Key achievements announced

The Ministry of Trade, Industry and Energy has revealed major accomplishments marking the first year of the people's sovereignty government, as announced by Minister Kim Jeong-gwan at the Blue House State Council meeting. The most notable achievement is the successful resolution of the Korea-US tariff negotiation. As a result, tariff burdens on key export items such as automobiles and pharmaceuticals have been reduced by approximately 15%, and South Korea has secured a competitive position in the semiconductor sector, avoiding disadvantages compared to rival nations. Additionally, a consensus was reached to establish the Korea-US Shipbuilding Cooperation Center, advancing the 'MASGA (Make America Shipbuilding Great Again) Project' and expanding opportunities for strategic industries.

Export record broken

South Korea's exports surpassed $700 billion for the first time last year. This milestone reflects both quantitative and qualitative growth, with the country's global export ranking rising from 7th in 2024 to 5th as of February this year. The share of exports to the U.S. and China declined from 38.1% in 2024 to 35.8% last year, while exports to ASEAN, Latin America, and the CIS increased from 22.6% to 23.6%, indicating a diversification of export markets. K-consumer goods such as cosmetics and fashion apparel also saw strong growth, contributing to the successful diversification of core export products.

Strengthening export foundations and energy response

The Ministry has expanded export support by establishing a KRW 2.4 trillion trade finance fund for large and small business coexistence, providing KRW 15 trillion in preferential financing for export firms, and launching the 'K-Export Star 500' initiative. Responding to energy and resource crises triggered by the Middle East conflict, the Ministry highlighted energy security as a key achievement. In May, crude oil and naphtha supplies reached 90% of normal levels, and 100% of alternative Middle East-sourced natural gas was secured. As a result, naphtha cracker (NCC) utilization rates at domestic petrochemical companies recovered from a low of 55% to around 70%.

M.AX achievements: AI-driven manufacturing transformation

Minister Kim emphasized the AI transformation of manufacturing (M.AX) as a major achievement. The 'M.AX Alliance' now includes 1,500 companies and institutions across 11 sectors, actively advancing process AX, product AX, and industrial park AX simultaneously. In semiconductor PCB processes, AI integration has reduced quality inspection time by 90%. The accuracy of AI-based predictions for secondary battery electrode materials has improved to 87%. In shipbuilding, AI robots have reduced assembly and welding times by 12.5%. In agriculture machinery, an AI-powered autonomous inspection system has increased inspection speed by 11%. The Ministry plans to expand AI deployment across regional manufacturing sites to drive productivity innovation and secure future competitiveness.

Contribution to price stability

The government explained that the oil price cap policy contributed significantly to price stability, reducing inflation by 0.6 percentage points in March and 1.2 percentage points in April.