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South Korean Minister of Trade, Industry and Energy Kim Jung-kwan shakes hands with Adolfo Urso during a meeting in Rome, Italy, on the 11th (local time), held on the occasion of President Lee Jae-myung’s state visit to Italy. / Ministry of Trade, Industry and Energy.

The Ministry of Trade, Industry and Energy announced that South Korea and Italy have agreed to improve the trade environment and expand cooperation in advanced industries. The two nations decided to strengthen cooperation in future industrial sectors, including the artificial intelligence (AI) transformation of manufacturing, semiconductor supply chains, and securing critical minerals.

The ministry stated that, taking the opportunity of President Lee Jae-myung’s state visit to Italy, Minister of Trade, Industry and Energy Kim Jung-gwan met with Adolfo Urso, the Italian Minister of Enterprises and Made in Italy, in Rome on the 11th (local time) to discuss trade issues and cooperation plans for advanced industries.

The two sides intensively discussed recent legislative trends in major economic laws pushed at the European Union (EU) level and ways to stabilize the trade environment for businesses in response to these developments.

In particular, the South Korean government welcomed the fact that Italy removed the "Made in EU" requirement from its "Super-Depreciation Scheme"—which was introduced as an emergency decree last March—and converted it into law. The scheme offers tax incentives by recognizing expenses at a higher amount than the actual purchase price when companies introduce machinery and equipment. Concerns had previously been raised by South Korean companies as the benefits were initially restricted to EU-made equipment.

Both countries agreed that high-quality, South Korean-made machinery and equipment could contribute to improving the productivity and competitiveness of the Italian manufacturing sector. They also pledged to cooperate closely in future EU economic legislative processes to enhance predictability for businesses from both nations and strengthen the competitiveness of the industrial ecosystem.

In the advanced industry sector, cooperation plans centered around AI and semiconductors were discussed.

South Korea introduced "M.AX," its manufacturing AI transformation policy, and emphasized the potential for synergy with Italy's strength in traditional manufacturing. In response, Italy showcased its capabilities in semiconductor materials, equipment, and advanced packaging, expressing strong interest in expanding cooperation with South Korea’s memory and foundry technologies.

The two sides also shared a mutual understanding regarding the necessity of stabilizing mineral supply chains, which are critical to the electric vehicle and battery industries, and agreed to continuously review relevant cooperation measures.

The ministry evaluated that this meeting served as an opportunity to share achievements in improving the trade environment while solidifying a cooperative foundation to jointly tackle the shared challenges of manufacturing AI transformation and semiconductor supply chains.

"This discussion holds significant meaning as it goes beyond cooperation on individual issues to expand the horizons of the overall industries of both nations, and seeks a shared future vision and survival strategy amid a major shift in the global industrial paradigm," Minister Kim Jung-gwan stated. "Moving forward, we will use the improvement of the EU trade environment and cooperation in advanced industries as our two main pillars to develop a partnership that can fully unlock cooperative synergies on the global stage."

                                                                                                            Kim Jung-gyu