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Industry
MOTIE and Thermo Fisher Scientific discuss investment prospects for raw biomaterials facility in Korea
Minister for Trade Inkyo Cheong met Mark Smedley, a senior vice president of Thermo Fisher Scientific, on March 28 in Seoul to discuss the global pharma and biotech company’s prospects of investment in establishing a raw and subsidiary biomaterials production facility in Korea. Trade Minister Cheong remarked that “Samsung, Lotte, Celltrion and other major domestic firms are aggressively expanding investment to bolster productivity in line with Korea’s aim to become a global pharmaceutical manufacturing powerhouse,” and added that “there is a reason why Merck, Sartorius, Cytiva, and other world-leading biomaterials companies have selected Korea as the final investment destination.” Meanwhile, in addition to bio, the global pharma company revealed plans for cooperation with Korea’s battery and semiconductor firms to seek solutions to battery quality improvement. date2024-03-28
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Industry
Vice Minister attends “Smart Factory + Automation World 2024” opening ceremony
Trade, Industry and Energy Vice Minister Kang Kyungsung and SMEs and Startups Vice Minister Oh Kee-woong attended the “Smart Factory + Automation World 2024” on March 27 in COEX, Seoul, the largest exhibition in Korea showcasing various products and solutions for digital transition of 500 domestic and overseas companies. date2024-03-27
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Industry
“Smart Factory + Automation World 2024” showcases leading solutions for digital transition
Trade, Industry and Energy Vice Minister Kang Kyungsung and SMEs and Startups Vice Minister Oh Kee-woong attended the “Smart Factory + Automation World 2024” on March 27 in COEX, Seoul, the largest exhibition in Korea showcasing various products and solutions for digital transition of 500 domestic and overseas companies, including automation parts, internet of things (IoT), and AI-based industrial robots. The exhibition is held for three days (March 27-29) and garners approximately 70,000 visitors. On the sidelines of the exhibition, over 100 sessions will be held to show the latest technologies related to digital transition and the successful application cases from around the world. New products and technologies will be introduced in seminar format, while buyer companies and suppliers in digital transition technology can meet via one-on-one business matchings through an online exhibition booth. Vice Minister Kang Kyungsung emphasized that “Digital technology is a practical means for heightening onsite safety, resolving the issues of skilled manpower shortage, and advancing companies’ competitiveness.” He added that “MOTIE and the Ministry of SMEs and Startups (MSS) will join hands as ‘one team’ to assist our companies take up the challenge of utilizing digital transition technologies.” date2024-03-27
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Industry
Korea to push tailored measures in establishing high-tech strategic industry specialization complexes
Trade, Industry and Energy Minister Dukgeun Ahn attended the fifth meeting of the National High-Tech Strategic Industry Committee, chaired by Prime Minister Han Duck-soo on March 27 at the Government Complex Seoul, where members discussed agenda items and measures for comprehensive support on the establishment of the seven high-tech strategic industry specialization complexes designated in July 2023. The Korean government established the High-Tech Strategic Industry Specialization Complex Comprehensive Support Measures to nurture the specialization complexes in step with the plan for KRW 681 trillion in private investment by 2047. First, the Government plans to concentrate support towards establishing infrastructure for high-tech strategic industry specialization complexes through state funding and public institutions. Succeeding the 100 billion won state funding for the Yongin and Pyeongtaek specialization complexes granted in 2023, 43.9 billion won in 2024 will go towards building the specialization complexes in Pohang, Gumi, Saemangeum and Ulsan, while also pushing for over 10 trillion won worth of projects exempt from public-led prefeasibility studies for the Yongin National Industrial Complex. The current limit on government expense support (up to two) for infrastructure is to be abolished, and according to investment size and region, the government expense support ratio will be enlarged by up to 10 percentage points. With aim to establish a high-tech ecosystem within the specialization complex, 4.5 billion won will be placed toward R&D in 2024, and a large-scale R&D project is to be planned within the year to push forward prefeasibility exemptions, fast tracks, and other related early