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Industry
MOTIE and Airbus D&S sign ITC MOU
Industry and Policy Deputy Minister Lee Seung-ryeol at the Ministry of Trade, Industry and Energy (MOTIE) met with Airbus Defense and Space (D&S) Chief Operating Officer (COO) Francisco Sánchez Segura on May 10 for the signing of the memorandum of understanding (MOU) between MOTIE and Airbus D&S on the establishment of Airbus’ International Technology Center (ITC) in Korea and discussed measures for wider international cooperation in aerospace and defense. date2024-05-10
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Industry
MOTIE and Airbus D&S seal MOU on establishing International Technology Center
Industry and Policy Deputy Minister Lee Seung-ryeol at the Ministry of Trade, Industry and Energy (MOTIE) met with Airbus Defense and Space (D&S) Chief Operating Officer (COO) Francisco Sánchez Segura on May 10 for the signing of the memorandum of understanding (MOU) between MOTIE and Airbus D&S on the establishment of Airbus’ International Technology Center (ITC) in Korea. A closed-door roundtable was also held on the margins of the MOU signing ceremony, attended by representatives of government-funded research institutes and companies, for discussions on expanding international cooperation in aerospace and defense. An outcome of bilateral working level meetings following talks held between the MOTIE minister and Airbus D&S CEO in November 2022, the MOU articulates MOTIE-Airbus cooperation on the ITC establishment and joint global research and development (R&D) projects. Airbus is aiming to establish the ITC as part of a greenfield investment project and select the site for the ITC’s location by the end of this year. During the MOU period, the two sides will develop an operating model to secure ITC’s self-reliance, catalyze innovation and collaboration across their aviation industries, and uncover projects in line with the ITC’s strategic vision. The ITC is Airbus’ first R&D center to be built in Korea and will serve as a joint platform for bilateral R&D. date2024-05-10
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Industry
Korea's automobile exports advance 10.3% in April
The Ministry of Trade, Industry and Energy (MOTIE) announced on May 8 that Korea’s automobile exports for April climbed 10.3 percent year-on-year to a monthly high of USD 6.8 billion, breaking the previous record set in November 2023 at $6.5 billion. The accumulated export value through January to April this year rose 4.7 percent year-on-year to $24.3 billion, likewise an all-time high for the period. The expansion is attributable to high demand for eco-friendly vehicles and growing U.S.-bound exports of sport utility vehicles (SUVs). As for eco-friendly vehicles, their major destinations like the U.S. and Europe showed increased demand for hybrid electric vehicles (HEVs) in April, achieving a record-breaking $2.3 billion (up 11.6 percent year-on-year) in export value. April’s automobile production amounted to 394,457 units (up 3.5 percent year-on-year), the highest in 13 months since reaching 410,000 unit thresholds in March 2023, thanks to the added number of working days (+1) compared to last April. Domestic sales declined 5.5 percent to 141,110 units. Meanwhile, HEV sales leaped 35 percent year-on-year to 39,576 units as domestic preference for HEVs also strengthened. date2024-05-09
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Industry
AI Industrial Policy Committee inauguration ceremony
Trade, Industry and Energy Minister Dukgeun Ahn attended a ceremony on May 8 inaugurating the “AI Industrial Policy Committee,” launched to take on industrial policies for the artificial intelligence (AI) era. Attending the event were National Academy of Engineering of Korea (NAEK) President Kim Kinam and other AI experts in business, academia, and related institutions. date2024-05-08
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Industry
MOTIE launches AI Industrial Policy Committee, laying out roadmap for AI era
Trade, Industry and Energy Minister Dukgeun Ahn attended the ceremony on May 8 inaugurating the “AI Industrial Policy Committee,” launched to take on industrial policies for the artificial intelligence (AI) era. Attending the event were National Academy of Engineering of Korea (NAEK) President Kim Kinam and other AI experts in business, academia, and related institutions. Based on the forecast that AI will serve as a gamechanger across industries, MOTIE launched the Committee with aim to generate meaningful forecast for industrial shifts and sort out policy tasks for AI-based industrial innovation. Over the next six months, the Committee will focus on establishing the new industrial policies for the AI era through joint efforts of 200 industrial, academia, and research experts. The Committee’s private-led working group will be composed of four parts, namely AI technology development forecast, future industry changes, standards, and policy