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Industry
MOTIE launches AI Industrial Policy Committee, laying out roadmap for AI era
Trade, Industry and Energy Minister Dukgeun Ahn attended the ceremony on May 8 inaugurating the “AI Industrial Policy Committee,” launched to take on industrial policies for the artificial intelligence (AI) era. Attending the event were National Academy of Engineering of Korea (NAEK) President Kim Kinam and other AI experts in business, academia, and related institutions. Based on the forecast that AI will serve as a gamechanger across industries, MOTIE launched the Committee with aim to generate meaningful forecast for industrial shifts and sort out policy tasks for AI-based industrial innovation. Over the next six months, the Committee will focus on establishing the new industrial policies for the AI era through joint efforts of 200 industrial, academia, and research experts. The Committee’s private-led working group will be composed of four parts, namely AI technology development forecast, future industry changes, standards, and policy proposals. In parallel, the Committee will be establishing strategies for six major areas (autonomous manufacturing, design, R&D, energy, retail, AI chips) on a monthly basis, led by MOTIE. New legal frameworks for AI’s industrial utilization will be designed as well. On the heels of the inauguration ceremony, MOTIE announced the “AI Autonomous Manufacturing Strategy 1.0” as part of the first task project of the six major areas. Under the strategy, this year alone will see over KRW 100 billion poured into the following: diffusion of AI autonomous manufacturing; securing AI autonomous manufacturing capacity; and the nurturing of a relevant ecosystem. Through these measures, MOTIE is targeting to achieve, by 2030 a 30 percent growth in AI autonomous manufacturing diffusion (9 percent at present) and a 20 percent jump in manufacturing productivity. First, MOTIE will push forward 200 anchor projects on AI autonomous manufacturing with aim to upgrade the degree of digital transition across manufacturing sites. Accordingly, MOTIE will be supporting the establishment of software, robots, and systems after a thorough assessment of AI application prospects and effectiveness based on a detailed process analysis. This year, 10 priority projects will be selected through local authorities’ open call for 10 billion won in funding. MOTIE will also be establishing an AI autonomous manufacturing testbed for robotics and software that companies can utilize in establishing their own AI autonomous manufacturing systems. To note, 200 billion won will go towards nurturing a national robot testbed project (2024–2028). Second, over one trillion won will be secured in private investment to be spread over a five-year period for obtaining core technologies and capacity required for AI autonomous manufacturing, mainly concentrating on the process automation of key manufacturing sectors like machinery, robots, shipbuilding, secondary batteries, and semiconductors, as well as on virtual manufacturing and flexible production, such as digital twins. In addition, active support will go towards nurturing an AI autonomous manufacturing-friendly industrial ecosystem, 13,000 professional talents, and over 250 firms specializing in AI autonomous manufacturing solutions. A public-private “AI Autonomous Manufacturing Alliance” will be launched in the first half of this year through participation of ministries, research institutions, associations, companies and relevant groups for sharing and utilization of industrial data and the improvement of relevant laws and systems. date2024-05-08
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Trade/Investment
Experts gather to discuss trade policy directions amid global paradigm shifts
Minister for Trade Inkyo Cheong attended the 18th Trade Advisory Committee Meeting on May 8 at Lotte Hotel Seoul to discuss future trade policy directions in view of recent changes in the global trade landscape. The Trade Advisory Committee is a civil advisory body run by the Ministry of Trade, Industry and Energy (MOTIE) in accordance with the Act on procedures for concluding and implementing commercial treaties. Composed of 27 experts across the academic, industrial, and research spheres of various relevant areas, the Committee elected a new Chairperson and appointed new members during this meeting. The Committee is to be combined with another related committee dealing with domestic trade measures to form the Trade Policy Advisory Committee. Attendees reviewed past trade policy outcomes and engaged in discussions on detailed policy tasks and proposals for Korea to play a key role in global trade while responding to trade environment shifts, such as this “super election year” and the rise in protectionism. Trade Minister Cheong highlighted that MOTIE plans to “stabilize the supply chain and expand Korea’s export portfolio through upgrading and diversifying the trade network amid global paradigm shifts.” date2024-05-08
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Industry
Minister discusses support measures for reshored companies
Trade, Industry and Energy Minister Dukgeun Ahn held a meeting with reshored companies on May 7 at the Government Complex Sejong, where he announced the ministry’s “Reshoring Company Support Strategy 2.0” and discussed success cases and support measures. The meeting was attended by representatives of reshored companies and relevant organizations, including Simmtech, Derkwoo, and Korea Trade-Investment Promotion Agency (KOTRA). date2024-05-07
