Ministry of Trade Industry and Resources

K-Home Appliance Industry to Tackle Challenges with M.AX

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the third general meeting of the Home Appliance M.AX Alliance at Electronics Hall on May 28, 2026. The meeting brought together Choi Woo-hyuk, MOTIR’s Director General for High Technology Industry, and about 80 representatives from Alliance companies and institutions. Launched in September 2025 to help transform Korea’s manufacturing ecosystem, the M.AX Alliance is changing industrial sites across the country. Since its launch with 10 divisions, the Alliance added the Industrial Complex AX Division in February 2026 and has grown into an industry-academia-research network of more than 1,500 companies and institutions across 11 divisions. AI adoption through the Alliance is helping raise manufacturing productivity by shortening production times and improving quality, while also supporting the development of technologies and components for AX products, including robotic hands. The Home Appliance M.AX Alliance has also maintained close communication with participating companies and institutions, focusing on innovative AI products and AI home appliance standards to strengthen the global competitiveness of Korea’s home appliance industry. As supply chain uncertainty grows amid the Middle East conflict and global competitors are closing the gap quickly, the industry faces an increasingly difficult operating environment. The government and industry plan to use the Alliance as a platform to advance AI-based manufacturing transformation, product innovation, and standard-setting. At the meeting, MOTIR announced three major tasks under Home Appliance M.AX to use AI to significantly improve productivity and strengthen innovation across Korea’s home appliance industry. The first task is to develop manufacturing AI models tailored to the specific needs of home appliance production sites. As consumer preferences become more diverse, mixed-model production, where multiple products are produced on a single line, has become essential. MOTIR will develop AI models that enable automated guided vehicles (AGVs), autonomous mobile robots (AMRs), and AI systems to manage production and logistics schedules in response to frequent line changes. Starting with key suppliers in major home appliance production hubs, including Gwangju and Changwon, the ministry will expand AI adoption across small and mid-sized home appliance companies. The goal is to help companies respond quickly and flexibly to orders for a wider range of products. The second task is to build training datasets and common development infrastructure to support the development of innovative AI home appliances. To systematically collect public AI training datasets that are difficult for individual companies to secure on their own, MOTIR will begin surveying Alliance participants in May 2026 and reflect their input in a roadmap for building these datasets. In the second half of 2026, the ministry will conduct a pilot collection of three types of AI training data, including food ingredient images and voice command corpora, before expanding the scope and scale of data collection from 2027 in line with industry and technology trends. MOTIR will also develop and supply common modules, including standard hardware and software development kits for AI home appliances, and open an AI home appliance life-cycle support center in Yongsan in July 2026. The center will support companies from product design to prototype production, helping ease the financial and technical burden on small and mid-sized companies. Third, to build trust in the AI home appliance market, the Korean Agency for Technology and Standards (KATS) will prepare draft Korean Industrial Standards (KS) by the end of 2026 on areas such as technology grades for AI home appliances and inter-device security. MOTIR will also identify relevant policy support measures and link them to these standards to protect co date2026-05-28

Korea Highlights Crisis Management and Growth Opportunities in First-Year Policy Review

