Ministry of Trade, Industry and Energy

Preview in Seoul 2024

Spokesperson for the Ministry of Trade, Industry and Energy (MOTIE) Wonju Lee attended the 24th Preview in Seoul (PIS) opening ceremony on August 21 at COEX and toured the exhibition. PIS 2024 showcased a total of 888 booths set up by 576 companies specializing in materials, textile machines, and fashion tech, as well as the participation of relevant associations including the Korea Federation of Textile Industries (KOFOTI) and Korea Fashion Industry Association.   date2024-08-21

Korea and China resume in-person Korea-Shandong Economic and Commercial Cooperation Exchange in 5 years

Minister for Trade Inkyo Cheong is visiting Jinan, the capital city of Shandong province in East China, through August 20–21 to attend the seventh Korea-Shandong Economic and Commercial Cooperation Exchange, where he met with Zhou Naixiang, the governor of Shandong province, and discussed measures for enhancing bilateral economic cooperation. Among China’s 31 provinces and cities, Shandong province is home to a record number of roughly 8,600 Korean businesses and ranks as one of Korea’s top three trade partners with last year’s trade volume reaching USD 37.8 billion. The province is also a key link in the Korea-China supply chain for automotive parts and urea. The Ministry of Trade, Industry and Energy (MOTIE) and the Shandong Provincial People's Government have jointly hosted the Korea-Shandong Economic and Commercial Cooperation Exchange on a regular basis since its launch in 2016 and this seventh convening is the first in-person exchange to take place in five years since 2019. On August 20, Trade Minister Cheong and Shandong Governor Zhou Naixiang discussed measures for creating a predictable management environment for Korean investors and promoting cooperation across the Korea-Shandong supply chain, Korea-China industrial complexes (Saemangeum and Yantai), and new industries like eco-friendly and bio.  In the following exchange session, 250 attendees from the two sides’ governments, businesses, and related institutions gathered to exchange views on a wide range of areas with regard to Korea-Shandong economic cooperation, including decarbonization, bio, supply chains, and logistics.  In his congratulatory address, Trade Minister Cheong highly appraised Shandong province’s contribution to the Korea-China economic cooperation, requesting that it play an active role in the two countries’ economic relations going forward. Moreover, the two countries’ companies sealed 20 memorandums of understanding (MOUs) and agreements, including the exporting contract on medical equipment and the exchanged letters of intent (LOI) on new investments. As the first high-level official from the Korean government to visit the Korea-China Yantai Industrial Park, the trade chief tours the site on August 21 to encourage the Korean tenant businesses. Launched as a pilot project under the Korea-China Free Trade Agreement (FTA), the two countries are currently operating Korea-China Economic Cooperation Complexes in several locations, including Saemangeum and Yantai. In view of next year marking the 10th anniversary of the Korea-China FTA’s entry into force in 2015, Trade Minister Cheong will address measures to further invigorate Korea-China industrial complex cooperation and gather issues faced by Korean companies. MOTIE will continue to support Korean firms’ business activities in China via cooperation channels with major local Chinese authorities. It also plans to resolve Korean firms’ business challenges and push for supply chain and economic cooperation based on coordination with the Chinese Central People's Government this year through the Korea-China Investment Cooperation Committee and the Joint Commission on the Korea-China FTA.   date2024-08-20

Briefing session held in Jakarta to support Korean companies’ regulatory compliance in Indonesian market

Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) held a briefing on August 9 in Jakarta, Indonesia, to Korean firms operating in the local Indonesian market to enhance their response capacity and understanding on Indonesia’s technical regulations.   With the world’s fourth largest population, Indonesia is one of Korea’s largest consumer markets where many Korean firms are currently active. However, amid tightening regulations on requirements for halal certification, halal labeling, and standards certification, it is expected that local business challenges will increase for Korean firms in the Indonesian market. To address these issues, the briefing consisted of in-person sessions by regulatory authorities from Indonesia’s Ministry of Industry, state-run halal certification agency (BPJPH), and state-run inspection and certification institution (SUCOFINDO) on technical regulations and recent amendments, followed by a Q&A session. Companies also received briefings on halal certification, TKDN (government policy mandating locally operating companies to use a minimum percentage of Indonesia’s homegrown components), and the Indonesian National Standard (SNI) product certification. Under its FTA TBT one-stop assistance program, KATS currently runs a task force (TF) for local regulatory support in major export destinations to which Korea’s exports are rising but whose technical regulatory information may be difficult to obtain. Through the program, KATS swiftly monitors domestic companies’ business issues to offer tailored consulting services, while also collecting and providing information on regulatory amendments and other relevant changes through networking channels established with local regulatory authorities. Director General Lee Chang-soo, in charge of technical regulatory response, stated that briefing sessions will also be held in China, Vietnam, and India later this year, with aim to help locally operating Korean firms’ technical regulatory compliance and to establish a stable business environment.   date2024-08-09

