Ministry of Trade, Industry and Energy

Korea and Africa boost business partnerships on margins of bilateral summit

The Ministry of Trade, Industry and Energy (MOTIE) co-hosted the Korea-Africa Business Partnership 2024 with the Ministry of SMEs and Startups (MSS) and the Public Procurement Service (PPS) on the margins of the Korea-Africa Summit 2024 on June 4 at InterContinental Seoul COEX, co-organized by Korea Trade-Investment Promotion Agency (KOTRA) and Korea SMEs and Startups Agency (KOSMES).   A total of 17 African countries and their 55 companies in areas of trade, energy, plant, and critical minerals participated in the Business Partnership and held 508 business meetings with 194 Korean firms, generating an estimated USD 0.1 billion worth of potential business deals. Further outcomes are anticipated in terms of export diversification, project win competitiveness, and stronger supply chain cooperation.   A Korean food product exporter and retailer “A” managed to ink a $1 million export contract with a South African company “M” after a one-on-one meeting at the Business Partnership. Another Korean firm “W” entered a joint venture memorandum of understanding (MOU) for establishment of local manufacturing facilities in the East African home appliances market with Kenyan company “D” and Ethiopian company “B.” “W” will be the first Korean company to seal a manufacturing facility joint venture in Kenya and Ethiopia should the MOU translate into actual investment.   Korea-Africa Business Partnership 2024 was the first and largest singular business consultation event held in Korea with exclusive focus on Africa, reaffirming the two sides’ mutual commitment for expanding economic cooperation. MOTIE, along with five other ministries and related institutions, plan to continue with follow-up support through KOTRA’s head office and regional headquarters in Africa so that the business consultations can lead to concrete export deals and bid project wins. date2024-06-04

17th Nonferrous Metals Day

Industry Policy Deputy Minister Lee Seung-ryeol attended the 17th Nonferrous Metals Day on June 3 at Grand Intercontinental Seoul Parnas, along with 80 industry representatives and awarded government commendations to the top 14 contributors to Korea’s nonferrous metals industry development, including the Presidential Commendation to Im Won-sik of Poongsan Corp. for boosting Korea’s export of semiconductor metal wafer materials. date2024-06-04

Commendations awarded to 14 industry contributors on 17th Nonferrous Metals Day

Industry Policy Deputy Minister Lee Seung-ryeol attended the 17th Nonferrous Metals Day on June 3 at Grand Intercontinental Seoul Parnas, along with 80 industry representatives and awarded government commendations to the top 14 contributors to Korea’s nonferrous metals industry development.   Im Won-sik of Poongsan Corp. was awarded the Presidential Commendation for boosting Korea’s export of semiconductor metal wafer materials. So Soon-hwan of Seoul Metal Corporation and Lee Sang-ho of Ulsan Aluminum were each presented the Prime Minister’s Commendation for promoting exports of aluminum conductor steel reinforced (ACSR) cables and localization of previously import-dependent aluminum can materials, respectively.   In his congratulatory message, Deputy Minister Lee commended the nonferrous metals companies' representatives for strengthening the industry’s global competitiveness and asked for their active response and communication with regard to the Government’s plans to support the low carbon transition through carbon neutrality R&D and establishment of a stable supply chain for rare metals and critical nonferrous metals. date2024-06-04

MOU signing ceremony on margins of Korea-Africa Summit 2024

Minister for Trade Inkyo Cheong attended the Korea-Africa memorandum of understanding (MOU) signing ceremony held on the margins of the Korea-Africa Summit 2024 on June 4 at COEX in Seoul, where 11 agreements were signed among the two countries’ governments and companies.   The ceremony was attended by representatives from Rwanda, Tanzania, Mozambique and other African countries’ governments, companies, and public institutions, as well as Korea’s public and private sectors, including KOTRA, K-SURE, and Hyosung Heavy Industries. date2024-06-04

Vice Minister attends seminar on measures for supporting SMEs' scale-up

Trade, Industry and Energy Vice Minister Kang Kyungsung attended the seminar on measures for “building the corporate growth ladder” on June 3 at the FKI Tower in Seoul, with focus on measures for supporting SMEs’ scale-up to middle-market tier.   The seminar was attended by around 80 persons, including representatives of related associations like the Federation of Korean Industries (FKI) and Federation of Middle Market Enterprises of Korea (FOMEK). date2024-06-04

Government to build corporate growth ladder for supporting SMEs' scale-up to middle-market tier

