Ministry of Trade, Industry and Energy

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

Minister Ahn chairs 5th Industrial Investment Strategy meeting

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea held the fifth Industrial Investment Strategy meeting on February 12 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. Attending the meeting were representatives of companies including POSCO, S-OIL, and Hyundai Motor.   date2025-02-13

Korea’s ICT exports drop 0.4% in January

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced on February 13 that exports and imports of Korea’s information and communications technology (ICT) goods for the month of January 2025 reached USD 16.3 billion and $13.5 billion, respectively. The trade balance stood at an estimated surplus of $2.8 billion. January ICT exports inched down 0.4 percent year-on-year, affected by the reduced number of working days (-4) from this year’s long Seollal holidays (January 25–30), but sharp demand for semiconductors and computers/peripherals softened the fall. Semiconductor exports grew 7.7 percent to $10.1 billion despite the drop in system chip exports (down 4.3 percent to $3.5 billion), as the rapidly expanding AI market and robust memory chip exports (up 17.2 percent to $6.2 billion) drove overall demand. Computers/peripherals (up 10.0 percent to $0.9 billion) maintained their upward trajectory for the 13th consecutive month as solid-state drive (SSD) exports (up 27.1 percent to $0.6 billion) achieved solid growth. By region, ICT exports to China (including Hong Kong) declined (down 19.5 percent to $6.0 billion) in spite of increased shipments of mobile phones, as semiconductor and display exports shrank. Exports to Vietnam (up 12.2 percent to $2.9 billion) climbed for the 18th consecutive month even as mobile phones and other items in general contracted, thanks to semiconductors’ strong growth. U.S.-bound ICT exports (up 24.6 percent to $2.2 billion) rose for the 15th consecutive month as shipments of semiconductors and computers/peripherals jumped on the backs of demand for servers and datacenters. To the EU (down 18.9 percent to $0.7 billion), semiconductor exports increased, whereas mobile phones and displays diminished. To Japan (down 4.9 percent to $0.3 billion), ICT goods like displays, mobile phones, and computers/peripherals advanced, while semiconductor exports slackened.   date2025-02-13

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

CFE Global Working Group launches inaugural meeting

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea held the CFE Global Working Group meeting on February 7 via videoconferencing with the participation of the Czech Republic, Japan, United Arab Emirates (UAE), the International Energy Agency (IEA), and the Clean Energy Ministerial (CEM) Secretariat for discussions on the definition, standards, and technical criteria of carbon-free energy as well as practical measures to widen global participation in the CFE Initiative, including the provision of incentives for participating businesses. MOTIE and the Carbon Free (CF) Alliance are leading the Carbon Free Energy (CFE) Initiative, which aims for a technology-neutral approach in utilizing various carbon-free energy sources such as renewables, nuclear energy, and clean hydrogen to facilitate industries’ cost-effective achievement of carbon neutrality. The CFE Initiative has won the support of a total of 13 countries, international organizations, and groups. During the meeting, CF Alliance Chairman Lee Hoe-sung viewed that the CFE Global Working Group will serve to lay the foundation for discourse regarding the definition and standards of carbon-free energy that can gain general acceptance in the international community. CEM Secretariat Head Jean-François Gagné welcomed the active discussions within the CFE Global Working Group, which currently functions as the CEM platform, and expressed anticipation for the discussions to help build a stronger cooperation base. Meanwhile, Korea, the Czech Republic, Japan, and the United Arab Emirates (UAE) agreed to further relevant discussions for an early establishment of CFE implementation standards, while also stepping up cooperation to make progress through related discussions at the CEM Ministerial meeting slated for August 25 this year.   date2025-02-10

3rd Korea-Vietnam Plus Joint Working Group meeting

Director General for International Trade Relations Kim Jong-chul at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea and Vietnam’s Asia-Africa Market Director General Do Quoc Hung at the Ministry of Industry and Trade (MOIT) headed their respective delegations in the third Korea-Vietnam Plus Joint Working Group meeting on February 7 via videoconferencing and discussed wider bilateral trade and investment, global oversupply, and nuclear cooperation. date2025-02-10

Korea-Vietnam Plus Joint Working Group seeks wider trade and investment

Director General for International Trade Relations Kim Jong-chul at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea and Vietnam’s Asia-Africa Market Director General Do Quoc Hung at the Ministry of Industry and Trade (MOIT) headed their respective delegations in the third Korea-Vietnam Plus Joint Working Group (“Working Group”) meeting today via videoconferencing. The Working Group is a joint platform for bilateral consultations on expanding the Korea-Vietnam trade and investment with the participation of both countries’ government bodies, commercial attachés, and trade assistance institutions under the aim of achieving the USD 150 billion bilateral trade volume target by 2030, jointly declared by the two countries’ state leaders in 2022. The Working Group convened its first meeting in September 2023. At today’s meeting, the two sides took stock of the Korea-Vietnam trade and investment situation and exchanged views on global oversupply and other far-ranging issues. They also discussed nuclear energy cooperation and measures to resolve challenges for both countries’ businesses. Director General Kim highlighted the importance of widening forward-looking economic cooperation with Vietnam, Korea’s third largest trading partner, and proposed that the two countries make joint effort towards wider trade and investment in commemoration of the 10th anniversary of the Korea-Vietnam Free Trade Agreement (FTA). Noting that Korea is Vietnam’s largest investor, Director General Do Quoc Hung expressed hope for the two countries’ mutual growth and ensured interest and support concerning the local business issues experienced by Korean companies in Vietnam.   date2025-02-07

MOTIE holds K-Grid Export Alliance kickoff meeting

Deputy Minister for Energy Policy Lee Ho-hyeon at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea chaired the K-Grid Export Alliance kickoff meeting on February 4 at the Korea Trade Insurance Corporation (K-SURE) in Seoul to seek new opportunities for homegrown businesses in the global power infrastructure market and led discussions on the global grid market trends, forecast, and Korea’s strategic measures. The meeting was attended by representatives of 15 companies and institutions, including Korea Electric Power Corporation (KEPCO), Korea Southern Power Co., Hyundai E&C, LS Electric, and KEA.   date2025-02-06