Ministry of Trade Industry and Resources

Korea’s Free Trade Zone exports log record highs in 2024

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that annual exports from Korea’s Free Trade Zones (FTZs) in 2024 jumped 22.5 percent year-on-year to USD 14.9 billion, a historic high since the Masan FTZ designation in 1970, entering the $10 billion thresholds for the fourth consecutive year (2021–2024). In Korea, there are currently 13 areas designated and operating as FTZs, composed of seven industrial complex FTZs, one airport FTZ, and five port FTZs. By FTZ type, airport FTZ exports took the lead, taking up 85.2 percent of total FTZ exports in 2024 with $12.7 billion, followed by industrial complex FTZs ($2.1 billion) and port FTZs ($0.08 billion). Exports of industrial complex FTZs surpassed $2 billion for two straight years on the backs of strong global demand for Korean automobiles, ships, and related parts spurred by high value-added and green market trends. Airport FTZ exports soared 29.3 percent to $12.7 billion, thanks to the sharply climbing demand for high-performance semiconductors and high bandwidth memory chips as data processing capacity is emerging as a key element along with the development of artificial intelligence (AI) technology. By item, semiconductor exports took up 85.2 percent of entire FTZ exports, followed by electrical and electronic precision devices (6.4 percent) like car parts, mobile phone parts, and petrochemicals (1.9 percent) including petroleum resin. By region, China (64.3 percent) was the largest buyer of Korea’s FTZs in 2024, followed by other countries including Vietnam (8.8 percent), the U.S. (3.2 percent), and India (2.2 percent).   date2025-02-04

Korea’s exports fall 10.3% in January

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced on February 1 that Korea’s exports for the month of January declined 10.3 percent year-on-year to USD 49.1 billion. Imports dropped 6.4 percent to $51.0 billion and the trade balance stood at a deficit of $1.9 billion. January exports were impacted by the long Seollal holidays (January 25–30) as the number of working days (20) decreased by four days compared to that of January 2024 (24), temporarily slowing down exports. The average daily export value, considering the impact from the lower number of working days, increased 7.7 percent to $2.5 billion, the second highest in history following the all-time high $2.5 billion of January 2022. The majority of items suffered from the reduced number of working days in January, but the average daily export value advanced for 10 items.  Semiconductors (up 8.1 percent to $10.1 billion) recorded their second highest exports for the month of January, maintaining the upward trajectory for the 15th consecutive month and entering the $10 billion thresholds for the ninth consecutive month. Computer exports posted double-digit growth (up 14.8 percent to $0.8 billion), growing for the 13th consecutive month. Exports of automobiles (down 19.6 percent to $5.0 billion) and car parts (down 17.2 percent to $1.6 billion) were more heavily affected in comparison to other industries, owing to automakers’ relatively longer Seollal holiday period (January 25–31). For petroleum products (down 29.8 percent to $3.4 billion), fires at major production facilities in December 2024 were a cause for setback in shipments, fueled by the fall in international petroleum product prices in comparison with those of January 2024. Exports to most destinations declined, the drop in China-bound exports (down 14.1 percent to $9.2 billion) attributed to the Spring Festival holidays (January 28–February 4). Exports to the U.S. also sank 9.4 percent to $9.3 billion as those of automobiles and general machinery contracted. Exports to ASEAN (down 2.1 percent to $8.6 billion) inched down but those to Vietnam (up 4.0 percent to $4.4 billion) showed strong growth on the backs of semiconductor exports, rising for the 13th consecutive month.   date2025-02-03

Trade Minister Cheong Discusses Key Trade Issues with Major Economies at WEF 2025 in Davos

