Ministry of Trade, Industry and Energy

Automobile Industry Outlook for 2015

– South Korea’s car output is expected to increase in 2015, according to an industry outlook jointly released today by the Ministry of Trade, Industry and Energy (MOTIE) and the Korea Automobile Manufacturers Association (KAMA).   The global automobile industry is showing signs of recovery thanks to US and European economic recovery and steady economic growth in China and India. However, demand could still shrink due to economic recession in emerging markets, the MOTIE said in its statement.   In 2015, the country’s vehicle production and exports are expected to rise, thanks to continued growth in exports to North America, also a reduction in tariffs on cars, and high domestic demand for replacement of older vehicles. Under the South Korea-EU FTA, tariffs on vehicles with emissions of less than 1500cc will be additionally reduced from 3.3 percent to 1.6 percent from July 2015.   ㆍ Domestic production _ 2013:4,521[Growth:-0.9], 2014(Estimated):4,450[Growth:-1.6], 2015 Outlook:4,500[Growth:1.1] ㆍOverseas production _ 2013:4,108[Growth:13.0], 2014(Estimated):4,400[Growth:-7.1], 2015 Outlook:4,600[Growth:4.5] ㆍExports _ 2013:3,089[Growth:-2.6], 2014(Estimated):3,050[Growth:-1.3], 2015 Outlook:3,100[Growth:1.6] ㆍExports(Value) _ 2013:486[Growth:3.0], 2014(Estimated):496[Growth:2.0], 2015 Outlook:512[Growth:3.2] ㆍAuto parts(Value) _ 2013:261[Growth:6.0], 2014(Estimated):265[Growth:1.6], 2015 Outlook:270[Growth:1.9] ㆍDomestic sales _ 2013:1,540[Growth:-0.1], 2014(Estimated):1,610[Growth:4.2], 2015 Outlook:1,650[Growth:2.5] ㆍDomestic cars _ 2013:1,383[Growth:-2.7], 2014(Estimated):1,400[Growth:1.2], 2015 Outlook:1,400[Growth:0.0] ㆍImported cars _ 2013:156[Growth20.0], 2014(Estimated):210[Growth:29.7], 2015 Outlook:250[Growth:19.0] (Thousand units, US$ hundred million, %) Source: KAMA   Estimated figures show that domestic sales of finished cars increased 8.2 percent in the year to last month thanks to restyling and strong sales of imported cars.   Vehicle output and exports decreased 4.7 percent and 4.0 percent respectively in November from a year due to market uncertainty in Eastern Europe and General Motors’ withdrawal of its Chevrolet brand from Western Europe.   Auto parts sales fell 9.3 percent in November from a year earlier due to continued recession in emerging markets.   ㆍNov.2014 _ Production:406,491 / Domestic sales:144,909 / Domestic cars:124,514 / Imported cars:20,395 / Exports:274,757 / Exports(Value):43.5 / Auto parts(Value):19.5 ㆍMonth-on-month _ Production:11.5 / Domestic sales:4.5 / Domestic cars:3.1 / Imported cars:13.6 / Exports:13.9 / Exports(Value):-15.0 / Auto parts(Value):-20.4 ㆍYear-on-year _ Production:-4.7 / Domestic sales:8.2 / Domestic cars:3.8 / Imported cars:46.4 / Exports:-4.0 / Exports(Value):-5.5 / Auto parts(Value):-9.3 ㆍJan.-Nov.2014 _ Production:4,090,162 / Domestic sales:1,488,414 / Domestic cars:1,294,260 / Imported cars:194,154 / Exports:2,760,040 / Exports(Value):441.9 / Auto parts(Value):24,325 ㆍYear-on-year _ Production:-0.3 / Domestic sales:6.1 / Domestic cars:2.8 / Imported cars:34.6 / Exports:-1.4 / Exports(Value):0.6 / Auto parts(Value):2.3 (Unit: %, US$ million)   For inquiry, contact the foreign media spokesman’s office at motiefmso@gmail.com date2014-12-24