proposals. In parallel, the Committee will be establishing strategies for six major areas (autonomous manufacturing, design, R&D, energy, retail, AI chips) on a monthly basis, led by MOTIE. New legal frameworks for AI’s industrial utilization will be designed as well. On the heels of the inauguration ceremony, MOTIE announced the “AI Autonomous Manufacturing Strategy 1.0” as part of the first task project of the six major areas. Under the strategy, this year alone will see over KRW 100 billion poured into the following: diffusion of AI autonomous manufacturing; securing AI autonomous manufacturing capacity; and the nurturing of a relevant ecosystem. Through these measures, MOTIE is targeting to achieve, by 2030 a 30 percent growth in AI autonomous manufacturing diffusion (9 percent at present) and a 20 percent jump in manufacturing productivity. First, MOTIE will push forward 200 anchor projects on AI autonomous manufacturing with aim to upgrade the degree of digital transition across manufacturing sites. Accordingly, MOTIE will be supporting the establishment of software, robots, and systems after a thorough assessment of AI application prospects and effectiveness based on a detailed process analysis. This year, 10 priority projects will be selected through local authorities’ open call for 10 billion won in funding. MOTIE will also be establishing an AI autonomous manufacturing testbed for robotics and software that companies can utilize in establishing their own AI autonomous manufacturing systems. To note, 200 billion won will go towards nurturing a national robot testbed project (2024–2028). Second, over one trillion won will be secured in private investment to be spread over a five-year period for obtaining core technologies and capacity required for AI autonomous manufacturing, mainly concentrating on the process automation of key manufacturing sectors like machinery, robots, shipbuilding, secondary batteries, and semiconductors, as well as on virtual manufacturing and flexible production, such as digital twins. In addition, active support will go towards nurturing an AI autonomous manufacturing-friendly industrial ecosystem, 13,000 professional talents, and over 250 firms specializing in AI autonomous manufacturing solutions. A public-private “AI Autonomous Manufacturing Alliance” will be launched in the first half of this year through participation of ministries, research institutions, associations, companies and relevant groups for sharing and utilization of industrial data and the improvement of relevant laws and systems. date2024-05-08
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Industry
Minister discusses support measures for reshored companies
Trade, Industry and Energy Minister Dukgeun Ahn held a meeting with reshored companies on May 7 at the Government Complex Sejong, where he announced the ministry’s “Reshoring Company Support Strategy 2.0” and discussed success cases and support measures. The meeting was attended by representatives of reshored companies and relevant organizations, including Simmtech, Derkwoo, and Korea Trade-Investment Promotion Agency (KOTRA). date2024-05-07
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Industry
Government and refineries to join hands for stabilizing domestic oil prices
Amid rising geopolitical tensions in the Middle East, Trade, Industry and Energy Minister Dukgeun Ahn convened a meeting on May 3 with representatives of refineries, thrift gas station operators, and the Korea National Oil Corporation (KNOC) to discuss measures for stabilizing domestic oil prices. Minister Ahn remarked that despite the April tailwind of reduced prices and increased exports, the general public is still experiencing financial difficulties. Refinery industry representatives shared the view that public livelihood is in difficulty and agreed to raise the petroleum product supply prices by a minimum, while minimizing price hikes. Thrift gas stations agreed to join in on efforts to lower the sale price of petroleum products to help mitigate the public’s financial burdens. With aim to crack down on market actors attempting to make illicit gains by taking advantage of high oil prices, the Ministry of Trade, Industry and Energy (MOTIE) jointly launched the “Pan-Ministerial Petroleum Market Inspection Group” in October 2023 with the Ministry of Economy and Finance (MOEF), Ministry of Land, Infrastructure and Transport (MOLIT), Korea Fair Trade Commission (KFTC), National Tax Service (NTS) and other organizations. The thrift gas stations run by KNOC currently sell oil priced at an average of KRW 40 per liter lower compared to other gas stations nationwide. An additional 40 gas stations are to be further designated as thrift gas stations around the capital area and major cities. date2024-05-03
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Industry
Vice Minister visits Hanwha Aerospace Daejeon Plant