Minister for Trade Cheong In-kyo of Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun) met with counterparts of various economies at the 2025 Annual Meeting of the World Economic Forum (WEF) in Davos, Switzerland, to discuss ways to strengthen cooperation. He also attended the trade and investment leadership session and an informal World Trade Organization (WTO) trade ministerial meeting to exchange views on ways to foster a more stable and predictable trade environment. First, Trade Minister Cheong held bilateral talks with counterparts of other major economies, including ASEAN, France, the Gulf Cooperation Council (GCC), Japan, the Philippines, Saudi Arabia, and the UK, regarding the changing global trade landscape. They reaffirmed a shared commitment to maintain cooperation within the global trade system. Trade Minister Cheong also explained that Korea’s economy and national security remained stable despite external parties’ concerns over recent political uncertainties. He went on to highlight Korea’s aims to advance cooperation with each country on the margins of the upcoming 2025 Asia-Pacific Economic Cooperation (APEC) Summit. With European Commission Executive Vice-President Maroš Šefčovič, Trade Minister Cheong discussed measures to accelerate the Korea-EU Digital Trade Agreement (DTA) and the need for greater transparency and safeguards against discrimination on foreign companies when Europe introduces new labor and environmental regulations.. With Vice Minister for International Affairs Matsuo Takehiko of Japan’s Ministry of Economy, Trade and Industry (METI), the trade minister took stock of the forward-looking development of Korea-Japan relations and the cooperation momentum reaffirmed during the bilateral high-level trade talks held last December. They also reviewed the two countries’ joint efforts in supply chains and digital areas. In his talks with ASEAN Secretary-General Kao Kim Hourn and the Philippines’ Secretary of Trade and Industry Cristina Aldeguer-Roque, Trade Minister Cheong discussed the ASEAN-ROK Think Tank Dialogue on Economic & Trade Policy (AKTD), to be held on the occasion of the upcoming APEC trade ministerial meeting in May, as well as key trade issues and measures to expand Korea-ASEAN trade. Through bilateral talks with UK’s Secretary of State for Business and Trade Jonathan Reynolds, New Zealand’s Deputy Secretary for the Ministry of Foreign Affairs and Trade Vangelis Vitalis, and GCC Secretary General Jasem Mohamed Albudaiwi, Saudi Arabia’s Minister of Commerce and Investment Majid bin Abdullah Al-Kassabi, and Bahrain’s Minister of Industry and Commerce Abdulla bin Adel Fakhro, Trade Minister Cheong discussed Korea’s respective Free Trade Agreement (FTA) agendas with each counterpart and reaffirmed the importance of free bilateral trade. In addition, he exchanged views with Laurent Saint-Martin, France’s Minister Delegate for Foreign Trade and French Nationals Abroad, on electric vehicle (EV) subsidies and other issues of mutual interest. Following the bilateral talks, Trade Minister Cheong took part in a trade and investment leadership session on January 23, where trade ministers from various economies and global CEOs held in-depth discussions on the potential impact of the newly inaugurated U.S. administration’s trade policies. He emphasized the need for further dialogue within the international community. During the informal WTO trade ministers’ meeting on January 24, Trade Minister Cheong expressed Korea’s strong commitment to upholding an open and inclusive trade system as this year’s APEC chair. He also emphasized the need to strengthen the multilateral trade system amid the rise of protectionism and presented key priorities for WTO reform.  In his subsequent talks with WTO Director General Ngozi Okonjo-Iweala, h date2025-01-31

Joint press release on the substantial conclusion of discussions for Costa Rica’s accession to the Digital Economy Partnership Agreement

