Ministry of Trade, Industry and Energy

Trade Minister to visit Washington D.C. to discuss FTA and other key bilateral issues

Minister for Trade Inkyo Cheong is visiting Washington D.C., U.S., from March 12-15 (EST) to meet with key figures of the U.S. administration, Congress, major thinktanks and law firms for extensive discussions on Korea-U.S. bilateral cooperation and trade issues, his first visit upon taking office.   Trade Minister Cheong will be meeting with U.S. Trade Representative Katherine Tai on March 15 for the seventh Korea-U.S. Free Trade Agreement (FTA) Joint Committee meeting, a first in three years, to review bilateral FTA implementation and outcomes, and discuss future plans.   The trade minister is to also meet with Korean firms operating in the U.S. to gather opinions on investment issues. He will be meeting with representatives of major U.S. companies as well, including Thermo Fisher Scientific, General Motors, and Chevron, to discuss cooperation measures for investment in Korea’s bio, hydrogen, and other national strategic technology areas.   Trade Minister Cheong articulated his plans to “hold in-depth discussions with the U.S. administration and Congress members over the CHIPS Act, Inflation Reduction Act (IRA) incentives, and other key trade issues,” and highlighted that he will “actively seek measures to build on the bilateral cooperation momentum created through last April’s Korea-U.S. summit talks in advanced industries and supply chains.” date2024-03-12

Minister meets Arkansas Governor

Trade, Industry and Energy Minister Dukgeun Ahn met with Arkansas Governor Sarah Huckabee Sanders on March 11 in Seoul to discuss measures for cooperation in critical minerals and trade between Korea and the State of Arkansas. date2024-03-11

MOTIE rolls out Foreign Investment Stimulation Program 2024 to nurture global innovation hub

The Ministry of Trade, Industry and Energy (MOTIE) held the 114th Foreign Investment Committee meeting for deliberation and resolution on the basic directions and programs for stimulating foreign investment in 2024 and received a briefing in writing on the annual report on grievance settlements for improving the investment environment from the Foreign Investment Ombudsman.   In the foreign investment stimulation program for 2024, MOTIE proposes stronger foreign direct investment (FDI) attraction measures for nurturing a global innovation hub. Detailed project tasks, including strategic FDI attraction, stronger foreign investor support and improvement of investment environment.   Accordingly, MOTIE plans to select 100 key companies for pursuing either high-level communication or scaled-down, close-up efforts to attract foreign investment for strengthening the supply chain and securing advanced technologies. Moreover, to increase investment of key companies in advanced industries, MOTIE intends to sharply raise the budget for cash grants from KRW 50 billion in 2023 to 200 billion won in 2024, and launch an R&D project exclusively for foreign-invested companies to invigorate global firms’ R&D investment in Korea.   Foreign Investment Ombudsman Kim Sung-jin reported a total of 406 cases of grievance settlements in 2023, including 18 cases of system improvement. The Foreign Investment Ombudsman system was introduced in 1999 to handle issues related to foreign-invested companies, and the number of grievance settlement cases in 2023 has increased 4.9 percent year-on-year.   MOTIE plans to push forward the foreign investment stimulation program for 2024, while also fostering a more attractive investment environment for foreign-invested companies based on various efforts, including the Foreign Investment Ombudsman’s proactive handling of grievances. date2024-03-06