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Trade/Investment
Government to strengthen support for reshoring companies in advanced industries
The Korean government plans to raise overall support for reshoring companies by lowering eligibility requisites and standards, while increasing incentives for reshoring firms in advanced industries. Trade, Industry and Energy Minister Dukgeun Ahn held a meeting with 10 reshored companies on May 7 to discuss support measures, where he announced the ministry’s “Reshoring Company Support Strategy 2.0” and gathered companies’ opinions. In view of the recent supply chain realignments and rising global protectionism, the Ministry of Trade, Industry and Energy (MOTIE) established support strategies based on opinions provided from relevant industries, experts, and ministries to address the increasing need for stimulating advanced industries’ reshoring. The strategy aims to lower the eligibility bar to provide wider support. For one, reshoring firms in the retail industry will be eligible for government support and investing reshored capital in Korea will be recognized as a type of reshoring investment. National strategic technologies, advanced strategic technologies, future mobility parts and products are to be added to the list of business sectors exempted of foreign subsidiary restructuring requisites. Companies subsidized with above restructuring exemptions are to be limited in making overseas investments for a minimum of only one year, instead of the current two. This year, MOTIE significantly enlarged the reshoring company subsidy budget, up from last year’s KRW 57 billion to 100 billion won. MOTIE also plans to raise the subsidy cap for reshoring investment in national and advanced strategic technologies. Seven more occupation types are to be added besides the one type currently eligible for the E-7 visa for reshoring companies. Businesses moving into the national high-tech strategic industry and MPE (materials, parts, equipment) specialization complexes will receive preferential support as well. In 2023, the number of Korean reshoring companies reached 22, with more than 20 firms reshoring every year since 2020. Reshoring companies’ investment plan entered the 1 trillion won thresholds for the second consecutive year in 2023. date2024-05-07
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Trade/Investment
Trade Minister meets Mexico’s Undersecretary of Foreign Trade
Minister for Trade Inkyo Cheong met with Mexico’s Undersecretary of Foreign Trade Alejandro Encinas Nájera on May 3 at the OECD Headquarters in Paris to discuss bilateral trade issues. date2024-05-07
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Energy
Minister holds meeting for stabilizing domestic oil prices
Trade, Industry and Energy Minister Dukgeun Ahn convened a meeting on May 3 to discuss measures for stabilizing domestic oil prices amid rising Middle East tensions and uncertainties in the petroleum market, and inspected recent supply prices of refineries and sale prices at gas stations. The meeting was attended by with representatives of related companies and organizations, including SK Energy, HD Hyundai Oil Bank, S-OIL, GS Caltex, Korea National Oil Corporation (KNOC) and the Korea Petroleum Association (KPA). date2024-05-07
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FTA/Economic Cooperation
Trade Minister attends Session 5 of OECD MCM 2024
Minister for Trade Inkyo Cheong attended Session 5 of OECD MCM 2024 at the OECD Headquarters in Paris on May 3, held under the theme of “Credible Pathways Towards Sustainable and Inclusive Growth Under the Interlinked Global Crises.” date2024-05-07
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Trade/Investment
Trade Minister meets with New Zealand's Trade Minister
Minister for Trade Inkyo Cheong met with New Zealand's Trade Minister Todd McClay on May 3 at the OECD Headquarters in Paris to discuss economic cooperation and trade issues. date2024-05-07
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FTA/Economic Cooperation
Trade Minister attends ceremony for DEPA's entry into force
Minister for Trade Inkyo Cheong attended the ceremony for commemorating the Digital Economy Partnership Agreement (DEPA)’s entry into force on May 2 at the OECD headquarters in Paris with trade leaders of other countries, including Singapore's Minister-in-charge of Trade Relations Grace Fu, New Zealand's Trade Minister Todd McClay, and Chile’s Vice Minister for International Economic Relations of the Ministry of Foreign Affairs Claudia Sanhueza Riveros, where he gave an opening address stating that efforts will be made toward establishing a digital economic cooperation base among partner countries so that DEPA can serve as a platform for strengthening economic partnerships as well. date2024-05-07
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Trade/Investment
Trade Minister meets France's Minister Delegate for Foreign Trade & Economic Attractiveness
Minister for Trade Inkyo Cheong met with Franck Riester, France’s Minister Delegate for Foreign Trade, Economic Attractiveness, Francophonie and French Nationals Abroad, on May 2 on the margins of the OECD MCM 2024 in Paris and discussed bilateral cooperation in trade, investment, carbon-free energy, and multilateral cooperation. date2024-05-07