Ministry of Trade, Industry and Energy

Korea’s exports climb 11.4% in August

The Ministry of Trade, Industry and Energy (MOTIE) announced on September 1 that Korea’s August monthly exports and imports climbed 11.4 percent and 6.0 percent year-on-year to USD 57.9 billion and $54.1 billion, respectively, and the trade balance stood at a surplus of $3.8 billion. The export value for August reached a record high for the month, increasing at a double-digit pace despite the lower number of working days (-1 weekday) year-on-year.  By item, seven out of 15 major export items posted growth. Semiconductor exports came in at a historic $11.9 billion (up 38.8 percent) for the month, entering the $11 billion thresholds for the fourth consecutive month and growing for the 10th.   Computer exports skyrocketed 183 percent to $1.5 billion, growing for the eighth consecutive month. Wireless communication devices soared 50.4 percent to $1.8 billion, growing for the sixth consecutive month. Automobile exports dropped 4.3 percent to $5.1 billion as a result of the production line modernization and operating rate decline from wage and collective bargaining agreement (CBA) negotiations at some automakers. Meanwhile, ship exports snapped the three-month losing streak, surging 80 percent to $2.8 billion. Petroleum products and petrochemicals each amounted to $4.5 billion (up 1.4 percent) and $4.2 billion (up 6.9 percent), rising for the sixth and fifth consecutive month, respectively. Bio-health jumped 39 percent and logged an all-time high $1.3 billion for August monthly exports, growing for the second consecutive month. By region, Korea’s exports to eight of nine major destinations increased.  Exports to China grew 7.9 percent to $11.4 billion, advancing for the sixth consecutive month, as demand for semiconductors and wireless communication devices heightened on the backs of China’s revitalized IT industry.  U.S.-bound exports hit a record $10 billion (up 11.1 percent), renewing each all-time monthly record for 13 months straight. Exports to the EU enjoyed sharp demand for ships, wireless communication devices, computers, and other IT items, breaking the seven-month downward streak and logging $6.4 billion (up 16.1 percent) overall. Notably, the August export value surpassed the previous high ($6.3 billion) set in March 2021 for the first time in 41 months. Exports to ASEAN and India each increased 1.7 percent and 2.3 percent to $9.8 billion and $1.6 billion, respectively, both expanding for the fifth consecutive month. Exports to Japan (up 6.8 percent to $2.5 billion), Latin America (up 29.4 percent to $2.6 billion), and the Commonwealth of Independent States (up 11.2 percent to $1.0 billion) all increased for the second consecutive month. Meanwhile, the country’s energy imports increased 17.3 percent to $12.6 billion in August as demand hiked for crude oil (up 30.1 percent) and gas (up 5.7 percent). Korea’s total trade balance recorded a surplus for the 15th consecutive month. The accumulated trade balance through January–August this year reached $30.6 billion in surplus, three-fold of last year’s entire trade deficit.   date2024-09-02