Korea launches Middle East Future Partnership Delegation 2024

The “Middle East Future Partnership Delegation 2024”, formed by the Ministry of Trade, Industry and Energy (MOTIE), is visiting Dubai in the United Arab Emirates (UAE) from March 6-7 as part of the Korean government’s all-time high USD 700 billion export target project launched for 2024, for which trade delegations are to be sent to 10 promising markets for strategic market expansion.   As opposed to the existing local government-led trade delegation and private-led economic delegation, this delegation will support Korean companies’ efforts to strike contract deals in conjunction with summit diplomacy, economic cooperation and local large-scale exhibitions concentrating on the selected promising markets and items in line with the central Government’s strategic policy direction based on the four major megatrends, namely supply chain alignment, carbon neutrality, digital and demographic changes.   The Middle East is one of the selected promising markets with ongoing infrastructure investment in a variety of areas like petrochemicals, new renewables and road traffic in accordance with the recent push for industrial transformation. Korea’s exports to the Middle East took up approximately three percent in terms of proportion as of 2023, but exports to the region showed rapid growth (up 7.3 percent year-on-year) despite difficult global conditions. President Yoon Suk Yeol’s state visit to UAE and the Korea-UAE Comprehensive Economic Partnership Agreement (October) and Korea-GCC Free Trade Agreement (FTA) were all realized last year, spurring the “New Middle East Boom” and boosting the number of Korean companies hoping to enter the Middle Eastern market.   The Middle East Future Partnership Delegation has incorporated a number of tech export businesses owning core technologies in future industries for technology collaboration with the Middle East. Twenty-two Korean tech companies specializing in traffic control systems, green hydrogen, robots, internet of things (IoT) and digital solutions are participating in the delegation. From the Middle East, major investment groups like the Kanoo Group and client companies of key infrastructure projects, including the Roads & Transport Authority and Dubai Electricity and Water Authority (DEWA), will be engaging in consultations for export and investment deals over the two-day period.   Recently, major countries in the Middle East have made announcements for mega-scale infrastructure project plans, including Saudi Arabia’s NEOM, UAE’s Al Ajban Solar PV and Kuwait’s South Saad Al-Abdullah Smart City project, signaling their focus on IoT, clean energy and future technology cooperation. The delegation visit is anticipated to create new synergies between Korean companies with manufacturing and R&D competitiveness and Middle Eastern business leaders serving as chief mediators for the Middle East and Africa.   MOTIE’s Minister Dukgeun Ahn stated that Korea’s exports have posted growth for the fifth consecutive month in February despite the Seollal holidays and increased the prospects of hitting this year’s $700 billion export target, highlighting that “The Middle East Future Partnership Delegation will catalyze the economic cooperation outcomes from the recent summit diplomacy, Korea-UAE CEPA and the Korea-GCC FTA to solidify the rising momentum for export growth.” He added that “Starting with the Middle East, the Government plans to send delegations to 10 promising markets to preemptively uncover and enlarge export opportunities in line with new market trends.” date2024-03-06

Deputy Trade Minister holds conference with locally operating Korean companies in Indonesia

Deputy Trade Minister Yang Byeong-nae held a conference with locally operating Korean companies in Indonesia on March 4 to discuss measures for expanding the export market in the region and in ASEAN and gathered corporate opinions on challenges and other issues.   The conference was attended by representatives of relevant companies, including Hyundai Motor, POSCO and Lotte Chemical. date2024-03-05

Korea completes final step for DEPA membership

The Ministry of Trade, Industry and Energy (MOTIE) announced on March 4 that Korea has completed necessary domestic procedures for joining the Digital Economy Partnership Agreement (DEPA) and submitted the application on March 4 for the Agreement’s entry into force.   Korea proceeded with domestic procedures necessary for application upon receiving the DEPA Joint Committee’s approval in September 2023, following six negotiating rounds for reaching the agreement in June 2023 on acceding to DEPA, the first country to become a non-founding member.   It is anticipated that Korea can leverage DEPA as an opportunity to open more doors to overseas e-commerce and digital content markets, centering on ASEAN, Oceania and Latin America.   In view of the lack of rules on e-commerce under the existing bilateral FTAs with New Zealand and Chile, Korea’s DEPA accession is expected to strengthen the country's digital trade network. date2024-03-04

Trade Minister meets Japan’s METI Vice Minister of International Affairs

Minister for Trade Inkyo Cheong met with Hosaka Shin, Japan’s Vice Minister of International Affairs at the Ministry of Economy, Trade and Industry (METI), on February 29 at ADNEC in UAE on the margins of the WTO’s MC13 to discuss measures for cooperation in hydrogen and other energy areas, multilateral trade and bilateral supply chain cooperation in advanced industries. date2024-03-04

