Ministry of Trade Industry and Resources

Korea Accelerates Economic Cooperation with Mexico, a Key Hub in North American Supply Chains

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) signed the Korea–Mexico Initiative for Economic, Industrial and Resources Cooperation during President Lee Jae Myung’s state visit to Mexico. Korea and Mexico also agreed to launch a Joint Benefit Study in preparation for future trade agreement negotiations. In addition, the two countries held the Korea–Mexico Business Forum and K-Selection Plaza in Mexico City and signed four private-sector memoranda of understanding (MOUs), marking key economic diplomacy outcomes of the visit. 1. Korea and Mexico Sign Initiative for Economic, Industrial and Resources Cooperation Following the Korea–Mexico summit on September 24, 2026, Minister Kim of MOTIR and Mexico’s Secretary of Economy Marcelo Ebrard signed the Initiative for Economic, Industrial and Resources Cooperation in the presence of the two presidents. The two sides agreed that the initiative would provide an opportunity to strengthen bilateral economic cooperation and agreed to continue working together for mutual benefit. For its implementation, Korea and Mexico will establish a joint committee to discuss cooperation on minerals and resources and improvements to the business environment to protect the interests of companies operating in each country. The two sides also plan to strengthen cooperation between the Korea Trade-Investment Promotion Agency (KOTRA) and Mexico’s Global Economic Intelligence Unit (UIEG) to promote bilateral trade and investment. 2. Bilateral Meeting with Mexico’s Secretary of Economy Marcelo Ebrard Minister Kim held a separate bilateral meeting with Mexico’s Secretary of Economy Marcelo Ebrard in Mexico City on September 25, 2026. Minister Kim made the case for a bilateral trade agreement and asked Secretary Ebrard to help address difficulties faced by Korean companies operating in Mexico. Minister Kim noted that Mexico’s recent tariff increases on goods from countries with which it has no FTA have worsened the business environment for Korean companies operating in Mexico, not only causing losses but also reducing incentives for further expansion and investment in the country. He stressed the importance of a stable institutional framework for expanding bilateral trade and investment. Minister Kim also emphasized that Korea is a reliable supply chain partner in developing the strategic industries promoted under the Mexican government’s Plan Mexico. He added that a bilateral trade agreement would take bilateral economic cooperation to the next level by strengthening cooperation in future industries and supply chains. Minister Kim then outlined operational difficulties faced by Korean companies in Mexico, including customs clearance delays and port congestion, inadequate power infrastructure, and issues concerning automotive trade between Mexico and Brazil under Economic Complementation Agreement No. 55 (ACE 55). He requested active support from Mexico’s Ministry of Economy in addressing these issues. The two sides agreed to launch a Joint Benefit Study to assess the potential benefits and broader effects of a bilateral trade agreement. They will also continue discussing specific areas of cooperation through the joint committee and working group, which they agreed to establish during the presidential visit. 3. Korea–Mexico Business Forum and MOU Exchange Ceremony The Ministry of Trade, Industry and Resources (MOTIR) and the Korea Chamber of Commerce and Industry (KCCI, Chairman Chey Tae-won) held the Korea–Mexico Business Forum at the World Trade Center in Mexico City on September 25, 2026. Around 300 business representatives from the two countries attended the forum, along with President Lee Jae Myung and Mexico’s Secretary of Economy Marcelo Ebrard. At the forum, companies from both countries, including Ernst & Young Han Young, Agon, NAVER date2026-09-29