MOTIE and MOLIT announce SAF Diffusion Strategy

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn and Land, Infrastructure and Transport Minister Park Sang-woo jointly announced the Sustainable Aviation Fuel Diffusion Strategy today at the Incheon International Airport Terminal 2 with the participation of oil refinery and aviation industry personnel. Sustainable aviation fuel (“SAF”) is an eco-friendly fuel produced based on biomass derived from animals and plants and the carbon captured from the atmosphere. Using SAF for powering air transport can reduce up to 80 percent of the carbon emissions released from using fossil-based jet fuels. Further advantages of SAF include the exclusion of fossil fuels, its similar chemical makeup to conventional aviation fuel, and that its use does not require the altering of aircraft structures. SAF is recognized as the most effective aviation means of decarbonization, with 19 countries worldwide currently using SAF for commercial flights, some of which have mandated the use of blended SAF. Korea is now the 20th country in the world to incorporate SAF for commercial flights. As Korea is the world’s top exporter of aviation fuel and as global SAF demand is expected to increase to 18.4 million metric tons by 2030 (according to International Air Transport Association), the situation calls for bold policy support to claim the SAF market, which is viewed as the new growth engine of the future. The Ministry of Trade, Industry and Energy (MOTIE) and the Ministry of Land, Infrastructure and Transport (MOLIT) have made effort to closely communicate with oil refinery and aviation industries, related institutions, and relevant experts to establish the SAF Diffusion Strategy (“Strategy”) outlining Korea’s mid-to-long term vision and comprehensive support measures for invigorating the domestic SAF industry. First, the commercial use of SAF begins August 30, 2024. Across the nation’s airports, domestic airlines are to use SAF produced in Korea and certified by the International Civil Aviation Organization (ICAO) in operating international regular flights. Domestic airlines can freely determine the details concerning air routes and SAF blend ratios and enter SAF purchase contracts with domestic oil refineries. Second, the Strategy aims to promote the voluntary use of SAF by 2026 through public-private cooperation. MOTIE, MOLIT, domestic carriers, oil refinery companies, Incheon International Airport, and the Korea Airports Corporation (KAC) signed a memorandum of understanding (MOU) today on using SAF for commercial flights. The objective is to advance mutual cooperation in expanding the SAF diffusion throughout Korea. MOLIT and Incheon International Airport plan to offer various incentives to airlines that use SAF for their flights. Third, the Strategy will be imposing a SAF blending mandate on all international flights departing from Korea beginning 2027, the year when international flight carbon regulations are scheduled to tighten. This comes against the backdrop of the ICAO requiring all member countries to comply with its Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Fourth, related ministries will promote investment for expanding SAF production. To accommodate companies’ timely investments in R&D and infrastructure, the Government is mulling measures to increase investment tax credit and offer incentives in the future to lessen the pressure from high SAF production costs.  Fifth, the Strategy will help to upgrade Korea’s technological capacity to produce SAF from a wide variety of raw materials. MOTIE will launch joint investigations on overseas bio resources like used cooking oil, animal fat, and palm oil residuals that can be repurposed through existing technologies. Sixth, MOTIE will work on strengthening the competitiveness of the entire biofuel supply chain. The Korea National Oil Corporati date2024-08-30

MOTIE and MOLIT announce SAF Diffusion Strategy

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn and Land, Infrastructure and Transport Minister Park Sang-woo jointly announced the Sustainable Aviation Fuel Diffusion Strategy on August 30 at the Incheon International Airport Terminal 2 with the participation of oil refinery and aviation industry personnel.   MOTIE, MOLIT, domestic carriers and oil refinery companies, Incheon International Airport, and the Korea Airports Corporation (KAC) signed a memorandum of understanding (MOU) today for the commercial use of SAF to advance mutual cooperation in expanding the domestic SAF diffusion.  date2024-08-30

Minister Ahn speaks at special meeting with AMCHAM Korea

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn attended the special meeting on August 29 held at the American Chamber of Commerce in Korea (AMCHAM Korea) to discuss measures to enhance Korea-U.S. trade cooperation and bolster Korea’s role as Asia’s business hub, held with the participation of AMCHAM board members and roughly 100 domestic and overseas business leaders operating in Korea.   The meeting proceeded in the form of a Q&A session led by Minister Ahn and AMCHAM Korea Chairman James Kim on measures for expanding trade and investment amid changes in the global trade environment. date2024-08-30

