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Korea to Strengthen R&D Support System for Global Foreign-Invested Enterprises
The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that it held the second Korea–Global Innovation Investment Alliance on Wednesday, October 1, 2025, at the Toray Advanced Materials Korea Magok R&D Center. The meeting brought together foreign-invested enterprises (FIEs) newly joining the 2025 R&D program, along with Korean public research institutes and investment associations, to strengthen the R&D support system for FIEs. To promote R&D by FIEs in Korea, MOTIR launched the Global Industry–Technology Cooperation R&D Program in 2024 and has steadily expanded its budget (KRW 1.5 billion in 2024 → KRW 4.5 billion in 2025 → KRW 6 billion proposed for 2026). The ministry also plans to diversify the scale and types of support to improve the quality of R&D outcomes. In addition to FIEs and public institutions, the meeting included public research institutes and investment-related associations. Through additional R&D investment by FIEs (KRW 25 billion), technology development support, and investor relations (IR) activities, the Alliance will actively support SMEs participating in these projects to enter global supply chains. At the meeting, an MOU was also signed among participating FIEs, research institutes, universities, and industry partners to strengthen cooperation. Key areas include policy measures to expand investment by selected FIEs, stronger R&D collaboration with Korean research institutes, and support for IR activities by Korean SMEs. The initiative aims to encourage the inflow of leading global technologies into Korea and broaden participation in the innovation ecosystem. Yoo Beop-min, Director-General for Investment Policy at MOTIR, stated, “The government will continue to expand R&D support for foreign-invested enterprises to help Korea become a global R&D hub and to revitalize regional economies, boost domestic employment, and foster shared growth between global and Korean companies amid global supply chain restructuring.” date2025-10-02
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Korea’s Exports Hit Record High in September
The Ministry of Trade, Industry and Resources (MOTIR) announced on October 1 that Korea’s exports in September 2025 rose 12.7 percent year-on-year to USD 66.0 billion, while imports increased 8.2 percent to $56.4 billion. The trade balance posted a surplus of $9.6 billion, the largest in seven years since September 2018. Exports reached an all-time monthly high for the first time in three and a half years, continuing growth for the fourth consecutive month. Third-quarter exports also set a record at $185.0 billion, averaging over $60.0 billion per month. On a daily average basis, exports came to $2.8 billion, the second-highest September figure on record, reflecting the impact of more working days. By item, 10 of Korea’s 15 major export categories posted growth. Semiconductor exports jumped 22.0 percent to $16.6 billion, hitting a new record for the second straight month on strong demand for high-value memory such as HBM and DDR5. Automobile exports rose 16.8 percent to $6.4 billion, the highest ever for September, supported by robust sales of electric, hybrid, and internal combustion vehicles, as well as a sharp increase in used car exports. Ship exports grew 21.9 percent to $2.9 billion, marking seven straight months of growth. Biohealth exports also reached a record high of $1.7 billion (up 35.8 percent). By region, exports increased in eight of Korea’s nine major markets. Exports to China rose 0.5 percent to $11.7 billion, ending a four-month decline. Exports to ASEAN climbed 17.8 percent to $11.1 billion, the highest ever for September, while exports to the EU surged 19.3 percent to $7.2 billion, also a record high. Exports to the Middle East, India, Latin America, Japan, and CIS countries all posted strong growth, while exports to the United States fell 1.4 percent to $10.3 billion due to slower shipments amid tariff-related conditions. MOTIR Minister Kim Jung-kwan stated, “Korea’s exports set a new all-time record in September, a valuable achievement despite difficult conditions such as slower shipments to the U.S. amid tariff-related challenges. This demonstrates the ability of Korean companies to quickly diversify their export markets.” He added, “Facing persistent uncertainties, including ongoing tariff negotiations, the government will continue to strengthen policy support to ensure our companies sustain their export competitiveness.” date2025-10-01
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Korea and Uzbekistan Sign MOU to Strengthen Cooperation on Technical Regulations
The Korean Agency for Technology and Standards (KATS, President Kim Dae-ja) under the Ministry of Trade, Industry and Energy signed a Memorandum of Understanding (MOU) on September 30, 2025, with the Uzbek Agency for Technical Regulation (Director Akmal Jumanazarov) to strengthen cooperation on technical regulations. The MOU formalizes bilateral cooperation on information exchange and issue resolution related to technical regulations, aimed at easing technical barriers to trade (TBT) and supporting mutual market entry. This marks a significant step forward from the previous practice of relying only on case-by-case consultations. Uzbekistan ranked fourth last year in terms of technical regulation-related difficulties faced by Korean companies. As a non-WTO member and a country without a free trade agreement (FTA) with Korea, Uzbekistan has lacked an official negotiation channel, leaving companies dependent on individual consultations. For example, in March 2025, exports of home appliances faced customs delays due to requirements for “certification by container,” but the issue was resolved through bilateral consultations by adopting a