Ministry of Trade Industry and Resources

APEC Trade Ministers Discuss Multilateralism and Cooperation on AI, Digital and Green Industries

Minister for Trade Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) represented Korea as the Head of Delegation at the Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade (MRT) Meeting in Suzhou, China, from May 22 to 23, 2026, and discussed ways to strengthen trade cooperation with other APEC economies. Korea, the 2025 APEC host, also joined China, the 2026 host, and Viet Nam, the 2027 host, as part of the APEC Troika, helping maintain continuity in discussions on Asia-Pacific economic cooperation. Strengthening Global Leadership Through Multilateral Cooperation 1. Importance of APEC Cooperation in Responding to Supply Chain Crisis Amid the prolonged war in the Middle East and deepening global supply chain disruptions, Minister Yeo stressed the need for Asia-Pacific economies to work together to build supply chain resilience. He noted that the crisis around the Strait of Hormuz has exposed vulnerabilities in global supply chains, causing oil price volatility, disruptions to oil and gas supplies, and higher maritime logistics costs. He also called for APEC-level discussions on regional response measures, including an emergency meeting mechanism and stronger information sharing. Minister Yeo said the recent energy supply chain disruptions have underscored the urgent need for APEC members, including Korea, to accelerate the energy transition. He called for APEC-level cooperation to accelerate the region’s transition, including expanded renewable energy, stronger grid connectivity, and carbon credit cooperation. In his intervention, Minister Yeo said, “In an unprecedented crisis, predictable progress in regionalism becomes even more critical.” He added, “Based on a shared understanding of the importance of a pragmatic approach for open plurilateralism, APEC should continue to serve as a platform for practical cooperation in the Asia-Pacific.” 2. Leading Cooperation on AI and Digital Trade Minister Yeo said the digital transition and the rapid development of AI have the potential to fundamentally reshape trade and investment. He introduced Korea’s bilateral and multilateral efforts in digital rule-making, including the Korea–Singapore Digital Partnership Agreement (DPA) and the Korea–EU Digital Trade Agreement (DTA). He also expressed regret that no agreement was reached at the 14th WTO Ministerial Conference (MC 14) on extending the moratorium on customs duties on electronic transmissions, and shared with like-minded APEC economies the view that the moratorium should be made permanent. On the sidelines of the APEC meeting, Minister Yeo attended the Digital Economy Partnership Agreement (DEPA) Ministers’ Meeting and reviewed progress in domestic procedures in Peru and Costa Rica, whose accession negotiations concluded in 2025. At the DEPA+China Ministers’ Meeting, participants also discussed China’s accession process. 3. Contributing to the Restoration of the Multilateral Trading Order, Including the WTO Minister Yeo expressed regret that, although Korea served as Minister Facilitator for the reform session at MC14 and helped make meaningful progress and build broad consensus on WTO reform, members were unable to reach an agreement due to opposition from some countries over issues related to the moratorium on electronic transmissions. He called for reform discussions to continue in Geneva and said Korea will actively contribute to the WTO reform midway review process before the 15th WTO Ministerial Conference in 2027. Minister Yeo also expressed regret that the incorporation of the Investment Facilitation for Development Agreement (IFDA), co-chaired by Korea and Chile through the conclusion of negotiations, into the WTO legal framework was not adopted due to opposition from one member, despite overwhelming support from 165 members. He stressed the need fo date2026-05-22

Minister Kim Meets Kyrgyz Economy and Commerce Minister to Discuss Broader Economic Cooperation

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) met with Kyrgyz Minister of Economy and Commerce Bakyt Sydykov in Seoul on May 21, 2026, to discuss ways to expand bilateral economic cooperation in trade and investment, critical minerals and development cooperation. Both sides welcomed the recent growth in bilateral trade, which reached USD 3.5 billion in 2025, the highest level since diplomatic ties were established in 1992. They also agreed on the need to trade in a wider range of goods and expand mutually beneficial trade. On critical minerals, both sides noted that the Kyrgyz Republic has abundant resources, including antimony and tungsten, and recognized the need to work together in this area. They agreed to identify priority projects for medium- to long-term cooperation and continue discussions. On development cooperation, both sides reviewed the results of ODA projects carried out jointly by MOTIR and the Kyrgyz Republic. MOTIR provided KRW 1.3 billion over three years from 2021 for technical assistance in Kyrgyzstan’s textile sector and will provide KRW 2.1 billion over five years from 2026 for technical assistance on digital transformation (DX). Both sides agreed that ODA has helped strengthen Kyrgyzstan’s industrial capacity and build a foundation for digital transformation. “Kyrgyzstan is an important partner for Korea in trade and investment, critical minerals and development cooperation,” Minister Kim said. “I hope the Korea–Central Asia Summit in Seoul in September 2026 will help accelerate economic cooperation between our two countries.” date2026-05-22

