Ministry of Trade Industry and Resources

MOTIE and the South African Embassy in Seoul Host Korea–South Africa Insight Forum

Korea and the Republic of South Africa (RSA)—Africa’s largest economy and an emerging market in the Global South—are moving to reinvigorate economic cooperation. The Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim) held the Korea-South Africa Insight Forum with the South African Embassy in Seoul (Ambassador Sindi Mququ) on 17 September 2025 at the Diplomacy Center in Yangjae-dong, Seoul, to discuss expanding cooperation with RSA, the host of the 2025 G20 Summit. * In 2024, RSA recorded the largest GDP (USD 400.2 billion) in Africa and was Korea’s second-largest trading partner in Africa, with bilateral trade totaling USD 3.3 billion. The G20 Trade and Investment Ministerial Meeting on 10 October 2025 and the G20 Summit on 22—23 November 2025 will serve as a momentum for high-level intergovernmental exchange between the Republic of Korea (ROK) and RSA. Against this backdrop, participants at the forum discussed cooperation across a range of areas, including manufacturing, supply chains, energy, critical minerals, and infrastructure development. * Participants included Jong-chul Kim, Director General of International Trade Relations at MOTIE; Sindi Mququ, Ambassador of the Republic of South Africa to the Republic of Korea; Young-chae Kim, Chairman of the Korea-Africa Foundation; Timothy Dickens, Chairman of the South African Chamber of Commerce in Korea; Jong-woo Lee, team leader of Hyosung Heavy Industries; Dr. Moon-su Kang of Korea Institute for International Economic Policy (KIEP); Sang-hyun Seo, chief researcher of POSCO Research Institute; and Sung-hyuck Yoon, advisor of DR & AJU LLC and former Head of Samsung Electronics’ African Business). RSA has been prioritizing the modernization of its power infrastructure and the rollout of clean energy to stabilize electricity supply and advance its energy transition. This creates clear scope for cooperation with Korea, which has excellent capabilities in power generation facilities, transmission and distribution networks, and energy storage systems (ESS). RSA also holds abundant critical minerals, with its production of platinum, manganese, and chrome ranking first in the world, prompting the forum to explore potential collaboration on critical-mineral supply chains. The forum also discussed ways to leverage RSA as a gateway to strengthen cooperation with Southern Africa and expand Korea–Africa trade, as implementation of the African Continental Free Trade Area (AfCFTA) is expected to accelerate. Director General Kim said, “RSA is the gateway for Korea to expand cooperation with Africa. This year’s G20 Summit will serve as a momentum for the two countries to actively explore cooperation across trade, investment, industry and energy.” Ambassador Sindi Mququ noted, “Through South Africa’s G20 presidency, we are mobilizing financing for a Just Energy Transition and harnessing critical minerals to advance inclusive growth and development. In this context, closer cooperation between South Africa and Korea will be both important and mutually beneficial.” date2025-09-17

