Ministry of Trade, Industry and Energy

Korea’s average tariff rate on U.S. imports is close to 0%

After U.S. President Donald Trump stated in his address to a joint session of Congress on March 4 (local time) that Korea’s average tariff rate is four times higher than that of the U.S., multiple media outlets reported on the comment. Under the Korea-U.S. Free Trade Agreement (KORUS), which entered into force in 2012, both Korea and the U.S. have eliminated tariffs on most goods. As of 2024, Korea’s effective tariff rate for goods imported from the U.S. is approximately 0.79%. While Korea’s most-favored nation (MFN) applied tariff rate is 13.4% (approximately four times higher than the U.S. rate of 3.3%), this MFN rate differs from the KORUS preferential tariff rates that Korea applies to U.S. imports. MFN tariff rates apply to imports from members of the WTO (World Trade Organization) that do not have preferential trade agreements with Korea. date2025-03-05

Minister Ahn holds first high-level meeting with new U.S. government officials in Washington D.C.

Minister of Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea visited Washington D.C. from February 26–28 (local time), where he met with U.S. government officials and lawmakers to discuss bilateral trade issues, including U.S. tariff measures, and ways to bolster cooperation between the two countries. Minister Ahn met with Senator Mark Kelly, co-sponsor of the Ships for America Act, and discussed steps to further strengthen Korea-U.S. cooperation in shipbuilding. Minister Ahn also held meetings with Heritage Foundation President Kevin Roberts, Center for Strategic and International Studies (CSIS) President and CEO John Hamre and Peterson Institute for International Economics (PIIE) President Adam Posen, where he exchanged views on effectively addressing bilateral trade issues and requested support for facilitating intergovernmental cooperation. During his meeting with U.S. Secretary of Commerce Howard Lutnick, Minister Ahn discussed ways to boost their partnership in strategic areas such as shipbuilding and advanced industries, while also articulating the concerns of Korean businesses and requesting Korea’s exclusion from U.S. tariffs. Both sides agreed to establish working-level consultation channels for discussions on tariff measures and cooperation in shipbuilding, through which the Korean government intends to continue its dialogue with relevant U.S. authorities in the interest of Korean businesses. Minister Ahn also held talks with U.S. Secretary of the Interior and National Energy Dominance Council Chairman Doug Burgum and United States Trade Representative (USTR) Jamieson Greer on enhancing mutually beneficial cooperation in the energy and trade sectors, respectively.  Minister Ahn stated that this visit served as an opportunity to lay the foundation for further cooperation with the new U.S. administration. Citing successful prior engagement with the U.S. on measures such as the IRA and CHIPS Act, Minister Ahn emphasized that the Korean government “will respond proactively to newly announced U.S. policies through structured and genuine consultations to achieve the best possible outcomes.”   date2025-03-05

Korea and Thailand hold 4th negotiating round for bilateral EPA

Korea’s Deputy Minister for FTA Negotiations Roh Keon-ki and Director General of the Department of Trade Negotiations at the Ministry of Commerce of Thailand Chotima Iemsawasdikul led their respective delegations in the fourth official negotiating round for the Korea-Thailand Economic Partnership Agreement (EPA) on March 4 in Seoul. date2025-03-04

Minister Ahn meets Heritage Foundation President

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea met Heritage Foundation President Kevin D. Roberts on February 26 (local time) in Washington D.C. for discussions on U.S. economic policy directions and Korea’s strategic response measures. date2025-02-28

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