Trade, Industry and Energy Vice Minister Kang Kyungsung led the Defense Exports Task Force in his meeting with Hanwha Aerospace CEO Son Jae-il on April 30 at the company’s Daejeon plant and discussed recent exports outcomes. The Vice Minister received a briefing on company management and issues from CEO Son and exchanged views regarding measures for expanding defense exports and developing the arms industry prior to touring the production facilities and encouraging employees. The Defense Exports Task Force is composed of representatives from the Ministry of Trade, Industry and Energy (MOTIE), Korea Defense Industry Trade Support Center (KODITS), K-SURE, and Korea Planning & Evaluation Institute of Industrial Technology (KEIT). date2024-04-30
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Industry
Korea's Defense Exports Task Force launched into high gear
Trade, Industry and Energy Vice Minister Kang Kyungsung led the Defense Exports Task Force in his meeting with Hanwha Aerospace CEO Son Jae-il on April 30 at the company’s Daejeon plant and discussed recent exports outcomes. Launched as a follow-up measure to the Defense Industry Ecosystem Competitiveness Strategy announced on April 17, the Defense Exports Task Force is composed of representatives from the Ministry of Trade, Industry and Energy (MOTIE), Korea Defense Industry Trade Support Center (KODITS), K-SURE, and Korea Planning & Evaluation Institute of Industrial Technology (KEIT). Hanwha Aerospace representatives shared their status quo on arms exports, including the executive contract with the Polish Armaments Agency on supplying an additional fleet of Chunmoo Multiple Rocket Launcher Systems (MRLS) amounting to USD 1.6 billion, and requested policy funding for export contract implementation, designation of advanced aircraft engine materials and parts as national high-tech strategic technology, and government assistance on R&D of arms systems for export. Vice Minister Kang explained that as announced in April, MOTIE plans to strengthen support through the Defense Industry Ecosystem Competitiveness Strategy by securing advanced critical technologies in arms materials, parts, and equipment (KRW 400 billion investment in 2024), expanding the scope of trade insurance and policy funding (10 trillion won), and establishing a tailored defense exports strategy (June 2024). date2024-04-30
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Industry
Korea's retail industry grows 10.9% in March
The Ministry of Trade, Industry and Energy (MOTIE) announced on April 29 that Korea’s retail industry grew 10.9 percent year-on-year in March 2024, with offline and online sales advancing 6.0 percent and 15.7 percent, respectively. MOTIE releases monthly retail sales figures based on surveys of 25 major retailers. Thirteen of them are brick-and-mortar retailers: three department store chains, three hypermarket chains, three convenience store chains, and four super supermarket (SSMs) operators. The remaining 12 are online retailers. Offline sales rose across all major items on the backs of higher number of working days (+2) and increased sales of food, living/household goods, and foreign designer labels. Online sales saw enlarged demand for spring outings, performance reservations, and food deliveries alongside steady sales of convenience foods and e-coupons. The number of purchases increased 0.5 percent overall, rising for department stores, hypermarkets, and SSMs, thanks to the added number of working days (+2), but decreased for convenience stores (down 0.2 percent), a first in 25 months. Hypermarket sales increased 6.2 percent, attributable to the growth of food product sales (up 10.7 percent). Non-food items declined, including sports (down 7.9 percent), miscellaneous goods (down 3.7 percent), clothing (down 3.6 percent), and home appliances/culture (down 2.4 percent). Department store sales increased 8.9 percent overall, as women’s suits showed a 1.2 percent downtick, but household goods (up 15.3 percent), foreign designer labels (up 13.9 percent), and miscellaneous goods (up 5.4 percent) advanced. Convenience (up 3.0 percent) stores saw all items grow in sales, led by daily necessities (up 7.7 percent) and miscellaneous goods (up 9.3 percent), followed by strong demand for cost-effective food products like beverages and processed food products (up 4.1 percent) and instant food products (up 1.7 percent). SSM operators gained 5.1 percent overall as most items enjoyed growth, including agricultural, livestock, and fishery products (up 9.6 percent), processed food products (up 3.9 percent), and fresh/prepared food products (up 1.8 percent). In terms of sales per store, hypermarkets (up 7.9 percent), department stores (up 8.9 percent), and SSM operators (up 1.1 percent) gained, whereas those of convenience stores dipped (down 0.9 percent). Online sales decreased in fashion/clothing (down 13.0 percent) and sports (down 3.7 percent), while books/stationery (up 24.1 percent), food products (up 28.9 percent), and service/other (up 37.5 percent) climbed sharply. date2024-04-30