Ministry of Trade, Industry and Energy

Delivery ceremony of 1st homegrown engine for Korea’s self-propelled howitzers

The Ministry of Trade, Industry and Energy (MOTIE) and the Defense Acquisition Program Administration (DAPA) of the Republic of Korea held the delivery ceremony of the first homegrown engine for Korea’s self-propelled howitzers, the K9 Thunders, on September 27 at STX Engine’s Changwon plant. MOTIE Vice Minister Park underscored the importance of self-reliance in the production of vital defense materials and parts for Korea’s defense industry to keep up its pace amid the intensifying global exports race, vowing that the ministry will make further effort to secure critical technology for high value-added defense materials, parts, and equipment. The ceremony was attended by 60 persons including MOTIE Vice Minister Sungtaek Park, DAPA Minister Seok Jong-gun, STX Engine CEO Lee Sang-su, and Hanwha Aerospace Vice President Moon Ji-hoon. date2024-09-27

Korea’s first homegrown self-propelled howitzer engine ready for mass production, to enter global market in 2025

The Ministry of Trade, Industry and Energy (MOTIE) and the Defense Acquisition Program Administration (DAPA) of the Republic of Korea held the delivery ceremony of the first homegrown engine for Korea’s self-propelled howitzers, the K9 Thunders, today at STX Engine’s Changwon plant.  The ceremony was attended by 60 persons including MOTIE Vice Minister Sungtaek Park, DAPA Minister Seok Jong-gun, STX Engine CEO Lee Sang-su, and Hanwha Aerospace Vice President Moon Ji-hoon. In September 2020, MOTIE and DAPA entered into a memorandum of understanding (MOU) on technology cooperation for the localization of primary defense materials and parts and in following April, they launched the project for developing homegrown self-propelled howitzer engines. Within three years, they succeeded in the localization and mass production of approximately 500 key engine parts, resulting in a purely homegrown engine with enhanced performance and economic feasibility. The feat is anticipated to widen the path for the K9 Thunders’ global market entry. MOTIE Vice Minister Park underscored the importance of self-reliance in the production of vital defense materials and parts for Korea’s defense industry to keep up its pace amid the intensifying global exports race, vowing that the ministry will make further effort to secure critical technology for high value-added defense materials, parts, and equipment (“MPE”). DAPA Minister Seok remarked that the K9 Thunder has positioned itself as Korea’s high-end weapon, thanks to the localization of its engine via collaboration with MOTIE. He shared plans to bolster interministerial cooperation on the occasion of the achievement. MOTIE and DAPA aim to jointly develop next-generation prime technologies for hydrogen fuel cell systems and high-tech aircraft engines, while also working closely to secure 60 critical MPE technologies across five major advanced defense areas such as defense semiconductors.   date2024-09-27

Korea plans to raise corporate AI deployment rate to 70% by 2030

The Ministry of Trade, Industry and Energy (MOTIE) announced today that Korea’s President Yoon Suk Yeol chaired the first National Artificial Intelligence (AI) Committee meeting in Seoul with the participation of academia and industry experts for discussions on Korea’s national AI strategy, measures for the diffusion of industrial AI transformation (AX), and private sector investment plans. Noting that AI in itself is of massive industrial value as an important foundational technology with prospects of creating enormous up- and downstream impact across all sectors, President Yoon highlighted that successful AI deployment over diverse industries will generate far-reaching economic effect. At the inaugural Committee meeting, MOTIE reported policy measures for the diffusion of AX, articulating plans to raise the level of corporate AI utilization rate (currently 31 percent) and the AI deployment rate at manufacturing sites (currently 5 percent) to 70 percent and 40 percent by 2030, respectively, through Korea’s three pillar industrial AX projects. They include the implementation of over 300 anchor projects for manufacturing and service industries by 2027 to provide concentrated R&D, finance, and consulting assistance toward projects involving the participation of buyer and supplier firms in AI solution, robot, and equipment, for which the first batch of 25 projects will be selected next month.  Under the industrial AX projects, the ministry further plans to announce measures in the near future for supporting the AI semiconductor ecosystem, while also pushing the establishment of an industrial data integration platform. First, a carbon data platform will be developed by 2027 with focus on the five most carbon-intensive sectors—steel and aluminum, battery, automobiles, home appliances, and textiles—on which risks are highest with regard to major countries’ carbon regulatory measures. The platform will then be extended to cover data on core sectors’ processes and supply chains as well. In addition to the three pillar projects, MOTIE will mull the prospects of nurturing an AI-specialized complex, training AX professional manpower through in-company graduate courses on AX, increasing tax incentives for key AX technology, and injecting a KRW 3.5 billion-plus policy funding into the AI field. Under the AI Industrial Policy Committee launched in May, MOTIE will be operating an AX Alliance for propelling anchor projects forward and a public-private industrial AX law forum to facilitate discussions on legal and institutional matters in an effort to boost the systematic drive for AX diffusion.  On reviewing the bills containing the aforesaid plans, President Yoon asked that all ministries actively cooperate as members of the National AI Committee to successfully accelerate the AI transition across Korea’s social and industrial landscape.   date2024-09-26

