Ministry of Trade, Industry and Energy

Minister Ahn meets U.S. Embassy Chargé d'Affaires ad interim

Korea’s Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea held talks with Ambassador Joseph Yun, Chargé d'Affaires ad interim at the U.S. Embassy in Seoul, today to discuss measures for stronger Korea-U.S. cooperation in trade, investment, and energy. The two sides also agreed to continue joint efforts for Korea’s successful hosting of Asia-Pacific Economic Cooperation (APEC) 2025. date2025-02-21

Minister Ahn discusses stronger Korea-U.S. cooperation with U.S. Embassy Chargé d'Affaires ad interim

Korea’s Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea held talks with Ambassador Joseph Yun, Chargé d'Affaires ad interim at the U.S. Embassy in Seoul, today to discuss measures for stronger Korea-U.S. cooperation in trade, investment, and energy. The two sides also agreed to continue joint efforts for Korea’s successful hosting of Asia-Pacific Economic Cooperation (APEC) 2025. Minister Ahn assessed that Korea-U.S. relations have advanced towards an economic and advanced industrial alliance based on the steady expansion of bilateral trade and investment, expressing anticipation for the two countries’ continued and enhanced cooperation under the new U.S. administration. Viewing that the Korea-U.S. partnership has strong potential for further development in cutting-edge areas like batteries, semiconductors, shipbuilding, and energy, the minister underscored the need for continuity and stability on both sides with respect to policies that are likely to impact bilateral trade and investment. Chargé d'Affaires ad interim Yun responded that utmost efforts will be made at the U.S. Embassy level to bolster the Korea-U.S. alliance, which has progressed to deepen the two countries’ relations in all aspects over the past 70 years. The Korean government plans to maintain close consultation with the U.S. government while monitoring the new administration’s trade and economic measures with regard to their impact on bilateral trade and investment.   date2025-02-21

Korea and Netherlands discuss stronger industrial cooperation

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea met Dutch Minister of Economic Affairs Dirk Beljaarts today in Seoul for discussions on measures to strengthen Korea-Netherlands industrial cooperation. Among EU member states, the Netherlands is Korea’s second largest trading partner (USD 15.0 billion as of 2024) and biggest investor ($39.9 billion in accumulated pledges for 2024 as of September), with the two countries’ businesses vigorously engaged in collaboration in cutting-edge industries like semiconductors and batteries. During today’s talks, the two sides covered agenda items such as bilateral cooperation, economic security, supply chains, and semiconductors, sharing their industrial policy trends and cooperation progress. Noting the active Korea-Netherlands joint R&D cooperation in information and communications technology (ICT) and bio, Minister Ahn expressed anticipation for wider technology collaboration with continued in-depth consultations through the bilateral Joint Innovation Committee established between Korea’s Ministry of Trade, Industry and Energy (MOTIE) and the Netherlands’ Ministry of Economic Affairs. The minister further highlighted the need for continued intergovernmental cooperation in export controls and supply chains, and both sides agreed that economic security is a shared key issue as uncertainties are intensifying across the global trade landscape. Highly appraising the smooth progress of the bilateral semiconductor dialogue, Future Chips Academy, and other joint projects in the semiconductor field following the forging of the Korea-Netherlands Semiconductor Alliance in December 2023, Minister Ahn underscored the importance of close bilateral cooperation amid growing uncertainties in the global chip supply chain.   date2025-02-20

Korea and Czech Republic hold 2nd Supply Chain and Energy Dialogue (SCED)

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea held the second Supply Chain and Energy Dialogue (SCED) meeting with the Czech Minister for Industry and Trade Lukáš Vlček today in Seoul to take stock of cooperation progress in trade, investment, supply chains, advanced industries, carbon-free energy, and nuclear power and to hold in-depth discussions on cooperative measures going forward. Following the talks, the two sides also signed an MOU on bilateral semiconductor cooperation. date2025-02-17