Korea and Oman sign TIPF MOU

Minister for Trade Inkyo Cheong met with Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef on February 27 at the Capital Centre Arjaan by Rotana, UAE, where they held the MOU signing ceremony for Trade and Investment Promotion Framework (TIPF) between Korea and Oman, on the margins of WTO’s MC13, for expanding bilateral cooperation in trade, investment, energy and resources supply chain, and in new industries like digital, green and bio. date2024-03-04

Korea and Bulgaria sign TIPF MOU

Minister for Trade Inkyo Cheong and Bulgaria’s Economy and Industry Minister Bogdan Bogdanov met on February 26 at ADNEC in UAE on the margins of WTO’s MC13 and held the MOU signing ceremony for Trade and Investment Promotion Framework (TIPF) between Korea and Bulgaria for expanding bilateral cooperation in trade, investment, industries and supply chain. date2024-03-04

Trade Minister furthers bilateral economic cooperation with trade leaders on margins of WTO's MC13

Minister for Trade Inkyo Cheong met with the trade ministers of 14 countries on the margins of the 13th World Trade Organization (WTO) Ministerial Conference (MC13), held through February 26-29 in Abu Dhabi in the United Arab Emirates (UAE), for discussions to facilitate MC13 outcomes and strengthen commitment towards restoring the WTO-led multilateral trade system, while holding bilateral talks on measures to deepen cooperation in critical minerals, advanced industries and clean energy areas through trade initiatives like the Free Trade Agreement (FTA) and the Trade and Investment Promotion Framework (TIPF).   In talks with the U.S. Trade Representative Katherine Tai, Trade Minister Cheong highlighted the fact that bilateral relations between Korea and the U.S. are advancing towards an alliance on advanced industries and supply chains and requested the U.S.’ continued cooperation with regard to the Inflation Reduction Act (IRA).   The trade chief also met with China’s Commerce Minister Wang Wentao to discuss the two countries’ cooperation in industrial and supply chains, as well as follow-up Korea-China FTA negotiations on service and investment. They also agreed to closely cooperate on incorporating the Investment Facilitation for Development (IFD) Agreement into the WTO system.   With Hosaka Shin, Japan’s Vice Minister of International Affairs at the Ministry of Economy, Trade and Industry (METI), Trade Minister Cheong discussed measures for cooperation in hydrogen and other energy areas, multilateral trade and bilateral supply chain cooperation in advanced industries.   The Korean trade leader also met with Canada’s Minister of Export Promotion, International Trade and Economic Development Mary Ng, Australia’s Trade and Tourism Minister Don Farrell and Singapore’s Trade and Industry Minister Gan Kim Yong to discuss critical minerals, advanced industries, carbon-free and clean energy cooperation measures as key industrial, energy and trade partners, and asked for support in resolving Korean companies’ investment issues in local business operation and other challenges. Moreover, with Uzbekistan’s Deputy Prime Minister for Investments and Foreign Economic Relations and Minister of Investments and Foreign Trade Jamshid Khodjaev, Trade Minister Cheong affirmed continued support for Uzbekistan’s accession to the WTO.   The trade minister also attended the Coalition of Trade Ministers on Climate on the margins of the WTO’s MC13 and highlighted the importance of global efforts for climate change response and the free trade in goods, services, and technologies for mitigating climate change. In the WTO Ottawa Group Trade Ministers' meeting, he conveyed Korea’s expectations towards agenda items and outcomes related to strengthening the deliberative function of the WTO and other reform measures.   Meanwhile, Korea sealed TIPF agreements with Bulgaria and Oman, respectively, establishing the base for bilateral trade and investment expansion as well as economic, technology and people-to-people exchanges with Europe and the Middle East. date2024-03-04