Sales Trend of Major Retailers for October 2014

November 26, 2014 –South Korea’s three biggest department stores saw their combined sales fall by 2.2 percent in October from a year earlier, data provided by the Ministry of Trade, Industry and Energy (MOTIE) showed today. 1. Non-food - Miscellaneous : Same month in 2013(-3.5), Previous month(1.9) - Women’s suit : Same month in 2013(-3.8), Previous month(22.2) - Women’s casual : Same month in 2013(-0.8), Previous month(26.5) - Men’s clothing : Same month in 2013(-6.5), Previous month(31.3) - Kids’ sports : Same month in 2013(-1.6), Previous month(29.8) - House-hold goods : Same month in 2013(-3.1), Previous month(22.0) - Overseas brand : Same month in 2013(-2.1), Previous month(4.7) - Sub-total : Same month in 2013(-2.9), Previous month(17.3) 2.Food : Same month in 2013(3.8), Previous month(-21.4) 3.Total : Same month in 2013(-2.2), Previous month(10.5) Sales at the nation’s major discount-store chains, including E-Mart, Lotte Mart and Homeplus, were also down by 0.9 percent last month compared to a year ago, according to the data. 1. Non-food - Home appliance cultural goods : Same month in 2013(5.9), Previous month(-2.9) - Clothing : Same month in 2013(-1.6), Previous month(5.2) - Household goods : Same month in 2013(-3.0), Previous month(-10.2) - Sports : Same month in 2013(-4.6), Previous month(2.4) - Miscellaneous : Same month in 2013(-5.7), Previous month(-32.9) - Sub-total : Same month in 2013(-1.0), Previous month(-8.4) 2. Food: Same month in 2013(-0.3), Previous month(-18.6) 3. Total: Same month in 2013(-0.9), Previous month(-10.7) Compared with the previous month, sales at the major department stores, including Hyundai Department Store, Lotte Shopping and Shinsegae, were up by 10.5 percent, while sales of the big three discount chains dropped by 10.7 percent. Sales at convenience stores grew by 6.1 percent from a year earlier, but were down 4.0 percent from the previous month. For inquiry, contact the foreign media spokesman’s office at motiefmso@gmail.com date2014-12-24

Roadmap for 3D Printing Strategic Technology Released

November 25, 2014 – The Ministry of Trade, Industry and Energy (MOTIE) and the Ministry of Science, ICT and Future Planning (MSIP) held a public briefing today at the Hilton Hotel in Seoul to release the 3D printing technology roadmap, MOTIE announced in a statement. The roadmap was established as a follow-up measure to the ‘3D printing industry development strategies’ determined by the National Science & Technology Council in April. About 200 representatives from the industrial, academic, research and government sectors, including Baek Gi-hun, Chief of Information and Communications Convergence Policy Office at the MSIO and Mun Seung-wuk, MOTIE’s System Industry Officer, attended the meeting, MOTIE said. According to the roadmap, the ten key areas the government will focus on for the next ten years are divided into eight product areas, which are medicine, die & mold, culture and defense, electricity and electronics, cars, airlines, ship building and energy, and two service areas of design and distribution. The South Korean government presented 15 major strategic technologies in the areas of equipment, material and software for 3D printing to foster these ten areas. MOTIE said that the two government agencies will confirm the roadmap by the end of this year and present it as a guideline for inter-agency cooperation and 3D printing related R&D projects. For inquiry, contact the foreign media spokesman’s office at motiefmso@gmail.com date2014-12-24

Root Companies Will Easily Recruit Foreign Students

date2014-08-14

Korea’s Car Industry Recorded Growth in Finished Goods Production, Domestic Sales, Exports and Parts Shipment

* (JD Power, US, July 23) Hyundai Motor Company topped the 2014 APEAL (IDSA, July 22), while the KIA Soul won a Silver Prize at the IDEA Awards in 2014 ** (July 1, 2014, passenger vehicles) Larger than 1,500cc: 2.0%→0% / 1,500cc or below: 5.0%→3.3% The industry also recorded its highest-ever monthly exports of car parts, at USD 2.47 billion, thanks to robust exports to the US and China, Korea’s largest export destinations. ○ Jul 2014 - Production : 409.283 - Domestic Sales : 146,226 - Domestic Cars : 128,114 - Imported Cars : 18,112 - Exports : 266,741 - (Amount) : 43.0 - Car Parts : 24.7 ○ Month-on-Month - Production : 7.6 - Domestic Sales : 4.5 - Domestic Cars : 5.0 - Imported Cars : 1.7 - Exports : 3.2 - (Amount) : 5.4 - Car Parts : 17.2 ○ Year-on-Year - Production : 22.4 - Domestic Sales : 4.0 - Domestic Cars : 1.9 - Imported Cars : 21.1 - Exports : 16.0 - (Amount) : 20.8 - Car Parts : 12.6 ○ Jan through Jul 2014 - Production : 2,751,825 - Domestic Sales : 953,289 - Domestic Cars : 840,914 - Imported Cars : 112,375 - Exports : 1,866,624 - (Amount) : 297.7 - Car Parts : 158.7 ○Year-on-Year - Production : 5.1 - Domestic Sales : 6.8 - Domestic Cars : 4.7 - Imported Cars : 25.6 - Exports : 2.6 - (Amount) : 6.0 - Car Parts : 5.6 date2014-08-08

