Ministry of Trade, Industry and Energy

Korea’s retail industry grows 4.4% in February

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that Korea’s retail industry advanced 4.4 percent year-on-year in February 2025, with offline sales declining 7.7 percent and online sales growing 16.7 percent. MOTIE's monthly 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. With this year’s Seollal holidays landing in January and the number of working days for February coming short by a day compared to last year, retail sales across all offline channels decreased.  Hypermarkets slowed in most sales categories such as food products (down 19.7 percent), home appliances/culture (down 10.9 percent), clothing (down 23.6 percent), and home/living (down 22.5 percent). Department stores showed growth in foreign designer labels (up 4.5 percent) and household goods (up 4.3 percent), while food products (down 21.2 percent), miscellaneous goods (down 6.5 percent), and kids/sports (down 7.6 percent) shrank. Convenience stores and SSMs experienced retreating sales in both food and non-food categories. As for the online retail industry, food products (up 14.9 percent) and service/other (up 76.3 percent) sales expanded on the backs of stronger online delivery services and robust demand for food delivery and e-coupons, whereas fashion/clothing (down 9.7 percent) and sports (down 9.8 percent) contracted. Meanwhile, back-to-school demand drove sales for home appliances/consumer electronics (up 3.6 percent) and helped snap their five-month downward streak.   date2025-03-25

Korea and Spain advance joint R&D cooperation in cutting-edge industries

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea and Spain’s Ministry of Science, Innovation and Universities (MICIU) held the second Korea-Spain Industrial Technology Cooperation Joint Committee (“Joint Committee”) meeting today in Madrid. Since 2015, the two countries have engaged in bilateral technology cooperation through the Eureka Network, the world’s largest R&D platform in which 48 countries around the world are participating. Under the aim to expand the scope and scale of bilateral cooperation, they established a joint R&D program in 2023 for medium to large-sized projects in line with their respective industrial strategies, funding a combined KRW 25.6 billion to joint R&D projects in areas like mobility and renewable energy. At today’s Joint Committee meeting, both sides shared the view that artificial intelligence (AI), advanced materials, and semiconductors serve as critical elements across all industries. Accordingly, they selected AI and semiconductors as main technology collaboration areas for 2025 and advanced materials and nanomaterials as those for 2026 with plans to fund an estimated ₩27 billion in joint R&D. It is anticipated that this technological cooperation among Korea and Spain’s academia, industries, and research institutes 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 slated for April in Germany this year to actively support promising joint projects.   date2025-03-05

Minister Ahn meets U.S. Senator Mark Kelly

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea met U.S. Senator Mark Kelly on February 28 (local time) in Washington D.C. and discussed measures for stronger cooperation in the shipbuilding industry. date2025-03-04

KNCP to proceed with mediation procedures on complaint filed against Oxy Reckitt Benckiser

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea held this year’s first Korean National Contact Point (KNCP) Committee meeting today and announced the primary review results over two complaints filed in accordance with the OECD Guidelines for Multinational Enterprises.  Concerning the complaint filed against Company “A” by a non-governmental organization (NGO) in the UK, the KNCP viewed that the need for mediation is not considerable 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 forward with mediation procedures. The complaint was filed by two Korean consumers citing reasons of violation of human rights and consumer protection laws. On 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 civilian KNCP members and proceed with mediation procedures on the premise 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 announce a final statement carrying its recommendation on unsettled issues and close the case. date2025-02-25

