Policy

MOTIE 2025 Work Plan: Full-Version Policy Analysis

MOTIE 2025 Vision and Strategic Framework

The Ministry of Trade, Industry and Energy (MOTIE) presented the vision of "Dynamic Industrial Economy, Global Trade Powerhouse" in its 2025 work plan. Against the backdrop of U.S.-China technology hegemony competition, global supply chain restructuring, and intensifying protectionism, the core mission for 2025 is to secure new growth drivers for the Korean economy and maintain and strengthen export competitiveness.

The work plan is organized around four strategic pillars. First, strengthening global competitiveness in strategic industries including semiconductors, automobiles, and bio. Second, expanding the FTA/CEPA network and reinforcing the WTO multilateral trade system. Third, energy transition toward carbon neutrality and clean energy industry development. Fourth, regulatory reform for improved business investment conditions and expanded foreign direct investment (FDI) attraction. These four pillars are interconnected, designed as a comprehensive policy package to position Korea as a beneficiary of global industrial restructuring.

$700B+
2025 Export Target
Record-high target
$35B
Foreign Direct Investment
FDI attraction goal
KRW 23T+
Semiconductor Support
Subsidies & tax credits
KRW 100T
Energy Transition Investment
Through 2030
59 Countries
FTA Partner Countries
85% of global GDP
100K+ Firms
Exporting SMEs
New exporter cultivation
200+ Items
Regulatory Reform Tasks
Annual processing target
KRW 2T
Bio Industry Support
Bio-health R&D

Strategic Industry Policy: Semiconductors, Automobiles, Bio, and Secondary Batteries

The centerpiece of MOTIE's 2025 work plan is intensive cultivation of "national strategic industries." Centered on four pillars — semiconductors, future mobility (EVs and hydrogen vehicles), bio-health, and secondary batteries — the government provides packaged support encompassing production facility investment, R&D tax credits, supply chain strengthening, and workforce development. This goes beyond simple subsidy provision to represent a structural transformation strategy aimed at elevating competitiveness across entire industrial ecosystems.

01
Semiconductors: Cluster Development and Materials-Parts-Equipment Self-Sufficiency
The plan aims to catalyze KRW 622 trillion in private investment for the Yongin-Pyeongtaek semiconductor mega-cluster. Under the National Advanced Industry Special Act, ultra-fast permitting, and state-funded power/water/transport infrastructure are being applied. The target is to raise materials-parts-equipment self-sufficiency from 56% in 2024 to 65% by 2027, with KRW 1.2 trillion invested in core material and equipment localization R&D. A complementary cooperation framework with the U.S. CHIPS Act is also being established to strengthen the Korea-U.S. semiconductor supply chain alliance.
02
Future Mobility: Accelerating the EV and Hydrogen Vehicle Ecosystem Transition
Targets of 450,000 EV and 20,000 hydrogen vehicle domestic sales are set for 2025, with parallel construction of charging infrastructure (50,000 fast chargers) and hydrogen stations (310). EV purchase subsidies are being restructured to a performance and domestic component ratio-linked model providing higher support for vehicles with Korean-made batteries and motors. KRW 500 billion is being invested in Software-Defined Vehicle (SDV) technology development to respond to EU and U.S. EV regulations.
03
Bio-Health: Leaping to a Global CMO/CDMO Hub
To elevate Korea to the world's 5th-largest biopharmaceutical producer, Incheon Songdo and Osong bio clusters are being developed intensively as global CMO (contract manufacturing) and CDMO (contract development and manufacturing) hubs. Clinical trial approval periods are being shortened from 90 days to 60 days, and the K-Bio regulatory sandbox is expanding. Export support packages are being operated to achieve the bio-health export target of $10 billion (up from approximately $8.2 billion in 2024).
04
Secondary Batteries: Building a Full-Lifecycle Battery Ecosystem
A complete secondary battery lifecycle ecosystem is being built domestically — from raw material procurement through cell production to recycling. Mineral cooperation MOUs with resource-holding countries including Canada, Australia, and Argentina are being expanded for critical mineral (lithium, cobalt, nickel) supply chain diversification, along with KRW 300 billion invested in domestic battery recycling infrastructure.
Four Strategic Industries: 2025 Key Metrics
Industry2025 TargetGovernment SupportKey Task
SemiconductorsProduction $150B+15% tax creditMaterials-parts self-sufficiency
EV/Hydrogen Vehicles450K + 20K unitsSubsidy restructuringSDV technology development
Bio-HealthExports $10BCMO cluster supportApproval shortened to 60 days
Secondary BatteriesCapacity 280 GWhRecycling KRW 300BCritical mineral diversification

Trade Policy: FTA/CEPA Expansion and Multilateral Trade System Strengthening

MOTIE's 2025 trade policy operates on three tracks. First, increasing utilization of existing FTAs and concluding new ones. Second, restoring the WTO multilateral system and strengthening developing country trade cooperation. Third, strategic responses to trade pressure from the U.S. and EU (tariffs, subsidies, supply chain regulations). The year 2025 is one where trade authority response capabilities face their greatest test, as the Trump administration's reciprocal tariff policies take concrete form.

