Ministry of Trade, Industry and Energy

Korea Holds K-FEZ Day 2025 to Boost Global Investment in Free Economic Zones

The Ministry of Trade, Industry and Energy (MOTIE) hosted K-FEZ Day 2025 at the Shilla Hotel in Seoul on Thursday, September 4, to expand global investment in Korean Free Economic Zones (KFEZs). The event drew nearly 240 participants, including members of the diplomatic corps, representatives from foreign chambers of commerce, and foreign-invested enterprises (FIEs) in Korea. It served as a platform to promote the investment appeal and future growth visions of KFEZs by highlighting strategic industries within the zones, the Korean government’s AI policy and outlook, and success stories from FIEs. The Korean government’s key policy initiatives include stimulating investment through regulatory innovation; fostering cutting-edge technologies and future industries; and establishing an investment environment that meets global standards. Accordingly, KFEZs are being developed into clusters for future high-tech industries, such as semiconductors, rechargeable batteries, bio, and clean energy, while offering new investment opportunities to global investors. Speaking at the event, Industries and Enterprises Deputy Minister Oh Seung-cheol stated, “Korea strives to establish an open and reliable investment environment where global businesses can invest with confidence, leveraging our world-class manufacturing competitiveness and exceptional human resources.” He also called for continued interest in KFEZs as major economic hubs and encouraged active promotion of these zones to potential investors. K-FEZ Day 2025 marks the second consecutive year for the event. MOTIE plans to continue leveraging its network with the diplomatic corps and global companies to develop tailored promotional strategies, positioning KFEZs as both Korea’s premier investment hubs and global innovation clusters. date2025-09-05

Korea Discusses Trade Network and Supply Chain Cooperation with Latin America and the Caribbean

Korea’s Minister for Trade Yeo Han-koo met with ambassadors from 18 member states of the Group of Latin America and the Caribbean (GRULAC) in Seoul on Wednesday, September 3, to discuss the global trade environment and explore ways to strengthen economic and trade cooperation between Korea and GRULAC. Attendees included ambassadors from Mexico, Brazil, Argentina, Chile, and Peru. During the meeting, Trade Minister Yeo stated that the multilateral trading system was facing a fundamental challenge amid intensifying geopolitical competition and rising protectionism. He stressed the need to actively expand trade networks with GRULAC members to respond to these shifts. With a population of nearly 690 million and GDP of around USD 7 trillion, Latin America and the Caribbean (LAC) represent a core part of the Global South and a key market for Korea to diversify exports and reduce regional dependency. Korea currently has free trade agreements (FTAs) with seven GRULAC members, including Chile, Peru, and Colombia. Additionally, it formally signed the Strategic Economic Cooperation Agreement with Ecuador on September 2 and the Protocol on the Accession of Guatemala to the Korea-Central America FTA in January 2024. Both agreements will enter into force following completion of remaining procedures, including ratification by the National Assembly. Minister Yeo also highlighted that LAC is a major source of critical minerals such as lithium, nickel, copper, and graphite. Given Korea’s strengths in advanced manufacturing technologies for electric vehicles, batteries, and semiconductors, he emphasized the importance of strengthening supply chain cooperation between Korea and the region. Furthermore, Minister Yeo added that as Chair of APEC 2025, Korea aims to achieve meaningful outcomes on global issues such as AI cooperation and demographic change. He noted that Korea will also host a series of business events, including the APEC CEO Summit Korea 2025, to promote exchange and collaboration among global business leaders. He requested active interest and support from GRULAC members to help ensure the successful hosting of APEC 2025. date2025-09-05

Korea and Ecuador Sign Strategic Economic Cooperation Agreement for Market Diversification

