Ministry of Trade, Industry and Energy

Korea’s Shipbuilding Takes Another Leap with MASGA Project

[Naming Ceremony of LNG Carriers] Korea’s Minister of Trade, Industry and Energy Kim Jung-kwan attended the naming ceremony for two very large liquefied natural gas (LNG) carriers on Thursday, August 14, 2025, at Hanwha Ocean’s Geoje Shipyard in Gyeongsangnam-do, Korea. This marked his first industrial site visit following his appointment to the ministerial position. The two vessels are the first and second of five LNG carriers, worth a total of USD 1.2 billion, ordered in 2022 by a US LNG production company. They will be used for the global export of US-produced LNG. The vessels are categorized as very large LNG carriers, each with a capacity of 200,000㎥, enough to transport roughly one day’s worth of LNG consumption for the Korean population in a single shipment. They are symbolic examples of the “Make American Shipbuilding Great Again (MASGA)” collaborative project between Korea and the US, in that a Korean shipbuilder constructed vessels to transport US-sourced energy. In his congratulatory speech, Minister Kim stated that the MASGA project would support the US shipbuilding industry through investment in shipyards, skilled workforce training, and re-establishment of supply chains, while creating new market opportunities for Korean companies. He added that the Korean government would promptly form a council of related agencies and work closely with the US government to produce tangible results. [Visit to MRO Site of US Naval Vessel] Following the naming ceremony, Minister Kim visited the maintenance, repair, and overhaul (MRO) site for Charles Drew, the 3rd US naval vessel currently at Hanwha Ocean’s Geoje Shipyard. He encouraged Hanwha employees and crew members, stating, “Shipbuilding cooperation between Korea and the US begins with MRO for US vessels. We hope our shipbuilding technology will revive Charles Drew, just as we did with the previous two MRO projects.” [Meeting with Hanwha Ocean’s Labor Union Leader] Lastly, Minister Kim met with Kim Yoo-chul, Leader of Hanwha Ocean’s labor union and Chairman of the Daewoo Shipbuilding & Marine Engineering branch. The minister expressed his appreciation for the dedication of site workers who have contributed to the rebound of Korea’s shipbuilding industry. Emphasizing that workplace safety must be a shared priority for labor, management, and the government alike, he called for all parties to work together as a team to prevent industrial accidents and ensure safe shipyard operations. In the first meeting of its kind between a MOTIE minister and a shipyard labor union leader, the minister also expressed hope that employees at the site would actively support the MASGA project, adding it would create new opportunities for Korea’s shipbuilders. date2025-08-14

Korea’s ICT Exports Surge 14.4% in July

The Ministry of Trade, Industry and Energy and the Ministry of Science and ICT announced on August 14 that Korea’s exports of ICT goods in July 2025 climbed 14.5 percent year-on-year to USD 22.2 billion, while imports grew 9.8 percent to $13.3 billion. The trade balance recorded a surplus of $8.9 billion. Despite policy uncertainties, including the announcement of new US tariffs, ICT exports reached an all-time high for the month of July. Semiconductor exports, in particular, achieved a record-breaking performance for four consecutive months. Semiconductor exports spiked 31.2 percent year-on-year, driven by rising contract prices for DRAM and NAND memory, alongside sustained global demand for high-value memory products such as HBM and DDR5. Communication device exports rose 4.6 percent, supported by demand for battlefield communications equipment in the US and 5G equipment in Japan. Exports of displays (down 8.9 percent), mobile phones (down 21.7 percent), and computers/peripherals (down 17.1 percent) all declined; however, strong exports of finished smartphone products partially offset the drop. By destination, ICT exports increased to the US (up 11.9 percent), Vietnam (up 16.4 percent), the EU (up 18.0 percent), and Japan (up 23.9 percent), while exports to China (including Hong Kong) fell 5.6 percent. ICT imports in July rose 9.8 percent year-on-year to $13.3 billion, driven by gains in semiconductors (up 9.2 percent), mobile phones (up 19.3 percent), and computers/peripherals (up 15.6 percent). date2025-08-14