Investigation shows 40 ODP products fail to meet safety standards

The Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) announced today that an investigation on 190 popular items sold on overseas online platforms with a large number of domestic users has found that 40 of them fail to comply with Korea’s safety standards. Against the backdrop of increased safety concerns over overseas direct purchases (ODPs), the investigation was conducted on 190 best-selling items sold on overseas online platforms. As a result, 21.1 percent of them failed to meet safety standards, comparatively higher than the performance of domestic retail goods (6.1 percent) investigated during the first half of this year. Fourteen out of the investigated 66 electrical appliance products failed the safety check—direct current power supplies (8), LED apparatuses (3), power plugs and sockets (2), and waffle-makers (1). Among the 30 daily necessity items investigated, 11 tested as unsafe, including portable lasers (3) and helmets (2). Fifteen out of 94 children’s products that failed safety standards were textile goods (7), toys (4), and baby carriers (1). KATS has disclosed the product information of the abovementioned 40 items on related websites (www.safetykorea.kr, www.consumer.go.kr) and requested ODP platform operators to block the selling of these items. KATS plans to keep expanding the scope of safety investigations on ODP products in view of the high level of public concern, with the second round slated for September.   date2024-08-29

Korea steps up support measures for reshoring companies in high-tech strategic industries

The Ministry of Trade, Industry and Energy (MOTIE) announced today that the enforcement of the following two amended public notices—the amended notice on support for reshoring companies (“Reshoring Notice”) and the amended notice on local government entities’ state funding criteria for attracting reshoring companies (“Reshoring Subsidy Notice”)—begins August 30 as part of follow-up to the Reshoring Company Support Strategy 2.0 (announced May 7) to invigorate reshoring in advanced industries. First, the amendments impose a higher cap on state funding for reshoring companies in industries categorized as “National Strategic” and “National High-Tech Strategic Technology.” Companies reshoring to Korea’s capital region will receive up to KRW 20 billion (up ₩5 billion), while those reshoring to non-capital regions will receive up to ₩40 billion (up ₩10 billion).  Second, newly added to the list of businesses eligible for the exemption of overseas subsidiary restructuring requirements are companies manufacturing items of national security concern, as well as those opting to reshore through cooperation with domestic buyers.  Third, with regard to reshored companies in advanced industries, the amended public notices have removed the restriction on making new overseas investments subsequent to receiving subsidies and being granted the exemption of abovementioned overseas restructuring requirements.  Fourth, the amendment provides subsidy priority to high-tech businesses that move into National High-Tech Strategic Industry and MPE (materials, parts, equipment) specialization complexes. Also, the reshoring of two or more companies will be recognized as joint reshoring as long as they have the same overseas business location—even when domestic locations differ— receiving up to a 5-percentage point increase in subsidy rates. According to MOTIE, a total of 13 Korean companies have reshored this year, and the public notice amendments are anticipated to spur further reshoring of firms in advanced industries, such as semiconductors, displays, and secondary batteries.   date2024-08-29

MOTIE and AMCHAM Korea discuss measures to expand trade and investment amid changing global trade landscape

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn attended the special meeting on August 29 held at the American Chamber of Commerce in Korea (AMCHAM Korea) to discuss measures to enhance Korea-U.S. trade cooperation and bolster Korea’s role as Asia’s business hub. The meeting proceeded in the form of a Q&A session led by Minister Ahn and AMCHAM Korea Chairman James Kim, with the participation of AMCHAM board members and roughly 100 domestic and overseas business leaders operating in Korea.   In answering questions, Minister Ahn articulated that amid the intensifying emergence of economic blocs, supply chain realignment, and other structural changes worldwide, Korea can turn these challenges into opportunities to establish itself as the regional hub by promoting foreign investment, reinforcing manufacturing competitiveness with focus on advanced industries, and mitigating trade risks for Korea-based companies. To the U.S. representatives of Korea-based businesses, Minister Ahn expressed appreciation for contributing to creating quality jobs and invigorating local economies in Korea, founded on their deep trust and investment in the Korean market. He added that the U.S. is Korea’s key ally and economic partner, conveying hope that the two countries’ economic cooperation strengthens going forward and asked for continued investment and interest in Korea. Driven by the all-time high foreign direct investment (FDI) Korea attracted last year, the Ministry of Trade, Industry and Energy (MOTIE) is aiming to reach its FDI target of USD 35 billion in 2024.   date2024-08-29