Korea’s Minister for Trade Yeo Han-koo met with Ecuador’s Minister of Production, Foreign Trade, Investments, and Fisheries Luis Alberto Jaramillo in Seoul on Tuesday, September 2. The two sides held bilateral talks and formally signed the Strategic Economic Cooperation Agreement (SECA). Since launching negotiations in 2016, Korea and Ecuador have held nine rounds of formal discussions, concluding the agreement in October 2023. With the official signing completed, the SECA will enter into force following remaining procedures, including ratification by the National Assembly. As Latin America’s third-largest crude oil producer, Ecuador is rich in energy and mineral resources (such as crude oil and copper) and maintains political stability among its neighbors. Along with its use of the US dollar and commitment to free trade, these factors make Ecuador a promising market with lower investment risks. The Korean government plans to leverage its partnership with Ecuador to accelerate export diversification into Latin America. Once the SECA takes effect, Ecuador will phase out tariffs of up to 40 percent on Korean automobiles within 15 years, including eliminating the 35-percent tariff on hybrid vehicles within five years. This is expected to give Korea an advantage over major competitors, including China and Japan. Ecuador will also eliminate tariffs on Korean pharmaceuticals and consumer goods, such as cosmetics and instant noodles. Exports of these products are expected to grow, driven by the Korean wave’s expanding influence throughout Latin America. In addition, the opening of sectors such as online gaming, distribution, film, and music raises prospects for growth in local consumption and exports of Korean cultural content. Ahead of the signing ceremony, Trade Minister Yeo emphasized during talks with his Ecuadorian counterpart that bilateral FTAs are an effective tool to strengthen export competitiveness and diversify markets amid growing uncertainty in the global trade environment. He expressed hope that the SECA would allow companies from both countries to build future-oriented cooperation, while also serving as a gateway to export expansion and market diversification. Both sides agreed to accelerate remaining procedures for the SECA’s implementation, including ratification by the National Assembly. date2025-09-04

Korea’s Trade Minister Discusses Economic Cooperation and Trade Issues with UK Counterpart

Korea’s Minister for Trade Yeo Han-koo met with the UK’s Minister of State at the Department for Business and Trade Douglas Alexander in Seoul on September 1. The two sides exchanged views on industrial and trade policy directions in the current global trade environment and discussed ways to expand bilateral cooperation. The UK is Korea’s 25th-largest trading partner, with bilateral trade totaling $11.2 billion in 2024. Since the Korea-UK Free Trade Agreement (FTA) entered into force in January 2011, trade between the two countries has remained strong. The UK is also one of Korea’s major investment partners, ranking 3rd among European countries in cumulative investment in Korea as of 2024. Active investment and technological partnerships between companies from both countries serve as the foundation for bilateral cooperation. During the meeting, Trade Minister Yeo confirmed active industrial and trade cooperation between the two countries, citing ongoing Korea-UK FTA upgrade negotiations and supply chain dialogues. He emphasized the importance of building on shared values, such as liberal democracy and the market economy, to sustain a strong economic partnership. Furthermore, he expressed hope that the UK’s industrial and trade strategies announced in June would further strengthen bilateral ties. Regarding the introduction of the UK Carbon Border Adjustment Mechanism, Trade Minister Yeo highlighted the need for sufficient preparation time and measures to ease burdens on businesses. He also requested the UK government to support Korean companies in adapting to recently strengthened steel safeguard measures and the Electric Car Grant system. date2025-09-03

Korea’s Exports Rise 1.3% in August

The Ministry of Trade, Industry and Energy (MOTIE) announced on September 1 that Korea’s exports in August 2025 grew 1.3 percent year-on-year to USD 58.4 billion, while imports fell 4.0 percent to $51.9 billion. The trade balance recorded a surplus of $6.5 billion. Daily average exports for the month, factoring in the number of working days, also rose 5.8 percent to $2.6 billion. Despite having one fewer working day than a year earlier, August exports maintained an upward trajectory and set a monthly record for the third consecutive month. Of Korea’s 15 major export categories, three posted growth in August. Semiconductor exports surged 27.1 percent to $15.1 billion, setting a new all-time high just two months after the previous record. This growth was driven by rising contract prices and sustained global demand from downstream industries, such as the server market. Automobile exports rose 8.6 percent to $5.5 billion for the third consecutive month, supported by increased exports of used cars and eco-friendly vehicles, including electric and hybrid models. Ship exports grew for the sixth straight month (up 11.8 percent to $3.1 billion), fueled by deliveries of vessels ordered in 2022 and 2023. By region, exports increased in three out of nine major markets. Exports to ASEAN climbed 11.9 percent to $10.9 billion, the highest August figure on record and the third straight month of growth, driven by strong performance in semiconductors and ships. Exports to CIS countries (up 9.2 percent to $1.1 billion) grew for the sixth consecutive month, while those to the Middle East edged up 1.0 percent to $1.4 billion, returning to positive growth after one month. MOTIE Minister Kim Jung-kwan stated, “To minimize tariff impacts on small- and mid-sized companies, the ministry plans to announce and implement supportive measures in early September, focusing on three areas: ①easing burdens through short-term operation assistance and boosting domestic demand, ②diversifying export markets to sustain momentum, and ③strengthening the fundamental competitiveness of core and promising industries.” date2025-09-02

