Ministry of Trade Industry and Resources

Korea and Saudi Arabia Step Up Cooperation in Core Manufacturing and Future High-Tech Industries

Saudi Arabia, the largest economy in the Middle East and North Africa region, is accelerating cooperation with Korea in key manufacturing sectors such as shipbuilding and automobiles, while partnerships in future high-tech industries, including artificial intelligence (AI), are also expected to gain momentum. Vice Minister Moon Shin-hak of the Ministry of Trade, Industry and Resources (MOTIR, Minister Kim Jung-kwan) held the Korea–Saudi Vice Ministerial Meeting on Industry with Abdullah bin Ali Al-Ahmari, Assistant Minister of Industry and Mineral Resources for Planning and Development of Saudi Arabia, at the Government Complex Seoul on Monday, October 27, to discuss ways to strengthen industrial cooperation between the two countries and Saudi Arabia’s support for Korean business projects underway in the Kingdom. The meeting was also significant as it reviewed progress on major industrial cooperation initiatives discussed at the 5th Korea–Saudi Vision 2030 Committee, held in Seoul on September 27. Vice Minister Moon highlighted that Korean companies operating in Saudi Arabia have been actively contributing to the realization of Vision 2030, the Saudi government’s national strategy for economic diversification in the post-oil era. He requested continued attention and support from the Saudi government to ensure smooth implementation of related projects. Both sides agreed to maintain close government-level communication to support the progress of major industrial cooperation projects in Saudi Arabia’s core manufacturing sectors—most notably, International Maritime Industries (IMI), being developed within the King Salman International Complex for Maritime Industries and Services as the largest shipyard in the Middle East, and Hyundai Motor Company’s first assembly plant in the Middle East, now under construction in King Abdullah Economic City. In addition, the two vice ministers agreed to advance practical cooperation through relevant research institutes on the joint development of eco-friendly shipbuilding technologies aimed at reducing carbon emissions, a new initiative proposed by Saudi Arabia and adopted at the 5th Korea–Saudi Vision 2030 Committee Meeting. They also agreed to continue discussions on establishing hydrogen vehicle infrastructure, including the installation of hydrogen refueling stations and hydrogen quality management systems in Saudi Arabia, which Korea proposed as a new cooperation project during the same meeting. Vice Minister Moon further noted that as both countries are investing heavily in the AI industry as a future growth engine, Korea and Saudi Arabia should accelerate cooperation in AI infrastructure, including advanced semiconductors and data centers, while also expanding collaboration in AI applications such as digital twins, cloud computing, and robotics. Assistant Minister Al-Ahmari welcomed these proposals and agreed to work toward their practical implementation.   date2025-10-27

Korea Announces New Basic Plan to Strengthen Materials, Parts, and Equipment Industry

The Ministry of Trade, Industry and Resources (MOTIR) announced the 2026–2030 Basic Plan for Strengthening the Materials, Parts, and Equipment (MPE) Industry, outlining strategies to enhance innovation, market, and ecosystem capabilities to drive a new phase of growth and global competitiveness. The new plan builds on achievements made since the 2019 Japanese export restrictions, which led to the first MPE Basic Plan (2020–2025) and accelerated Korea’s technological independence in key sectors. The revised plan aims to support the nation’s advanced industries and economic security in an era of intensifying global competition, while responding to emerging challenges such as artificial intelligence (AI) and carbon neutrality. Under the new plan, MOTIR will designate ten additional MPE Specialized Clusters by 2030 to expand Korea’s core manufacturing bases and foster cooperation between demand and supply companies. It will also launch 15 Super Eul Projects to develop world-leading technologies and five AI New Materials Projects to create materials for extreme environments using artificial intelligence. The government will promote collaboration in technology, production, and procurement across the value chain and advance ten ecosystem-based cooperation models to secure next-generation supply chains. Three new industry collaboration projects will receive KRW 35 billion in joint R&D and policy support over five years. Minister Kim Jung-kwan emphasized that the government will “reinforce the sector’s fundamental competitiveness through challenge, innovation, and speed,” adding that it will “expand fiscal, fund-based, and policy support while actively pursuing supply chain stabilization.”   date2025-10-24