MOTIE Holds Director-Level Meetings with Vietnam

The Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim) held virtual meetings with Vietnam’s Ministry of Finance on September 12, 2025, and with the Ministry of Industry and Trade on September 15, 2025. The discussions focused on implementing the outcomes of the Korea-Vietnam summit in August, held during General Secretary To Lam’s state visit to Korea, and on follow-up measures. The first director-level meeting between MOTIE and Vietnam’s Ministry of Finance on September 12 was co-chaired by Kim Jong-chul, Director General for International Trade Relations, and Do Van Su, Director General of the Foreign Investment Agency. Participants included representatives from the Korean Embassy in Vietnam, the Vietnamese Embassy in Korea, and related organizations such as the Korea Electric Power Corporation (KEPCO), the Korea Institute for Advancement of Technology, and the Korea Federation of Textile Industries. Discussions addressed key business challenges, including: (1) prompt resolution of delayed VAT refunds for Korean textile companies operating in Vietnam, (2) succession of special incentives following HD Korea Shipbuilding & Offshore Engineering’s acquisition of Doosan Vina, and (3) timely support for the implementation of the global minimum tax. The two sides also reviewed proposals from the Vietnamese Ministry of Finance on cooperation in supply chains, energy, infrastructure development, and collaboration between public enterprises under both ministries. While the two ministries have co-hosted the Korea-Vietnam Business Forum, this meeting marked the establishment of their first regular consultation mechanism. Both sides agreed to use it as a starting point for continued cooperation in foreign investment, corporate support, and infrastructure development, including nuclear power and supply chains. The Vietnamese Ministry of Finance noted that although VAT refunds and incentive succession fall under local government jurisdiction, it is also holding direct consultations at the ministry level. The ministry added that it will actively support Korean companies on other issues, such as stable power supply and infrastructure expansion. On September 15, the fourth Korea-Vietnam Plus Joint Working Group meeting was held, co-chaired by Kim Jong-chul and Do Quoc Hung, Deputy Director General for Foreign Market Development at Vietnam’s Ministry of Industry and Trade. Participants included officials from both embassies, the Korea Trade-Investment Promotion Agency, GS1 Korea, KEPCO, and other relevant organizations. Launched in September 2023, the Joint Working Group serves as a director-level hotline platform to discuss trade and investment promotion measures, with the shared goal of expanding bilateral trade to USD 150 billion by 2030. In addition to trade and investment cooperation, the platform also addresses challenges faced by Korean companies operating in Vietnam. At the meeting, the two sides reviewed the status of bilateral trade and investment and discussed action plans to achieve the USD 150 billion trade target by 2030. They also examined follow-up measures from the summit, including plans for an MOU on nuclear energy workforce development. The Korean side requested support to address challenges facing Korean renewable energy investors in Vietnam, particularly on electricity sales, as well as on improving the regulatory framework for participation in LNG power projects. The Vietnamese side responded that it is actively working with relevant ministries and agencies to identify solutions and will share the results promptly. MOTIE stated that it will continue to actively support Korean investors in Vietnam through multilayered consultation channels, including the ministerial-level Korea-Vietnam Joint Industrial Committee and the Korea-Vietnam FTA Joint Committee, to help Korean businesses operate with greater predictability in the Vietnames date2025-09-16

Korea’s ICT Exports Up 11.1% in August

The Ministry of Trade, Industry and Energy and the Ministry of Science and ICT announced on September 15 that Korea’s exports of ICT goods in August 2025 rose 11.1 percent year-on-year to USD 22.9 billion, while imports grew 7.6 percent to $12.5 billion. The trade balance recorded a surplus of $10.3 billion. Despite new tariff measures, ICT exports reached an all-time high for the month of August, driven by record-breaking semiconductor shipments. Semiconductor exports surged 27.0 percent year-on-year, supported by rising DRAM and NAND contract prices and strong demand for high-value memory products such as DDR5 and HBM. Communication device exports increased 1.8 percent, supported by favorable demand for battlefield communications equipment in the U.S. and Mexico. By contrast, exports of displays (down 9.4 percent), mobile phones (down 15.4 percent), and computers/peripherals (down 16.6 percent) declined. Display exports fell on weak demand for TVs, monitors, and mobile devices. Mobile phone exports were weighed down by slowing parts shipments despite solid demand for new finished models. Computer and peripheral exports were impacted by last year’s high base for SSD shipments, though demand from data centers in China and the Netherlands helped narrow the decline. By destination, exports to Taiwan (up 65.6 percent), Vietnam (up 18.0 percent), the EU (up 8.2 percent), Japan (up 3.9 percent), and China including Hong Kong (up 0.3 percent) all increased, while exports to the U.S. fell 9.9 percent. ICT imports in August rose 7.6 percent year-on-year to $12.5 billion, driven by gains in semiconductors (up 4.7 percent), mobile phones (up 20.2 percent), and computers/peripherals (up 31.1 percent).   date2025-09-16

Korea Discusses Enhanced Industrial and Energy Cooperation with Saskatchewan, Canada