Korea Trade Commission Recommends Price Undertakings for Chinese Hot-rolled Steel Plates

The Korea Trade Commission (KTC) under the Ministry of Trade, Industry and Energy held its 463rd KTC meeting on Thursday, August 28, 2025, to deliberate and resolve one anti-dumping investigation and four intellectual property (IP) infringement investigations related to exports and imports. The KTC also received a report on the initiation of a new anti-dumping investigation. The deliberated anti-dumping case was launched in October 2024 against Chinese hot-rolled carbon and alloy steel plate imports. The KTC made a determination that dumped imports of these products caused material injury to the domestic industry. While calculating final anti-dumping duties at 27.91 to 34.10 percent for a five-year period, the KTC recommended that the Minister of Economy and Finance accept price undertakings proposed by nine Chinese exporters. Like anti-dumping duties, price undertakings serve as a trade remedy for domestic industries. This protective measure allows exporters to voluntarily set an initial minimum export price and quarterly price adjustment methods, and if violated, anti-dumping duties may be imposed. For Chinese exporters that did not suggest price undertakings, the KTC decided to recommend a five-year anti-dumping duty of 34.10 percent to the Minister of Economy and Finance. Currently, provisional anti-dumping duties ranging from 27.91 to 38.02 percent are in effect for Chinese hot-rolled carbon and alloy steel plates (from April 24 to November 23, 2025). Of the four IP infringement investigations, three were found to constitute unfair trade practices, with respondents determined to have infringed the applicants’ rights. These cases included investigations into interlayers for head-up displays (launched in September 2024), uninterruptible power supply systems (launched in October 2024), and designs for fishing clamps (launched in January 2025). The KTC imposed corrective measures, including orders to halt manufacturing and export of the infringing goods, exclusion from import, and fines. Notably, the head-up display interlayer and uninterruptible power supply cases were investigations where the KTC adjudicated IP disputes between foreign companies, demonstrating the KTC’s potential to emerge as a global venue for IP dispute resolution. This reflects growing recognition of the KTC’s swift and impartial processes compared to traditional litigation. Meanwhile, the investigation into infringement of standard essential patents for connected cars, launched in December 2024, was concluded after the parties reached a licensing agreement. As the investigation process helped clarify contentious issues between the parties, their negotiations accelerated, ultimately leading to withdrawal of the complaint and termination of the investigation. The KTC also received a report on the initiation of an anti-dumping investigation into polyvinyl chloride paste resin from Germany, France, Norway, and Sweden. The KTC will continue to systematically respond to the shifting global trade environment and address unfair trade practices, such as dumping and IP infringement. date2025-09-01