Korea and IDB Discuss Expanding Korea–Latin America Trade and Investment Cooperation

Yeo Han-Koo, Trade Minister at the Ministry of Trade, Industry and Resources (MOTIR), met with Anabel González, Vice President for Countries and Regional Integration at the Inter-American Development Bank (IDB), in Seoul on Thursday, October 23, to exchange views on the global trade environment and discuss ways to expand trade and investment cooperation between Korea and Latin America. During the meeting, Minister Yeo highlighted that Latin America—with a population of about 690 million and a GDP of around USD 7 trillion—is a vast market endowed with abundant natural resources such as lithium and copper. He stressed that amid the rise of protectionism and resource nationalism worldwide, Latin America is an important partner for Korea in diversifying markets and strengthening supply chain resilience. The minister noted that expanding trade and investment between Korea and Latin America would generate mutual benefits such as greater production and trade growth. He proposed three key directions for future cooperation: (1) diversifying trade through broader economic networks, (2) expanding collaboration in critical minerals, defense, and infrastructure, and (3) promoting private-sector investment through close government-to-government dialogue and cooperation. He also requested the IDB’s advice and support in further strengthening Korea–Latin America trade and investment, given its extensive regional network and expertise. Finally, Minister Yeo stated that MOTIR is currently supporting industrial technology and green energy development in several Latin American countries—including Colombia, Honduras, Paraguay, and Guatemala—through official development assistance (ODA) projects. He proposed that Korea and the IDB jointly identify and design new ODA initiatives to further advance industrial development in the region. Minister Yeo also emphasized that Korea, home to many globally competitive enterprises, is an ideal partner for Latin America’s economic development, and requested the IDB’s cooperation in expanding Korean companies’ participation in IDB-led projects.   date2025-10-24

Korea and Germany Advance Industrial Data Cooperation to Accelerate Manufacturing AX

The Ministry of Trade, Industry and Resources (MOTIR, Minister Kim Jung-kwan) announced that it co-hosted the 2nd Korea–Germany Industrial Data Space Forum on Thursday, October 23, at the Nine Tree Premier ROKAUS Hotel in Yongsan, Seoul, together with Germany’s Federal Ministry for Economic Affairs and Climate Action (BMWE). The event brought together around 100 experts from industry, academia, and research, including representatives from the Korea Institute for Advancement of Technology (KIAT), the Korea Industrial Complex Corporation (KICOX), and AI solution companies. Overview of the 2nd Korea–Germany Industrial Data Space Forum Date/Venue: October 23, 2025 (Thu), 09:15 / Nine Tree Premier ROKAUS Hotel, Yongsan, Seoul Host/Organizer: MOTIR / KIAT Key Participants: [Korea] MOTIR (including the Korean Agency for Technology and Standards), KIAT, KICOX; [Germany] BMWE, Embassy of Germany in Korea, and organizations related to Manufacturing-X Main Agenda: Sharing of Korea–Germany industrial data utilization cases, policy cooperation discussions among MOTIR, KIAT, and KICOX, and consultations on the Korean Manufacturing-X initiative. Following the first forum held in October 2024, this year’s event was organized to discuss bilateral cooperation strategies and share best practices as the Korean government plans to include the “Industrial Data Space Standard Model Project” in the 2026 national budget. To drive manufacturing digital transformation (AX) by integrating AI across manufacturing processes and the entire upstream and downstream value chains, collecting and utilizing reliable industrial data is crucial. Reflecting this need, MOTIR signed an MOU with ten major industry associations at the 1st Industrial AI EXPO on September 3 to establish a voluntary data-sharing framework among companies. At the forum, participants discussed strategies for building industrial data spaces tailored to Korea’s industrial environment to enable manufacturing data sharing across key sectors. They also explored standardization and interoperability between Korean and German data spaces. Korean companies presented their technologies and pilot cases in industrial data space development, while the German side introduced the progress and best practices of Catena-X, the automotive industry’s leading data space initiative. Kang Kam-chan, Director General for Industrial Policy at MOTIR, stated, “If Korea can leverage Germany’s experience and expertise gained from successfully implementing Catena-X to build an industrial data ecosystem suited to our industries, it will greatly benefit Korean manufacturers. We will continue regular cooperation with Germany, a global leader in industrial data spaces, to jointly build a global industrial data ecosystem through strong public–private collaboration.”   date2025-10-23