Korea and ASEAN Hold Second Official Round of FTA Upgrade Negotiations

Korea and the Association of Southeast Asian Nations (ASEAN) will hold the second official round of negotiations to upgrade the Korea–ASEAN Free Trade Agreement (FTA) in Singapore from September 28 to October 1, 2026. The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) said government delegations from both sides will attend the talks, with Park Geun-oh, Director General for Trade Agreement Policy at MOTIR, and Alpana Roy, Director-General at Singapore’s Ministry of Trade and Industry, serving as the chief negotiators for Korea and ASEAN, respectively. Nearly 20 years after the Agreement on Trade in Goods took effect in 2007, Korea and ASEAN are pursuing a full-scale upgrade of the FTA to reflect changes in the trade environment and make the agreement more effective. After formally announcing the launch of upgrade negotiations at the Korea–ASEAN Summit in October 2025, the two sides held the first round in June 2026. Beginning with this second round, the two sides will move into substantive negotiations on rules across specific areas. In the second round, the two sides will focus on improving rules across 13 negotiating areas, including critical minerals and supply chains, digital trade, intellectual property rights, and origin procedures. In particular, they aim to introduce up-to-date trade rules that set a higher standard than those in existing agreements, including the Regional Comprehensive Economic Partnership (RCEP), to which both sides are parties. Through these negotiations, the two sides plan to reduce regulatory uncertainty in digital trade and support its expansion. On critical minerals and supply chains, they plan to strengthen the foundation for cooperation to build stable regional supply chains. They will also discuss introducing rules to strengthen protection for Korean companies’ intellectual property, including K-content. “ASEAN, where the transition to a digital economy and the restructuring of supply chains are advancing rapidly, is a key economic partner for Korea,” said Director General Park. “Through these negotiations, we will make every effort to incorporate up-to-date rules that reflect the changing trade environment, including in digital trade, and strengthen supply chain cooperation in areas such as critical minerals, thereby building the institutional foundation for Korean companies to expand their business opportunities in ASEAN markets.” date2026-09-28

Major Retailer Sales Rise 7.7 Percent in August 2026

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that total sales at 26 major retailers (15 offline retailers and 11 online retailers) rose 7.7 percent year-on-year in August 2026, with offline sales up 5.4 percent and online sales up 9.3 percent. In August 2026, the earlier timing of Chuseok compared to last year boosted food sales, driven by increased sales of holiday gift sets. Growth in delivery services and travel product purchases also continued from July amid hot weather and the summer holiday season. Offline sales increased across all retail formats, including hypermarkets (up 4.5 percent), super supermarkets (SSMs, up 5.0 percent), department stores (up 11.9 percent), and convenience stores (up 0.8 percent). Hypermarket sales returned to growth after five consecutive months of year-on-year declines. Chuseok demand lifted sales of food (up 5.4 percent), as well as home appliances and toys (up 17.8 percent), while declines in other categories eased. SSMs also posted growth for the first time in eight months, as strong demand for holiday gift sets lifted food sales, including agricultural, livestock and fishery products (up 10.1 percent). Department store food sales rose 14.5 percent as advance sales of holiday gift sets began. Sales also continued to grow in all categories except household goods, including vacation-related goods and premium international brands. Convenience stores maintained sales growth as a higher average transaction value offset a decline in transactions (customer visits) caused by reduced outdoor activity during the heat wave. Online food sales rose 12.6 percent as sales of holiday gift sets began. Sales in the services/other category (up 16.9 percent) also continued to grow as consumers used more delivery services and purchased more travel products amid the heat wave. In August 2026, sales shares by channel were 59.7 percent for online retailers, 15.4 percent for convenience stores, 13.7 percent for department stores, 9.0 percent for hypermarkets, and 2.2 percent for SSMs. date2026-09-23

“What Should We Change First with AI in Our Factory?” CEOs Lead M.AX on the Factory Floor