On the first anniversary of the launch of the People’s Sovereignty Government, the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) reviewed its policy record over the past year and presented five key achievements. The past year was marked by overlapping crises. Global trade uncertainty and risks to energy and resource supplies from the Middle East weighed on the real economy; global oversupply put key industries, including petrochemicals, under pressure to restructure; and competition for global industrial leadership intensified around AI. MOTIR managed these risks closely while moving decisively to capture future growth opportunities. In November 2025, Korea concluded the Korea–U.S. tariff deal after months of sustained negotiations guided by a clear national-interest-first principle, reducing uncertainty for exporters. The agreement eased tariff burdens on key U.S.-bound exports, including automobiles and pharmaceuticals, and secured semiconductor treatment no less favorable than that of major competitors. Korea also laid the groundwork for strategic industry cooperation with the United States through the Korea–U.S. Strategic Investment MOU, Korea–U.S. shipbuilding cooperation under MASGA, and the Special Act on U.S.-Bound Investment. For the petrochemical industry, MOTIR moved early to restructure the sector and prevent its difficulties from spreading to regional economies. The ministry approved the first restructuring project between HD Hyundai Chemical and Lotte Chemical in Daesan and backed its implementation with more than KRW 2.1 trillion in financing, tax incentives, and regulatory streamlining. The Special Act on Strengthening and Supporting the Competitiveness of the Petrochemical Industry also created a legal basis for restructuring and a shift toward higher-value products. Following the outbreak of the war in the Middle East, the government and industry activated a coordinated public-private response to stabilize supplies of crude oil, naphtha, and other key materials, minimizing disruption to the real economy and people’s daily lives. By May 2026, Korea had secured crude oil and naphtha imports at around 90 percent of the 2025 level, reduced the share of Middle Eastern crude in total crude imports from 70 percent to around 50 percent, and helped restore petrochemical operating rates to about 75 percent. Despite trade and Middle East-related risks, Korea stepped up export support, with exports reaching a record USD 709.3 billion in 2025. Korea became the sixth country in the world to surpass $700 billion in annual exports. Exports have remained on an upward path in 2026, reaching a record $306.5 billion through April, up 40.9 percent year-on-year, putting Korea’s first entry into the world’s top five exporters increasingly within reach. Korea also broadened its export base through emerging-market diversification, growth in K-consumer goods exports, win-win trade finance, preferential loans for exporters, and the launch of K-Export Star 500. Foreign direct investment reached a record $36.1 billion in 2025. Finally, MOTIR began accelerating AI transformation in manufacturing. The ministry launched the Manufacturing AI Transformation (M.AX) Alliance to drive change across Korea’s manufacturing ecosystem. Within about eight months, participation grew to around 1,500 companies and institutions. In 2026, MOTIR will promote 100 new AI factories by applying AI to manufacturing processes in 12 key industries, including semiconductors and shipbuilding, and plans to deploy more than 200 by year-end. The ministry is also expanding AX across processes, products, and regions by operating the Industrial Complex AX Division, linking 10 AX demonstration industrial complexes with regional universities, and developing technologies and core components for AX products such as autonomous vehicles and humanoids. date2026-05-28

Major Retailer Sales Up 7.2% in April 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) in April 2026 rose 7.2 percent year-on-year, with offline sales up 6.7 percent and online sales up 7.5 percent. Offline sales increased at department stores (up 21.7 percent) and convenience stores (up 3.3 percent), while hypermarkets (down 6.6 percent) and super supermarkets (SSMs) (down 6.9 percent) declined. Department stores and convenience stores extended their growth streaks to ten consecutive months since July 2025. Department store sales increased across all categories, including premium international brands, fashion and apparel, accessories, and food. Convenience store sales also rose across all product categories, as early hot weather lifted sales of processed foods, including beverages, while ready-to-eat foods and household goods also posted gains. Hypermarket sales remained weak, as consumer spending continued to shift online and sales of food, their core category, stayed sluggish. This weakness has persisted since the second quarter of 2024. SSM sales also remained on a downward trend. Sales shares by channel were 60.3 percent for online retailers, 15.3 percent for department stores, 14.6 percent for convenience stores, 7.9 percent for hypermarkets, and 1.9 percent for SSMs. By product category, offline food sales declined, while online sales grew across all categories, including food, home appliances and electronics, fashion, and services. Cosmetics continued to post high growth, supported by strong demand for K-beauty. date2026-05-27