Korea’s retail industry grows 9.2% in August

The Ministry of Trade, Industry and Energy (MOTIE) announced today that Korea’s retail industry advanced 9.2 percent year-on-year for the month of August 2024, with offline and online sales increasing 5.0 percent and 13.9 percent, respectively. MOTIE's monthly retail sales figures are based on surveys of 23 major retailers. Thirteen of them are brick-and-mortar retailers: three department store chains, three hypermarket chains, three convenience store chains, and four super supermarket (SSMs) operators. The remaining 10 are online retailers. Sales increased offline at department stores and hypermarkets as the heat wave (+10 days) and holidays both lengthened (+1) by number of days, in addition to the Chuseok holidays landing earlier by over a week this year compared to 2023. Convenience stores and SSM operators also rose in sales. By offline retail channel, hypermarket sales soared 5.9 percent overall, led by Chuseok gift purchases driving food product sales (up 9.9 percent). Meanwhile, non-food product categories (down 3.7 percent) mostly declined with the exception of clothing (up 4.5 percent). Department store sales hiked 4.4 percent, boosted by food product purchases (up 18.7 percent) soaring on the backs of Chuseok gift consumption. The heat wave and higher number of holidays (+1) drew more visitors to department stores, raising sales across all categories. Convenience store sales rose 4.5 percent overall, with beverages/processed food products (up 6.5 percent) growing from ice cream and beverage sales. Instant food products (up 1.8 percent), foreign tourists’ transit card, and tobacco sales all increased. SSM operators climbed 6.7 percent, with food products (up 7.5 percent) enjoying robust sales in conjunction with increased demand for homecooked meals and seasonal goods like agricultural, fishery, and livestock items (up 8.7 percent), fresh goods (up 6.8 percent), and processed food products (up 6.4 percent). Online retail sales surged 13.9 percent as the heat wave fueled demand for stamina health foods and food delivery, increasing sales of service/other (up 60.4 percent) and food products (up 19.8 percent). Demand for companion animal goods, cosmetic products (up 11.2 percent), and living furniture (up 10.8 percent) expanded, while fashion/clothing (down 17.8 percent) and sports (down 12.7 percent) continued to slow.   date2024-09-24

3rd Korean-German Industry Working Group meeting

Industry Policy Deputy Minister Lee Seung-ryeol attended the 3rd Korean-German Industry Working Group meeting on September 24 in Seoul with Bernhard Kluttig, Director for Industrial Policy at the German Federal Ministry for Economic Affairs and Climate Protection and discussed measures for industrial supply chain data platform cooperation, supply chain emergency response, and automotive industry issues. date2024-09-24

Global standards-setting on track to claim super gap in advanced industries

On Tuesday, September 24, the Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) held the Advanced Industry Standards Leadership Forum, bringing together leaders from academia, industry, and research to review key achievements under the National Standardization Strategy for Advanced Industries jointly announced by the public and private sectors during a previous forum in May. The key achievements include the timely development of international and national standards in 12 advanced industries including semiconductors and AI, strengthening international cooperation, expanding industrial standardization activities, and nurturing a standardization infrastructure for training standardization professionals. Through a concentrated national effort based on the standardization strategy for advanced industries, Korea developed and proposed 50 international standards from January–August in 12 advanced industries including artificial intelligence and displays—more than double the number compared to previous years. * Number of international standard proposals in 12 advanced industries by year: 23 (2022) → 23 (2023) → 50 (Jan–Aug. 2024) Notably, two international standards were proposed for performance evaluation of displays used in rollable and foldable phones (including multi-folding models) under development by Korean and overseas companies, laying the groundwork for proper assessment of Korea's leading technologies. Additionally, three international standards were proposed to lead in AI technologies, including guidelines for lightweight AI systems applicable to on-device AI, such as smartphones. The increase in these international standard proposal activities has also resulted in a growing number of Korean executives leading international standard development at organizations like the Joint Technical Committee on Quantum Technologies (JTC3). As of August 2024, the number of Korean executives in these roles reached 274, up from 263 of the previous year.   date2024-09-24