FTA Expansion Strategy
Countries in Force59 (85% of global GDP)
Under NegotiationGCC, UAE, Ecuador, etc.
Utilization Rate Target80% (current: 73%)
SME FTA SupportDedicated consulting expansion
CEPA Network
Korea-India CEPAUpgrade negotiations
Korea-Bangladesh CEPANegotiations in earnest
Korea-GCC CEPA2025 conclusion target
Korea-UAE CEPAPost-effectuation review
Multilateral Trade Response
WTO ReformDispute settlement body restoration
IPEF ParticipationSupply chain cooperation
CPTPP AccessionRoadmap development
MSP MineralsCritical minerals alliance strengthened

In response to U.S. Reciprocal Tariff policies, MOTIE operates a "U.S. Trade Pressure Response TF," developing product-specific strategies covering steel and aluminum safeguards, semiconductor subsidy conditions, and IRA EV tax credits. For EU CBAM, carbon data management systems and corporate training are being developed in parallel to minimize industry burden. Against WTO developing country preference reduction pressure, Korea emphasizes a "strategic middle ground" role — defending existing preferences while fulfilling international responsibilities as an advanced economy.

Korea-Bangladesh CEPA/FTA Negotiations and Trade ImpactExplore the Korea-Bangladesh CEPA negotiation details crystallizing within MOTIE's 2025 plan and their trade implications

Energy Transition Policy: Carbon Neutrality and Clean Energy Industry Development

MOTIE declared 2025 the "inaugural year of accelerated energy transition," presenting concrete policies for achieving the 2030 NDC (Nationally Determined Contribution) as the midpoint of the Carbon Neutrality 2050 roadmap. The core 2025 energy policy direction is to increase the renewable energy share in the power mix, rationally redefine the role of nuclear power, and pursue the parallel transition to a hydrogen economy.

Energy Transition Policy Execution Framework
Renewable Expansion
Accelerate solar and offshore wind deployment
Nuclear Rationalization
Resume new reactor construction & strengthen exports
Hydrogen Economy
Clean hydrogen production & distribution infra
CFE Certification
Carbon-free energy certificate introduction
Carbon Neutrality 2050
Industrial sector GHG reduction implementation
2025 Power Generation Targets and Policies by Energy Source
Energy Source2025 Share TargetKey PolicyInvestment Scale
Renewables21.6%Offshore wind siting deregulationApprox. KRW 15T
Nuclear31.8%Shin Hanul Units 3 & 4 constructionApprox. KRW 10T
LNG26.9%LNG import diversificationApprox. KRW 5T
Clean HydrogenNew targetDomestic production base constructionApprox. KRW 3T
Energy EfficiencyAll industriesMandatory efficiency standards strengthenedApprox. KRW 2T

Investment Attraction and Export Promotion: Strengthening the Growth Ecosystem

In MOTIE's 2025 work plan, investment and exports are designed not as separate policies but as a single virtuous cycle system. Foreign investment inflows create jobs and technology, which in turn drive exports. The two anchor numbers for 2025 are "$35 billion in advanced industry FDI" and "$700 billion in exports."

Foreign Direct Investment (FDI)
2025 Target$35B
Advanced Industry Share40% or more
IncentivesCash grants doubled
One-Stop ServiceInvest Korea platform
Export Support System
Export Target$700B+
SME Support100K firms new-to-export
Export Vouchers5,000 company support
K-Expo350 overseas exhibitions
Supply Chain Strengthening
Mineral Partners30+ resource-rich countries
Supply Chain Centers15 global locations
Friend-ShoringAllied supply chain participation
ODA-Linked BiddingEDCF export projects

A distinctive feature of 2025 export support is the concentrated investment in "broadening the SME export base." While exports have traditionally been dominated by conglomerates like Samsung, Hyundai, and LG, from 2025 the focus shifts to discovering and cultivating SMEs with annual exports below $1 million. Key instruments include export vouchers (up to KRW 100 million per company), Global Export Star Firms program (intensive cultivation of 100 companies), and online export platform enhancement. Additionally, defense exports (K-Defense), nuclear exports, and infrastructure contracts (plant and construction) are being separately managed as "mega-exports" targeting visible contribution to annual export statistics.

KOTRA Mid-Term Management Strategy and Bangladesh Business DirectionReview the strategy and Bangladesh Dhaka Trade Office direction of KOTRA, the implementing agency for MOTIE's export promotion policy

Regulatory Reform: Business Investment Environment Improvement Tasks

Regulatory reform is treated as an independent chapter in MOTIE's 2025 work plan, reflecting its significance. Under the principle that "regulations blocking investment will be eliminated," the plan targets discovery and resolution of 200+ regulatory improvement items annually. The three core priorities are advanced industry siting deregulation, environmental and safety permitting streamlining, and expanded regulatory sandboxes for new technologies and industries.