MOTIR Supports Shared Growth Across the K-Shipbuilding Supply Chain

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) visited Hanla IMS, a shipbuilding equipment company in Busan, on May 27, 2026. Minister Kim toured the company’s manufacturing and R&D facilities and reviewed progress on its intelligent integrated system for autonomous maintenance, confirming that key equipment technologies for AI-enabled autonomous ships are already being developed on site. After the site visit, Minister Kim held a roundtable with 12 organizations, including shipbuilding equipment suppliers, small and medium-sized shipbuilders, and related institutions, to hear industry challenges and policy suggestions. The discussion focused on implementing key tasks set out at the May 13, 2026, Roundtable on the K-shipbuilding vision, including expanded equipment demonstrations, green technology development, refund guarantee (RG) support for small and medium-sized shipbuilders, and AI transformation in shipbuilding. The government plans to incorporate the practical support needs raised by industry into future policy measures. At the roundtable, Minister Kim presented three policy directions to support shipbuilding equipment suppliers and small and medium-sized shipbuilders. First, the government will accelerate Manufacturing AI Transformation (M.AX) in shipbuilding. MOTIR and the Ministry of Oceans and Fisheries (MOF, Minister Hwang Jong-woo) plan to invest around KRW 500 billion through the Autonomous Ship M.AX Alliance to develop core equipment, including engine automation systems and radar. The ministries will also support installation on ships and align the work with International Maritime Organization (IMO) standard-setting efforts. Second, MOTIR will expand overseas opportunities and financial support for shipbuilding equipment suppliers and small and medium-sized shipbuilders. As MOTIR develops the MASGA project, which played a key role in the Korea–U.S. tariff deal, one of the administration’s first-year achievements, the ministry will focus on identifying project opportunities for these companies. MOTIR will also launch support for MRO infrastructure, certification, and export channels through programs for naval vessel MRO competitiveness and U.S. market entry. In markets such as India, Viet Nam, and the Philippines, where Korean shipbuilders are expanding and demand for Korean equipment is growing, MOTIR will promote joint entry with anchor companies. It will also work with relevant ministries and financial institutions to expand RG support, as rising overseas orders increase RG demand among small and medium-sized shipbuilders. Third, the government will strengthen cooperation with the shipping industry. Through the Strategic Council for Shared Growth in Shipbuilding and Shipping, launched in April 2026, the government will promote the use of newly developed Korean equipment in newbuild vessels and channel joint orders from Korean shipping companies, as well as domestic orders for essential vessels, toward small and medium-sized shipbuilders. It will also develop strategic public procurement plans to prepare for a downturn in the shipbuilding cycle. “Shipbuilding equipment suppliers and small and medium-sized shipbuilders form the foundation of the K-shipbuilding supply chain and are critical to Korea’s maritime security,” Minister Kim said. “We will promptly address on-site needs, including equipment demonstrations, super-gap technology development, and order opportunities for small and medium-sized shipbuilders.” date2026-05-27

Korea and EU Deepen Economic Security Cooperation on Critical Minerals, Supply Chains, Technology Protection, and Batteries

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the second Korea–EU Special Committee on Economic Security and Emerging Trade Issues via videoconference on May 26, 2026. Deputy Minister for Trade Park Jung-sung and Denis Redonnet, Deputy Director-General at the European Commission’s Directorate-General for Trade and Economic Security (DG TRADE), led the meeting as chief delegates. The Committee is a vice minister-level channel for responding to a rapidly changing trade and economic security environment, as global supply chains are reshaped, competition for critical minerals intensifies, and the need to protect advanced technologies grows. After the first meeting in March 2026, the two sides followed up on key issues, including critical minerals, supply chains, technology protection, batteries, and major EU regulatory proposals. The two sides exchanged views on supply chain stabilization policies, early warning systems, and advanced technology protection. Korea introduced its cross-government supply chain response system under the three supply chain laws and its early warning system for key materials, parts, and equipment. Korea also explained how it designates and manages national core technologies and prevents technology leaks under the Act on Prevention of Divulgence and Protection of Industrial Technology. Both sides recognized the need to cooperate on supply chain monitoring and technology protection from an economic security perspective. On critical minerals, both sides agreed to deepen cooperation on diversification, stockpiling, and recycling, given their high dependence on imports. They also agreed to lay the groundwork for Korea–EU cooperation on critical minerals. On batteries, the two sides noted that large-scale investments by Korean companies in the EU are helping strengthen EU supply chains. Korea requested reasonable transition periods, mutual recognition of data, and other practical measures during implementation of the EU Battery Regulation. On the EU Industrial Accelerator Act (IAA), Korea asked the EU to fully reflect Korean views as it prepares implementing rules, including clarification on how origin rules will apply to goods from FTA partner countries. Korea also reiterated its concerns over the EU’s new steel measure and requested that the EU promptly present an improved quota proposal. The two sides assessed that the Committee further strengthened the basis for cooperation across core economic security issues, including supply chains, critical minerals, technology protection, and batteries. They agreed to continue using high-level channels and other mechanisms to produce concrete results in trade cooperation. date2026-05-26

