Ministry of Trade, Industry and Energy

2nd official negotiating round for Korea-EU Digital Trade Agreement kicks off in Seoul

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 20 that the second round of negotiations for the Korea-EU Digital Trade Agreement is held through February 20-22 in Seoul with the participation of 30 government representatives of both sides composing the Korean and EU delegations.   The second negotiating round aims to further the discussions that are currently underway on trade rules concerning data transfer, personal information protection and cybersecurity agreed in accordance with the Korea-EU Digital Trade Principles of November 2022.   The Korea-EU Digital Trade Agreement is anticipated to propose a new digital trade rules model for creating an open, reliable, and fair digital trade environment and enhance Korean firms’ business competitiveness through the expansion of the digital trade network.   MOTIE plans to closely communicate with industries and other stakeholders throughout the negotiation process. date2024-02-20

Amended 33rd Public Notice on Trade of Strategic Items to take effect Feb. 24

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 20 that the amended 33rd Public Notice on Trade of Strategic Items with an extended list of items subject to export control against Russia and Belarus will take effect starting February 24.   To join in the efforts of the international community’s export control against Russia and Belarus, MOTIE gave an administrative announcement on December 26, 2023, of the amended notice with an extended list of items subject to catch-all controls, which was finalized after a period of collecting public opinion. The amended notice has added 682 items to be subject to catch-all controls for export, including heavy construction equipment, secondary batteries, machine tools, aircraft parts and other items with high risk of utilization for military purposes, extending the list to a total of 1,159 items.   Export of items newly added to the list is prohibited beginning February 24. Meanwhile, an export license may be granted for goods that fulfill licensing conditions, such as those contracted for export prior to or on February 23 and items to be sent to subsidiaries.   Moreover, the amended notice places stronger emphasis on the post-management of industrial blanket license exports and contains an extended list of items for emergency humanitarian relief that are exempted from licensing requirements.   MOTIE will be running an “Export Control Issue Desk” to facilitate exporting businesses’ compliance with the amended public notice and provide guidance on inquiries referring to the controls policy and export items, while also working with relevant ministries to double down on enforcement of the catch-all controls to prevent relevant items from entering Russia or Belarus through third countries. date2024-02-20

MOTIE holds pan-ministerial meeting to take stock of Middle East economic diplomacy outcomes

Deputy Minister for Trade Yang Byeong-nae chaired the sixth Korea-Middle East Economic Cooperation Public-Private Joint Committee Support Working Group meeting on February 14 at K-SURE in Seoul to assess the economic diplomacy outcomes and to support Korean companies’ advances in the Middle Eastern market.   Meeting attendees consisted of representatives of related institutions, ministries and companies, including K-SURE, Korea Chamber of Commerce and Industry (KCCI), Federation of Korean Industries (FKI) and Korea International Trade Association (KITA). Attendees agreed that outcomes are growing increasingly tangible based on memorandums of understanding (MOUs), contract deals and plant project bid orders sealed to date. Companies also voiced opinions and requests concerning business challenges and related issues.   The first part of the meeting focused on introducing various institutions’ business support programs, such as K-SURE’s trade financing package supporting each stage of the bid order process and Korea Trade-Investment Promotion Agency (KOTRA)’s marketing support program.   Next, companies gave briefings on their follow-up outcomes to MOUs and agreements with their Middle Eastern partners. Company A shared that it entered a power equipment and materials supply contract worth KRW 63.8 billion with a Saudi firm and an 82.2 billion won supply contract with Saudi Electricity Company (SEC). Company B informed that a concept design for a biopharmaceutical plant is underway for a formal contract. Company C has applied for a permit for exporting defense supplies to the United Arab Emirates (UAE) and Company D is selling overseas travel packages to the Middle Eastern market following a formal contract with a UAE firm in July last year. Company E was offered a 70 billion won facilities investment project proposal for a joint sewing factory and managed to strike a $0.9 million export deal, while Company F reported that it completed the first stage of smart farm pilot installation in January this year for the Qatari royal palace.   Moreover, companies requested for government support in their business efforts for greater outcomes in the Middle East, such as financial support for accumulating overseas demonstration experiences, tax benefits, provision of professional manpower and legal information, prompt issuance of export permits, as well as customs benefits under the Free Trade Agreement (FTA). MOTIE and relevant ministries intend to seek practical support measures through the public-private joint committee and working group.   Deputy Trade Minister Yang stated that the MOUs signed by Korean companies are leading to contract deals and additional follow-up results, adding that full measure will be given to responding to suggestions and challenges voiced during the meeting through an extensive inspection on the implementation process. date2024-02-15