Minister Kim and UAE Energy Minister Review Barakah Plant and Korean Personnel Safety

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry and Resources (MOTIR) held a virtual meeting with UAE Minister of Energy and Infrastructure Suhail Mohamed Faraj Al Mazrouei on May 21, 2026. The ministers reviewed repairs to transmission facilities near the Barakah Nuclear Energy Plant that were damaged in the May 17 drone attack and discussed measures to strengthen the safety of Korean personnel working in the UAE. Minister Kim thanked the UAE government for sparing no effort to support the safety of Korean personnel and their families in the UAE. He said the Korean government would also provide all possible support to help ensure repairs to the damaged facilities proceed without disruption. Minister Al Mazrouei said the UAE gives top priority to the safety of personnel working at the Barakah plant and will continue close communication and cooperation with Korea. Minister Kim also expressed appreciation for the UAE government’s cooperation in stabilizing Korea’s crude oil supplies following Presidential Chief of Staff Kang Hoon-sik’s March 2026 visit to the UAE as a special envoy. Under the Korea–UAE Special Strategic Partnership, MOTIR will maintain close communication with the UAE government and continue to deepen energy and industrial cooperation, including on nuclear power and crude oil supply stability. date2026-05-22

Korea and the EU Hold Dialogue on Supply Chains and Industrial Policy

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the second Korea–EU dialogue on supply chains and industrial policy with the European Commission’s Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW) in Seoul on May 21, 2026. The meeting was co-chaired by Vice Minister Moon Shin-hak of MOTIR and Kerstin Jorna, Director-General of DG GROW. The dialogue was launched after Korea and the EU agreed at their summit in May 2023 to expand the existing industrial policy dialogue to cover supply chain cooperation. The first meeting was held in December 2023, and the second meeting reviewed progress in supply chain and industrial policy cooperation and discussed practical ways to advance future cooperation. The two sides first shared their policies to stabilize supply chains, as global disruptions have become a persistent risk amid escalating geopolitical tensions and threats such as the closure of the Strait of Hormuz. Korea introduced its supply chain legislation, enacted to build a government-wide support framework, and its early warning system, which quickly detects signs of supply-demand risks in key items such as materials, parts and equipment. The two sides also exchanged views on the EU’s progress and plans for its supply chain monitoring system. The two sides also discussed industrial policy trends and major legislative and policy priorities. Korea emphasized that key EU initiatives, including the Industrial Accelerator Act, should be designed and implemented to strengthen Korea–EU supply chain links. Korea also asked the EU to give careful consideration to concerns raised by Korean companies. The two sides also discussed cooperation on supply chains in strategic industries, including critical minerals and batteries. On critical minerals, they explored ways to share information, analyze risks and collaborate on investments and projects to help build stable and sustainable supply chains. On batteries, Korea explained that Korean battery companies are helping build the EU’s battery production base and strengthen its supply chains through large-scale investments in the EU. Korea also asked for Korean companies to play a larger role in battery energy storage system (BESS) projects in the EU. The two sides also discussed ways to expand investment cooperation between Korean and European companies. They agreed that combining European companies’ core technologies with Korea’s advanced manufacturing capabilities could help strengthen supply chain stability and industrial competitiveness. They also agreed to expand cooperation and investment in advanced industries. They further discussed using cooperation platforms such as the EU Business Hub to identify new partnerships in strategic sectors, including green industries, digital industries and healthcare, and to turn B2B cooperation into tangible industrial outcomes. “Korea and the EU are strategic partners that share the universal values of freedom, human rights and the rule of law. They are also economic partners with strong potential to complement each other in advanced industries and supply chains,” Vice Minister Moon said. “We hope this second dialogue will lead to practical outcomes and serve as a key channel for strengthening Korea–EU supply chain stability and industrial cooperation.” MOTIR will continue to expand supply chain cooperation with the EU in strategic industries, including critical minerals and batteries, and strengthen bilateral cooperation on economic security and industrial policy. date2026-05-21