M.AX to Reshape the Global Battery Market

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) visited LG Energy Solution’s smart autonomous manufacturing facility on May 26, 2026, to review Korea’s battery manufacturing competitiveness and discuss ways to strengthen public-private cooperation. Manufacturing has long been a key growth engine for Korea’s economy and helped the country develop into an advanced economy. However, the sector’s growth has recently stalled as the working-age population shrinks and the potential growth rate falls, making innovation urgent. MOTIR therefore sees M.AX as the only solution for securing a super-gap advantage in manufacturing. In September 2025, the ministry launched the M.AX Alliance to bring together manufacturers, AI companies, relevant ministries, academia, and research institutions. The Alliance now serves as a cooperation platform for more than 1,500 companies and institutions across 11 divisions, including factory, robotics, and semiconductors. In 2026, MOTIR is investing about KRW 1.8 trillion, including about KRW 1.3 trillion in government funding, in projects that help companies apply AI to processes and products, reduce work time, and improve quality. LG Energy Solution participates in the robotics division of the M.AX Alliance and is a user company in the AI factory flagship project, which supports AI transformation in processes such as quality control and predictive maintenance. An AI factory connects an AI “brain” to factory operations to support human decision-making. Under this model, manufacturers and AI specialists work as one team to collect manufacturing data, develop AI models, and apply them to production processes. The visit came as competition in the global battery market is shifting beyond volume growth toward data-driven productivity innovation. MOTIR arranged the visit to share what Korean battery companies have achieved through M.AX and explore concrete ways to scale it across industry. LG Energy Solution’s Energy Plant, a cylindrical battery manufacturing facility that won the grand prize at the 2026 LG Awards, is using digital twin technology to recreate the actual factory in a virtual space and significantly reduce trial and error in production. LG Energy Solution said the technology has increased the production speed of new equipment by more than 50 percent and cut both investment costs and line area to about half of previous levels. The company added that the flexibility to produce batteries of different specifications on a single piece of equipment will help strengthen its ability to win orders in global markets. “M.AX is now essential to survival and a critical tool for Korea’s battery industry to maintain a super-gap lead in the global market,” said Deputy Minister for Industry and Growth Kim Sung-yeol. “The government will spare no effort to provide policy support that accelerates private-sector innovation, including efforts to establish AI governance frameworks and promote the adoption of enterprise AI platforms.” date2026-05-26

MOTIR Hosts IPEF Meeting on Supply Chain Responses and Cooperation Over Middle East Conflict

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the fifth regular meeting of the Supply Chain Crisis Response Network (CRN) under the Indo-Pacific Economic Framework for Prosperity (IPEF) by videoconference on May 26, 2026. Established in 2024 under the IPEF Supply Chain Agreement, the CRN brings member countries together to discuss coordinated responses to supply chain crises, with Korea serving as its first chair. Nine members, including Australia, Japan and Singapore, attended the meeting to review recent supply chain issues and discuss future cooperation. At the meeting, members focused on supply chain disruptions linked to recent instability in the Middle East, including disruptions to shipping through the Strait of Hormuz. With the effects extending beyond crude oil and LNG to petrochemical feedstocks such as naphtha, fertilizers such as urea, and helium, members shared the varying impacts on their supply chains and their policies to stabilize prices and supplies. As Korea’s term as chair nears its end, members also discussed the selection process for the next chair and ways to improve the CRN’s operating framework. With uncertainty growing across global supply chains, they agreed to strengthen coordination by diversifying supply sources and transport routes and expanding information sharing among IPEF members. The meeting served as an opportunity for members to share their experiences in responding to supply chain risks linked to the Middle East conflict and reinforced the basis for cooperation. MOTIR will continue working through the CRN and other channels to support timely information sharing and coordinated policy responses to supply chain crises. date2026-05-26

Korea and India Resume CEPA Upgrade Talks Following April Summit Announcement

The Office of the Minister for Trade at the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that Korea and India will hold negotiations in New Delhi from May 25 to 27, 2026, to upgrade the Comprehensive Economic Partnership Agreement (CEPA). The talks will be the first formal round since the two countries agreed at their April 2026 summit to resume the upgrade negotiations. After the CEPA took effect in 2010, Korea and India launched upgrade negotiations in 2016 to update the agreement in line with changes in the trade environment and build closer economic ties. The talks, however, had been effectively suspended since 2022, as they were unable to narrow their differences on major issues. Following consultations earlier in 2026, Korea and India issued a joint statement in April setting out their agreement to resume the negotiations. Around 60 delegates from the two countries will take part in the talks. Korea’s delegation will be led by Park Keunoh, Director General for Trade Agreement Policy at MOTIR, and India’s by Kapil Chaudhary, Joint Secretary for Foreign Trade (North East Asia) at the Department of Commerce, Ministry of Commerce and Industry. During the 12th round of upgrade negotiations, the two sides will hold intensive discussions across seven areas, including goods, services, rules of origin and emerging trade rules. They will seek to narrow their differences and work toward substantive results by the end of 2026 or in the first half of 2027. “We will work to modernize the CEPA to create a more business-friendly trade environment for Korean companies operating in India. The upgraded agreement will also cover emerging trade issues, including digital trade and supply chain cooperation,” said Park Geun-oh, Director General for Trade Agreement Policy at MOTIR. date2026-05-26