implementations. Second, nine related ministries, including MOTIE, the Ministry of Economy and Finance (MOEF) and the Ministry of Education (MOE), jointly presented the implementation plan for 2024 as a follow-up to the first basic plan (May 2023) on nurturing and protecting national high-tech strategic industries. The plan includes a 10 percent raise in the R&D budget in 2024 for semiconductors, displays, secondary batteries and bio, the four major high-tech strategic industries. Third, more specialization courses will be offered at universities and graduate schools to nurture high-tech strategic industry talent. In 2023, three schools were designated to offer master's and doctoral semiconductor specialized courses to train 261 professional talents, and eight specialization project groups, consisting of 12 schools, launched bachelor’s degree programs to train 865 professional talents. MOTIE plans to further designate three more semiconductor-focused graduate schools and additional graduate schools for specialization in secondary batteries (3), displays (1), and bio (1) in April 2024. Lastly, in accordance with the fourth Committee meeting outcomes, an open call was announced for the designation of the bio specialization complex, drawing a total of 11 designation applications through December 2023 to February 2024 from Korea’s metropolitan local authorities. The final results will be announced by the first half of this year following the relevant ministries and experts’ evaluation process. date2024-03-27
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Industry
Korea's retail industry grows 13.7% in February
The Ministry of Trade, Industry and Energy (MOTIE) announced on March 26 that Korea’s retail sales for February increased 13.7 percent year-on-year. Offline sales shot up 11.5 percent along with higher number of working days, and all categories showed growth, led by food products (up 20.8 percent). Online sales hiked 15.7 percent on the backs of growing demand for Seollal holiday travel packages, products related to graduation and performances and convenience foods and e-coupons. By item, sales of food products (up 26.7 percent), service/other (up 13.6 percent) and living/home (up 12.8 percent) advanced. 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 SSM operators. The remaining 12 are online retailers. By offline channel type, sales at hypermarket chains leaped 21.0 percent as a result of inflation and Seollal holiday effect, with growth seen across all items aside from home appliances/culture (down 2.2 percent). Department store chains gained 7.2 percent in overall sales despite the drop in women’s suit (down 8.1. percent) and household goods (down 2.5 percent), as foreign designer labels (up 6.4 percent) and miscellaneous goods (up 3.3 percent) rose. Convenience stores advanced 9.4 percent, with strong growth in cost-effective food items like beverages/processed food products (up 11.2 percent) and instant food products (up 8.4 percent). Demand for school supplies and stationery sales boosted sales of all items, including daily necessities (up 16.1 percent) and miscellaneous goods (up 13.7 percent). SSM operators posted a 12.6 percent jump overall, as agriculture, fishery, and livestock products (up 15.7 percent), processed food products (up 15.0 percent), fresh/prepared foods (up 6.8 percent), daily necessities (up 6.8 percent) and all other items recorded growth. As for sales per store, hypermarkets (up 22.9 percent), department stores (up 7.2 percent), convenient stores (up 5.1 percent), and SSM operators (up 8.2 percent) all increased. Online retail sales (up 15.7 percent) contracted in fashion/clothing (down 9.5 percent) and sports (down 4.3 percent) due to inflation and decline in consumer sentiment, but other items enjoyed growth from the Seollal holiday effect and cheap price promotion events. Holiday gift items, instant food products and bulk convenience food products met robust demand, driving online sales of overall food products (up 36.2 percent). date2024-03-26
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Industry
Korea and EU enter 3rd official negotiating round for bilateral digital trade agreement
The Ministry of Trade, Industry and Energy (MOTIE) announced on March 25 that the third official negotiating round for the Korea-EU Digital Trade Agreement is to be held through March 25-27 in Brussels, Belgium, with approximately 30 persons participating in the two countries’ government delegations. Having agreed on establishing the bilateral digital trade agreement in accordance with the high standards of the Korea-EU digital trade principles laid down in November 2022 on securing consumer and business confidence, facilitating digital trade, and taking joint response against digital protectionism, the two sides declared the launch of negotiations in October last year, followed by two rounds of official negotiations. This third negotiating round will aim to make headway by establishing the stance of both sides through discussions per each clause and narrowing differences in opinion. The Korea-EU digital trade agreement is anticipated to set the rules for the digital economy and accelerate digital innovation through the introduction of new trade rules, while enhancing firms’ business competitiveness by expanding Korea’s digital trade network with the EU, the world’s vast economic bloc. date2024-03-25