Korea's Exports Rise 5.9% in July

The Ministry of Trade, Industry and Energy (MOTIE) announced on August 1 that Korea’s exports in July 2025 rose 5.9 percent year-on-year to USD 60.8 billion, while imports edged up 0.7 percent to $54.2 billion. The trade balance recorded a surplus of $6.6 billion. Daily average exports for the month, factoring in the number of working days, also rose 5.9 percent to $2.4 billion. Of Korea’s 15 major export categories, three posted growth in July. Semiconductors hit a historic high for the month, up 31.6 percent to $14.7 billion, driven by rising contract prices and sustained global demand for high-value memory products, such as HBM and DDR5. Automobile exports grew 8.8 percent to $5.8 billion for the second consecutive month, supported by strong demand for hybrid electric vehicles and internal combustion engine vehicles. Ship exports increased for the fifth straight month, soaring 107.6 percent to $2.2 billion fueled by greater shipments of high-value vessels, including tankers and LNG carriers. Non-major export items reached a new record of $14.2 billion with the help of agricultural food products (up 3.8 percent to $1.1 billion), cosmetics (up 18.1 percent to $1.0 billion), and electric machinery (up 19.2 percent to $1.6 billion). Furthermore, exports increased in six out of nine major regional markets. Exports to ASEAN climbed 10.1 percent to $10.9 billion, driven largely by strong growth in semiconductors, though China-bound exports dropped 3.0 percent to $11.0 billion. Exports to the US increased 1.4 percent to $10.3 billion due to a rise in semiconductors, wireless communication devices, cosmetics, electric machinery, and other non-major export items, offsetting declines in steel and automobile parts. Exports to the EU grew for the fifth consecutive month, gaining 8.7 percent to $6.0 billion, with multiple major export items such as automobiles, ships, and petroleum products trending upward. Exports to CIS countries (up 21.5 percent to $1.2 billion) grew for the fifth consecutive month, and Latin America (up 4.4 percent to $2.7 billion) and India (up 10.7 percent to $1.8 billion) marked their second consecutive months of growth. Exports to Taiwan also soared 68 percent to $4.7 billion thanks to a near-doubling of semiconductor exports. date2025-08-01

Korea’s retail industry grows 7.8% in H1 2025

The Ministry of Trade, Industry and Energy (MOTIE) announced today that Korea’s retail industry gained 7.8 percent year-on-year in the first half (H1) of 2025, with offline sales declining 0.1 percent and online sales advancing 15.8 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. Korea’s retail industry growth over the past five years was mainly driven by sales of department stores, convenience stores, and SSMs, powered by consumer preference for luxury goods and shopping local trends. Moreover, the increasing number of single-person households led to the expansion of small quantity purchases and online grocery shopping. On the other hand, online retail sales rose steeply each year alongside the growth of the service sector, as e-coupons, travel/culture packages, and delivery services continued to flourish. During H1 2025, offline retail sales were affected by deteriorating consumer sentiment, rise of e-commerce, and the decreasing number of brick-and-mortar store visitors. Consequently, sales at hypermarkets (down 1.1 percent) and convenience stores (down 0.5 percent) dropped, whereas those of department stores inched upward by 0.5 percent on the backs of increasing demand for luxury goods. SSMs (up 1.8 percent) experienced a steady growth in the number of stores based on the rise in food prices and demand for home dining. By category, strong demand for home dining and services drove up sales of food products (up 8.3 percent), service/other (up 28.8 percent), and home/living (up 3.7 percent). Online retail sales were especially high in service/other (up 57.6 percent) and the sales growth of food products was also higher across online retail (up 19.6 percent) compared to offline (up 0.6 percent). Meanwhile, sales of fashion/miscellaneous (down 2.6 percent) and kids/sports (down 2.9 percent) decreased. For the month of June 2025, offline retail sales fell 1.1 percent year-on-year while online sales climbed 15.9 percent, achieving an overall growth of 7.3 percent.   date2025-07-30

Vice Minister meets Czech Industry and Trade Minister

Korea's Trade, Industry and Energy Vice Minister Lee Hohyeon met Czech Minister of Industry and Trade Lukáš Vlček on July 18 in Seoul to discuss bilateral cooperation in nuclear, industries, energy, and infrastructure. date2025-07-21

Korea and India discuss steel cooperation

Korea's Deputy Minister for Industrial Policy Lee Seung-ryeol met Sandeep Poundrik, India’s Secretary at the Ministry of Steel, on July 18 in Seoul to discuss Korea-India steel cooperation as well as local issues faced by Korean exporters. date2025-07-21

Eco-Friendly Vehicle Exports Set Monthly Records for Third Consecutive Month in June