Deputy Minister for Trade Park Jong-won of the Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim), met Warren Kaeding, Saskatchewan’s Minister of Trade and Export Development, in Seoul on September 8, 2025, to discuss strengthening bilateral cooperation in industries, critical minerals, and energy. Saskatchewan is rich in natural resources, including uranium, natural gas, oil, and critical minerals. The province ranks first globally in both potash reserves and production, third in uranium reserves, and second in uranium production. It is also pursuing small modular reactors (SMRs) to decarbonize up to 80 percent of its electricity supply by 2030. The two sides noted that bilateral economic and trade relations have grown significantly since the Korea-Canada Free Trade Agreement entered into force in 2015, with trade nearly doubling over the past decade (from USD 8.6 billion to 17.2 billion). They agreed on the importance of expanding cooperation amid growing uncertainty in the global trade environment, driven by rising protectionism worldwide. Deputy Minister Park stated, “The enhanced cooperation between Korea and Saskatchewan is mutual beneficial from an energy security perspective, enabling Korea to secure stable energy supplies and Canada to diversify its energy exports.” With Korean companies investing actively in Canada, he also called for the Saskatchewan government’s continued support to expand bilateral cooperation in advanced strategic industries that are critical for the future and in clean energy, including batteries, SMRs, hydrogen, and critical minerals.   date2025-09-08

Korea Holds K-FEZ Day 2025 to Boost Global Investment in Free Economic Zones

The Ministry of Trade, Industry and Energy (MOTIE) hosted K-FEZ Day 2025 at the Shilla Hotel in Seoul on September 4, 2025, to expand global investment in Korean Free Economic Zones (KFEZs). The event drew around 240 participants, including members of the diplomatic corps, representatives from foreign chambers of commerce, and foreign-invested enterprises (FIEs) in Korea. The program featured the strategic industries of the FEZs, the Korean government’s AI policy and outlook, and case studies of successful foreign investment, showcasing the zones’ investment strengths and growth potential. The government’s policy priorities include stimulating investment through regulatory reform, fostering advanced technologies and future industries, and building an investment environment aligned with global standards. Accordingly, KFEZs are being developed into clusters for high-tech industries, such as semiconductors, secondary batteries, bio, and clean energy, offering new investment opportunities to global investors. At the event, Deputy Minister of Industries and Enterprises Oh Seung-cheol stated, “Korea is building an open investment environment where global businesses can invest with confidence,” citing the country’s world-class manufacturing competitiveness and strong talent base. He also asked the participants to continue showing interest in KFEZs— key hubs of the Korean economy—and to actively promote them to potential investors. K-FEZ Day 2025 marks the second consecutive year for the event. MOTIE will continue leveraging its network with diplomatic missions and global companies to roll out tailored promotion efforts, positioning KFEZs as Korea’s premier investment hubs and global innovation clusters. date2025-09-05

Korea Discusses Expanding Trade Networks and Strengthening Supply Chain Cooperation with Latin America and the Caribbean

Trade Minister Yeo Han-koo of the Minsitry of Trade, Industry and Energy (MOTIE, Minister JK Kim) met with ambassadors from 18 member states of the Group of Latin America and the Caribbean (GRULAC) in Seoul on September 3, 2025, to exchange views on the global trade environment and discuss ways to strengthen economic and trade ties between Korea and the region. Attendees included ambassadors from Mexico, Brazil, Argentina, Chile, and Peru. Trade Minister Yeo stated that the multilateral trading system is undergoing a fundamental shift amid intensifying geopolitical competition and rising protectionism. He stressed that the shift calls for Korea to proactively expand trade networks with GRULAC members. With a population of nearly 690 million and GDP of around USD 7 trillion, Latin America and the Caribbean (LAC) is a key Global South market for diversifying Korea’s trade and reducing dependency in any single region. Korea currently has free trade agreements (FTAs) in force with seven GRULAC members, including Chile, Peru, and Colombia. Additionally, Ecuador formally signed the Strategic Economic Cooperation Agreement (SECA) with Korea on September 2, 2025, while Guatemala signed the Protocol on its Accession to the Korea-Central America FTA in January 2024. Both agreements will enter into force once remaining procedures, including National Assembly ratification, are completed. Trade Minister Yeo also noted that LAC is a major source of critical minerals such as lithium, nickel, copper, and graphite. Given Korea’s strengths in advanced manufacturing technologies for electric vehicles, batteries, and semiconductors, he emphasized further strengthening supply chain cooperation in critical minerals between Korea and the region. Trade Minister Yeo added that, as APEC Chair in 2025, Korea will seek meaningful outcomes on global issues such as AI cooperation and demographic change. He noted that Korea will also host a series of business events, including the APEC CEO Summit Korea 2025, to promote exchange and collaboration among global business leaders. He asked GRULAC members for their interest and support for APEC 2025. date2025-09-05