Development of a Fully Fledged Robotics Industry through Convergence with Other Industries

The 1st Vice Minister for Industry in the Ministry of Trade, Industry and Energy said, “In order to develop the Korean robotics industry into a key industry, we need to secure core technology and increase the demand for robots within the business and service models of other industries. The government will provide intensive support.” Before announcing the 2nd master plan, the Ministry of Trade, Industry and Energy, released the following results of the 2013 robotics industry survey (July 2014, Korea Institute for Robot Industry Advancement). ▴Domestic robotics market (production): KRW 2.1 trillion in 2012 → KRW 2.2 trillion in 2013 (up 4.1%) ▴Robotics exports: KRW 595.3 billion in 2012 → KRW 737.6 billion in 2013 (up 23.9%) ▴Number of robotics businesses: 368 in 2012 → 402 in 2013 (up 9.2%) ▴Number of jobs in the robotics industry: 10,515 in 2012 → 11,478 in 2013 (up 9.2%) date2014-07-28

Sales Trends of Major Distributor for June 2014

The sales of supermarkets declined by 5.9% year-on-year and by 6.7% month-on-month in June 2014. The overall sales decline is attributed to the weaker seasonal sales due to temperatures being lower than in the previous year, as well as there being less operating days on holidays (-1 day). Quarterly sales also declined for the ninth consecutive quarter since the 2nd quarter of 2012, but the pace of the sales decline has been slowed. * Year-on-year sales growth/decline by quarter: (1Q 2012)0.1, (2Q 2012)-5.1, (3Q 2012)-3.8, (4Q 2012)-4.5, (1Q 2013)-8.4, (2Q 2013)-3.4, (3Q 2013)-4.3, (4Q 2013)-3.8, (1Q 2014) -3.3, (2Q 2014) -2.9 As the sales growth in May 2014 due to the seasonal demand in the so-called Month of Family has been normalized, overall sales has declined month-on-month in June 2014.   [Sales Growth Rate by Category] Non-Foods ○ Home Appliances and Culture - Year-on-Year (Monthly) : 0.5 - Year-on-Year (Quarterly) : 5.7 - Month-on-Month : -7.1 ○ Apparel - Year-on-Year (Monthly) : -14.7 - Year-on-Year (Quarterly) : -9.2 - Month-on-Month : -20.6 ○ Household Supplies - Year-on-Year (Monthly) : -7.8 - Year-on-Year (Quarterly) : -4.9 - Month-on-Month : -1.8 ○ Sports - Year-on-Year (Monthly) : -10.9 - Year-on-Year (Quarterly) : -4.6 - Month-on-Month : -11.2 ○ General Merchandise - Year-on-Year (Monthly) : -13.3 - Year-on-Year (Quarterly) : -8.8 - Month-on-Month : -10.1 ○ Subtotal - Year-on-Year (Monthly) : -7.6 - Year-on-Year (Quarterly) : -3.4 - Month-on-Month : -7.8     ○ Foods - Year-on-Year (Monthly) : -4.5 - Year-on-Year (Quarterly) : -2.5 - Month-on-Month : -4.3 ○ Total - Year-on-Year (Monthly) : -5.9 - Year-on-Year (Quarterly) : -2.9 - Month-on-Month : -6.7       Sales of department stores also declined by 4.6% year-on-year, and by 14.1% month-onmonth. There was a particularly strong decline in the apparel category due to the worsened consumer confidence compared to the same period of the previous year, and the sales declined in most categories. Year-on-year quarterly sales also declined, for the first time since the 3rd quarter of 2012. * Year-on-Year Quarterly Sales Growth/Decline : (1Q 2012)-0.2, (2Q 2012)-1.4, (3Q 2012)-2.9, (4Q 2012)2.6, (1Q 2013)0.0, (2Q 2013)1.0, (3Q 2013)2.4, (4Q 2013)1.0, (1Q 2014) 1.1, (2Q 2014) -1.6 As the sales growth in May 2014 due to the seasonal demand in the so-called Month of Family has been normalized, the overall sales has declined month-on-month in June 2014.     [Sales Growth Rates by Product of Department Stores] Non-foods ○ General Merchandise - Year-on-Year (Monthly) : -5.8 - Year-on-Year (Quarterly) : -3.7 - Month-on-Month : -21.5 ○ Women’s Formal Dress - Year-on-Year (Monthly) : -3.6 - Year-on-Year (Quarterly) : -2.3 - Month-on-Month : -10.0 ○ Women’s Casual - Year-on-Year (Monthly) : -6.7 - Year-on-Year (Quarterly) : -4.7 - Month-on-Month : -17.4 ○ Men’s Apparel - Year-on-Year (Monthly) : -12.4 - Year-on-Year (Quarterly) : -5.7 - Month-on-Month : -10.7 ○Kids & Sports - Year-on-Year (Monthly) : -4.9 - Year-on-Year (Quarterly) : -0.6 - Month-on-Month : -23.9 ○Household Supplies - Year-on-Year (Monthly) : -1.3 - Year-on-Year (Quarterly) : 2.3 - Month-on-Month : -1.9 ○Foreign Premium Brands - Year-on-Year (Monthly) : -1.6 - Year-on-Year (Quarterly) : 2.2 - Month-on-Month : -4.7 ○Subtotal - Year-on-Year (Monthly) : -5.1 - Year-on-Year (Quarterly) : -1.9 - Month-on-Month : -14.9 ○Foods - Year-on-Year (Monthly) : -0.2 - Year-on-Year (Quarterly) : 1.3 - Month-on-Month : -9.1 ○Total - Year-on-Year (Monthly) : -4.6 - Year-on-Year (Quarterly) : -1.6 - Month-on-Month : -14.1 Sales of convenience stores grew by 6.3% year-on-year, and declined by 0.5% month-on-month. While sales grew compared to the previous year thanks to the increase of stores and the incr date2014-07-25