Korea’s Ministry of Trade, Industry and Energy (MOTIE) announced today that electric vehicle exports, including hydrogen vehicles, reached $780 million in June – an increase of 11.2 percent year-on-year, marking the first return to growth in 16 months since January 2024. Signaling a positive turnaround in EV exports, total exports of eco-friendly vehicles rose 18.6 percent from a year earlier to $2.2 billion, setting a new monthly record for the third consecutive month. Overall automobile exports also rebounded in June after two months of decline, reaching $6.34 billion (up 2.3 percent year-on-year), the highest export value ever recorded for the month of June. By model, GM Korea’s Trax (28,797 units) and Trailblazer (15,747 units) continued to show strong export performance, ranking first and fifth, respectively. Hyundai’s Kona (21,399 units) and Palisade (15,947 units) also performed well, ranking second and fourth, respectively, underscoring the sustained strength of SUV exports. Electric vehicle exports also contributed to the rebound, with approximately 22,000 units exported – a 21.4 percent increase year-on-year - including 7,903 units of the EV3 and 3,938 units of the Casper EV. By region, exports to the U.S. declined by 16.0 percent year-on-year to $2.69 billion. In contrast, exports to the European Union rose for the third consecutive month. Notably, exports to Germany surged to $150 million (up 137.8 percent), and to the Netherlands to $90 million (up 89.8 percent), driven by a combination of factors including a low base effect from last year’s weak performance, robust EV export growth, and the establishment of KG Mobility’s European sales subsidiary in Germany in August 2024. Exports of automobile parts rose to $1.8 billion in June, marking a 2.5 percent year-on-year increase. Growth was observed in key markets such as the U.S. (up 6.3 percent to $680 million) and the Czech Republic (up 4.9 percent to $70 million), where Korean automakers operate local manufacturing plants. Significant growth was also recorded in emerging markets such as Kazakhstan (up 208 percent to $40 million), driven by strong demand for aftermarket parts. Domestic automobile sales in June 2025 increased for the fifth consecutive month, reaching 146,000 units - up 5.8 percent year-on-year. Of this total, sales of domestically produced vehicles rose to 117,000 units (up 6.2 percent), while imported vehicle sales reached 29,000 units (up 4.0 percent). Sales of eco-friendly vehicles maintained their upward trajectory for the 16th consecutive month, accounting for nearly half (49.8 percent) of total domestic sales. Notably, domestic EV sales exceeded 20,000 units for the second month in a row, following their recovery to the 20,000-unit mark in May— the first time in 14 months since March 2024. Automobile production in June 2025 remained largely unchanged from the same period last year, recording a slight decline of 0.1 percent. This was due to increased domestic sales of domestically produced vehicles (up 4.8 percent) being offset by a decrease in exports (down 3.1 percent). Notably, pickup truck production surged to 23,000 units – an 853 percent increase - driven by the launch of new models such as Hyundai’s Tasman and KGM’s Musso EV. This led to substantial growth in both domestic sales (up 131 percent) and exports (up 850 percent). In the first half of 2025, Korea’s automobile industry recorded a 3.8 percent year-on-year decline in exports, totaling 1.41 million units. This decrease was primarily attributed to increased overseas production by Korean automakers and a base effect following strong performance in the previous year. However, the decline in overall production was relatively moderate, falling by 1.6 percent to 2.11 million units, supported by a 3.5 percent increase in domestic sales, which reached 830,000 units. Growth in the domestic date2025-07-18

Korea’s ICT exports rise 5.8% in H1 2025

The Ministry of Trade, Industry and Energy (MOTIE) and the Ministry of Science and ICT (MSIT) announced today that Korea’s exports and imports of information and communications technology (ICT) goods for the first half (H1) of 2025 gained 5.8 percent and 5.0 percent year-on-year to USD 115.2 billion and $70.9 billion, respectively. The trade balance recorded a surplus of $44.2 billion. In H1 2025, ICT exports maintained an upward trajectory for five consecutive months as a result of increasing demand for AI datacenters, achieving the second highest export value for H1.  By category, exports of semiconductors (up 11.4 percent), mobile phones (up 9.1 percent) and computers/peripherals (up 10.8 percent) rose, whereas those of displays (down 13.9 percent) and communication devices (down 2.5 percent) declined.  Semiconductor exports hit historic highs for H1 as fixed prices of key memory chips like DRAMs and NAND flash rebounded and high value-added chips such as HBMs and DDR5s retained strong performance. Mobile phone exports were driven by robust sales of top models and parts like camera modules.   Computers/peripherals also advanced, led by growing exports of datacenter solid-state drives (SSDs) in tandem with the expansion of AI servers.  Meanwhile, display exports shrank from the impact of adjusted downstream industry shipments and last year’s base effect. The drop in communication device exports is attributed to the global market slowdown as well as increased local production in Vietnam in an effort to secure cost competitiveness. By region, Korea’s H1 ICT exports grew to overseas markets like Taiwan (up 89.6 percent), the U.S. (up 14.5 percent), Vietnam (up 10.0 percent), India (up 9.3 percent), and Japan (up 5.7 percent). Those to China (including Hong Kong) (down 11.5 percent) and the EU (down 2.7 percent) contracted. As for H1 imports, categories like graphic cards (up 23.9 percent) and midrange and mainframe computers (up 36.9 percent) climbed sharply amid an expansion of AI infrastructure. ICT exports for June 2025 logged new highs for the month at $22.0 billion (up 4.7 percent), with semiconductor exports recording all-time monthly highs (up 11.5 percent to $15.0 billion).   date2025-07-14

