Ministry of Trade, Industry and Energy

Minister Ahn discusses global business hub vision with foreign-invested companies and KCCI

Trade, Industry and Energy Minister Dukgeun Ahn held a meeting on April 3 with the Korea Chamber of Commerce and Industry (KCCI) and foreign-invested companies to discuss strategies for attracting foreign investment, as part of the second industrial investment strategy meeting on the heels of the breakfast meeting for foreign-invested companies convened on February 14.   Minister Ahn led discussions on measures to expand foreign investment, followed by a “Get to Know Korea” event where attendees visited the Jinkwansa Temple for hands-on cultural experience of Korean traditional Buddhist temple trying Buddhist cuisine and viewing a part of the temple’s ritual called "suryukjae."   Minister Ahn highlighted that “We will stimulate active communication with KCCI and foreign-invested companies in view of our USD 35 billion foreign investment target,” and articulated the following measures for nurturing Korea into a more appealing and stable investment environment: draw global companies’ investment to create an industrial ecosystem with supply chain resiliency and advanced technological competitiveness; push regulatory reform in alignment with global standards; and establish a business-friendly support system that can impress customers.   Representatives of KCCI and foreign-invested companies attending the meeting expressed gratitude towards the Korean government’s attention to detail on providing the “Get to Know Korea” experience and suggested measures for increasing incentives like tax credit, expanding power and other infrastructure, and improving the certification and inspection system. date2024-04-04

Prime Loan Export Package guarantee certificate award ceremony

Trade, Industry and Energy Minister Dukgeun Ahn presented the guarantee certificate for the “Prime Loan Export Package” to Fusei Menix CEO Choi Byeong-cheol on April 3 at the Hana Bank Headquarters in Seoul, accompanied by Hana Bank President Lee Seung-lyul and K-SURE President Jang Young-jin. date2024-04-04

Semiconductor equipment manufacturer becomes first beneficiary of Prime Loan Export Package

Trade, Industry and Energy Minister Dukgeun Ahn presented the guarantee certificate for the “Prime Loan Export Package” to Fusei Menix CEO Choi Byeong-cheol on April 3 at the Hana Bank Headquarters in Seoul, accompanied by Hana Bank President Lee Seung-lyul and K-SURE President Jang Young-jin.   The prime loan export package, serviced by Korea's five major banks and K-SURE, offers KRW 2.2 trillion in funding benefits for exporting SMEs and middle-market companies with doubled limit and lower interest (down 0.7 percentage points max), while exempting trade insurance premium and guarantee fees.   The country’s first beneficiary of the prime loan, Fusei Menix is a Korean semiconductor equipment manufacturer specializing in hydraulic presses for printed circuit boards (PCBs) and currently exports to 20 countries. The company recently faced difficulty increasing production output to meet soaring demand overseas, and the prime loan package has enabled the firm to secure the necessary funds for export.   Minister Dukgeun Ahn remarked that the “Prime loan export package is the beginning of our efforts to help exporting companies overcome financial issues through an all-time high 255 trillion won trade insurance.” date2024-04-04

Government to set up one-stop help desk for exporters' CBAM response

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 2 that relevant ministries gave a joint briefing on the EU’s Carbon Border Adjustment Mechanism (CBAM) and other international environmental regulations to discuss new export opportunities and presented the following measures for supporting companies’ CBAM response.   First, the Government has decided to integrate the briefings, which had previously been held separately per each ministry and institution, into joint interministerial briefings. The briefings will be held in regions with higher numbers of impacted companies, beginning with Yeongnam, followed by the capital region (May, October) and Chungcheong Province (July).   Second, the currently siloed help desks run by MOTIE and the Ministry of Environment (ME) will be streamlined into a one-stop government help desk for CBAM response to improve customer convenience.   Third, companies lacking experience in carbon emission calculation will be provided with consultation service starting this year. The Ministry of SMEs and Startups (MSS) will announce the project for the second time through May 6-31, and ME will open applications to interested companies from April 22-May 17.   Fourth, Korea Customs Service (KCS) will provide exporting businesses with information on CBAM via phone call, mobile text message, and email as to whether their export items fall under CBAM regulation. date2024-04-03

FDI pledged to Korea hits record-breaking $7.1 bln for Q1 2024

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 2 that foreign direct investments (FDIs) pledged to Korea in the first quarter of 2024 (Jan-Mar, acc.) jumped 25.1 percent year-on-year to a record-breaking USD 7.1 billion. FDIs that actually arrived in Korea over the same period reached $1.9 billion.   By industry, the manufacturing sector saw FDI pledges soar 99.2 percent to $3.1 billion, whereas those to service inched down 2.5 percent to $3.9 billion. Among manufacturing, electrical and electronics (up 113.5 percent to $1.5 billion), machinery and precision medical devices (up 49.2 percent to $0.5 billion), and chemical engineering (up 69.5 percent to $0.3 billion) advanced year-on-year. In service industries, finance and insurance (up 34.3 percent to $2.2 billion) enjoyed growth.   By region, FDI coming in from the U.S. and EU decreased owing to the high base effect from last year’s bulk investments, contracting 3.4 percent and 69.8 percent, respectively, to $0.7 billion and $0.6 billion. FDI from Japan and Greater China leaped 281.8 percent and 146.7 percent, respectively, to $1.1 billion and $2.1 billion.   By type, greenfield investments shrank 7.1 percent to $3.9 billion, while M&A investments expanded 115.4 percent to $3.2 billion. date2024-04-02