Korea and Ecuador Sign Strategic Economic Cooperation Agreement for Market Diversification

Trade Minister Yeo Han-koo of the Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim) met with Luis Alberto Jaramillo, Ecuador’s Minister of Production, Foreign Trade, Investments, and Fisheries in Seoul on Tuesday, September 2, 2025. The two sides held bilateral talks and formally signed the Strategic Economic Cooperation Agreement (SECA). Since launching negotiations in 2016, Korea and Ecuador held nine rounds of formal talks and concluded the negotiations in October 2023. With the official signing completed, the SECA will enter into force following the remaining domestic procedures, including ratification by the National Assembly. Ecuador is regarded as a promising market with relatively low investment risk, supported by abundant energy and mineral resources—such as crude oil (the third-largest producer in Latin America) and copper—political stability in the region, use of the U.S. dollar, and its free trade orientation. The Korean government seeks to further diversify its export markets in Latin America through enhanced cooperation with Ecuador. Once the SECA takes effect, Ecuador will phase out tariffs of up to 40 percent on Korean automobiles within 15 years, including the current 35-percent tariff on hybrid vehicles within five years. This is expected to provide Korea with more favorable market access than major competitors, including China and Japan. Tariffs will also be eliminated on Korean pharmaceuticals and consumer goods—such as cosmetics and instant noodles—that have been gaining popularity in Latin America amid the spread of Korean popular culture, which is expected to boost related exports. In addition, Ecuador will open sectors such as online gaming, retail and distribution services, film, and music, supporting increased local consumption and exports of Korean cultural content that is already popular in the Ecuadorian market. Ahead of the signing ceremony, Trade Minister Yeo said, “Amid growing uncertainty in the global trade environment, bilateral free trade agreements are an effective tool for strengthening export competitiveness and diversifying markets..” He added that the SECA would help companies in both countries expand exports and diversify markets and encourage them to leverage the agreement’s economic cooperation provisions—including cooperation in response to supply chain crises, as well as IT and SME collaboration—to build a forward-looking partnership. Both sides agreed to accelerate remaining procedures for the SECA’s implementation, including ratification by the National Assembly. date2025-09-04

Korea–UK Trade Ministers Discuss Economic Cooperation and Key Trade Issues

Korea’s Trade Minister Yeo Han-koo met with Douglas Alexander, the UK’s Minister of State at the Department for Business and Trade, in Seoul on September 1, 2025. The two sides exchanged views on industrial and trade policy directions amid the current global trade environment and discussed ways to expand bilateral cooperation. The UK is Korea’s 25th-largest trading partner, with bilateral trade totaling $11.2 billion in 2024. Trade between the two countries remained active under the Korea–UK Free Trade Agreement (FTA), which entered into force in January 2011. The UK is also one of Korea’s major investment partners, ranking third among European countries in cumulative investment in Korea as of 2024. Active investment and technological partnerships between companies in both countries underpin bilateral cooperation. During the meeting, Trade Minister Yeo noted the ongoing industrial and trade cooperation between the two countries, including the Korea-UK FTA upgrade negotiations and supply chain dialogues. He emphasized the importance of sustaining a strong economic partnership based on shared values, such as liberal democracy and the market economy. He also expressed hope that the UK’s industrial and trade strategies announced in June would provide as basis for stronger bilateral ties. Regarding the UK’s introduction of Carbon Border Adjustment Mechanism (CBAM), Trade Minister Yeo underscored the need for sufficient lead time and measures to ease compliance burdens on businesses. He also conveyed Korean industry’s concerns and requests regarding the UK’s recently strengthened steel safeguard measures and the Electric Car Grant scheme, and called for the UK government’s cooperation and support. date2025-09-03