01
Advanced Industry Siting Deregulation
Environmental impact assessment periods for semiconductor and battery factory construction are being shortened from the current 2-3 years to 1 year. Within National Advanced Industrial Complexes, the model is being inverted so that the state builds water, power, and transport infrastructure first before companies move in, advancing investment start dates. Capital region advanced industry siting restrictions (total volume controls) are being relaxed specifically for semiconductors and AI.
02
New Technology/Industry Regulatory Sandbox
Regulatory sandboxes are expanding for autonomous driving, drones/UAM (urban air mobility), digital healthcare, and fintech. Targets include review completion within 30 days of application, sandbox period extension from 2 to 4 years, and 80% formal permit conversion rate for sandbox graduates. For AI and robotics sectors, a "negative regulation principle" is being introduced that permits all activities not explicitly prohibited.
03
Reducing Business Burden: Permitting and Reporting Obligations Streamlined
The target is a 40% reduction in corporate permitting and reporting burden. Measures include expanding K-REACH chemical registration exemption categories, broadening international Mutual Recognition Agreements (MRA) for safety certifications, and comprehensive consolidation of overlapping regulations. Regulatory consulting services for SMEs will expand to 5,000 cases annually.
04
Regional Industry Regulatory Special Zones
Additional regulatory exemptions are being added within Regional Innovation Special Zones to foster region-specific industries. Customized deregulation packages linked to regional strategic industries are being applied, including Gyeongbuk/Gyeongnam defense and aerospace zones, Chungbuk/Jeonbuk bio zones, and Gwangju AI and automotive zones.

Bangladesh Trade and Investment Implications

MOTIE's 2025 work plan directly impacts trade and investment relations with Bangladesh. The Korea-Bangladesh CEPA negotiations entering a substantive phase, KOTRA emerging market export promotion, energy and infrastructure export expansion, and Bangladesh's role in advanced industry supply chains — opportunities and challenges intersect across multiple dimensions. This section examines how Korean companies active in Bangladesh can leverage this work plan.

MOTIE 2025 Plan: Opportunities for Korean Companies in Bangladesh
Policy AreaBangladesh RelevanceCompany UtilizationUrgency
Korea-BD CEPATariff reduction & ROO relaxationMonitor negotiation developmentsVery High
Export VouchersBD market entry cost supportApply for KOTRA export vouchersHigh
FDI StrengtheningBD-based Korean firm reverse investmentUtilize Invest Korea filingMedium
Energy ExportBD power infrastructure demandParticipate in solar/LNG projectsHigh
Supply Chain DiversificationBD as China+1 manufacturing baseEvaluate EPZ/SEZ investment entryHigh
K-Defense ExportBD defense modernization demandLeverage defense export programsMedium
ODA-Linked BiddingEDCF infrastructure projectsSeek public institution partnershipsMedium
Digital TradeBD e-commerce growthCross-border e-commerce entryHigh

Bangladesh is also an important market in the energy transition space. Bangladesh has set a national target of raising its renewable energy share to 40% by 2030, and significant portions of its current generation capacity are aging. Korean companies' solar modules, inverters, LNG combined-cycle generation equipment, and smart grid technologies directly address Bangladesh's energy infrastructure modernization needs. Combining MOTIE's energy export platform with KOICA and EDCF increases the likelihood of Korean energy company project wins in Bangladesh.

MOTIE Policy to Bangladesh Opportunity Linkage Path
MOTIE Export Promotion
KOTRA Dhaka buyer matching
CEPA Negotiations
Tariff reduction = export competitiveness
FDI Incentives
BD EPZ investment entry support
Energy Exports
Solar & LNG generation projects
ODA Linkage
EDCF infrastructure bidding opportunities
Bangladesh LDC Graduation Impact AnalysisUnderstand post-LDC graduation (2026) trade environment changes directly linked to MOTIE's CEPA negotiations
Bangladesh Trade Policy 2024-2025: Tariff and Regulatory ChangesTrack Bangladesh's latest trade policy trends in connection with Korea's MOTIE export promotion policy

MOTIE's 2025 work plan is not limited to achieving short-term export indicators — it is a medium-to-long-term blueprint for designing the future of Korea's industrial structure. Securing Korea's core position within the global supply chains of semiconductors, batteries, and bio; an orderly transition toward a carbon-neutral economy; market diversification through the FTA/CEPA network; and creating business investment conditions through regulatory reform — these four elements interlock to underpin sustainable growth of the Korean economy. Korean companies active in Bangladesh and their Bangladeshi trade partners should understand the direction of this work plan and formulate strategies that maximize utilization of Korea's policy resources and networks.

MOTIE2025 work plansemiconductorstrade policyFTAenergy transitionexport promotioninvestment attractionBangladesh
MOTIE 2025 Work Plan: Full-Version Policy Analysis | Dhaka Trade Portal