Korea’s exports rise 13.9% in July

The Ministry of Trade, Industry and Energy (MOTIE) announced on August 1 that Korea’s exports for July 2024 increased 13.9 percent year-on-year to USD 57.5 billion, the second highest in record for the month. Imports grew 10.5 percent to $53.9 billion and the trade balance stood at a surplus of $3.6 billion. Exports maintained their upward trajectory for the 10th consecutive month.  By item, 11 out of 15 major export items advanced, with the total export value (up 44.0 percent to $15.6 billion) of information technology (IT) items climbing for the ninth consecutive month. Notably, semiconductor exports logged $11.2 billion (up 50.4 percent), their growth rate surpassing the 50 percent mark for the fourth consecutive month. The export of displays (up 2.4 percent to $1.7 billion), computers (up 61.6 percent to $1.2 billion), and wireless communication devices (up 53.6 percent to $1.5 billion) achieved growth for the 12th, seventh, and fifth consecutive month, respectively. Automobile exports (down 9.1 percent to $5.4 billion) were impacted by major carmakers’ summer holidays landing in the month, but automobile parts (up 9.5 percent to $2.2 billion) enjoyed growth, snapping the three-month losing streak. General machinery exports recorded an all-time high for July, moving up 12.5 percent to $4.9 billion and turning to an expansion for the first time in three months. Petroleum products (up 16.7 percent to $4.5 billion) and petrochemicals (up 18.5 percent to $4.2 billion) surged for the fifth and fourth consecutive month, respectively. Meanwhile, bio-health (up 29 percent to $1.2 billion), textiles (up 1.6 percent to $0.9 billion), and home appliances (up 9.4 percent to $0.7 billion) all turned to growth after a month of decline. By region, exports to eight out of nine major destinations experienced growth. Exports to China logged $11.4 billion (up 14.9 percent), the highest in 21 months, and entered the $10 billion thresholds for the fifth consecutive month on the backs of rising exports of semiconductors, wireless communication devices, and other IT items amid the IT industry recovery. As a result, the aggregate China-bound export value through January–July this year recorded $74.8 billion (up 6.7 percent) for Korea, the highest among its export destinations for the period. U.S.-bound July exports also set a fresh record for the month at $10.2 billion (up 9.3 percent), renewing monthly highs for the 12th consecutive month. To ASEAN, exports posted $9.9 billion (up 12.1 percent) as major export items in IT, petroleum products, and petrochemicals met strong demand, advancing for the fourth consecutive month alongside those to India (up 13.4 percent to $1.6 billion). Exports to the Middle East jumped 50.6 percent to $2.2 billion, improving for two straight months. Exports to Japan (up 10.1 percent to $2.6 billion), Latin America (up 31.3 percent to $2.6 billion), and the Commonwealth of Independent States (CIS) (up 4.0 percent to $1.0 billion) all switched to an expansion. As for July imports, those of energy expanded 11.9 percent year-on-year to $10.9 billion, driven by increased shipments of crude oil (up 16.1 percent) and gas (up 23.8 percent). Korea’s accumulated trade balance through January–July expanded $51.2 billion year-on-year, amounting to an all-time high since 2018.   date2024-08-01

Korea-Saudi Business Forum

Minister for Trade Inkyo Cheong attended the Korea-Saudi Business Forum launched on July 30 at Westin Josun Seoul and stated in his welcome address that the two countries’ cooperation has, in step with the Saudi Vision 2030, expanded to key industries like automobiles and shipbuilding, and highlighted that the Korea-GCC FTA is expected to not only diversify trade in goods like medical devices, cosmetics, and food products, but also spur services market exchanges in industries like film and healthcare as well.   The Forum was attended by 250 persons of both countries, composed of government officials and business figures. date2024-07-30

Trade Minister chairs 2nd Global Trade Strategy Meeting

Minister for Trade Inkyo Cheong chaired the second Global Trade Strategy Meeting on July 25 with the participation of 22 attendees comprising government ministries, economic groups, as well as industrial, trade, and international relations experts for discussions on the upcoming U.S. presidential election, its impact on Korea, future plans, and strategies for utilizing the IPEF CRN. date2024-07-25

CVC Alliance to boost investment in innovative firms and spur global open innovation

The Ministry of Trade, Industry and Energy (MOTIE), Korea Institute for Advancement of Technology (KIAT), and member companies of the Corporate Venture Capital (CVC) Alliance held an annual general meeting on July 22 at COEX in Seoul to confirm this year’s management plans, including measures for boosting investment in innovative firms and activating a global open innovation program. Composed of 44 CVCs, the CVC Alliance was launched in July 2023 to stimulate domestic CVC and accelerate CVC firms’ cooperation. Unlike general vendor capitals (VCs), CVCs focus not only on financial investment, but also play the role of expediating open innovation by providing business opportunities to invested companies on joint product development and new market penetration with parent companies and subsidiaries under the aim of establishing strategic partnerships. In this view, MOTIE plans to create a KRW 13 trillion CVC fund by 2028, starting with a ₩2.4 trillion CVC fund this year. Moreover, it intends to provide up to ₩1.5 billion in commercialization R&D funding for CVC-invested companies’ rapid growth, alongside a comprehensive support package for attracting overseas funding and export market entry assistance via Korea International Trade Association (KITA) and Korea Trade-Investment Promotion Agency (KOTRA). To note, new additions to this year’s plans include CVCs and invested companies’ joint overseas investor relations (IR) activities to accelerate global open innovation, as well as a local business site visiting program for CVC investment screening officers to promote investment in companies based in non-capital regions. MOTIE also plans to streamline the Government’s R&D process by involving the participation of CVCs and VC experts in business value assessment.   date2024-07-22