Land Ownership to Be Allowed in Free Trade Zones

The Korean Cabinet approved a bill to amend the Act on Designation and Management of Free Trade Zones on May 20, 2026. The amendment is designed to modernize aging production facilities in free trade zones and update their manufacturing-centered industrial structure so they can respond to rapid changes in the global industrial environment. It focuses on detailed rules for selling state- and public-owned land, giving companies a path to land ownership that can support new investment, while expanding digital transformation (DX) support to promote higher-value business activities. 1. Detailed Rules for Land Sales and Stronger Follow-Up Controls Until now, the law allowed land sales in free trade zones, but no detailed procedures were in place. In practice, the zones operated on a lease-only basis, leaving resident companies without land ownership and limiting their ability to secure collateral, hindering new investments. To address these constraints, the amendment sets out procedures and conditions for selling state-owned or public land and factory facilities, including sales prices and purchase eligibility. A restriction period on property disposal is introduced as a measure to prevent real estate speculation, as well as compliance enforcement fines for violations, such as failure to sign an occupancy contract or unauthorized disposal. 2. Support for Higher-Value Activities and Industrial Competitiveness Since their introduction in 1970, free trade zones have operated mainly as manufacturing bases, limiting their ability to keep pace with changes in the industrial environment. The amendment grants occupancy eligibility to export companies in knowledge services, including information processing and R&D, to promote digital transformation among resident companies and attract higher-value businesses. It also lowers entry barriers by allowing exceptions to the standard building area ratio requirement, reflecting the fact that knowledge service companies do not require large factories. In addition, the amendment expands special provisions under the Customs Act beyond goods clearance to customs assessment and duty reductions or exemptions. It also introduces raw material taxation, strengthening tax benefits for companies in free trade zones. The amendment is scheduled to take effect in May 2027 after revisions to the Enforcement Decree and related regulations. The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) will continue to support free trade zones so they can remain at the forefront of Korea’s exports and move beyond traditional manufacturing and logistics bases into advanced strategic hubs that bring together digital and service industries. date2026-05-20

Korea to Build Circular Battery Ecosystem with Used Battery Safety Framework

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced that the bill to enact the “Act on the Management of Used Batteries and Promotion of the Used Battery Industry,” or the Used Battery Act, was approved by the Cabinet on May 20, 2026. The act treats used batteries as strategic national resources rather than waste, providing a legal basis for their management as volumes are projected to increase sharply with the wider adoption of energy storage systems (ESS) and electric vehicles. It also fosters related industries and establishes a national framework to respond to global green trade regulations, including the EU Battery Regulation, helping create a more stable business environment for companies. Key measures include a framework for performance evaluations and safety inspections; a battery life-cycle tracking and transaction system; measures to promote recycled material use; and support for the used battery industry. First, batteries will be graded through performance evaluations before removal, and products containing used batteries will undergo safety inspections before and after distribution. This will strengthen safety management for used batteries. Second, the battery life-cycle tracking and transaction system will serve as a public platform that manages data across the full battery life cycle—from manufacturing to disposal—and facilitates transactions. It is expected to help stimulate the market, support responses to trade regulations and address gaps in used battery oversight. Third, the act will introduce target requirements for recycled material content and a certification system for the production and use of recycled materials. These measures are expected to strengthen Korea’s supply chain for key battery minerals and promote resource circulation. Fourth, the act will foster the used battery industry through recommendations for priority purchases of products equipped with used batteries, supply chain stabilization measures, and technology development support. The Act will take effect one year after promulgation. Before then, MOTIR will work with relevant ministries, experts and industry to prepare implementing rules, secure the necessary budget and design a safe, balanced system. “This act is the result of years of consultation between industry and relevant ministries,” Minister Kim said. “It will lay the foundation for a closed-loop system for Korea’s battery resources and support the growth of emerging industries.” date2026-05-20

