Ministry of Trade Industry and Resources

MOTIR Expands R&D Support for Foreign-Invested Companies

Ryu Peob-min, Director-General for Cross-Border Investment Policy at the Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun), visited energy solutions company Danfoss Korea in Seoul, on March 6, 2025. He met with foreign-invested companies to discuss issues regarding participation in domestic technology development projects and ways to expand R&D investment by foreign-invested companies with advanced technologies. MOTIE is currently pushing measures to catalyze R&D by foreign-invested companies by linking them with Korea’s industrial, academic, and research institutions. In 2024, the ministry rolled out a global industrial technology R&D project exclusively for foreign-invested firms . In 2025, the government increased the budget to KRW 3.5 billion (up KRW 2 billion from KRW 1.5 billion in 2024) and will announce new projects later this month to recruit companies wanting to participate. The government also expanded cash grants by 10 percent (up by 15 percent for noncapital regions) and raised the cash grant limit for R&D centers developing high-tech strategic technologies to 75 percent in 2025 (up from 40 percent in 2024). MOTIR will also step up activities under the Korea-Global Innovation Investment Alliance (“Alliance”), launched to encourage foreign-invested firms’ wider participation in the R&D ecosystem, to promote networking between foreign-invested companies and industrial, academic, and research institutions. date2025-03-06

Korea’s Average Tariff Rate on U.S. Imports is Close to 0%

Following U.S. President Donald Trump’s March 4, 2025, address to a joint session of Congress, in which he said Korea’s average tariff rate is four times higher than the U.S. rate, multiple media outlets reported on the remark. Under the Korea-U.S. Free Trade Agreement (KORUS FTA), which took effect in 2012, Korea and the U.S. have eliminated tariffs on most goods traded between them. As of 2024, Korea’s effective tariff rate for goods imported from the U.S. is approximately 0.79 percent. Korea’s most-favored nation (MFN) applied tariff rate is 13.4, approximately four times higher than the U.S. rate of 3.3 percent. However, the MFN rate is separate from the preferential tariff rates Korea applies to U.S. imports under the KORUS FTA. MFN tariff rates apply to imports from members of the World Trade Organization (WTO) that do not have preferential trade agreements with Korea. date2025-03-05

Korea and Spain Expand Advanced R&D Cooperation for Technological Leadership

The Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun) and Spain’s Ministry of Science, Innovation and Universities (MICIU) held the second Korea-Spain Industrial Technology Cooperation Joint Committee meeting in Madrid, Spain, on March 5, 2025. Since 2015, the two countries have pursued bilateral technology cooperation through the Eureka Network, the world’s largest R&D platform, with 48 participating countries. In 2023, they expanded the scope and scale of bilateral cooperation by establishing a joint R&D program for medium to large-sized projects in line with their respective industrial strategies. The program has supported four bilateral joint R&D projects, including in mobility and renewable energy, with combined funding of KRW 25.6 billion. At the Joint Committee meeting, both sides shared the view that artificial intelligence (AI), advanced materials, and semiconductors are core technologies used across all industries. The two sides selected AI and semiconductors as priority technology collaboration areas for 2025, and advanced materials and nanomaterials for 2026, with plans to fund an estimated ₩27 billion in joint R&D. It is anticipated that technological cooperation among industry, academia, and research institutes in Korea and Spain will create opportunities for both countries to swiftly apply innovative technologies in various sectors to further enhance their industrial competitiveness. Following the Joint Committee, the two sides plan to continue their bilateral technological exchanges through the Korea Eureka Day, scheduled for April in Germany this in 2025, and support promising joint projects. date2025-03-05

Minister Ahn Holds Talks with U.S. Officials in Washington D.C.

Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy (MOTIE) visited Washington D.C. from February 26 to 28 2025, where he met with U.S. government officials and lawmakers to discuss bilateral trade issues and measures to strengthen Korea–U.S. cooperation. Minister Ahn met with Senator Mark Kelly, co-sponsor of the Ships for America Act, to discuss steps to expand Korea-U.S. cooperation in shipbuilding. He also exchanged views on Korea’s response to bilateral trade issues with Kevin Roberts, President of the Heritage Foundation; John Hamre, President and CEO of the Center for Strategic and International Studies (CSIS); and Adam Posen, President of the Peterson Institute for International Economics (PIIE). Minister Ahn also requested their support in facilitating intergovernmental cooperation. Minister Ahn also met U.S. Secretary of Commerce Howard Lutnick to discuss strengthening cooperation in strategic areas such as shipbuilding and advanced industries. During the meeting, he requested for Korea’s exclusion from U.S. tariff measures and conveyed the concerns of Korean businesses. The two sides agreed to establish a working-level consultation channels, one to discuss tariff measures and another to promoting cooperation in shipbuilding. Through these channels, the Korean government aims to continue consultations with relevant U.S. authorities to support the interests of Korean businesses. Minister Ahn also held separate talks with U.S. Secretary of the Interior Doug Burgum and U.S. Trade Representative Jamieson Greer on measures to enhance mutually beneficial cooperation in energy and trade. date2025-03-05