Trade Minister Cheong chairs International Seoul Symposium 2024

Korea’s Minister for Trade Inkyo Cheong chaired the International Seoul Symposium 2024 on August 28 at the Lotte Hotel Seoul under the theme of rebuilding the WTO dispute settlement system amid the changing trade environment.   The Symposium had the world’s top experts speak on the topic, including Petros Mavroidis (Professor of Law at Columbia Law School), Mark Wu (Henry L. Stimson Professor at Harvard Law School), Joost Pauwelyn (Professor of International Law at the Graduate Institute of International and Development Studies in Geneva), and Kathleen Claussen (Professor of Law at Georgetown University Law Center). The Ottawa Group ambassadors to Korea and other experts also engaged in the discussions and Q&A sessions following the keynote speeches.   Trade Minister Cheong stated that Korea will continue to proactively take part in the work on reforming the WTO’s dispute settlement body and other major functions, so that it can keep playing a relevant role in accordance with the changing trade landscape. date2024-08-29

Korea hosts Seoul Symposium 2024 on rebuilding WTO dispute settlement system

Korea’s Minister for Trade Inkyo Cheong chaired the Seoul Symposium 2024 (“Symposium”) today at the Lotte Hotel Seoul under the theme of rebuilding the WTO dispute settlement system amid the changing trade environment. Now in its second year since launching in 2023, the Symposium had the world’s top experts speak on the topic, including Petros Mavroidis (Professor of Law at Columbia Law School), Mark Wu (Henry L. Stimson Professor at Harvard Law School), Joost Pauwelyn (Professor of International Law at the Graduate Institute of International and Development Studies in Geneva), and Kathleen Claussen (Professor of Law at Georgetown University Law Center). The Ottawa Group ambassadors to Korea and other experts also engaged in the discussions and Q&A sessions following the keynote speeches.  In a video message, Director-General of the WTO Ngozi Okonjo-Iweala expressed high recognition for the constructive contribution to the reform discussions process shown by Korea, an active user of the dispute settlement body. She especially highlighted the Symposium’s significance in terms of covering the reform challenges in depth.  Trade Minister Cheong stated that, in line with the reform discussions, the Symposium serves as a venue for timely discussions on seeking efficient measures to realign the system. He added that Korea will continue to proactively take part in the work on reforming the WTO’s dispute settlement body and other major functions, so that it can keep playing a relevant role in accordance with the changing trade landscape. The Korean government plans to host more such international symposiums so that Korea can take a strong part in the discussions for reforming the WTO’s key functions and take the initiative in related talks with the Ottawa Group and other like-minded countries.   date2024-08-28

Talented youth and companies seeking win-win at Global Talent Fair 2024

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea is co-hosting the Global Talent Fair 2024 with the Ministry of Employment and Labor (MOEL) through August 27–28 at COEX in Seoul. The Global Talent Fair was launched to provide decent employment opportunities to job-seeking youth and connect quality talent with global businesses. As did last year, three existing job fairs were integrated into one and drew the participation of an unprecedented 400 companies. This year’s event newly showcases recruiting booths for semiconductors, secondary battery, and bio sectors to address young job-seekers’ keen interest towards employment in advanced industries. Launched in July, the Global Talent Supporters—a team comprising 20 undergraduate students—will support the job-seeking and original self-promotional activities of young talent through in-person interviews at companies and sharing of job market information. At the Global Talent Fair, job-seekers can access a variety of support programs, including one-on-one interviews with companies’ hiring managers, counseling, special lectures, success stories, and job briefings. They can also tap into one-stop information service on recruitment by foreign-invested firms and overseas companies lesser known than domestic counterparts. MOTIE’s Minister for Trade Inkyo Cheong attended the opening ceremony and gave a congratulatory message, stating that “Korea is lately garnering attention as the nucleus of the supply chain for advanced industries like semiconductors and secondary batteries, with the nation’s human resources heightening investment attractiveness.” MOEL Minister Lee Jung-sik expressed hope that Global Talent Fair 2024 will foster mutual growth, helping companies recruit valuable talent and Korea’s youth achieve their goals.   date2024-08-27