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Industry
Defense industry spearheading Korea’s exports with $20 bln target in 2024
Trade, Industry and Energy Minister Dukgeun Ahn visited the Korea Aerospace Industries (KAI) headquarters in Sacheon on April 18 to inspect the production site of FA-50s and the Korean Utility Helicopter (KUH) Surion and discussed export issues with defense industry representatives. Inking over USD 30 billion in business deals over the last two years, the domestic defense industry is leading Korea’s sprint towards this year’s total export target of $700 billion. Based on competitive pricing and after-sales support, KAI has supplied 220 aircrafts, including FA-50s, to countries like Indonesia and Poland. Following the deal sealed with Malaysia on 18 FA-50s last year, KAI is eyeing exports to Africa and other new markets. First developed in 2013 for the purpose of replacing the aging fleet of military helicopters, the Surion is looking forward to taking flight in the Middle Eastern markets this year. Along with the defense budget beef-up across major countries, the defense market is forecast to burgeon into a KRW 900 trillion market by 2027 and the Government plans to provide sweeping support to Korea’s defense industry in attaining this year’s $20 billion target through stronger trade financing and overseas marketing assistance. Measures will include injecting more than 10 trillion won in trade financing for defense exports and global bid projects, expanding the number of defense hub trade centers around the world, hosting trade shows, and pouring over 400 billion won this year alone into the research and development of advanced defense materials, parts, and equipment. Moreover, with a 29-billion won funding for military advancements like the single-seat FA-50 for increased range, the Government will support global market penetration and export portfolio diversification to include light armed helicopters and next-generation fighter aircrafts like the KF-21. date2024-04-20
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Industry
Minister Ahn visits KAI
Trade, Industry and Energy Minister Dukgeun Ahn visited KAI on April 18 in Gyeongnam and held talks on Korean defense industry issues with representatives of related institutions and companies, and inspected the production site for Korean Utility Helicopter, “Surion.” date2024-04-19
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Industry
Minister Ahn attends naming ceremony for LNG carrier ORION SPIRIT
Trade, Industry and Energy Minister Dukgeun Ahn attended the naming ceremony for the LNG carrier ORION SPIRIT on April 18 at Samsung Heavy Industries’ Geoje Shipyard. Marking the 30th anniversary of Korea's first LNG carrier built in 1994, the ORION SPIRIT is the 500th vessel to be exported and will be handed over to J.P. Morgan Chase & Co. date2024-04-18
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Industry
ORION SPIRIT to set sail as Korea's 500th LNG carrier exported since 1994
Trade, Industry and Energy Minister Dukgeun Ahn attended the naming ceremony for the LNG carrier ORION SPIRIT on April 18 at Samsung Heavy Industries’ Geoje Shipyard. Marking the 30th anniversary of Korea's first LNG carrier built in 1994, the ORION SPIRIT is the 500th LNG tanker to be exported and will be handed over to J.P. Morgan Chase & Co. LNG carriers must be able to safely transport liquid gas at temperatures below minus 163 degrees Celsius and require highly advanced technology, costing over KRW 300 billion per vessel. Only nine countries around the world have successfully built the cutting-edge fleet. There are 680 LNG carriers presently in the water, three-fourths of which were built by Korean shipyards, and construction of another 256 vessels are underway. Korean shipyards raked in USD 13.6 billion worth of global ship orders in the first quarter of 2024, winning 100 percent of total LNG and ammonia carrier orders. The high-value orders won in 2021 have entered the export stage this year as well. date2024-04-18
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Industry
Top experts gather for first AI semiconductor working group meeting
The Ministry of Trade, Industry and Energy (MOTIE) and the Ministry of Science and ICT (MSIT), on April 16, jointly convened the first meeting of the AI semiconductor Working Group under the AI Strategy High-Level Committee, launched April 4, to gather opinions of top experts in the field of AI and semiconductors regarding the AI Semiconductor Initiative, which was first introduced during the President-chaired discussions on pending chip issues held April 9. The AI Strategy High-Level Committee was created under the ministries’ shared understanding that a whole-of-the-government governance is needed to lead Korea’s AI innovation from an interconnected and integrative perspective. Co-chaired by the MSIT minister and a private-sector expert (Taejae University President Yeom Jae-ho), the Committee is composed of 23 top AI private sector experts and seven deputy ministerial-level officials from the Ministry of Economy and Finance (MOEF), Ministry of SMEs and Startups (MSS), Ministry of Education (MOE), Personal Information Protection Commission (PIPC), Korea Communications Commission (KCC), and MOTIE. The Committee will be running six working groups. Attending the meeting were Professor Yoo Hoi-jun at the Korea Advanced Institute of Science and Technology (KAIST), Head of the AI Semiconductor Working Group, along with experts from related companies like Samsung, SK Hynix, KT, NHN Cloud, LG AI Lab, Sapeon, FuriosaAI, as well as academia and R&D experts in AI and AI chips. date2024-04-17
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Industry
MOTIE and Boeing discuss aerospace and defense cooperation