The Parties to the Digital Economy Partnership Agreement (DEPA) are pleased to announce that substantive discussions for Costa Rica to accede to this world-leading digital trade agreement have substantively concluded.   Digitally signed in 2020 by Chile, New Zealand and Singapore, the DEPA is the world’s first standalone digital trade agreement, representing a leading-edge form of economic engagement and trade in the digital era. It reinforces commercially meaningful trade rules, establishes new approaches and collaborations in digital trade issues, promotes interoperability between different settings, and addresses the new issues brought about by digitalisation. It is designed to be an inclusive framework, open to economies that meet the high standards of the Agreement. The Republic of Korea joined the Agreement on 3 May 2024, the first new member economy to do so.   Costa Rica formally requested accession to the DEPA on 23 December 2022, and an Accession Working Group to assess this request was established on 6 October 2023. This Accession Working Group, chaired by New Zealand, has agreed that Costa Rica has demonstrated the means by which it will comply with the DEPA’s high standards, as well as a commitment to working collaboratively on projects of mutual interest, in areas such as electronic invoicing, consumer protection, and cross border data transfers.   The DEPA Parties will now work with Costa Rica to finalise its accession process in a timely manner consistent with each Party’s domestic procedures and the DEPA Accession Process.   Chile’s Vice Minister of International Economic Relations Claudia Sanhueza said, “We are delighted to announce, together with the other DEPA members, the substantive conclusion of Costa Rica's negotiations for its accession. Chile is pleased with this achievement, which will undoubtedly enhance the agreement's impact by extending its high digital economy standards to new members, this time to a Latin American country. Costa Rica has demonstrated remarkable dedication and commitment throughout this process, and we look forward to collaborating on projects of mutual interest for our countries.”   New Zealand’s Minister for Trade Hon. Todd McClay said, “New Zealand is pleased that Costa Rica is on track to become the DEPA’s next member. Costa Rica shares our commitment to progressive, high-quality digital trade rules and aligns with DEPA’s vision. Their accession will strengthen DEPA as a leading agreement and attract other like-minded economies with similar ambitions in the digital economy."   Singapore’s Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said,  “As the second aspirant economy to accede to the DEPA, Costa Rica will add to the dynamism and diversity of the Agreement, reinforcing the DEPA’s standing as an open, relevant, and inclusive plurilateral agreement for digital trade rules. Singapore, together with DEPA Parties, looks forward to collaborating with Costa Rica to foster an enabling environment for digital trade to thrive. I welcome Costa Rica as the fifth Party to the DEPA and look forward to our continued partnership.”   The Republic of Korea’s Minister for Trade Cheong Inkyo said, “Korea is delighted to see the successful conclusion of substantive discussions for Costa Rica’s accession to the DEPA. This milestone highlights the growing importance of the DEPA in shaping global digital trade rules and enhancing cooperation. We expect that Costa Rica’s accession to the DEPA will unlock new opportunities for digital trade cooperation between DEPA member countries and Costa Rica.”   Costa Rica’s Minister of Foreign Trade Manuel Tovar said, “Costa Rica’s successful conclusion of accession negotiations to the DEPA marks a date2025-01-24

Korea to Carry Forward Innovative Momentum towards Export Growth

The Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun) and the Korea Trade-Investment Promotion Agency (KOTRA) held the CES 2025 Innovation Forum at COEX in Seoul on January 23, 2025.  The Forum was organized as public-private initiative to translate the innovative achievements of Korean companies recognized at the Consumer Electrics Show (CES) 2025 into a solid foundation for their entry into global market. At this year’s CES, Korea had the largest number CES Innovation Award-winning companies, showcased its largest-ever integrated Korean pavilion, reached a record USD 0.35 billion in estimated export contracts, and newly named a Global Innovation Champion. In view of these achievements, the Korean government launched the Forum to ensure that these outcomes lead to actual exports through timely follow-up support. First, a debriefing session introduced the key takeaways of CES 2025 regarding new industrial ecosystems and opportunities to be created in by artificial intelligence (AI), including in robotaxis, energy, and healthcare. It was followed by a presentation session in which five companies shared their strategies for winning CES Innovation Awards. Participants were also provided with opportunities to engage in export promotion activities, such as online export consultations. Meanwhile, various institutions introduced export and financial assistance programs for innovative companies. KOTRA introduced its program offering catered support and preferential treatment to innovative Korean companies, as well as assistance with setting up dedicated booths at major exhibitions, participating in Demo Day events, and entering global supply chains, primarily through K-Tech Camps. The Korea Credit Guarantee Fund (KODIT) and the Industrial Bank of Korea (IBK) also participated in the forum, offering guarantee support and financial solutions. Moreover, the Korea International Trade Association (KITA) shared its plans to support exports of innovative businesses through NextRise 2025, Korea’s largest startup fair. date2025-01-23