Korea’s Car Sales for 2014 1H and Outlook for 2014 2H

The Ministry of Trade, Industry and Energy (Minister Yoon Sang-jick) announced provisionally that the car industry had produced 2,342,578 units, sold 807,063 units in the domestic markets and exported 1,596,198 units in the 1st half of 2014, showing year-on-year growth of 2.6%, 7.3% and 0.4%, respectively. < Overview of the Car Industry Results (Unit: 1 unit, %, USD 0.1 billion) > ○ June 2014 - Production : 380,456 - Domestic Sales : 139,864 - Korean Cars : 122,061 - Imported Cars : date2014-07-11

Labor Productivity of All Industries in the 1st Quarter of 2014 Grew by 1.1% Year-on-Year

Ministry of Trade, Industry and Energy (Minister: Yoon Sang-jick) and Korea Productivity Center (Chairman Jin Hong) jointly analyzed the labor productivity index of all industries for the quarter. According to the analysis result, the labor productivity index of all industries for the 1st quarter of 2014 was 99.0 (2020: 100), a year-on-year increase of 1.1% and showing moderate growth for the third consecutive quarter. Prompted by the base effect, capital investment in the 1st quarter of 2014 grew by 7.3% (1st quarter of 2013: -12.7%), and both industrial production and labor input of all industries grew compared to the same period in the previous year, thanks to the moderate growth of consumption and export. In terms of industrial production, production of all industries grew by 1.6% year-on-year, thanks to the growth in production of major sectors including manufacturing (0.6%), services (1.8%) and construction (6.5%). As for labor input, the number of employees grew by 1.3% compared to the same period in the previous year, while the labor hours declined by 0.7% with labor input growth of all industries as 0.6%. Looking at labor productivity by industry, the service sector showed productivity growth of 3.0% compared to the same period in the previous year, thanks to production growth and labor input decline, while the manufacturing sector and the construction sector recorded productivity growth rates of -1.6% and -3.1%, respectively, as there was more labor input than production growth. Real value added of all industries grew by 4.2% year-on-year, as the gradual growth has continued since the 1st quarter of 2013 (2.2%). The value added labor productivity by industry of the manufacturing sector and the service sector grew by 3.3% and 3.2%, respectively, compared to the same period in the previous year, driving the growth of value added labor productivity of all industries (construction sector: -6.9%). date2014-07-04

Nano Korea 2014 Will Showcase the Locomotives of the Creative Economy

The International Nanotech Symposium will include themed lectures addressing characteristics and trends in nanotechnology, with the slogan “Nanotechnology: Locomotive of the Creative Economy”. In addition, diverse programs will be running for students and female scientists. A discussion of career paths in the nanotech industry, as well as accessible lectures and experiments, will take place in order to give young adults more exposure to nanotechnology. “Women in Nano” is a cooperative session organized by the Association of Korean Women Scientists and Engineers, It is designed to encourage participation by female scientists in Nano Korea 2014. Director Man-ki Jeong said, “I believe this event will provide practical assistance to nano businesses. The government will concentrate policy initiatives to achieve fully-fledged commercialization of nanotechnology and technology convergence.” First Deputy Minister Sang-mok Lee said, “I will be actively supporting Nano Korea 2014 in cooperation with the Ministry of Trade, Industry and Energy, in order to move valuable research achievements towards commercialization, and boost nanotech foundations and exchange.” Deputy Director Song Jeong-hun, Export and Import Division (044-203-4042) date2014-07-02