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the Manufacturing AI Transformation (M.AX) CEO Hackathon in Sejong on September 21, 2026, bringing together around 100 participants from manufacturing and AI companies and related organizations. Participants included around 50 CEOs from regional industrial complexes; AI companies; MINI Alliance members; and representatives from the Korea Industrial Complex Corporation (KICOX) and the Korea Planning & Evaluation Institute of Industrial Technology (KEIT). The event was designed for CEOs of manufacturers in regional industrial complexes to identify the most urgent problems in their own factories and work with AI companies and experts to turn them into deployable AI transformation (AX) projects. For manufacturers, AX goes beyond simply introducing AI solutions. It starts with deciding which on-site problems—such as equipment failures or shortages of skilled workers—to address first and where to concentrate personnel and investment. MOTIR organized the hackathon in recognition that CEO-level decisions and leadership are critical to making those choices and driving organizational change. Ahead of the hackathon, Minister Kim delivered a keynote address on the role of CEOs in the AI era. He stressed that AI transformation goes beyond adopting technology and is a management issue that requires companies to redesign how they work. He explained that it is ultimately the CEO’s role to bring together data scattered across departments, reconcile competing interests, and set company-wide priorities. Minister Kim then proposed the “3As”—Adapt, Adept and Adopt—as three principles to guide CEOs in the AI era. He emphasized that CEOs need to take the lead throughout the process: recognizing how change is unfolding, understanding AI, and putting it into practice. Following the keynote address, leading manufacturers shared their experience implementing AX at manufacturing sites. HD Hyundai Samho presented examples of AX in shipbuilding operations, giving participating CEOs specific ideas that could be applied to their own processes. Ohsung Steel described how it converted equipment operating know-how accumulated by individual skilled workers into data that AI could learn from and used AI simulations to shorten training time for new workers. Participants then split into 10 teams to discuss the challenges their companies face at manufacturing sites and the AX projects they want to develop. Working with AI companies and experts, each team then developed concrete solutions. The teams went beyond proposing ideas and examined which AI technologies to use, which processes to target, the scale of investment, expected benefits, and whether the projects could be linked to follow-up support, including government programs. The key AX projects discussed focused on areas directly tied to manufacturing productivity, including converting skilled workers’ tacit manufacturing know-how into data for AI training; replacing manual visual inspection with AI vision inspection; using predictive maintenance to detect equipment anomalies in advance; and applying physical AI and autonomous manufacturing to industries such as shipbuilding. Team 6, comprising Ohsung Steel, Shinhan Ceramic, TFS, Busung Steel, Daechang, NAVER Cloud, and Dfinite, won the top prize for its proposal to expand AX through general-purpose manufacturing agents in the Banwol-Sihwa Industrial Complex. An Excellence Award went to Team 3, comprising HD Hyundai Samho, JK Heavy Industries, MokwonENG, Taejin, Kosteel, and Geosoft. The team proposed advancing AX in shipbuilding processes in the Daebul Industrial Complex and extending it across the value chain to large, medium-sized, and small companies. Team 8, comprising Dong Myung Industry, LOTTE INEOS Chemical, SUNGIL, DK Materials, Hanjin Chemical, KEMP, Neolab, and PDTech, also received an Exce date2026-09-22

MOTIR Seeks to Ease Burdens on Korean Companies and Expand Opportunities for Cooperation under New EU Trade Rules

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) sent a delegation led by Kim Jang-hee, Director General for Emerging Trade Strategy and Policy, to Brussels, Belgium, from September 16 to 18, 2026. The delegation held a series of meetings with Executive Vice-President Stéphane Séjourné’s Cabinet and the European Commission’s Directorates-General for Justice and Consumers (DG JUST), Taxation and Customs Union (DG TAXUD), Internal Market, Industry, Entrepreneurship and SMEs (DG GROW), and Trade and Economic Security (DG TRADE). The delegation discussed major EU regulatory issues affecting Korean companies’ activities, including the Industrial Accelerator Act (IAA), Corporate Sustainability Due Diligence Directive (CSDDD), and Carbon Border Adjustment Mechanism (CBAM). The visit was a follow-up to the high-level meeting between Minister Kim and Executive Vice-President Séjourné on September 9. It was intended to directly convey Korean companies’ concerns and views as the EU develops major regulatory legislation and detailed implementation rules, and to help prevent unreasonable burdens on Korean companies when the measures are implemented. MOTIR first met with Dragoş Tudorache, Diplomatic Advisor in Executive Vice-President Séjourné’s Cabinet, and Valère Moutarlier, Deputy Director-General at DG GROW. The ministry emphasized that the IAA should be designed to take account of cooperation with trusted partners such as Korea, whose companies have invested in the EU over many years and contributed to local employment, production, and supply chains. It also set out Korea’s position that the principle of equivalent treatment for partner countries should be applied predictably and consistently across the framework, including in automobiles, steel, and nuclear power. In a meeting with Andreas Stein, Director for Justice Policies at DG JUST, MOTIR referred to the government position paper on the CSDDD submitted in July and asked that Korean industry’s views on improving clarity and implementation feasibility be fully reflected in forthcoming guidelines. As the EU develops detailed guidance on implementing the CSDDD, MOTIR also proposed a standing Korea–EU consultation channel for the two sides to continue discussing how to interpret the CSDDD and the difficulties companies face in complying with it. On the CBAM, MOTIR met with Gerassimos Thomas, Director-General of DG TAXUD, and asked the EU to minimize any unnecessary costs and administrative burdens that Korean companies may face during implementation of the mechanism, including those related to third-party verification and the extension to downstream products. In particular, for downstream products with complex supply chains, MOTIR stressed that the EU should fully consider whether companies can realistically comply when deciding the scope of products covered by the expansion and the specific timing of implementation. Beyond regulatory issues, MOTIR also discussed expanding cooperation on emerging trade areas, including digital trade and critical minerals. MOTIR and DG TRADE reviewed the remaining procedures required before the Korea–EU Digital Trade Agreement (DTA), signed in June 2026, can enter into force and discussed follow-up cooperation, including on electronic signatures. On critical minerals, the two sides exchanged views on diversifying supply chains and coordinating policies among major economies. “Changes in EU rules on industry, supply chains, and the environment are an important part of the trade environment and directly affect Korean companies’ business activities,” said Director General Kim. “We will continue consultations to ensure that Korean companies’ views are fully reflected during implementation of these measures.” date2026-09-18

