Ministry of Trade, Industry and Energy

Trade ministers around the world to gather for acceleration of WTO reform

Minister for Trade Inkyo Cheong will be attending the World Trade Organization (WTO)’s 13th Ministerial Conference (MC13) through February 26-29 in Abu Dhabi, United Arab Emirates (UAE). As next year marks the 30th year of the organization’s inception, MC13 is expected to provide leading indicators for the direction of the WTO reform.   Ever since trade ministers from around the world gathered for MC12 in June 2022 and agreed to kick the WTO reform into high gear, multifaceted discussions have taken place on this front. MC13 will be for reviewing the progress made thus far and providing guidelines for completion of the reform by the end of the year. Ministerial talks will also be held under the themes of “Trade and Sustainable Development” and “Trade and Inclusiveness”, as strengthening the WTO’s deliberative function is one of the major agenda items. Trade Minister Cheong will be highlighting the fact that protectionist industrial policies and subsidies competition may undermine the rules-based multilateral trade system and that member countries should refrain from imposing measures that do not align with the WTO rules.   Ministerial meetings will also concentrate on a number of different topics, such as development, fisheries subsidies and agriculture. Development is a major agenda item for MC13 and attention will be given to gain outcomes in this area alongside the issue of special treatment for countries that have graduated from the least developed countries (LDC) status. Efforts will be made to seek consensus on the second phase of fisheries subsidies negotiations concerning overfishing and overcapacity, as well as for the entry into force of the Agreement on Fisheries Subsidies reached during MC12. Discussions will also be held on the extension of the moratorium on customs duties on electronic transmissions. Amid the persisting difference of opinion among member countries, discussions on agriculture will focus on the working plan for future negotiation progress.   In addition, Korea intends to make an official request for the Investment Facilitation for Development (IFD) Agreement (July 2023), for which Korea is co-chair, to be incorporated into the WTO Agreement and plans to hold a joint ministerial declaration for countries participating in the negotiations to garner member countries’ support.   Meanwhile, the accessions of Comoros and Timor-Leste to the WTO at MC13 raises the number of WTO member countries to 166. date2024-02-22

Readout on the Trilateral United States-Japan-Republic of Korea Convening of Commerce and Industry Export Control Principals in Tokyo

READOUT ON THE TRILATERAL UNITED STATES-JAPAN-REPUBLIC OF KOREA CONVENING OF COMMERCE AND INDUSTRY EXPORT CONTROL PRINCIPALS IN TOKYO   TOKYO, JAPAN – Today, Commerce and Industry Export Control Principals from the United States, Japan, and the Republic of Korea (ROK) convened as a follow-up to the Commerce and Industry Ministerial initiative from the Trilateral Leaders’ Summit at Camp David last August. This meeting is the first of its kind under the trilateral relationship focused on further aligning export controls, enhancing our ability to effectively collaborate on shared priorities. The United States hosted the convening at the U.S. Embassy in Tokyo [and were welcomed by Ambassador Emanuel].   The principals agreed to further align on Russia controls, collaborate on outreach to countries in Southeast Asia, and cooperate on controls for critical and emerging technologies. “Collaboration among like-minded allies and partners who share our values and security outlook on multilateral export controls is a longstanding priority for BIS,” said Assistant Secretary of the U.S. Department of Commerce for Export Administration Thea D. Rozman Kendler. “Our trilateral relationship with Japan and the Republic of Korea is a treasured relationship that cultivates the kind of trusted ecosystem that allows emerging technologies to develop in a safe space.”   “We deepened our knowledge on how respective export control systems work in Japan, the ROK and the U.S. in the first trilateral meeting,” said Director-General Katsuro Igari, Trade Control Department, Japan Ministry of Economy, Trade, and Industry. “We will further strengthen our export controls by further exchanging best practices, including engagement in industry and academia.”   “Trilateral cooperation between Korea, the US and Japan is crucial to respond to the changing global environment such as the instability of supply chains and export controls,” said Director General for Trade Control Policy Kamchan Kang, Republic of Korea Ministry of Trade, Industry and Energy. “Export control engagement with ASEAN countries should be enhanced to prevent the diversion of dual-use items and maintain international peace.”   Background on the Trilateral Leaders’ Summit at Camp David In August 2023, President Biden welcomed Japanese Prime Minister Kishida and ROK President Yoon to a historic trilateral summit at Camp David, the first-ever stand-alone summit of Leaders from the United States, Japan, and the ROK, and the first summit of foreign leaders at Camp David during the Biden-Harris Administration. The Leaders jointly inaugurated a new era of trilateral partnership and reaffirmed that cooperation between the United States, Japan, and the ROK advances the security and prosperity of our people, the Indo-Pacific region, and the world. Among other priorities, the Leaders committed to focusing efforts on coordinating export controls for advanced technologies. date2024-02-22

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