representative model sampling inspection method. Under the MOU, the two countries will operate an annual joint expert working group with both government and private-sector participation to discuss regulatory issues, focusing on major export items such as textiles and home appliances, and to develop concrete cooperation measures. A business roundtable was also held with participation from Korean companies such as Samsung Electronics and LG Electronics, where they discussed local regulatory trends, shared challenges, and explored countermeasures. KATS President Kim Dae-ja stated, “This MOU will strengthen Korea–Uzbekistan cooperation on technical regulations, helping to reduce procedural uncertainties and export hurdles for Korean companies. Through regular consultation channels, we will respond more swiftly to local regulations, support business activities, and contribute to enhancing trade and industrial competitiveness.” date2025-09-30
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End-Users, Fabless Firms, and Foundries Join Forces to Build Korea’s On-Device AI Semiconductor Ecosystem
The Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim) hosted a forum on September 30, 2025, at the Seongnam Global Convergence Center, bringing together semiconductor end-user and supplier companies as the first step in launching the K-On-Device AI Semiconductor Technology Development Project—a core initiative of the AI Semiconductor M.AX Alliance. The Alliance was established to help Korea emerge as a global leader in manufacturing AX (advanced transformation) by 2030. The forum brought together approximately 150 stakeholders from across the AI semiconductor industry, including end-user companies in the automobile, IoT/appliance, machinery/robotics, and defense sectors; Korean fabless companies (design) and foundries (manufacturing); and global IP firms that supply semiconductor design blocks. The program featured technology demonstrations by fabless firms such as DEEPX, Mobilint, and FuriosaAI; a presentation on the project implementation plan by MOTIE; the signing of MOUs among MOTIE, end-users, fabless firms, foundries, and IP firms; and a discussion led by end-users, Arm, and Samsung Foundry on how to foster Korea’s AI semiconductor ecosystem. Overview of the AI Semiconductor M.AX Alliance Forum Date/Location: Tuesday, September 30, 2025, 15:00–17:30 / Seongnam Global Convergence Center (1F, Multipurpose Hall 2) Hosted/Organized by: MOTIE / Korea Semiconductor Industry Association, Korea Planning & Evaluation Institute of Industrial Technology (KEIT) Participants: Minister of Trade, Industry and Energy and about 150 representatives from industry, academia, and research, including semiconductor end-users, foundries, and fabless firms Program: AI semiconductor fabless technology demonstrations, presentation of the project implementation plan, signing of an MOU to ensure project success, and discussions on ways to strengthen Korea’s AI semiconductor ecosystem Background and Implementation Plan for the Project To become a global leader in manufacturing AX, developing AI models is important, but it is equally essential to develop on-device AI semiconductors—the hardware that powers AI within advanced products across industries. To this end, MOTIE is supporting the development of Korean on-device AI semiconductors for integration into advanced products such as autonomous vehicles, smart home appliances, humanoids, and unmanned aerial vehicles through close partnership with end-user companies in four key sectors and Korean fabless firms. In August, a KRW 1 trillion project to develop customized AI semiconductors, AI software, and modules needed for producing advanced products in four key industries was exempted from the preliminary feasibility study. Following a formal review, MOTIE plans to launch the project in 2026 through consortia of end-user and fabless companies. The project aims to release Korean-made AI semiconductor prototypes in 2028 and develop 10 types of on-device AI semiconductors for integration into advanced products by 2030. Scope of the K-On-Device AI Semiconductor Technology Development Project On-Device AI Semiconductor Full Stack: Development and demonstration of customized on-device AI semiconductors, AI software, modules, and prototypes Application in Advanced Products: Autonomous vehicles, smart home appliances, unmanned aerial vehicles, collaborative robots, humanoids, unmanned agricultural robots Implementation Plan: (2026) Formation of sector-specific consortia and project announcement → Begin AI semiconductor design (2027–2028) Production and verification of AI semiconductor prototypes (2029) Development of modules to be integrated into advanced products using AI semiconductors (2030) Development of advanced prototypes such as autonomous vehicles and humanoids equipped with Korean-made AI semiconductors Operation of the AI Semiconductor M.AX Alliance The Alliance wil date2025-09-30
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MOTIE Minister Conducts Emergency Inspection of Response System for Information System Disruptions