Korea’s exports resume growth in February

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced on March 1 that Korea’s exports and imports for the month of February 2025 increased 1.0 percent and 0.2 percent year-on-year, respectively, to USD 52.6 billion and $48.3 billion. The trade balance stood at a surplus of $4.3 billion. By item, semiconductors (down 3.0 percent to $9.6 billion) suffered a downtick despite the solid performance of high-bandwidth memory (HBM) chips and DDR5s, as the fixed price of general-purpose memory chips like DDR4s and NAND flash plunged. Meanwhile, computers (solid-state drives) grew for the 14th consecutive month (up 28.5 percent to $0.8 billion) and wireless communication devices turned to an expansion (up 42.3 percent to $1.5 billion).  Automobile exports (up 17.8 percent to $6.1 billion) snapped their three-month losing streak, fueled by demand for hybrid electric vehicles (HEVs) (up 74.3 percent to $1.3 billion) and bio-health exports (up 16.1 percent to $1.4 billion) were driven by the steep climb achieved by biopharmaceuticals (up 45.5 percent to $0.6 billion). Exports to four out of Korea’s nine major destinations saw growth in February. To China (down 1.4 percent to $9.5 billion), robust demand for wireless communication devices and general machinery offset the slower exports of semiconductors. Exports to the U.S. inched up 1.0 percent to $9.9 billion. Exports to ASEAN hit $9.6 billion (up 12.6 percent), the second highest for the month of February, led by semiconductors and petroleum products. Exports to India (up 18.6 percent to $1.7 billion) recorded an all-time high for the month and those to the Middle East (up 19.6 percent to $1.7 billion) also broke their three-month downward streak.   date2025-03-04

Korea and Japan Launch Mineral Resources Cooperation Dialogue

The Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun) and Japan's Ministry of Economy, Trade and Industry (METI) held the first Korea-Japan Mineral Resources Cooperation Dialogue in Tokyo on February 27, 2025, to begin active bilateral cooperation aimed at stabilizing the critical minerals supply chains essential for the development of advanced industries. At today’s meeting, MOTIE’s Director General for Resources Industry Policy Yoon Chang-hyun and METI’s Deputy Director-General for Manufacturing Industries Hideyuki Urata discussed the two countries’ critical minerals policies, critical minerals stockpiling cooperation, and measures for joint production in third countries. Given that both Korea and Japan operate critical minerals stockpiling systems as part of their economic security policies, the two sides agreed to establish a system for close cooperation in responding to global critical minerals supply chain risks. They also agreed to boost cooperation on the joint development and production of critical minerals in third countries to decrease supply chain risks by supporting collaboration between private-sector businesses and relevant institutions in the two countries. Moreover, both sides will work to establish international norms for critical minerals and stabilize supply chains by strengthening joint policy efforts through the Mineral Security Partnership (MSP) and the International Energy Agency (IEA). They will also develop joint strategies for responding to global supply chain risks. As Korea and Japan are major critical minerals importers with similar industrial structures and strengths in advanced industries such as semiconductors and batteries, the two countries expect considerable synergy from cooperation in critical minerals supply chains. They plan to continue expanding their scope of strategic cooperation through the Korea-Japan Mineral Resources Cooperation Dialogue and other channels to respond effectively to global supply chain crises. date2025-02-27

Korea and Australia to Expand Business Cooperation in Climate, Energy, and Supply Chains

The Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun) held the Korea-Australia Green Economy Partnership Arrangement (EPA) Business Forum in Seoul on February 26, 2025. The Forum was held as follow-up to the bilateral Green EPA signed by the two countries’ relevant ministries in December 2024.  Held to expand business cooperation in climate, energy, and supply chain areas, today’s Forum sought to create tangible joint business opportunities in clean hydrogen, carbon capture, utilization, and storage (CCUS), and critical minerals. The Forum brought together major companies from both countries to review progress in clean energy cooperation, establishing the groundwork for wider and more concrete collaboration in the future. Given Korea and Australia’s central roles in the Asia-Pacific region’s clean hydrogen supply chain, the two sides explored joint measures to establish a stable hydrogen supply chain system and reviewed opportunities to participate jointly in global CCUS projects through the cross-border carbon dioxide (CO2) transport and storage cooperation framework developed under the Green EPA. They also discussed measures to promote joint research to diversify critical minerals supply chains and increase joint investments in clean energy technology development. Korea’s Minister for Trade Cheong In-kyo expressed hope that the two countries would produce tangible results in the global clean energy market by combining Korea’s clean energy technology and Australia’s abundant resources.  Australian Ambassador to the Republic of Korea Jeff Robinson highlighted that the bilateral Green EPA would help the two countries catalyze energy transitions, strengthen supply chains, and boost economic opportunities. Building on the Forum, MOTIE plans to continue supporting Korean companies seeking to participate in global clean energy projects and pursue other opportunities for overseas cooperation. date2025-02-26

KNCP to Proceed with Mediation in Complaint Against Oxy Reckitt Benckiser

The Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun) held this year’s first Korean National Contact Point (KNCP) Committee meeting on February 25, 2025, and announced the results of its initial assessments of two complaints filed under the OECD Guidelines for Multinational Enterprises.  Concerning the complaint filed by a UK non-governmental organization (NGO) against Korean exporter Company “A,” the KNCP determined that there was little need to proceed to mediation and decided to dismiss the complaint, thereby closing the case. With regard to the complaint filed against humidifier disinfectant manufacturer and seller Oxy Reckitt Benckiser, the KNCP decided to proceed with mediation. The complaint was filed by two Korean consumers alleging violations related to human rights and consumer protection. After reviewing the statements and materials submitted, the KNCP determined that it is necessary to arbitrate the dialogue between concerned parties and initiate the mediation process. Going forward, the KNCP plans to form a mediation committee composed of private sector KNCP members and proceed with mediation on the basis of relevant parties’ voluntary participation. Should the parties reach an agreement, the KNCP will announce the mediation outcomes. Should the parties fail to reach an agreement, the KNCP will issue a final statement containing its recommendation and close the case. date2025-02-25