K-Semiconductors in the AI Era Anticipate Record Exports; Industry Leaders Gather for Semiconductor Day

Vice Minister of Trade, Industry and Resources Moon Shin-hak attended the 18th Semiconductor Day ceremony held at the Grand InterContinental Seoul Parnas on Wednesday, October 22, where he presented government awards to individuals who contributed to the advancement of Korea’s semiconductor industry. The ceremony brought together about 550 representatives from industry, academia, and research, including Song Jaihyuk, Chairman of the Korea Semiconductor Industry Association (KSIA) and President of Samsung Electronics’ Device Solutions Division, and Kwak Noh-Jung, CEO of SK hynix. In his opening remarks, Chairman Song stated, “As AI adoption accelerates and demand for advanced semiconductors grows, Korea’s semiconductor exports are expanding rapidly, drawing global attention to the competitiveness of K-semiconductors.” He emphasized that amid technological paradigm shifts such as AI and quantum computing, semiconductors are a national strategic asset, and that this is a critical window of opportunity for proactive investment, talent development, and infrastructure expansion. In his congratulatory address, Vice Minister Moon noted, “Semiconductor exports are projected to exceed USD 165 billion this year, achieving an all-time high for the second consecutive year. As we enter the AI era, Korea’s semiconductor industry will continue to strengthen its leadership in memory semiconductors while narrowing the competitiveness gap with advanced economies in areas such as system semiconductors, fabless, and materials, parts, and equipment. The government will remain steadfast in fostering semiconductors and other high-tech industries.” As of September, semiconductor exports totaled USD 119.7 billion, and are on track to reach another record high following 2024. Semiconductors accounted for 23 percent of Korea’s total exports of USD 519.7 billion through September, maintaining their position as the country’s top export category. During the ceremony, a total of 83 individuals were recognized for their contributions to the semiconductor industry and to cooperation between large and small businesses. The recipients included SK hynix CEO Kwak Noh-jung, who received the Gold Tower Order of Industrial Service Merit, along with one recipient of the Silver Tower, one of the Bronze Tower, three Industrial Service Medals, three Presidential Citations, four Prime Minister’s Citations, 40 MOTIR Minister’s Citations, and 30 KSIA Chairman’s Awards.   date2025-10-23