Trade Minister visits POSCO International

Minister for Trade Inkyo Cheong visited POSCO International, a specialized trading company in Incheon, on February 14 to discuss measures to expand Korea’s exports and stabilize the global supply chain by capitalizing on general trading companies’ overseas network and trading expertise. date2024-02-14

General trading companies called to spearhead the stabilization of supply chains

Minister for Trade Inkyo Cheong visited the head office of POSCO International in Incheon on February 14 and discussed measures for expanding Korea's exports and stabilizing the global supply chain by capitalizing on general trading companies’ overseas network and trading expertise.   General trading companies are currently expanding their role of spearheading exports, managing the supply chain and assisting exports of SMEs. Ever since the general trading company system was introduced in Korea in 1975, general trading companies have been expanding their sphere of activity beyond the traditionally manufacturing-based merchandising trade to areas like overseas resources development, large-scale infrastructure bid projects and supply chains in various areas like food and energy. With the emergence of new industries like EVs and batteries, they are notable contributors to the stable expansion of supply chains through the direct equity investment on graphite, nickel and such critical minerals. Not only that, based on their overseas network accumulated over extensive trading experience, trading companies’ role of helping prominent SMEs join the global supply chain is increasingly growing in importance.   The Korean government is boosting catered support with respect to the enhanced roles of general trading companies. First, the Government will support the import insurance on key supply chain items for stabilization of the supply chain. It plans to give increased loans for overseas resources development projects and has introduced tax credits for investors entering license-granting overseas mining projects. The Government also intends to bolster the utilization of trade networks on critical minerals like the Minerals Security Partnership (MSP), while also strengthening bilateral and multilateral collaboration with resource-rich countries, with plans to develop cooperative schemes using the early warning system for supply chain stabilization operated by the Korea Trade-Investment Promotion Agency (KOTRA) and other related institutions. Moreover, active support will be given towards SMEs’ and middle-market companies’ joint entry into overseas markets with general trading companies that are designated as specialized trading companies under the Foreign Trade Act.   Trade Minister Cheong stated that “in this age of economic security, close communication and cooperation between policy authorities and companies is key” and added that the role of general trading companies should be strengthened. He said that “if general trading companies spearheaded exports in the past, those today with information and financing power are called to spearhead the stabilization of supply chains in critical minerals, energy, materials, equipment and food,” highlighting that “the three laws on supply chain management will greatly assist companies once fully enforced.” date2024-02-14

Minister Ahn chairs 1st Industrial Investment Strategy Meeting

Trade, Industry and Energy Minister Dukgeun Ahn chaired the first Industrial Investment Strategy Meeting on February 7 at the Korea Chamber of Commerce and Industry (KCCI) with representatives of Korea’s 10 major manufacturing companies and economic groups to discuss investment plans and business support measures for 2024.   The minister gave an opening address and led discussions on the industrial policies for 2024, global issues and their impact on the Korean economy and the challenges faced by domestic companies of the 10 major industries.   Various representatives of relevant companies and institutions attended the meeting, including KCCI Vice Chairman Woo Tae-hee, Federation of Korean Industries (FKI) Vice Chairman Kim Chang-beom, SK Hynix President Kim Dong-sub and Hyundai Motor President Chang Jae-hoon. date2024-02-08

Trade Minister attends Ottawa Group trade ministers’ meeting

Minister for Trade Inkyo Cheong attended the Ottawa Group trade ministers’ videoconference on February 1, held to review the key agenda items of the upcoming World Trade Organization (WTO)'s 13th Ministerial Conference (MC13) and discuss measures to facilitate the WTO reform and other outcomes.   The meeting was attended by the trade ministers of the 14 member countries of the Ottawa Group and WTO Director General Ngozi Okonjo-Iweala. date2024-02-02

Trade Minister discusses measures for WTO reform at Ottawa Group meeting

Minister for Trade Inkyo Cheong attended the Ottawa Group trade ministers’ videoconference on February 1, held to review the key agenda items of the upcoming World Trade Organization (WTO)'s 13th Ministerial Conference (MC13) and discuss measures to facilitate the WTO reform and other outcomes.   At the Ottawa Group meeting, trade ministers discussed measures for gaining meaningful outcomes through MC13 based on the unofficial discussions for the full normalization of the dispute settlement system in 2024 and exchanged views on strengthening the deliberative function on global trade challenges like industrial policies, climate change and inclusiveness. They also discussed the outcomes of the investment facilitation for development and extension of the moratorium on imposing customs duties for electronic transmissions.   Trade Minister Cheong emphasized the need for close collaboration within the Ottawa Group at MC13 in addressing the WTO’s dispute settlement system reform and stronger deliberative function. Moreover, he asked for the Ottawa Group’s cooperation concerning the investment facilitation for development and stressed the need to maintain the e-commerce moratorium. date2024-02-01