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Industry
Minister Ahn chairs conference on overseas resources development
Trade, Industry and Energy Minister Dukgeun Ahn chaired a conference with major overseas resources development companies on March 21 at Lotte Hotel Seoul, where he announced the “Public-Private Joint Strategy on Overseas Resources Development”. The meeting was attended by representatives of major overseas resources development companies and public institutions, including SK E&S, LX International, and Korea National Oil Corporation (KNOC). date2024-03-21
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Industry
Minister Ahn visits SK Hynix Yongin semiconductor cluster
Trade, Industry and Energy Minister Dukgeun Ahn visited the SK Hynix Yongin semiconductor cluster in Gyeonggi Province on March 21 to receive a briefing on construction progress and gather suggestions on site, and toured the production line for HBMs and cutting-edge memory chips. date2024-03-21
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Industry
MOTIE announces “Public-Private Joint Strategy on Overseas Resources Development”
Trade, Industry and Energy Minister Dukgeun Ahn chaired a conference with major overseas resources development companies on March 21 at Lotte Hotel Seoul, where he announced the “Public-Private Joint Strategy on Overseas Resources Development”. Amid intensifying energy supply chain uncertainties caused by growing geopolitical risks and the global race for dominance over critical resources, the Korean government is seeking to restore the ecosystem for overseas resources development in order to stabilize the supply chain of key resources as a national policy task. Accordingly, the Ministry of Trade, Industry and Energy (MOTIE) collected opinions from industries, experts, and related ministries in establishing the “Public-Private Joint Strategy on Overseas Resources Development”. Taking note of past policy outcomes and limitations, the above strategy was established in line with the following three policy aims: invigorating the ecosystem of private-led resources development; strengthening national resources security; and securing policy coherence. The Government plans to stimulate private-led resources development by increasing financial and tax incentives, launching project tasks for mid-to-long term technology development and talent training, invigorating domestic resources development, strengthening public companies’ support for private firms, and bolstering resources diplomacy with resource-rich countries. Minister Ahn emphasized that public-private cooperation is of utmost importance in stimulating the ecosystem for overseas resources development, as securing a stable energy resources supply chain is a priority task for economic stability and development of advanced industries. date2024-03-21
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Industry
MOTIE to support groundbreaking for cutting-edge memory chip fab slated for March 2025
Trade, Industry and Energy Minister Dukgeun Ahn, on March 21, visited SK Hynix’s Yongin Semiconductor Cluster, a pillar of the semiconductor mega cluster plan announced during the public forum in January. Approximately 35 percent of Fab 1 has been completed so far and site renovation is in smooth progress. By 2046, over KRW 120 trillion in investment will be poured to complete Fabs 1 through 4, and construction of Fab 1’s production line will commence in March next year. Once completed, the infrastructure will rank as the world’s largest three-story fab. Having launched an electrical power supply task force in February this year to support the completion of cluster infrastructure, MOTIE plans to form another task force by March to steer the establishment of the high-tech specialization cluster for chips and other advanced industries. Amid increasing demand for AI chips and high bandwidth memory (HBM), the ministry will aim to swiftly establish a comprehensive strategy for dominance in the AI chip market and devise measures for strengthening chip equipment competitiveness within the first half of this year. MOTIE also plans to push forward the prefeasibility study for minifab projects in the Yongin testbed and inject policy funding to competent fabless and MPE (materials, parts, equipment) companies. date2024-03-21