Experts Discuss M.AX as the Way Forward for Korean Manufacturing

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the first Manufacturing AI Transformation (M.AX) Conference and Industrial Growth Forum on May 20, 2026, bringing together experts in manufacturing and economics to discuss how to advance M.AX and scale up the outcomes. Participants included companies involved in M.AX, such as LG Production Engineering Research Institute (LG PRI) and INTERX, as well as academic experts from KAIST, UNIST, Sungkyunkwan University and Myongji University. Manufacturing has long anchored Korea’s economic growth. But the sector now faces tougher conditions, including a shrinking working-age population and a declining potential growth rate. As AI moves into manufacturing sites and emerges as a game changer for productivity and industrial competitiveness, advancing the M.AX has become essential. As major competitors transform manufacturing with AI through large-scale private investment and strong government-led policies, the Korean government launched the M.AX Alliance to bring together capabilities across manufacturers, AI companies, academia and research institutions. Today, more than 1,500 companies and organizations across 11 divisions are working together on the use of manufacturing data, AX in production processes and the development of AI-embodied innovative products. Key projects include AI factories, on-site demonstrations of industrial robots and humanoids in manufacturing, and on-device AI semiconductors essential for AX products such as autonomous vehicles. In 2026, MOTIR will invest KRW 1.1 trillion in its AX budget to support wider adoption. Since its launch, the Alliance has produced initial results, including productivity gains among AI factory participants through lower defect rates, more efficient predictive equipment maintenance, liquidity support for companies facing financing constraints through closer links with the National Growth Fund, and the creation of a M.AX sub-fund under the Industry Growth Fund. In February 2026, MOTIR added an industrial complex AX division, establishing a foundation for AX at regional manufacturing sites and completing the M.AX Alliance’s “Best Eleven” structure. At the forum, speakers examined how M.AX can strengthen industrial competitiveness, reviewed strategies in different countries, and discussed technical priorities for applying M.AX at manufacturing sites. Participants also discussed upgrades to AI factory technologies, the need to secure technological sovereignty in manufacturing AI, Korea’s strengths in full-stack capabilities, and the importance of strengthening AI skills among the manufacturing workforce. “M.AX, the AI transformation of manufacturing, will be a critical factor in maintaining Korea’s industrial leadership and securing the country’s future competitiveness amid the global race for technological supremacy,” said Kim Sung-youl, Deputy Minister for Industry and Growth at MOTIR. “The government will focus on bringing AI into production processes and developing new AI-embodied products and services, so that manufacturing, one of Korea’s core assets, can secure world-leading competitiveness. We will also work closely with companies in the M.AX Alliance to deliver tangible results on the ground, including higher productivity and greater value added across industry.” Deputy Minister Kim added that MOTIR will also work to address labor shortages in key manufacturing industries and create new jobs through M.AX. Future M.AX conferences will be held as a series on topics such as data and robotics, while the Industrial Growth Forum will continue discussions across advanced technologies to develop a new growth model for Korean industry. date2026-05-20

Korea and Jiangsu Province Step Up Cooperation to Deliver Tangible Results

Minister for Trade Yeo Han-koo of the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) attended the seventh Korea–China (Jiangsu) Economic and Trade Cooperation Exchange in Yancheng, Jiangsu Province, China, on May 20, 2026, an event co-hosted by MOTIR and the Jiangsu Provincial Government. On the sidelines, Minister Yeo met with senior provincial officials, including Zhao Yan, Vice Governor of Jiangsu Province. Held under the theme of expanding future-oriented Korea–China cooperation, the conference brought together approximately 400 government officials and business representatives from both sides to discuss trade, investment and supply chain cooperation. Jiangsu Province is China’s second-largest provincial-level economy by gross regional domestic product (GRDP) and Korea’s largest trade and investment partner among Chinese regions. In 2025, Korea–Jiangsu trade reached approximately USD 86.3 billion, a level that would make Jiangsu Korea’s fourth-largest trading partner if counted as a country, following Vietnam at $94.5 billion. The province is also an important base for stable Korea–China supply chains, with more than 3,000 Korean companies operating there in sectors including automobiles, batteries and semiconductors. They include Samsung Electronics in Suzhou, SK hynix in Wuxi, Kia in Yancheng and LG Energy Solution in Nanjing. For the first time, the 2026 conference introduced one-on-one business matching sessions to help Korean companies generate practical export results. Organized by the Korea International Trade Association (KITA), the sessions connected 35 promising Korean consumer goods companies with major Chinese retail platforms, including JD.com, and local buyers. The event also featured a product showcase pavilion, which drew interest from visitors. More than 300 consultations were held, and Korean companies including Kwangcheonkim Co., Ltd. in food products and HS Hyosung Advanced Materials in anode materials signed 11 agreements with Chinese partners, with export agreements worth a combined $2.3 million. The business matching program also utilized the Gmarket–Alibaba MOU, signed on the occasion of the Korea–China summit on January 5, 2026, to support participating companies’ cross-border e-commerce exports. The Korea Trade Insurance Corporation (K-SURE) and the Korea Testing & Research Institute (KTR) operated advisory desks, providing guidance on certification, insurance and other business challenges faced by Korean companies. In his opening remarks, Trade Minister Yeo said, “We will help translate the momentum generated by reciprocal state visits between the leaders of Korea and China into tangible results.” He added, “China’s provincial governments have economies comparable in scale to individual countries, and each has a distinct industrial ecosystem. This makes region-specific cooperation necessary, and we will continue to communicate through exchanges such as this event.” Trade Minister Yeo also met with representatives from Alibaba, China’s largest e-commerce platform, to discuss ways to expand Korean consumer goods’ access to the Chinese market, including through cross-border e-commerce and livestream commerce. He also held a roundtable with Korean-invested companies to hear their concerns and discuss support measures. date2026-05-20