Ministry of Trade, Industry and Energy

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’s automobile exports record 2nd highest for January

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that Korea’s automobile exports recorded USD 5.0 billion in January 2025, the second highest for the month.  Hybrid electric vehicles (HEVs) set fresh all-time highs in shipments for January, selling 35,701 units (up 35.5 percent year-on-year) in overseas markets, but the export value dropped 19.6 percent owing to last year’s high base effect and this year’s reduced number of working days (-4) from the long Seollal holidays. Korea’s automobile production amounted to 290,590 units in January, down 18.9 percent. In addition to the lower number of working days and high base effect, the decline is also attributed to temporary production suspension at a car manufacturing plant during the month of January for transitioning to EV production. Domestic sales fell 9.0 percent to 105,928 units. By model type, this year saw increasing demand for sedans whereas SUV sales enjoyed growth last year.   date2025-02-18

Korea and Czech Republic to advance carbon-free energy technology cooperation via joint forum

Today in Seoul, Vice Minister Namho Choe of the Republic of Korea’s Ministry of Trade, Industry and Energy (MOTIE) attended the Korea-Czech Republic Energy Technology Forum (“Forum”), which was co-hosted by MOTIE and the Czech Ministry of Industry and Trade and co-organized by the Korea Energy Technology Evaluation and Planning (KETEP) and the Technology Agency of the Czech Republic (TACR). The Forum was held with the participation of the Czech Minister for Industry and Trade Lukáš Vlček, TACR Chairman Petr Konvalinka, and KETEP President Lee SeungJae among roughly 150 attendees comprising both countries’ industry, academia, and research experts and government officials for discussions on measures for bilateral cooperation in energy technology. During the presentation session, Korean and Czech experts shared the latest technology trends and proposed future technology collaboration measures centering on power grids and energy storage systems (ESS) in addition to carbon-free energy areas like nuclear power and clean hydrogen. In the following panel discussions and networking session, participants had the opportunity to broaden the scope of their mutual understanding spanning various technology fields and make progress in the search for joint projects. In his welcome address, Vice Minister Choe noted the Czech Republic’s status as the manufacturing powerhouse of Central Europe and highlighted that the two countries can avail themselves of meaningful opportunities amid the carbon neutrality challenge by generating synergy between Korean and Czech businesses. He added that full measure will be given towards creating new businesses in energy areas as well through continued support for joint research based on close bilateral cooperation. MOTIE plans to further develop the cooperation measures discussed during today’s Forum via consultation with relevant Czech authorities in selecting new Korea-Czech projects for international joint research.   date2025-02-18

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. Launched in September 2024, the SCED is a Korea-Czech Republic cooperation channel for enhancing bilateral strategic partnership under the aim to establish comprehensive and across-the-board economic cooperation in areas like trade, industry, and energy, including nuclear power. Today’s second SCED meeting was held 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. In view of the global rise of protectionism, both sides shared best practices for supply chain crisis response and measures to expand bilateral trade. For advanced industries, they discussed steps to establish centers for collaboration in battery, future mobility, and robots and entered a memorandum of understanding (MOU) for bilateral semiconductor cooperation in R&D and manpower training.  Regarding carbon-free energy, the Korean delegation shared Korea’s energy efficiency policies in industry, energy, and transportation areas and both sides agreed to bolster cooperation in developing clean hydrogen technology. Noting Korea’s smooth progress in the nuclear reactor contract negotiations in accordance with the predetermined timeline and procedures, the two sides further discussed cooperation in joint R&D and manpower training. At the Korea-Czech Republic investment and business conference held on the sidelines of the SCED meeting where the two countries’ relevant businesses and institutions signed a total of six MOUs, Minister Ahn expressed anticipation for wider bilateral trade and investment as well as cooperation across various areas including advanced manufacturing, supply chains, and energy. In light of the two countries’ 35th anniversary of the establishment of diplomatic relations and the 10th anniversary of their bilateral strategic partnership, Minister Ahn proposed that Korea and the Czech Republic enter a new dimension of cooperative ties by smoothly facilitating the final contract for the construction of new reactors in the Dukovany region.   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

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