Korea’s retail industry advances 11.7% in January

The Ministry of Trade, Industry and Energy (MOTIE) announced today that Korea’s retail industry grew 11.7 percent year-on-year in the month of January 2025, with offline and online sales advancing 8.8 percent and 14.6 percent, respectively. MOTIE's monthly 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 jumped 16.1 percent as Seollal holiday demand spurred sales across all categories, centering on food products (up 19.1 percent), home appliances/culture (up 7.5 percent), and home/living (up 8.2 percent). Department store sales climbed 10.3 percent on the backs of Seollal gift purchases, led by foreign designer labels (up 17.3 percent), food products (up 24.9 percent), and kids/sports (up 9.3 percent). Convenience store sales inched up 1.7 percent, with food products (up 2.5 percent) and nonfood products (up 0.9 percent) both increasing, whereas instant food products (down 5.0 percent) shrank for the first time since last year’s Chuseok holidays in September 2024. SSM operators rose 4.8 percent as food products (up 5.1 percent) and nonfood products (up 1.4 percent) both grew, thanks to higher demand for home dining and kitchenware during the Seollal holidays. Online retail sales (up 14.6 percent) enjoyed robust demand for food products (up 19.6 percent), cosmetics (up 7.7 percent), and service/other (up 73.3 percent), fueled by purchases of Seollal holiday gift and e-coupons, rental services for water purifiers and other items, as well as the expansion of online platforms’ delivery services. Meanwhile, sales of fashion/clothing (down 12.8 percent), sports (down 11.9 percent), and home appliances/electronics (down 6.2 percent) continued to slow.   date2025-02-25

Minister Ahn meets Dutch Minister of Economic Affairs

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea met Dutch Minister of Economic Affairs Dirk Beljaarts on February 20 in Seoul for discussions on measures to strengthen Korea-Netherlands industrial cooperation as well as agendas like economic security, supply chains, and semiconductors. date2025-02-21

Korea’s top 10 manufacturing industries plan to invest $82 bln in 2025

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea held the fifth Industrial Investment Strategy meeting today in Seoul with the participation of Korea’s 10 major manufacturing sectors, the Korea Chamber of Commerce and Industry (KCCI), and the Korea Institute for Industrial Economics & Trade (KIET) to discuss investment performance, investment plans for 2025, and measures to stimulate businesses’ domestic investment. Korea’s top 10 manufacturing industries’ investment outcomes of 2024 amounted to KRW 114 trillion won, surpassing their initial plan of ₩110 trillion. Even as businesses last year experienced difficult conditions as higher-for-longer interest rates increased financing costs and high exchange rates fueled prices of imported capital goods, semiconductors and automobiles led the overall investment performance on an upward trajectory. In 2025, Korea’s 10 leading manufacturing industries plan to make approximately ₩119 trillion (app. USD 82 bln) worth of investments, seven percent higher than the ₩110 trillion that had been planned for 2024. It is meaningful to note that Korea’s major manufacturing sectors’ investment targets are on an expansion trend, despite signs of an intensifying global tariff war and other external and internal factors. The semiconductor industry plans to raise investments centering on cutting-edge memory chips in response to the growing worldwide demand for artificial intelligence (AI) and the automobile industry is aiming to widen investment for its EV transition. Meanwhile, investments by the secondary battery and steel industries are expected to decline as a result of slowing demand and oversupply issues. At the meeting, companies requested that efforts be made to pass the investment tax credit extension bill, which fell through in 2024, and also asked for more drastic financial support as well as active government measures to minimize trade uncertainties. Noting the importance of domestic investment with respect to job creation and supply chain uncertainties, Minister Ahn stated that full support will be given towards fostering a more favorable environment for businesses to steadily increase domestic investments.   date2025-02-12

Korea and Czech Republic deepen standards cooperation in battery, hydrogen, and AI

The Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea launched the Korea-Czech Republic Standards Cooperation Workshop (“Workshop”) today in Seoul with the participation of approximately 50 private standards experts and government officials of both countries. A follow-up to the action plan for standards cooperation signed between the two countries in October 2024 in Edinburgh to further the outcomes gained during the bilateral summit held last September, today’s Workshop brought Korean and Czech standards experts together to share technology and standardization trends in battery, hydrogen, and artificial intelligence (AI) and to engage in exchanges on standards information and joint standards development research for bilateral standards cooperation. On the margins of the event, the Korean Standards Association (KSA) and the Czechoslovak Association of Standardization (CAS) entered into a standards information distribution license agreement to promote support for Korean and Czech exporting businesses’ obtaining of standards approval for mutual market entry.   date2025-02-11

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

Korea and Japan discuss bilateral R&D cooperation

Korea’s Director General for Industrial Technology Convergence Policy Je Kyung-hee held a meeting with Kikukawa Jingo, Director General for Innovation and Environment Policy at Japan’s Ministry of Economy, Trade and Industry, today in Seoul and discussed government policies for innovation, measures for private-sector R&D investment support, and technological cooperation with the incoming U.S. administration. date2025-01-13