Kim Jung-kwan, the Minister of Trade, Industry and Energy, stated on the 13th that external uncertainties are increasing due to the spread of U.S. protectionism and trade prioritization, as well as China’s monopoly on key minerals. He emphasized his commitment to follow-up negotiations on the Korea-U.S. tariff agreements.
In his opening remarks at the National Assembly’s audit of the Ministry of Trade, Industry and Energy, conducted by the Industry, Trade, and Resources Small and Medium Venture Business Committee, Minister Kim pointed out, “Our export structure’s high dependency on certain countries makes us vulnerable to external shocks,” and diagnosed that industries and companies are facing multifaceted crises both domestically and internationally.
He further noted, “Internally, the overall decline in productivity and China’s fierce competition have weakened the global competitiveness of our industries. The growing imbalance between regions and companies is also raising concerns about sustainable growth.”
Accordingly, Minister Kim announced that policy efforts would be concentrated on three main areas: ▲ industrial resurgence ▲ trade and commerce centered on national interest and practicality ▲ sustainable growth based on cooperation and partnership.
Initially, the goal is to overcome manufacturing challenges like population decline and productivity downturn by spreading “Manufacturing AX (AI Transformation)” and establishing over 500 AI factories by 2030 to increase productivity by more than 30%.
In line with achieving corporations’ RE100 goals and regional growth, they are also embarking on creating “Renewable Energy Self-Reliant Cities (RE100 Industrial Complexes).” The Ministry is operating an inter-agency task force (TF) and is preparing a special act and action plan, aiming to commence in 2026 and fully launch by 2030.
The Ministry plans to foster embedded AI industries, including robotics and autonomous vehicles, and secure advanced technological edges in semiconductor and other cutting-edge sectors to achieve super-gap competitiveness. They will also simultaneously upgrade core industries like automotive and shipbuilding and improve the structure of industries requiring restructuring, such as petrochemicals and steel.
Minister Kim stressed the importance of ensuring thorough follow-up negotiations in the Korea-U.S. tariff discussions and enhancing strategic cooperation with major countries like the United States, China, and Japan. He also plans to diversify networks with global south countries, such as those in ASEAN. He added that they aim to achieve outcomes at the APEC meeting in Korea that benefit national interests and Korean companies.
He also mentioned the critical need for regional growth, stating efforts to stimulate the regional economy through nurturing growth engines in the “5+3” regions and promoting local investments. Additionally, they plan to support the innovative growth of medium-sized companies and foster the materials, parts, and equipment (MPE) industries to create an ecosystem where global small giants can emerge.