MOTIR and NSSC held a consultation to share updates on major nuclear power projects in Vietnam, the Czech Republic, and the Philippines, as well as regulatory cooperation with the United Arab Emirates and the Czech Republic. They also discussed how to tailor nuclear power export and regulatory cooperation to conditions in each country. “This MOU is significant because it establishes a formal basis for systematically linking nuclear power exports with regulatory cooperation and pooling the expertise of both agencies and the date2026-08-13