Korea and Five Central Asian Countries Lay Groundwork for Critical Mineral Supply Chains and Manufacturing AI Cooperation

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced a series of economic diplomacy outcomes with five Central Asian countries—Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan—across industry, trade and supply chains during the First Korea-Central Asia Summit 2026, held in Seoul from September 14 to 16, 2026. In conjunction with the summit, MOTIR also held a series of events: the inaugural C5+1 Industry Ministers’ Meeting on September 14; the Korea–Kazakhstan Business Roundtable, the Korea–Uzbekistan Business Forum and the Korea–Turkmenistan Business Forum on September 15; and the First Korea-Central Asia Business Summit 2026 on September 16, attended by the leaders of all six countries. Although Korea has maintained bilateral consultation channels with each of the five Central Asian countries, this marked the first time in 34 years of diplomatic relations that the five Central Asian countries came together with Korea to discuss cooperation on industry and supply chains, including critical minerals. By combining Central Asia’s abundant strategic minerals, including lithium, uranium and rare earths, with Korea’s advanced manufacturing and processing technologies, the two sides laid the groundwork for a mutually beneficial value chain that moves beyond a simple raw-material import model to link local refining and smelting with high-value-added processing and finished-product manufacturing. Intergovernmental Cooperation: New Multilateral Industry and Supply Chain Consultation Channel Established; Nine Bilateral and Multilateral Cooperation Documents Signed At the inaugural C5+1 Industry Ministers’ Meeting on September 14, the industry ministries of Korea and the five Central Asian countries signed an MOU on industry and supply chain cooperation and established a multilateral ministerial consultation channel to respond to supply chain disruptions and promote industrial diversification. MOTIR also signed eight bilateral cooperation documents on the occasion of bilateral summits and other meetings, setting out practical cooperation tailored to each country’s industrial conditions and economic needs. With Kazakhstan, Korea signed a framework agreement on crude oil cooperation to strengthen cooperation across the crude oil value chain, including oil field development and petrochemicals. The two countries also signed an MOU on nuclear energy cooperation to establish a basis for cooperation across the nuclear power life cycle. With Kyrgyzstan, the two sides revised their existing MOU on trade and investment cooperation, substantially expanding its scope to include critical minerals, halal industries and digital transformation. They also agreed to launch a regular director-general-level consultation channel. With Tajikistan, Korea signed an MOU on industrial cooperation for the first time since the two countries established diplomatic relations, laying the groundwork for broad industrial cooperation in mining and critical minerals, AI and emerging technologies, textiles and chemicals. With Turkmenistan, Korea signed an MOU on cooperation in the chemical industry and industrial plant projects, establishing a framework spanning policy, technology and workforce development and providing a basis for Korean plant engineering companies to expand into the Turkmen market. With Uzbekistan, Korea signed an MOU on a full-cycle critical minerals cooperation platform to advance processing and exploration cooperation through the Korea–Uzbekistan Rare Metals Center. They also signed an MOU on cooperation in AI transformation in manufacturing to pursue AI-driven manufacturing innovation in connection with official development assistance (ODA) projects, as well as an MOU on export capacity building to share trade policy experience and work to expand bilateral trade. Private-Sector Business Coo date2026-09-17

Global Materials, Parts and Equipment Companies Seek Partnership Opportunities in Korea

