Ministry of Trade and Industry Unveils First Strategy: Three Pillars of Manufacturing, Trade Integration, and Regional Balance

Kim Jungkwan, Minister of Trade, Industry and Energy, is delivering opening remarks at the meeting of foreign chambers of commerce in Korea held at the Four Seasons Hotel in Jongno-gu, Seoul on September 24, 2025. Photo by Yoon Dongju

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Kim Jungkwan, Minister of Trade, Industry and Energy, presented a future growth strategy as his first initiative after the ministry was relaunched under its new name, the Ministry of Trade and Industry. His vision is to drive "genuine growth" in Korean industry by focusing on manufacturing advancement, the integration of industry and trade, and balanced regional development.

At a meeting with former ministers held at the Korea Press Center in Seoul on October 1, Kim stated, "For our industry, which is facing a complex crisis due to rapid changes in the global trade order, competition from China, and declining productivity, it is essential to concentrate on three main strategies to achieve real growth."

The three strategies he proposed are: ▲ Accelerating the "M.AX Alliance" for manufacturing advancement ▲ Organically integrating industrial and trade policies ▲ Fostering the "Five Mega-Regions and Three Specialized Growth Engines" for balanced regional development.

First, centering on the "Manufacturing AX Alliance," which was launched on September 10, the ministry will develop and distribute AI factory leading models and promote productivity innovation by integrating embedded AI into robots, drones, and other areas. Minister Kim emphasized, "We will elevate productivity to a new level by merging AI with manufacturing."

He also presented a strategy to integrate industry and trade. In addition to responding to tariff negotiations with the United States and strengthening strategic cooperation with major countries, the ministry will expand its network with the Global South. At the same time, to prevent domestic hollowing-out due to overseas investment, it will push forward the "Mother Factory" strategy. Minister Kim explained, "We will approach foreign investment not merely as capital attraction, but as a means to secure core technologies."

Balanced regional development was also highlighted as a core task. The plan is to divide the nation into five mega-regions, each focusing on nurturing strategic industries, while simultaneously designating three specialized hubs to provide regulatory relief, financial support, and innovation infrastructure as a package. Through these measures, the government aims to narrow the gap between the capital and non-capital regions and to establish RE100 industrial complexes in areas rich in renewable energy, transforming them into global eco-friendly industry hubs.

The meeting was attended by 13 former ministers, including Lee Bongseo, former Minister of Commerce; Park Jaeyoon and Jung Haejoo, former Ministers of Trade and Industry; Yoon Jinsik, Lee Heebeom, and Kim Youngjoo, former Ministers of Industry and Resources; Choi Joongkyung and Hong Seokwoo, former Ministers of Knowledge Economy; and Joo Hyunghwan, Sung Yunmo, Moon Seungwook, Bang Moonkyu, and Ahn Deokgeun, former Ministers of Trade, Industry and Energy. The participants advised, "The role of the Ministry of Trade and Industry is more critical than ever," and urged, "Engage in negotiations with the United States with the national interest as the top priority, accelerate the AX transition and advanced industry development, and work to stabilize supply chains."

Meanwhile, earlier in the day, Minister Kim visited the Korea Federation of Middle Market Enterprises and met with Chairman Choi Jinsik to discuss industry issues. He stated, "With U.S. tariff measures and technological innovation demanding structural improvements in our industry, the role of middle market enterprises is more important than ever. We will strengthen tailored support to ensure the growth ladder from small to medium, and from medium to large enterprises functions smoothly, and we will improve regulations that hinder growth."

Additionally, regarding ongoing industrial safety accidents, he stressed, "Prevention in advance is beneficial for business activities in the long run," and said he would work with relevant ministries to develop incentive measures to encourage companies to voluntarily invest in safety.

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