Yeo Han-koo Conducts All-Out Trade Diplomacy at Davos... Simultaneously Advancing WTO Rules, FTAs, and Investment

Coordinating Key Issues with the U.S. and EU,
Accelerating FTA Negotiations in Parallel
Highlighting the Investment Facilitation Agreement Ahead of WTO MC-14

As global trade uncertainties intensify, the government is using the Davos World Economic Forum as an opportunity to manage trade issues with the United States, European Union (EU), and China, while also advancing multilateral regulatory agendas such as the World Trade Organization (WTO) Investment Facilitation Agreement. Yeo Han-koo, Trade Minister, held more than 50 meetings to strengthen trade networks and attract investment.

According to the Ministry of Trade, Industry and Energy on January 23, this year's Davos Forum, held under the theme of "The Spirit of Dialogue," saw the largest-ever participation of government and business leaders, with focused discussions on trade, investment, artificial intelligence (AI), critical minerals, digitalization, and other key trade and industry topics.

At the forum, Minister Yeo met with Jamieson Greer, the U.S. Trade Representative, to review Korea-U.S. trade issues and reached a consensus on the need for close communication to maintain stable trade relations. He also engaged with governors and senators from key U.S. states such as Michigan, California, and Kentucky, emphasizing the importance of Korean investment in the U.S. and the need for mutually beneficial industrial cooperation. With the EU and Canada, he discussed steel import regulations, and with officials from France, Switzerland, and Israel, he explored ways to expand supply chain and industrial cooperation.

The expansion of trade networks was also pursued in parallel. Discussions were held with the Gulf Cooperation Council (GCC), Thailand, Egypt, Mongolia, and Bangladesh to accelerate negotiations on Free Trade Agreements (FTAs) or Comprehensive Economic Partnership Agreements (CEPAs), diversifying regional trade bases. With China, he reviewed the progress of the ongoing Korea-China FTA follow-up negotiations on services and investment in Beijing.

Minister Yeo also met with CEOs of global foreign-invested companies such as Apple and AWS, explaining Korea's policies for fostering new AI industries and supporting foreign investment, and requested further investment in Korea. He also shared regulatory, environmental, and licensing challenges raised by individual companies, agreeing to seek solutions in the future.

He continued to engage with experts in the semiconductor and AI sectors. With Chris Miller, author of "Chip War," he discussed the U.S. Section 232 investigation under the Trade Expansion Act and its global industrial impact. With Professor Yoshua Bengio of the University of Montreal, he shared Korea's Manufacturing AI Productivity Innovation Policy (M.AX). He also reviewed the geopolitical environment, including U.S.-China strategic competition, with Ian Bremmer, President of Eurasia Group.

At the WTO Informal Trade Ministers' Meeting hosted by the Swiss government, participants discussed ways to achieve outcomes at the 14th WTO Ministerial Conference (MC-14) in March, including the incorporation of Investment Facilitation for Development (IFD/IFDA) into the WTO system and the extension of the e-commerce moratorium.

Minister Yeo stressed that plurilateral agreements are a practical alternative for restoring trust in the WTO and has begun developing strategies to have the investment facilitation agreement, led by Korea, adopted as an official WTO agreement. He also discussed Korea's future "coordinator role" with WTO Director-General Ngozi Okonjo-Iweala.

Minister Yeo stated, "The international community still seeks dialogue and cooperation, and interest in investing in Korea remains high. We will simultaneously address trade issues and expand foreign investment, while playing a leading role in establishing rules for WTO reform, AI, and digital standards."