On September 28, 2025, Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Energy (MOTIE) assessed the damage to MOTIE’s information systems caused by the fire at the National Information Resources Service and discussed key response measures and plans. The meeting focused on ensuring uninterrupted public services—such as strategic goods export reviews, applications for investigations into unfair trade practices, and applications for electricity business licenses—that were expected to be affected by the disruptions. For services that cannot be processed online due to the outage, applications, such as licenses, will be accepted manually. Results will be notified by mail or fax, and application status may be checked via telephone or related agency websites. For strategic goods export reviews, temporary public application and processing methods will be posted on the Korea Security Agency of Trade and Industry (KOSTI) website (kosti.or.kr), and guidance emails will be sent to all Yestrade members (about 50,000 companies). Applications for determinations and export licenses will temporarily be accepted by email, and MOTIE will expand review personnel to minimize delays caused by offline processing. Applications and investigation notices for unfair trade practice cases will be handled in writing, and closure notices will be sent by fax or mail. Mining rights permit applications will be processed manually after being submitted by visit or fax, with applicants notified accordingly by phone. Electricity business licenses will be processed through phone guidance and in-person submission, and results will be announced on the Korea Electric Power Corporation (KEPCO) and Korea Power Exchange websites. In connection with this, MOTIE will post contact information for each service area on its social media channels, including Instagram, X, and YouTube, so that the public can contact the relevant offices directly. Immediately after the incident on September 26, 2026, MOTIE organized an emergency response team, headed by Deputy Minister for Planning and Coordination, and activated a 24-hour emergency duty system. The ministry is also using its official blog and social media channels to promptly share updates on the disruption, while providing the main service hotline (1577-0900) and direct contact numbers for affected services to minimize public inconvenience and potential damages. A full review of MOTIE’s information systems revealed that 21 systems—11 public services and 10 internal systems—including the ministry’s main website and those of many affiliated agencies, were inaccessible or not functioning. The Korean Standards & Certification Information System is currently operating through an alternative page offering equivalent services. Minister Kim also ordered a comprehensive review of ongoing project notices and announcements to prepare for the possibility of a prolonged system recovery, and decided to extend application deadlines and notice periods as needed. Before the damage assessment meeting, Minister Kim visited the KTNET Electronic Trade Control Center to examine its operations. He emphasized the need to prevent internet service disruptions, ensure swift responses in the event of incidents, strengthen cybersecurity and personal data protection, and guarantee the reliable operation of information networks to minimize public inconvenience during government system outages. date2025-09-29
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5th Korea–Saudi Vision 2030 Committee Meeting
Korea and Saudi Arabia, the Middle East’s largest economy and a key Global South market, are set to expand their economic cooperation across core manufacturing industries, advanced sectors such as AI, and culture and entertainment. Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Energy (MOTIE) co-chaired the fifth Korea–Saudi Vision 2030 Committee Meeting with Khalid Al-Falih, Minister of Investment of Saudi Arabia, on September 26, 2025, at Lotte Hotel Seoul. The meeting was the first to be held in Seoul in two years, since the fourth Committee in October 2023, and was attended by 11 ministries of both governments. The Committee was launched in 2017 under the Korea–Saudi Vision 2030 Memorandum of Cooperation (MoC) as an inter-ministerial platform to manage key cooperation projects, address challenges, and support collaboration among governments, institutions, and companies. The Committee is structured around six subcommittees: overall cooperation, manufacturing and energy, smart infrastructure and digital, capacity building, healthcare, and SMEs and investment. At this meeting, the two sides reviewed the implementation status of 46 existing projects and identified 11 new cooperation projects. While Korea–Saudi economic ties had traditionally centered on crude oil imports and construction contracts, the Committee has expanded the scope of cooperation into core manufacturing industries such as automobiles and shipbuilding. For example, HD Hyundai Heavy Industries and Saudi Aramco are jointly building International Maritime Industries (IMI), the largest shipyard in the Middle East, at the King Salman Maritime Industries Complex (12 million m²), scheduled for completion in the first half of 2026. A joint venture ship engine assembly plant is also expected to be completed by the end of 2026. In addition, Hyundai Motor Company and Saudi Arabia’s Public Investment Fund (PIF) are jointly building an automobile manufacturing plant in King Abdullah Economic City. Construction began in May 2025, with mass production targeted for the first half of 2027. The new shipbuilding and automobile projects identified at this meeting will build on these achievements. In shipbuilding, the two sides agreed to link existing cooperation across the value chain—from engine assembly to vessel construction—with the joint development of advanced eco-friendly technologies to reduce carbon emissions. In automobiles, they agreed to advance cooperation beyond local assembly into the broader industrial ecosystem covering complete vehicles, core technologies, fuels, and standards, including R&D in engine and hybrid vehicle technologies and the establishment of hydrogen vehicle fuel quality management systems. Collaboration in AI and advanced industries, as well as culture and entertainment, is also expected to gain momentum. In February 2025, Naver, through its joint venture with the Saudi National Housing Company (NHC), established digital twin platforms in major cities such as Jeddah, Mecca, and Medina. Naver plans to enhance these platforms by integrating AI to provide comprehensive smart city services spanning transportation, energy, and safety management. Leading Korean AI semiconductor companies such as Rebellions and FuriosaAI are also exploring cooperation in digital transformation and AI innovation with Saudi partners, including the state-owned AI company Humane. In addition, Korea and Saudi Arabia agreed to further specify cooperation in culture and entertainment, including film, e-sports, and tourism. Minister Kim emphasized, “We will establish and operate ongoing communication channels within each subcommittee to ensure seamless implementation of cooperation projects, and closely link existing and new projects to maximize synergy. Going forward, we will broaden the scope of cooperation into AI, advanced industries, and soft power, where the two date2025-09-26