Korea’s Prime Minister Attends Opening Ceremony of 2025 WCE

The 2025 World Climate Industry EXPO (WCE) opened on August 27 in Busan, Korea. This large-scale international event is co-hosted by the Korean government, the International Energy Agency (IEA), and the World Bank (WB) as the flagship of Energy Super Week, held from August 25 to 29. The expo features exhibitions, 12 conferences, and nearly 60 side events and programs under the theme, “Energy for AI & AI for Energy.” ▶Global Energy and Climate Leaders Meet in Busan The opening ceremony brought together more than 1,000 participants, including the IEA Executive Director and WB Vice President. Alongside major figures from international bodies, it also hosted 32 government delegations and 15 ambassadors and other officials from 24 embassies in Korea. Major digital companies such as Microsoft, Google, NVIDIA, and Amazon Web Services; global leading players in clean energy such as RWE, Schneider Electric, Siemens, and Bloom Energy; and homegrown corporations such as Samsung Electronics, Hyundai Motor, SK Innovation, Hanwha Qcells, and Doosan Enerbility, were also present. In his opening remarks, Korea’s Prime Minister Kim Min-seok stated, “Korea will achieve carbon neutrality, energy security, and economic growth by constructing an ‘Energy Highway,’ expanding electricity grids, and transitioning to renewable energy.” He added, “We will work with the international community for a sustainable future powered by AI and energy.” Keynote addresses followed. IEA Executive Director Fatih Birol projected that energy demand could grow up to six times faster in the future due to increasing use of AI, electric vehicles, and air-conditioning. He stressed the importance of grid investment, noting, “Rapid grid expansion is a shared global challenge in the AI era. Powerful and flexible grid systems are the foundation of competitiveness in the AI industry.” Microsoft’s Director of Sustainability Policy Michelle Patron mentioned, “Grid investment is necessary to expand clean energy supply in line with demands from AI and economic growth.” She added, “To secure stable carbon-free energy supply sought by businesses, we must improve procurement methods and coordinate the connection of relevant systems, such as power purchase agreements and renewable energy certification.” ▶New Korean Administration Unveils Visions for Climate and Energy The 2025 WCE operates 6 exhibition halls, where nearly 540 companies demonstrate future energy solutions and industry strategies driven by next-generation grids, AI, and renewable energy. This year’s highlight is the newly launched “Energy Highway” hall featuring Korea’s three major electrical equipment companies—Hyosung Heavy Industries, LS Electric, and HD Hyundai Electric. The hall showcases strategic projects of the new Korean administration, such as a West Coast high-voltage direct current network, while presenting onshore/offshore grid solutions, smart grids, microgrids, ultra-high voltage transformers, and energy storage systems. Other exhibits feature next-generation energy technologies. Doosan Enerbility showcases Korea’s first 10MW-class wind turbine as well as small modular reactor technologies. Korea Zinc introduces a value chain on renewable energy and green hydrogen. Hanwha Qcells presents innovative technologies and products for RE100 industrial complex development, such as floating solar panels and agrivoltaics. Samsung Electronics, LG Electronics, SK Innovation, and Hyundai Motor provide a glimpse into the future of energy-AI convergence through consumer-focused innovations, such as immersion cooling for AI data centers, AI chips and glass substrates, zero-energy buildings, smart homes, eco-friendly heat pumps, and electric vehicle charging robots. ▶100 Global Energy Leaders Discuss AI-Era Energy Strategies The 2025 WCE held 12 in date2025-08-29

Korea’s Retail Industry Grows 9.1% in July

The Ministry of Trade, Industry and Energy (MOTIE) announced on August 27 that Korea’s retail industry grew 9.1 percent year-on-year in July 2025, with offline sales gaining 2.7 percent and online sales surging 15.3 percent. MOTIE's monthly retail sales figures are based on surveys of 23 major retailers, comprising 13 brick-and-mortar retailers and 10 online retailers. By offline retail channel, convenience stores rose 3.9 percent, marking their first gain in four months. This growth was partly driven by use of People’s Livelihood Recovery Consumption Coupons, issued by the Korean government as part of efforts to revitalize the economy. Department stores also climbed 5.1 percent, supported by positive growth across all product categories except miscellaneous goods. Super supermarket operators edged up 1.8 percent, maintaining their upward trajectory for the fifth consecutive month. By category, offline sales expanded in food products (up 2.7 percent), services/others (up 4.4 percent), and luxury goods (up 11.3 percent). Meanwhile, online sales posted solid growth in July, driven by strong performance in the services category (up 24.9 percent) and the food category (up 24.2 percent). date2025-08-28