Korea and Malaysia enter 7th negotiating round for bilateral FTA

Director General for FTA Negotiations Kwon Hye-jin at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea is leading the Korean delegation in the seventh round of official negotiations for the Korea-Malaysia Free Trade Agreement (FTA) through February 17–20 in Kuala Lumpur, Malaysia. The Malaysian delegation is headed by Senior Director for Strategic Negotiations Sumathi Balakrishnan at the Ministry of Investment, Trade and Industry (MITI).  Since the two countries jointly declared the resuming of bilateral FTA negotiations last March, the two sides have made swift progress through the ensuing fourth, fifth, and sixth official negotiating rounds. In this seventh round, the Korean government is aiming to move negotiations forward in areas like goods, services, investment, rules of origin, and economic cooperation, with focus on bilateral economic expansion such as trade and investment promotion, as well as market access.   date2025-02-17

Effective tariff rate on U.S. imports remains close to 0% under the Korea-U.S. FTA

Regarding the memorandum on reciprocal trade and tariffs announced by the Trump administration on February 14, 2025 (KST), multiple foreign media outlets have reported that Korea's tariff rate on U.S. imports is approximately 13.6%, following Mexico and Canada.   According to the World Tariff Profile (July 2024), Korea's average Most Favored Nation (MFN) tariff rate is approximately 13.4%. However, Korea has established free trade agreements (FTAs) with many of its major trading partners, significantly reducing the effective tariff rates on imports from these countries.   In the case of the United States, Korea signed an FTA in June 2007 (effective March 2012). As of 2024, the average tariff rate on imports from the U.S. is approximately 0.79% based on the effective tariff rate before duty refunds. When duty refunds are considered, the effective rate is even lower and is expected to decline further in 2025 under the scheduled tariff reduction plan. For reference, under the Korea-U.S. FTA, tariffs on manufactured goods imported from the United States are 0%. date2025-02-14

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

Public and private sectors join hands in preparations for APEC 2025

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea attended the launching ceremony of the private steering committee (“Committee”) for the Asia-Pacific Economic Cooperation (APEC) CEO Summit Korea 2025 to take stock of preparations and Committee plans and encouraged business leaders’ active cooperation for 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 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. The Committee is led by KCCI Chairman Chey Tae-won and composed of Korea’s leading CEOs representing the country’s major industries. Committee members will be leveraging the networking capacity of their overseas supply chain businesses to promote the participation of promising global business leaders. To increase the participation of global business leaders in AELM events this year, MOTIE plans to carry out promotion activities at home and abroad through related organizations such as overseas missions and the Korea Trade-Investment Promotion Agency (KOTRA). With Korea resuming the APEC chairmanship in 20 years, MOTIE aims to make use of the opportunity to facilitate discussions for cooperation in new trade areas like sustainable development, supply chains, artificial intelligence (AI), and digital, while also furthering the existing discourse on trade cooperation including ways to strengthen the multilateral trade system and free trade.   date2025-01-23

Experts discuss future Korea-ASEAN cooperation at Indo-Pacific policy forum

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea held an Indo-Pacific policy forum today in Seoul to discuss measures for Korea-ASEAN cooperation in light of the newly inaugurated U.S. administration by forecasting overall impact on ASEAN, which is not only a key region in the Global South but also home to approximately 40 percent of all Korean companies operating in overseas markets. Hosted by MOTIE and organized by the Korea University ASEAN Center (KUAC), today’s forum was launched with the participation of ASEAN experts from academia and research institutes to take stock of the Korea-ASEAN economic cooperation outcomes and discuss future cooperation. They also touched on issues like global oversupply and strategic response measures against trade risks. On launching the ASEAN-ROK Think Tank Dialogue on Economic & Trade Policy (AKTD) during the first quarter of 2025, MOTIE will be utilizing the dialogue as a new Korea-ASEAN trade and economic cooperation channel, while continuing to support the stable business activities of Korean firms in the ASEAN market by closely communicating with relevant governments and industries.   date2025-01-23

10th subsequent negotiating round of Korea-China FTA for services and investment

Director General for FTA Negotiations Kwon Hye-jin at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea led the Korean delegation in the 10th subsequent negotiating round of the Korea-China Free Trade Agreement (FTA) for services and investment through January 15–17 in Seoul. date2025-01-21