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Korea Sought Export Diversification and New Trade Norms at ASEAN Economic Ministers’ Meeting
Yeo Han-koo, Minister for Trade at the Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim), attended the ASEAN Economic Ministers’ (AEM) Meeting in Kuala Lumpur, Malaysia, on September 24–September 25, 2025. The meeting brought together economic and trade ministers from the 10 ASEAN member states and major dialogue partners to discuss economic issues ahead of the ASEAN Summit, scheduled for October 26 to 27, 2025. Korea participated in the ASEAN–Korea, ASEAN+3 (Korea, China, Japan), East Asia Summit (EAS) Economic Ministers’ Meetings, and the Regional Comprehensive Economic Partnership (RCEP) Ministers’ Meeting, engaging in discussions on regional cooperation in areas such as digital transformation, supply chains, and climate change. Minister Yeo also held bilateral meetings on the sidelines with counterparts from the United States, the European Union, Australia, New Zealand, Singapore, and other key ASEAN countries. Trade Minister Yeo Han-koo said, “The AEM Meeting is an important venue for expanding cooperation with ASEAN, a core partner under Korea’s New Southern Policy, in emerging areas such as digital trade.” He added that “the meeting offers bilateral opportunities to discuss economic issues with participating countries, including FTA negotiations and upgrades.” Minister Yeo noted, “Korea will use the meeting to diversify export markets for Korean companies and help shape new trade rules, including in digital trade.” date2025-09-26
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Removing Obsolete “Spiderweb” Regulations to Accelerate Real Growth in AI and Robotics
The Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim) reviewed and approved 40 regulatory sandbox projects in fields including AI, robotics, and energy at the 3rd Industrial Convergence Regulatory Special Case Review Committee held on September 25, 2025. Among the items deliberated in person was a set of government-designed regulatory sandbox projects prepared jointly with the Personal Information Protection Commission and the Ministry of Employment and Labor. The projects aim to proactively rationalize regulations that have hindered the use of AI in industrial sites. As part of these projects, AeiROBOT will demonstrate an AI-equipped bipedal humanoid robot equipped in industrial settings. Current laws lack relevant standards and safety requirements, limiting the deployment of such robots in workplaces. The demonstration will generate data needed to establish standards and safety criteria, which is expected to accelerate the proliferation of industrial AI, strengthen industrial competitiveness, and reduce occupational risks by enabling robots to perform hazardous and repetitive tasks. iVH will generate synthetic data from real driving video footage and use it to train and evaluate autonomous driving AI models. Synthetic data delivers performance comparable to original data while enabling models to learn rare scenarios, such as multi-vehicle collisions. However, companies have raised concerns about potential violations of the Personal Information Protection Act if individuals are identifiable in synthetic data. This demonstration aims to establish safe standards for the generation of synthetic data, contributing to the advancement of autonomous driving technology. In addition to the government-designed projects, Korea Railway Solar Power Co., Ltd. will demonstrate a “power-generating railway” by installing carpet-type solar panels on railway tracks to produce and supply electricity. Currently, solar power operators must obtain regulatory approvals such as electrical construction permits, file notifications, and undergo pre-use inspections, but no detailed standards exist for solar panels installed on railway tracks. This demonstration marks Korea’s first attempt to deploy railway-based solar power and is expected to contribute to the diversification and expansion of renewable energy. Separately, Minister Kim visited Neubility, a company specializing in outdoor mobile robots, on September 24, 2025, to hear industry concerns. Neubility had requested streamlined safety certification procedures for outdoor mobile robots at the first Core Regulatory Rationalization Strategy Meeting chaired by the President on September 15, 2025. Currently, companies must undergo a two-month process covering 16 evaluation items before operating such robots on sidewalks. MOTIE plans to consolidate or remove certain items without compromising safety, shorten certification periods, and amend relevant laws within the year. Minister Kim stressed, “This round of regulatory exemptions is significant in that it helped break down silos between ministries and proactively removed outdated and unnecessary ‘spiderweb’ regulations. With the launch of the M.AX Alliance, we will mobilize all available measures to swiftly resolve on-site regulatory barriers and fully support efforts to accelerate manufacturing AX.” date2025-09-26