Trade Minister holds 2nd “Sales Diplomacy Support Group” meeting

On July 17, Minister for Trade Inkyo Cheong of the Ministry of Trade, Industry and Energy (MOTIE) convened the second “Sales Diplomacy Support Group” meeting in Seoul to review economic outcomes and future plans following the state visit of the United Arab Emirates (UAE) President to Korea (May 28 to 29), the Korea-Africa Summit 2024 (June 3 to 5) and the state visits of President Yoon Suk Yeol to three Central Asian countries (June 10 to 15). date2024-07-22

Team Korea Selected as Preferred Bidder for New Nuclear Power Plants in Czech Republic

Preferred bidder announced On Wednesday, July 17, at approximately 8:50 p.m. (1:50 p.m. local time), the Czech government announced that it has selected Korea Hydro & Nuclear Power (KHNP) as the preferred bidder for the construction of new nuclear power plants. The project to build up to four large nuclear reactors in Dukovany and Temelin is known as the largest investment project in the history of the Czech Republic. According to the Czech government, the total estimated cost of the project is about CZK 200 billion (KRW 12 trillion) for the first phase and CZK 400 billion (KRW 24 trillion) for the second phase, of which the amount of the contract with KEPCO will be finalized after further negotiations. For the project, KEPCO (prime contractor) will form Team Korea with KEPCO E&C (design), Doosan Enerbility (main equipment & construction), Daewoo E&C (construction), KEPCO NF (nuclear fuel), and KEPCO KPS (commissioning and maintenance). Significance Being selected as the preferred bidder in the bid for a new nuclear power plant in the Czech Republic marks the Company’s entry into the European market, home to the first commercial power plant after the Middle East. Korea, which introduced European-style nuclear power plants in 1982, has now become a country capable of exporting nuclear power plants to Europe. This achievement will further accelerate the restoration of the nuclear ecosystem that the Korean government has been focusing on. Future plans This nuclear power project will mark the beginning of a new chapter in Korea-Czech Republic relations, as a nuclear power project is something that requires more than a century of cooperation between the two parties. In 2025, the 35th anniversary of Korea-Czech Republic diplomatic relations, the two countries will deepen their strategic partnership and actively identify and promote cooperation projects, by signing a framework for trade and investment promotion and expanding joint R&D in science, technology, industry, and energy. date2024-07-19

Korea holds 2nd “Sales Diplomacy Support Group” meeting

On July 17, Minister for Trade Inkyo Cheong of the Ministry of Trade, Industry and Energy (MOTIE) convened the second “Sales Diplomacy Support Group” meeting in Seoul with the participation of economic agencies and companies to review economic outcomes and future plans following several significant events: the state visit of the United Arab Emirates (UAE) President to Korea (May 28 to 29), the Korea-Africa Summit 2024 (June 3 to 5) and the state visits of President Yoon Suk Yeol to three Central Asian countries (June 10 to 15). At the meeting, Trade Minister Cheong went over the implementation of 447 memorandums of understanding (MOUs) and contracts in the private sector, which have been signed during the presidential visits by President Yoon since his inauguration, and discussed follow-up measures with the companies involved. MOTIE assessed that the UAE President’s state visit to Korea, the Korea-Africa Summit attended by leaders from 33 countries, President Yoon’s state visit to Central Asia have significantly bolstered economic security cooperation in critical minerals and energy, while broadening the scope of collaboration with the Global South countries. The Ministry also indicated that it will accelerate the implementation of follow-up actions to key achievements―the establishment of critical minerals supply chain partnerships, support for bidding on energy plant projects, and the signing of the Trade and Investment Promotion Framework (TIPF). Of the 447 MOUs and contracts in place, 439 are currently in effect, while eight have been placed on hold due to changes in business conditions. As follow-up measures, the signing of export contracts, the establishment of joint ventures, and technology development are underway. Trade Minister Cheong said, “The government has created vast economic value amounting to USD 97 billion in exports, project contracts, and investments over the last two years through sales diplomacy led by the President. This has resulted in tangible outcomes such as a contract for 27 LNG carriers in Qatar, followed by numerous subsequent contracts.” Trade Minister Cheong also emphasized by saying, “The government, economic agencies, and companies will work as one team to closely monitor the implementation of each private sector outcome. The government will also support businesses facing difficulties in financing, export marketing, and securing local information in collaboration with relevant ministries, diplomatic missions, and trade centers as well as through a channel of communication between high-ranking government officials.” date2024-07-19