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 3 that the Korean government announced measures for “building the corporate growth ladder” during the cabinet ministers' meeting for economic matters with focus on supporting SMEs’ transitional growth to middle-market tier.   First, the Government will increase support for middle-market companies that just graduated from SME status. These companies will be able to receive “SME incentive” tax credit for up to five instead of the current three years after growing out of SME tier. SMEs listed on KOSPI or KOSDAQ will be granted an additional two-year grace period, receiving a seven-year period in total for SME incentive eligibility. For companies that are past the grace period and have entered the middle-market tier, high rates of R&D and investment tax credit will be provided to induce corporate growth.   Moreover, the Government will roll out the “Growth Ladder Jump Up Program (tentative)” and select 100 promising SMEs to provide support over a three-year period. A public-private network pool consisting of experts with corporate work experience and venture capital knowhow will formulate catered strategies and conduct exclusive director matchings for company-tailored scale-ups. Firms will have access to various growth service vouchers and receive preferential treatment with regard to existing government assistance programs for promoting export and R&D.   Third, the Government aims to resolve SMEs’ growth obstacles and aid entry into new markets and businesses. SMEs that had previously been leveraging policy funding will be connected to low interest loans exclusively for middle-market companies. A primary collateralized bond obligation (P-CBO) of KRW 600 billion and guarantee of 500 billion won will be supplied to promising SMEs. A 50 billion won joint investment fund composed of a fund of funds (FOF) and corporate venture capital (CVC) will be launched under the “Tech Investor Program for Scale-up (TIPS)” in 2024 to strengthen support for private investment securing firms’ R&D.   From 2025 on, an M&A center will be established at Korea Technology Finance Corporation (Kibo) to provide joint support with the Industrial Bank of Korea (IBK)’s M&A platform to companies aiming for new business entry. To scale-up companies posting qualified levels of investment and growth, the Government will mull the granting of family-owned business inheritance tax exemption incentives.   Lastly, infrastructure for public information utilization will be reinforced by releasing Kibo’s SME technical evaluation data and the financial data analytics owned by Korea Credit Information Services (KCIS) to offer access to private banks. By 2025, an integrated platform will be established to facilitate firms’ better understanding and easier use of policy funding. date2024-06-04

9th meeting of the Intergovernmental Korea-Turkmenistan Commission on Trade, Economic, Scientific and Technological Cooperation

Trade, Industry and Energy Minister Dukgeun Ahn and Turkmenistan’s Chairman of the Board of the State Bank for Foreign Economic Affairs Rahimberdi Jepbarov held the 9th meeting of the Intergovernmental Korea-Turkmenistan Commission on Trade, Economic, Scientific and Technological Cooperation on June 3 via teleconferencing and discussed cooperation in trade, investment, and plant and signed the Agreed Minutes. date2024-06-04

Trade Minister meets Norwegian Minister of Fisheries and Ocean Policy

Minister for Trade Inkyo Cheong met Norwegian Minister of Fisheries and Ocean Policy Marianne Sivertsen Næss on June 3 in Sejong City and discussed stronger economic cooperation measures for shipbuilding, maritime, clean energy, Korea-European Free Trade Association (EFTA) Free Trade Agreement (FTA), and the Korea-Norway Trade and Investment Promotion Framework (TIPF). date2024-06-04

Korea and Norway discuss measures for stronger economic cooperation

Minister for Trade Inkyo Cheong met Norwegian Minister of Fisheries and Ocean Policy Marianne Sivertsen Næss on June 3 in Sejong City and discussed stronger economic cooperation in shipbuilding, maritime, clean energy, Korea-European Free Trade Association (EFTA) Free Trade Agreement (FTA), and the Korea-Norway Trade and Investment Promotion Framework (TIPF).   Trade Minister Cheong stated that the recent global shift towards eco-friendly and smart vessels is creating a good opportunity for Korea and Norway to achieve shared growth based on the combination of Korea’s shipbuilding capacity and Norway’s technological prowess in eco-friendly and autonomous self-navigation.   He mentioned the need for wider utilization of offshore wind power, clean hydrogen, nuclear, and carbon-free energy sources for effectively responding to climate change and requested Norway’s active interest and participation in the Carbon Free Energy (CFE) Initiative, asking that Norway attend the World Climate Industry Expo (WCE 2024) to be co-hosted by the Ministry of Trade, Industry and Energy (MOTIE) and the International Energy Agency (IEA) in Busan in September this year.   Noting how the Korea-EFTA FTA contributed to expanding the trade volume among its parties and helped stabilize the import of Norwegian fishery products, he articulated his hopes of Korea and Norway further invigorating bilateral trade and investment.   In view of the rapidly changing trade and economic landscape, both sides shared the understanding that the Korea-Norway Trade and Investment Promotion Framework (TIPF) will be a good opportunity for upgrading their economic cooperation and agreed to push the bilateral TIPF forward for a more comprehensive collaboration beyond trade and investment to cover new trade issues like green energy, supply chains, and digital. date2024-06-04

Korea and Turkmenistan hold 9th meeting of Intergovernmental Commission on Trade, Economic, Scientific and Technological Cooperation

Trade, Industry and Energy Minister Dukgeun Ahn and Turkmenistan’s Chairman of the Board of the State Bank for Foreign Economic Affairs Rahimberdi Jepbarov held the 9th meeting of the Intergovernmental Korea-Turkmenistan Commission on Trade, Economic, Scientific and Technological Cooperation (“Commission”) on June 3 via teleconferencing.   Installed in accordance with the two countries’ intergovernmental agreement (entered into force in 2008) on establishing a joint cooperative committee, the Commission is a ministerial consultative body run with the participation of agenda-relevant ministries and institutions and co-led by Korea’s Minister for Trade, Industry and Energy and the Turkmen Chairman of the Board of the State Bank for Foreign Economic Affairs as the Commission’s chief delegates. The 9th meeting breaks the four-year hiatus following the previous 8th meeting held November 2020 in Seoul.   At the 9th meeting, the two sides agreed to implement measures for wider cooperation in energy and infrastructure as discussed during the bilateral summit talks held on the margins of the United Nations General Assembly in September 2023, and as well as in trade, investment, plant, aviation, automobiles, shipbuilding, and healthcare. date2024-06-04