Korean autonomous driving traffic signal data standard adopted as U.S. standard

Korea’s proposed Traffic Light Signal Message (TLSM) standard for autonomous driving data has been adopted in the 2024 revision of the U.S. Society of Automotive Engineers (SAE) standard (SAE J2735*), the de facto international standard in the autonomous vehicle sector, which was published on September 16 (U.S. local time). * SAE J2735 (V2X Communication Message Set Dictionary): A standard that defines data formats for autonomous driving, such as Traffic Light Signal Messages (TLSM), widely used as the dominant standard in the global autonomous driving industry. The Korean Agency for Technology and Standards (KATS, President Jin Jong-wook) has been actively engaged in standard cooperation, including participation in SAE standard revision activities, based on the MOU signed with SAE in 2023. This achievement is the result of proposing the content of KS R 1600-3 (Traffic Signal Data)—developed by the Korean National Police Agency and the Korea Road Traffic Authority, and currently in the process of becoming a Korean Standard (KS) under the direction of KATS—for inclusion in the SAE J2735 revision, which was accepted. Since 2020, KATS has been working with relevant government agencies and industries to develop national standards for autonomous driving data (KS R 1600 1-7*). Standardizing data formats for autonomous driving is crucial not only for improving basic safety in communication among autonomous vehicles, traffic infrastructure, and smart devices, but also for expanding future mobility business models, such as car-sharing and remote monitoring. * Seven Korean Standards (KS) related to autonomous driving, including data usage scenarios, vehicle information, traffic signals, maps, control systems, and pedestrian safety data, are under development, with completion targeted for 2025. KATS President Jin Jong-wook stated, "This is the first case where our autonomous driving data standard has been internationally recognized. KATS will continue to pursue the establishment of Korean Standards (KS) for autonomous driving data, which serve as the foundation for building autonomous driving infrastructure and invigorating the industry. We will also support the globalization of Korean technology through international cooperation, including Korea-U.S. standard collaboration." Korean National Police Agency Commissioner General Cho Ji-ho remarked, "The inclusion of Korea's traffic signal data in the U.S. standard is the result of interagency collaboration for the commercialization of autonomous driving. As standardized traffic signal information is essential not only for autonomous vehicles but also for the safe operation of future mobility, we ask for continued support and interest in expanding the infrastructure for data collection and provision."   date2024-09-24

Korea’s automobile exports log $5.1 bln in August

The Ministry of Trade, Industry and Energy (MOTIE) announced today that Korea’s automobile exports for August 2024 reached USD 5.1 billion, logging the second highest export value for the month despite the slight decline year-on-year. The accumulated export value through January–August totaled $47.4 billion, outpacing last year’s all-time high by 1.3 percent. The monthly value of hybrid electric vehicle (HEV) exports ($1.07 billion) soared 61.9 percent in terms of shipment volume, surpassing the previous high achieved in April last year ($1.06 billion). Exports of automotive parts sank 3.5 percent to $1.8 billion, impacted by the industry’s lower number of working days (-1 weekday) compared to last year. Domestic production decreased 7.1 percent to 289,948 units amid the ongoing facility repair at Kia’s Hwaseong plant and GM Korea’s Bupyeong plant, as well as the wage and collective bargaining agreement (CBA) negotiations at GM Korea. Major automakers have settled negotiations, setting off anticipation of revitalized exports and production in September. Domestic sales shrank 1.9 percent to 128,199 units. Meanwhile, sales of HEVs (up 21.5 percent) and EVs (up 60.0 percent) both posted double-digit growth, boosting the overall domestic sales of eco-friendly cars to 51,366 units (up 29.7 percent).   date2024-09-19

Vice Minister attends Defense Industry and Design Convergence Forum

Vice Minister Sungtaek Park at the Ministry of Trade, Industry and Energy (MOTIE) attended Korea’s first Defense Industry and Design Convergence Forum on September 13 at the Korea Institute of Design Promotion (KIDP) in Gyeonggi Province following the signing of a memorandum of understanding (MOU) for stronger collaboration in weapon systems design, with the participation of 30 related institutions including the Korea Defense Industry Association (KDIA) and design and defense specialized companies. date2024-09-13

Korea’s ICT exports climb 28.5% in August

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that Korea’s export and import of information and communication technology (ICT) goods for the month of August 2024 reached USD 20.6 billion and $11.6 billion, respectively, and the trade balance stood at an estimated surplus of $9.0 billion. ICT exports (up 28.5 percent year-on-year) logged double-digit growth for the eighth consecutive month on the backs of robust growth of semiconductors (up 37.6 percent), mobile phones (up 60.1 percent), and computers and peripherals (up 144.2 percent). By item, semiconductors posted double-digit growth for the 10th consecutive month as memory chips (up 71.7 percent to $7.3 billion) and system chips (up 2.7 percent to $4.1 billion) simultaneously advanced. Mobile phone exports surged over 60 percent as finished products (up 95.0 percent to $0.3 billion) and parts (up 53.0 percent to $1.3 billion) enjoyed strong demand. Computers and peripherals skyrocketed as solid-state drives (SSDs) hit a monthly export value of $1.3 billion (up 249.8 percent). By region, exports increased for most destinations, including China (including Hong Kong) (up 27.0 percent), Vietnam (up 7.5 percent), the U.S. (up 57.6 percent), and the EU (up 44.3 percent), whereas exports to Japan declined (down 17.2 percent).   date2024-09-13