Korea's exports grow 3.1% in March

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 1 that Korea’s export value for March 2024 increased 3.1 percent year-on-year to USD 56.6 billion. Imports decreased 12.3 percent to $52.3 billion and the trade balance stood at a surplus of $4.3 billion.   March monthly exports recorded growth for the sixth consecutive month despite the lower number of working days (-1.5), and the daily average export value likewise soared 9.9 percent to $2.5 billion when factoring in the number of working days.   Seven out of 15 of Korea’s major export items advanced in March. To note, all four of core IT devices, namely semiconductors, displays, computers, and wireless communication devices, recorded growth, a first in 24 months and boosted overall exports at the helm.   Semiconductors, Korea’s leading export item, leaped 35.7 percent in exports and reached $11.7 billion, an all-time high since the $12.3 billion recorded in June 2022, and gained for the fifth consecutive month.   Exports of displays (up 16.2 percent) and computers (up 24.5 percent) increased for the eighth and third consecutive month, respectively, and those of wireless communication devices (up 5.5 percent) snapped the downward streak in three months.   Ship exports surged 102.1 percent and advanced for the eighth consecutive month. Bio health exports (up 10.0 percent) grew for the fifth consecutive month, and petroleum products (up 3.1 percent) turned to an expansion in one month.   Meanwhile, the exports of automobiles (down 5.0 percent) and general machinery (down 10.0 percent) were directly impacted by the lower number of working days.   By region, Korea’s exports increased to three out of nine major destinations in March.   Exports to China (up 0.4 percent) recorded growth, with the daily average export value (app. $470 million), considering the number of working days, rose (up 7.1 percent) for the fourth consecutive month since December 2023.   Exports to the U.S. posted double-digit growth (up 11.6 percent to $10.9 billion) and improved for the eighth consecutive month and broke the March monthly export record as they did for those of January and February this year as well.   Exports to Latin America (up 14.4 percent) extended their positive performance for the third consecutive month.   In addition, exports to Vietnam (up 4.4 percent) and Hong Kong (up 67.8 percent) maintained growth for the third and fifth consecutive month, respectively, on the backs of strong demand for semiconductors and IT devices, increasing for the third and fifth consecutive month.   Meanwhile, Korea’s March imports declined 12.3 percent to $52.3 billion, and import of energy sources decreased 24.4 percent, as demand for crude oil (down 12.8 percent), gas (down 37.4 percent), and coal (down 40.5 percent) contracted.   Korea’s trade balance for March stood at a surplus of $4.3 billion, gaining for the 10th consecutive month.   * Short version date2024-04-01

Trade Minister holds meeting to assess export situation at KCCI

Minister for Trade Inkyo Cheong held a meeting on March 29 at the Korea Chamber of Commerce and Industry (KCCI) to review export conditions per region and discuss export promotion measures. date2024-04-01

Trade Minister chairs meeting on export promotion measures

Minister for Trade Inkyo Cheong held a meeting on March 29 at the Korea Chamber of Commerce and Industry (KCCI) to review export conditions per region and discuss export promotion measures.   Korea’s exports have posted growth for the last five consecutive months, adding up to USD 107.2 billion through January and February in accumulation (up 11.2 percent year-on-year).   The trade chief gave a positive forecast for exports this year across major markets, saying that exports are likely to show growth and the trade balance a surplus in March despite the lack of working days (-1.5), maintaining that for export to continue on the upward trajectory and lead Korea’s economic growth, there must be efforts in the market to keep building competitiveness and diversify into newly emerging markets. He mentioned that the Government will work together with embassies and Korea Trade-Investment Promotion Agency (KOTRA)’s trade centers for effective management of trade issues.   To this end, the trade minister said that several measures will be pushed to support exporting companies’ overseas new market penetration, such as launching a new special export insurance, strengthening export financing support for local corporate entities, and making further progress in Free Trade Agreements (FTAs) and Economic Partnership Agreements (EPAs). date2024-03-29

Minister Ahn attends 178th CEO Breakfast Meeting at KITA

Trade, Industry and Energy Minister Dukgeun Ahn attended the 178th CEO Breakfast Meeting at Korea International Trade Association (KITA) on March 29 in Seoul and spoke on the $700 billion export target and the New Industrial Policy 2.0.. date2024-03-29

MOTIE to power Korea's economic growth through investment and export drive

Trade, Industry and Energy Minister Dukgeun Ahn attended the 178th CEO Breakfast Meeting at Korea International Trade Association (KITA) on March 29 and vowed that the Ministry of Trade, Industry and Enery (MOTIE) will take full charge of export and investment to lead Korea’s economic growth this year.   During his lecture, he noted last year’s global trade volume decline amid high interest rates, the Russia-Ukraine war, and other geopolitical and geoeconomic crises, stating that even in these difficult conditions, Korea’s exports managed to snap the losing streak in October and contributed to the country’s relatively high economic growth, and forecast that the strong performance of major items like semiconductors, information and communications devices, and ships is expected to continue on an upward trajectory throughout the second quarter as well.   Moreover, he highlighted the need for increased investment in Korea’s top 10 manufacturing sectors to freshly vitalize the economy to build on the export growth momentum, articulating the following three goals: all-time high export target of USD 700 billion, facility investment of KRW 110 for the top 10 manufacturing sectors, and the foreign investment target of $35 billion.   The minister added that in order to achieve these goals, MOTIE plans to push the following five measures: designation of 20 major export items to create a new export drive; penetrating the Global South and other new markets; providing exporting firms with an unprecedented 360 trillion won in trade financing and 1 trillion won in overseas marketing support; activating the regulatory sandbox to improve the investment environment of new industries; and revising outdated regulations.   date2024-03-29