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) hosted the 2026 Materials, Parts and Equipment Global Investment Conference (MPE GIC) on September 17, 2026, in Seoul, bringing together around 120 Korean and foreign materials, parts and equipment (MPE) companies in advanced industries such as semiconductors, rechargeable batteries and biohealth. As global supply chains undergo restructuring and competition in advanced technologies intensifies, companies are increasingly seeking partnerships to secure core technologies and create new business opportunities. The conference was organized to meet this growing demand by connecting Korean and foreign MPE companies and identifying new investment opportunities. Participants included MPE companies from the United States, Japan, Germany and the Netherlands that had expressed clear interest in partnering with Korean companies and investing in Korea, as well as Korean MPE companies seeking partnerships with them. The conference introduced Korea’s investment environment and policies to attract foreign investment, while foreign-invested companies Toray, Amkor and Kurita Hansu shared their investment experiences and business results in Korea. In-depth one-on-one consultations were also arranged based on the participating companies’ needs, increasing the likelihood that these exchanges would lead to concrete partnerships and investment. The conference also highlighted the expected growth in demand for MPE and related investment opportunities associated with Korea’s three megaprojects in semiconductors, physical AI and AI data centers, as well as the growth engines under the “Five Mega-Regions and Three Special Self-Governing Provinces (5+3)” initiative. Along with a presentation on the Jeonnam-Gwangju Special Metropolitan City, local governments including Gyeonggi-do, Daegu and Jeollabuk-do directly presented their industrial bases and investment conditions, giving foreign companies an opportunity to explore regional investment environments across Korea. “Korea’s industrial ecosystem and the technological capabilities of its MPE companies are key strengths in fostering partnerships with foreign companies and attracting investment from them,” said Kang Gam-chan, Deputy Minister for International Trade and Investment at MOTIR. “We hope this conference will help Korean and foreign companies discuss and develop concrete plans for various forms of cooperation, including technology cooperation and joint ventures. We will continue to enhance foreign investment incentives and actively address regulatory and on-the-ground challenges so that the opportunities for cooperation foreign companies identify in Korea can lead to actual investment.”   Video Link: https://www.youtube.com/shorts/7TCVFMmN8Qg date2026-09-17

Korea Discusses Early Implementation of IFDA at WTO Public Forum 2026

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held a session titled “Powering Supply Chains through Investment Facilitation” at the WTO Public Forum 2026 on September 17, 2026. This year’s Public Forum was held at WTO headquarters in Geneva, Switzerland, from September 15 to 17, 2026, under the theme “Powering the Future,” with a focus on the future of trade in services. MOTIR and the Korea International Trade Association (KITA) jointly hosted the September 17 session to highlight the importance of investment facilitation in expanding trade in services and strengthening supply chains. The discussion focused on the need for early implementation of the Investment Facilitation for Development Agreement (IFDA) and key issues to be addressed going forward. The IFDA is a plurilateral agreement designed to support greater and more sustainable investment, a major pillar of the global economy and trade, by making investment-related administrative procedures more transparent, predictable and efficient. The negotiations were concluded at the 13th WTO Ministerial Conference (MC13) in 2024, and the IFDA currently has 131 participating WTO members. Since 2017, Korea and Chile have co-chaired the IFDA negotiations and led them through to their conclusion. Korea also led discussions at the 14th WTO Ministerial Conference (MC14) on incorporating the IFDA into the WTO legal framework and continues to contribute to the agreement’s early entry into force. At Korea’s session, moderated by Professor Gabrielle Marceau of the University of Geneva, Nan Li Collins, Director of the Division on Investment and Enterprise at UN Trade and Development (UNCTAD), emphasized that implementing the IFDA could help improve conditions for investment in services. Dorothy Tembo, Deputy Executive Director of the International Trade Centre (ITC), explained that the IFDA could help attract investment and support growth, particularly in developing countries, by creating a more favorable and transparent investment environment. Ed Brzytwa, Vice President of International Trade at the Consumer Technology Association (CTA), outlined the regulatory and administrative difficulties businesses face when making investments and emphasized the importance of a predictable and transparent investment environment. “The IFDA is expected to play an important role in expanding investment worldwide, including in developing countries, by streamlining investment-related administrative procedures and improving investment conditions,” said Yoon Chang-hyun, Director General for Multilateral Trade and Legal Affairs at MOTIR. He emphasized the need to identify practical and feasible ways to bring the IFDA into force and implement it as soon as possible, and affirmed Korea’s commitment to contributing to these efforts. date2026-09-17