Industry Policy Deputy Minister Lee Seung-ryeol met with Boeing’s Research & Technology (BR&T) Vice President and General Manager Patty Chang-Chien on April 16 in Seoul to discuss measures for advancing Korea-Boeing cooperation in aerospace and defense. date2024-04-16
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Industry
MOTIE and Boeing discuss global R&D projects and aerospace supply chain cooperation
Industry Policy Deputy Minister Lee Seung-ryeol met with Boeing’s Research & Technology (BR&T) Vice President and General Manager Patty Chang-Chien on April 16 in Seoul to discuss measures for advancing cooperation in aerospace and defense. Deputy Minister Lee asked Boeing’s continued support regarding the development of the smart cabin and aircraft health diagnosis AI system for civil aircrafts, ongoing projects on which Korean firms and Boeing are collaborating. Boeing’s Vice President Chang-Chieng said that the Boeing Korea Engineering and Technology Center (BKETC) established in Korea in 2019 was a good investment in terms of mutually beneficial cooperation and explained Boeing’s plans for AI and software related job openings and international joint R&D expansion in Korea in accordance with the R&D cooperation memorandum of understanding (MOU) Boeing and MOTIE entered last year in April. Deputy Minister Lee replied that increasing new hires in Korea will enable Boeing to leverage Korea’s competitive edge in software, information and communications technology (ICT), and manufacturing technology. He also proposed that the Boeing Suppliers’ Day held last year in Busan be established as a regular event backed by MOTIE. date2024-04-16
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Industry
Vice Minister holds emergency meeting to assess impact from Middle East situation
Trade, Industry and Energy Vice Minister Namho Choe held an emergency meeting on April 14 concerning Iran’s aerial attack on Israel on April 13 (local time) to assess the potential impact on domestic industries, export, energy prices, and supply chains with relevant institutions, including the Korea National Oil Corporation (KNOC), Korea Gas Corporation (KOGAS), Korea Trade-Investment Promotion Agency (KOTRA), and K-SURE. date2024-04-15
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Industry
MOTIE holds emergency meeting to monitor domestic impact from Middle East situation
Trade, Industry and Energy Vice Minister Namho Choe held an emergency meeting on April 14 concerning Iran’s aerial attack on Israel on April 13 (local time) to assess the potential impact on domestic industries, export, energy prices, and supply chains with relevant authorities. According to the assessment carried out by MOTIE and related institutions, the impact on Korea’s domestic industries is limited thus far, but the Government plans to closely follow and respond to future situation development. At present, the supply of crude oil and LNG has not been disrupted, and oil and LNG carriers either navigating or loading near the Middle East regions are confirmed to be normally operating. Loading for exports and imports is also proceeding without setback. As for items other than crude oil and gas, there are no further identified critical items with high dependence on Middle East sourcing. Moreover, it is assessed that supply chain impact will be limited, as sourcing for bromine and other petrochemical items with relatively higher reliance on the Middle East can seek replacement with domestic production and alternative import channels. Still, the Korean government plans to gear up for situation management through close monitoring on international oil prices and the impact on Korea’s economy by installing a comprehensive situation room headed by Vice Minister Choe to activate an emergency response team per each area, including oil, gas, trade, and supply chain, to communicate and monitor the situation on a daily basis with related countries and institutions. Vice Minister Choe remarked that “The Government plans to closely monitor and examine the situation development with related institutions and industries,” and assured that efforts will be made to minimize impact on the Korean economy. date2024-04-15
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Industry
Korea's automobile exports hit all-time high of $17.5 bln for Q1 in 2024
The Ministry of Trade, Industry and Energy (MOTIE) announced on April 11 that Korea’s automobile exports hit all-time highs of USD 17.5 billion (up 2.7 percent year-on-year) for the first quarter of 2024 (January-March in acc.). The monthly export value reached $6.2 billion in March, making a quick rebound since the setback to $5.2 billion in February. The key takeaway for March exports and domestic sales is the steep rise of hybrid vehicles (PHEVs excluded), advancing 37 percent to a record-breaking $0.9 billion. With the domestic market also selling 40,000 units (up 24 percent) in March, strong domestic and overseas demand for hybrid cars is expected to serve as a stable source of workload for the parts industry. Automobile production in March amounted to 365,497 units (down 10.8 percent), surpassing last year’s monthly average (app. 354,000 units) and recording the highest among the first three months of this year. The year-on-year downtick in production is attributable to the lower number of working days (-1.5) and a major automaker’s production line renovation for future mobility transition. Domestic sales in March added up to 146,019 units (down 12.0 percent). Meanwhile, hybrid cars (up 24 percent) and EVs (up 16 percent) posted double-digit growth, boosting the sales of eco-friendly vehicles 18.6 percent to 61,435 units, surpassing the previous all-time monthly high of approximately 58,000 units set in November 2023. date2024-04-11