Trade Minister Kim Jung-kwan briefs President Lee Jae Myung on his ministry’s coverage objectives for 2026 within the administrative metropolis of Sejong, Wednesday. Yonhap
Korea will push for the signing of a free commerce settlement (FTA) with China within the service sector and search affiliation with a Japan-led multilateral commerce pact to keep up the nation’s robust export momentum, the trade ministry mentioned Wednesday.
The plan, a part of the Ministry of Commerce, Trade and Assets’ broader initiative aimed toward remodeling its export and commerce technique, was introduced in the course of the ministry’s coverage briefing to President Lee Jae Myung within the central administrative metropolis of Sejong.
Whereas responding to commerce points with the USA, together with Seoul’s $350 billion funding pledge in American manufacturing, the federal government will work to deepen strategic partnerships with Japan, the European Union and the Affiliation of Southeast Asian Nations (ASEAN) in provide chains, digital economic system and superior industries.
A service sector FTA with China will open up new markets for Korean service merchandise and the Complete and Progressive Settlement for Trans-Pacific Partnership (CPTPP), a multilateral commerce pact led by Tokyo, can assist Korea reply to continued commerce tensions, the ministry assessed.
To keep up Korea’s export momentum, the ministry plans to help the diversification of key export gadgets, promote the expansion of nuclear vitality, meals, protection and electrical gear markets, and supply a document 275 trillion gained ($186.2 billion) in commerce insurance coverage subsequent yr.
It’s going to additionally start issuing common studies on international commerce limitations in 2026, akin to the Nationwide Commerce Estimate Report yearly issued by the workplace of the U.S. Commerce Consultant.
Korea’s exports are anticipated to succeed in the $700 billion milestone this yr, pushed by the strong efficiency of semiconductors, vehicles, ships and bio-health merchandise.
As one other main coverage merchandise for subsequent yr, the ministry pointed to the substitute intelligence (AI) transformation of the manufacturing sector.
The Manufacturing AX Alliance, which set sail in September, is aiming to construct 500 AI factories by 2030, together with 100 subsequent yr, and develop 15 AI basis fashions that corporations can use.
To spice up the competitiveness of superior industries, the ministry mentioned it is going to help the semiconductor trade’s efforts to construct superior manufacturing services in Korea, develop AI chips for the car, residence home equipment, robotics and different sectors, and increase the home fabless capability by tenfold.
The ministry will help 180 billion gained for the analysis and improvement of next-generation battery applied sciences and 74.3 billion gained for the event of three core applied sciences for future mobility — AI algorithms for self-driving, car semiconductors and software-defined automobiles.
The ministry additionally plans to assist the shipbuilding trade give you shipbuilding cooperation initiatives with the U.S. as agreed underneath Seoul’s tariff cope with Washington.
As well as, for balanced regional progress, the ministry mentioned it is going to evaluate a particular subsidy program for company funding in several areas, whereas working to create semiconductor and battery clusters within the southern areas.