Korea's exports advance 18% in January

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 1 that Korea’s export value for January 2024 increased 18.0 percent year-on-year to USD 54.7 billion. Imports decreased 7.8 percent to $54.4 billion and the trade balance stood at a surplus of $0.3 billion.   January monthly exports recorded $54.7 billion (up 18.0 percent), growing for the fourth consecutive month and achieving the first double-digit growth since the 21.4 percent jump made in May 2022. Factoring in the number of working days, the average daily export value for January climbed 5.7 percent to $2.3 billion and monthly shipments gained 14.7 percent, increasing for the fifth consecutive month.   By item, 13 out of 15 major export items increased in exports, recording the highest number of items posting growth since May 2022 when 14 items achieved growth. To note, semiconductors soared 56.2 percent, the biggest climb made in 73 months and advancing for the third consecutive month.   Automotive exports (up 24.8 percent) reached an all-time high for January monthly export value at $6.2 billion, growing for the 19th consecutive month.   General machinery (up 14.5 percent) and home appliances (up 14.2 percent) grew for the 10th and eighth consecutive month, respectively, while displays (up 2.1 percent) and ships (up 76.0 percent) both increased for the sixth consecutive month. Petrochemicals (up 4.0 percent) and bio health (up 3.6 percent) improved for the third consecutive month.   Meanwhile, computers (up 37.2 percent) snapped the losing streak that persisted for 18 months since June 2022, and steel (up 2.0 percent), petroleum products (up 11.8 percent), automotive parts (up 10.8 percent) and textiles (up 8.5 percent) all broke their downward streaks as well.   By destination, eight of the nine major markets saw growth in January. Notably, China and the U.S. surpassed the $10 billion thresholds for the sixth and fifth consecutive month, respectively.   Exports to China (up 16.1 percent) snapped the losing streak for the first time in 20 months with $10.7 billion.   Exports to the U.S. (up 26.9 percent) continued the growth pace for the sixth consecutive month, hitting an all-time high for January monthly value at $10.2 billion.   Meanwhile, exports to India (up 5.6 percent) also amounted to a record-breaking $1.5 billion, and exports to ASEAN (up 5.8 percent) and Japan (up 10.6 percent) both increased for the fourth consecutive month.   Exports to the EU (up 5.2 percent), Latin America (up 28.2 percent) and the Middle East (up 13.9 percent) showed growth as well.   Korea's January imports declined 7.8 percent year-on-year to $54.4 billion. The import of crude oil (up 6.0 percent) increased, but that of gas (down 41.9 percent) and coal (down 8.2 percent) dropped, shrinking overall energy imports by 16.3 percent. Non-energy imports contracted 4.7 percent.   The trade balance stood at a $0.3 billion surplus for January, continuing on the surplus pace for the eighth consecutive month since June 2023. It is noted that every January usually records a steep deficit, but this year’s trade balance improved by $13 billion year-on-year, boosted by strong exports.   * Short version date2024-02-01

MOTIE holds FEZ Future Strategy Forum

The Ministry of Trade, Industry and Energy (MOTIE) held the Free Economic Zone (FEZ) Future Strategy Forum on January 31 at the Hotel Koreana in Seoul, where experts and personnel gathered to discuss Korea’s blueprint for FEZs’ future direction and growth.   The first FEZ to take root in Korea, the Incheon FEZ has developed into the nation’s major special economic zone over the last two decades, thanks to the various efforts of the Government, local government bodies and other experts, spawning eight more FEZs to date.   During the presentation session sharing the outcomes of each FEZ, the Ulsan FEZ shared success cases of having sealed the memorandum of understanding (MOU) on a public land reserve project with the Korea Land & Housing Corporation (LH) in March, 2023, which can contribute to the timely supply of industrial land and reducing financial burden from rising land prices. Likewise, other FEZs also shared their experiences of having successfully attracted investment and corporate support among other cases of proactive work achievements.   In the following discussion session, experts presented their policy proposals and panel discussions were held on future project tasks for the third FEZ basic plan, foreign investment facilitation measures and schemes for nurturing an innovative ecosystem.   Kim Hong-joo, Head of the Free Economic Zone Planning Office, stated in the opening message that “amid unstable internal and external conditions, FEZs are called to offer new visions and strategies,” and added that “for the FEZs to grow into global, cutting-edge business hubs in step with local development, the Government and the FEZs will work together as one team to give full policy support for attracting investment and corporate support.” date2024-02-01