Korea’s retail industry grows 7.0% in May

The Ministry of Trade, Industry and Energy (MOTIE) announced today that Korea’s retail industry grew 7.0 percent year-on-year overall during the month of May 2025, with offline and online sales gaining 0.9 percent and 13.0 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, sales at hypermarkets (up 0.2 percent) and department stores (up 2.3 percent) posted growth for the first time since the Seollal holiday season in January, led by high-priced items and increased revenue per visit. Convenience stores inched down 0.2 percent, whereas SSM operators (up 1.0 percent) maintained their upward trajectory for the third consecutive month, driven by the steady rise of visitors. By category, offline sales expanded in areas like food products (up 1.0 percent) and luxury goods (up 8.1 percent) such as jewelry and watches. In contrast, home appliances/culture (down 7.8 percent), kids/sports (down 2.5 percent), and fashion/miscellaneous (down 3.7 percent) experienced further slowdowns. As for online sales, services (up 37.3 percent) and food products (up 18.2 percent) retained solid growth on the backs of demand for food deliveries, e-coupons, travel packages, and cultural goods. However, fashion/clothing (down 4.6 percent) and sports (down 12.7 percent) continued their contraction.   date2025-06-25

Korea set to localize 30% of CNC systems by 2032

The Ministry of Trade, Industry and Energy (MOTIE) announced today that Korean company KCNC succeeded in localizing computerized numerical control (CNC) systems, which play an instrumental role in processing the majority of Korea’s machinery and equipment.  CNC refers to the use of computerized systems to control the manufacturing process of high-precision parts such as cutting, milling, and pressing, and is mainly used in integration with manufacturing equipment for producing machinery. While CNC is a key part of the machine industry, the high level of difficulty required to develop such systems has resulted in 80 percent of the global CNC market being split among Germany, Japan, and the U.S. With KCNC’s successful development of a CNC system, related industries are anticipating a localization rate of at least 30 percent by 2032. It was in 2019 that plans for CNC development began emerging in earnest in Korea, a time when materials, parts, and equipment (MPE) supply chains started gaining recognition for their importance. The plans were also triggered by the apprehension that setbacks in CNC supply, the entirety of which Korea was dependent on imports, may halt production lines nationwide for the manufacturing industry. CNC development by individual companies comes with limitations as the process calls for the simultaneous development of various hardware and software technologies, including those needed to produce the main body, motor, and interface. Accordingly, MOTIE launched a project team led by the Korea Institute of Machinery & Materials with the participation of over 20 related companies, research institutes, and academic experts. As a result, KCNC was born in the form of a joint venture by participating companies for collaboration on technological development and commercialization. After five years of development, field operators and experts finally conducted an objective evaluation last month in which they assessed that the CNC system developed has reached a level of performance similar to that of other advanced countries’ CNC systems in terms of major performance indices, such as machining error and surface quality. Meanwhile, there still exists room for improvement with respect to features like interface user friendliness and availability of different functions. Korea currently relies on imports for 95 percent of its CNC supply and even the remaining five percent of domestic products require foreign technology. In this regard, the recent CNC system development is expected to substantially stabilize Korea’s manufacturing supply chains and spur significant economic benefits. It is estimated that localizing 30 percent of domestic and overseas CNC demand will create an economic effect of around KRW 200 billion, equivalent to approximately USD 146 million. Swift after-sales service and customized product development are some added merits of localization. Starting next month, KCNC will enter a one-year demonstration phase for commercialization to conduct tests on high-speed and repeated procedures, processing with various materials and tools, equipment durability, and field performance. Four major buyer companies, occupying over 90 percent of CNC systems demand, are to participate in the demonstration process. These companies have already submitted letters of intent for purchase to finalize their purchase agreements should demonstration results verify that the developed CNC systems fulfill certain qualifications. Once the demonstration phase is completed successfully, the localized CNC systems will be up for purchase beginning 2026, with relevant industries forecasting that the systems will reach over 30 percent in domestic market share by 2032.   date2025-06-18