Indo-Pacific Economic Framework Members to Review Supply Chain Cooperation

The Crisis Response Network (CRN) will conduct a joint tabletop exercise in Korea to enhance regional response capacity to supply chain disruptions in the Indo-Pacific region. The Ministry of Trade, Industry and Resources (MOTIR, Minister Kim Jung-kwan) announced that Korea, as chair of the Indo-Pacific Economic Framework for Prosperity (IPEF) CRN, will host the 4th IPEF CRN Regular Meeting and a crisis response tabletop exercise at the Lotte Hotel Seoul on Wednesday, October 22. The exercise marks the third joint drill since the CRN’s launch in 2024, which serves as the implementing body of the IPEF Supply Chain Agreement. It aims to establish a systematic framework for supply chain crisis response, focusing on assessing the effectiveness of member coordination and strengthening collective response capacity. The scenario involves a sudden shutdown in the refining and processing operations of a critical mineral–producing country, triggering shortages and price spikes across IPEF member economies. Participating countries will practice a series of real-time response procedures, including sharing supply chain updates, assessing crisis escalation levels, coordinating joint responses, convening a ministerial meeting, and adopting a joint statement outlining policy cooperation. This exercise features more detailed procedures than previous drills, including response measures by crisis level, bilateral consultations among countries with shared interests, and escalation to a ministerial-level meeting. In parallel with the exercise, Korea and Australia will share updates on the progress and future plans of their joint IPEF supply chain capacity-building program. The program, targeting seven member countries, aims to enhance regional supply chain resilience by providing tailored training on supply chain management, crisis response manuals, and policy development capabilities. As the central coordination mechanism for supply chain cooperation under the IPEF, the CRN serves as the control tower for rapid information-sharing, policy coordination, and collective action during disruptions. Korea, elected as the CRN’s inaugural chair in July 2024 following the signing of the IPEF Supply Chain Agreement in 2023, continues to play a leading role in strengthening supply chain crisis response. Lee Jaekeun, Director General for New Trade Strategy and Policy at MOTIR, stated, “Critical minerals are essential to achieving carbon neutrality and sustaining the competitiveness of advanced industries, making supply chain stability more crucial than ever. This exercise goes beyond a simple simulation, serving as practical training to replicate real-world policy decision-making and response procedures.” He added, “At a time of heightened concerns over critical mineral supply chains, this exercise reaffirms the Indo-Pacific countries’ strong commitment to active supply chain cooperation.” date2025-10-22

Korea and Montana Discuss Stronger Economic Cooperation

The Ministry of Trade, Industry and Resources (MOTIR, Minister Kim Jung-kwan) announced that Trade Minister Yeo Han-koo met with Montana Governor Greg Gianforte and his economic delegation in Seoul on Monday, October 20, to discuss ways to strengthen economic cooperation between Korea and the United States. The delegation included the First Lady of Montana, the CEO of Navajo Transitional Energy Company (NTEC), the CEO of Montana Renewables, and the Director of the Office of Trade and International Relations at the Montana Department of Commerce, along with representatives from Montana-based companies and state government officials. Minister Yeo and Governor Gianforte noted that Korea and Montana have developed a close, mutually beneficial relationship through active trade in LNG, crude oil, and other energy sectors. They agreed to expand cooperation in energy, critical minerals, manufacturing, and industrial supply chains by leveraging Korea’s advanced manufacturing capabilities and Montana’s abundant natural resources to strengthen energy security and diversify supply chains. Minister Yeo also raised visa issuance challenges, emphasizing that creating a stable investment environment and ensuring smooth visa processing for Korean companies is critical to prevent a recurrence of issues like the one in Georgia. He requested Governor Gianforte’s attention and support in establishing a lasting solution to this matter. In addition, Minister Yeo shared that Korea and the United States are pursuing constructive and mutually beneficial approaches in ongoing tariff negotiations and called for active support and engagement from the Montana state government in this process.   date2025-10-21

Korea’s Auto Industry Continues Growth Streak in September

The Ministry of Trade, Industry and Resources (MOTIR) announced on October 20 that Korea’s automobile exports, domestic sales, and production all increased year-on-year in September, marking the third consecutive month of growth. This was partly due to more working days compared to last year, when the Chuseok holiday fell in September. Automobile exports rose 16.8 percent year-on-year to USD 6.4 billion, the highest September level on record, with cumulative exports for January–September also reaching an all-time high of $54.1 billion. Eco-friendly vehicle exports surpassed 90,000 units for the first time, with electric vehicle (EV) exports increasing 38.9 percent and maintaining growth for the fourth consecutive month. Cumulative EV exports for January–September also turned positive for the first time this year, up 0.2 percent year-on-year. Domestic automobile sales grew 20.8 percent to 158,000 units, the highest monthly total since November 2023. EV sales jumped 135 percent to a record 29,000 units, pushing cumulative EV sales for January–September to 170,000 units, up 57.5 percent year-on-year and surpassing the previous annual record for domestic EV sales. Automobile production increased 8.9 percent to 334,000 units, bringing cumulative production for the first nine months to over 3 million vehicles.   date2025-10-21