Public and Private Sectors Join Forces in Preparations for APEC 2025

Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy (MOTIE) attended the launch ceremony of the private steering committee (“Committee”) for the Asia-Pacific Economic Cooperation (APEC) CEO Summit Korea 2025 to review preparations and the Committee’s plans. He also encouraged business leaders to actively cooperate in ensuring Korea’s successful hosting of this year’s APEC Economic Leaders' Meeting (AELM). The Korea Chamber of Commerce and Industry (KCCI) plans to establish a private-sector support system for the successful hosting of the APEC CEO Summit and other AELM events held on the margins of the 2025 APEC Summit in Gyeongju. Led by KCCI Chairman Chey Tae-won, the Committee is composed of Korea’s leading CEOs representing the country’s major industries. Committee members will leverage the global networks developed through their companies’ overseas operations and supply chains to encourage promising global business leaders to participate. To increase the participation of global business leaders in this year’s AELM events, MOTIE plans to conduct promotion activities at home and abroad through relevant organizations, including Korea’s overseas diplomatic missions and the Korea Trade-Investment Promotion Agency (KOTRA). With Korea resuming the APEC chairmanship in 20 years, MOTIE aims to use this opportunity to facilitate discussions on cooperation in emerging trade areas such as sustainable development, supply chains, artificial intelligence (AI), and the digital economy. It will also advance existing discourse on trade cooperation, including ways to strengthen the multilateral trade system and promote free trade. date2025-01-23

Experts Discuss Future Korea-ASEAN Cooperation at Indo-Pacific Policy Forum

The Ministry of Trade, Industry and Energy (MOTIE, Minister Ahn Duk-geun) held an Indo-Pacific policy forum in Seoul on January 23, 2025, to discuss measures for Korea-ASEAN cooperation in light of the inauguration of the new U.S. administration and assess its overall impact on ASEAN. ASEAN is not only a key region in the Global South but also home to approximately 40 percent of all Korean companies operating overseas. Hosted by MOTIE and organized by the Korea University ASEAN Center (KUAC), the forum brought together ASEAN experts from academia and research institutes to take stock of the outcomes of the Korea-ASEAN economic cooperation and discuss future cooperation. Participants also addressed issues such as global oversupply and strategic response measures against trade risks. Following the launch of the ASEAN-ROK Think Tank Dialogue on Economic and Trade Policy (AKTD) in the first quarter of 2025, MOTIE will utilize the dialogue as a new channel for Korea-ASEAN trade and economic cooperation. The ministry will also continue to support the stable business operations of Korean companies in the ASEAN market by closely communicating with relevant governments and industries. date2025-01-23

Korea’s annual retail sales grow 8.2% in 2024

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that Korea’s annual retail sales for 2024 rose 8.2 percent year-on-year. Offline and online sales increased 2.0 percent and 15.0 percent, respectively. MOTIE's retail sales figures are based on surveys of 23 major retailers. Thirteen of them are brick-and-mortar retailers: three department store chains, three hypermarket chains, three convenience store chains, and four super supermarket (SSMs) operators. The remaining 10 are online retailers. By offline retail channel, hypermarket sales decreased 0.8 percent despite the growth of food items (up 2.3 percent) as demand for nonfood categories dropped 7.9 percent.  SSM operators advanced 4.6 percent through their growing number of stores, increasing demand for home dining as well as trends for smaller purchases and shopping local. Convenience store sales (up 4.3 percent) achieved consistent growth throughout the year and even surpassed department store sales at one point but finished 0.1 percentage point short of the annual department store sales share in 2024, as department stores (up 1.4 percent) enjoyed a final spurt from the special seasonal demand in December.  In spite of domestic issues and overseas platforms’ active penetration, online retail sales in 2024 logged growth on the backs of robust demand for food products (up 22.1 percent) and services (up 58.3 percent) such as e-coupons, food deliveries, performances, and travel packages. With the move toward online shopping channels gaining stronger momentum, the percentage point gap between online and offline sales reached 13 percentage points in 2024, a steep climb from the 1.5 percentage point gap of 2023. By category, home appliances/culture (down 0.9 percentage points), fashion/miscellaneous (down 1.2 percentage points), and kids/sports (down 0.6 percentage points) contracted in retail sales share in 2024 owing to receding consumer confidence and the impact from overseas direct purchases (ODP), while food products (up 0.7 percentage points) and service/other (up 2.2 percentage points) expanded. For the month of December, Korea’s retail sales gained 8.9 percent overall as offline sales fell 0.3 percent year-on-year and online sales surged 18.8 percent.   date2025-01-23