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Industry
Korea's retail industry grows 13.7% in February
The Ministry of Trade, Industry and Energy (MOTIE) announced on March 26 that Korea’s retail sales for February increased 13.7 percent year-on-year. Offline sales shot up 11.5 percent along with higher number of working days, and all categories showed growth, led by food products (up 20.8 percent). Online sales hiked 15.7 percent on the backs of growing demand for Seollal holiday travel packages, products related to graduation and performances and convenience foods and e-coupons. By item, sales of food products (up 26.7 percent), service/other (up 13.6 percent) and living/home (up 12.8 percent) advanced. MOTIE releases monthly retail sales figures based on surveys of 25 major retailers. Thirteen of them are brick-and-mortar retailers: three department store chains, three hypermarket chains, three convenience store chains, and four SSM operators. The remaining 12 are online retailers. By offline channel type, sales at hypermarket chains leaped 21.0 percent as a result of inflation and Seollal holiday effect, with growth seen across all items aside from home appliances/culture (down 2.2 percent). Department store chains gained 7.2 percent in overall sales despite the drop in women’s suit (down 8.1. percent) and household goods (down 2.5 percent), as foreign designer labels (up 6.4 percent) and miscellaneous goods (up 3.3 percent) rose. Convenience stores advanced 9.4 percent, with strong growth in cost-effective food items like beverages/processed food products (up 11.2 percent) and instant food products (up 8.4 percent). Demand for school supplies and stationery sales boosted sales of all items, including daily necessities (up 16.1 percent) and miscellaneous goods (up 13.7 percent). SSM operators posted a 12.6 percent jump overall, as agriculture, fishery, and livestock products (up 15.7 percent), processed food products (up 15.0 percent), fresh/prepared foods (up 6.8 percent), daily necessities (up 6.8 percent) and all other items recorded growth. As for sales per store, hypermarkets (up 22.9 percent), department stores (up 7.2 percent), convenient stores (up 5.1 percent), and SSM operators (up 8.2 percent) all increased. Online retail sales (up 15.7 percent) contracted in fashion/clothing (down 9.5 percent) and sports (down 4.3 percent) due to inflation and decline in consumer sentiment, but other items enjoyed growth from the Seollal holiday effect and cheap price promotion events. Holiday gift items, instant food products and bulk convenience food products met robust demand, driving online sales of overall food products (up 36.2 percent). date2024-03-26
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Industry
Korea and EU enter 3rd official negotiating round for bilateral digital trade agreement
The Ministry of Trade, Industry and Energy (MOTIE) announced on March 25 that the third official negotiating round for the Korea-EU Digital Trade Agreement is to be held through March 25-27 in Brussels, Belgium, with approximately 30 persons participating in the two countries’ government delegations. Having agreed on establishing the bilateral digital trade agreement in accordance with the high standards of the Korea-EU digital trade principles laid down in November 2022 on securing consumer and business confidence, facilitating digital trade, and taking joint response against digital protectionism, the two sides declared the launch of negotiations in October last year, followed by two rounds of official negotiations. This third negotiating round will aim to make headway by establishing the stance of both sides through discussions per each clause and narrowing differences in opinion. The Korea-EU digital trade agreement is anticipated to set the rules for the digital economy and accelerate digital innovation through the introduction of new trade rules, while enhancing firms’ business competitiveness by expanding Korea’s digital trade network with the EU, the world’s vast economic bloc. date2024-03-25
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Industry
Minister Ahn chairs conference on overseas resources development
Trade, Industry and Energy Minister Dukgeun Ahn chaired a conference with major overseas resources development companies on March 21 at Lotte Hotel Seoul, where he announced the “Public-Private Joint Strategy on Overseas Resources Development”. The meeting was attended by representatives of major overseas resources development companies and public institutions, including SK E&S, LX International, and Korea National Oil Corporation (KNOC). date2024-03-21
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Industry
Minister Ahn visits SK Hynix Yongin semiconductor cluster
Trade, Industry and Energy Minister Dukgeun Ahn visited the SK Hynix Yongin semiconductor cluster in Gyeonggi Province on March 21 to receive a briefing on construction progress and gather suggestions on site, and toured the production line for HBMs and cutting-edge memory chips. date2024-03-21
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Industry
MOTIE announces “Public-Private Joint Strategy on Overseas Resources Development”
Trade, Industry and Energy Minister Dukgeun Ahn chaired a conference with major overseas resources development companies on March 21 at Lotte Hotel Seoul, where he announced the “Public-Private Joint Strategy on Overseas Resources Development”. Amid intensifying energy supply chain uncertainties caused by growing geopolitical risks and the global race for dominance over critical resources, the Korean government is seeking to restore the ecosystem for overseas resources development in order to stabilize the supply chain of key resources as a national policy task. Accordingly, the Ministry of Trade, Industry and Energy (MOTIE) collected opinions from industries, experts, and related ministries in establishing the “Public-Private Joint Strategy on Overseas Resources Development”. Taking note of past policy outcomes and limitations, the above strategy was established in line with the following three policy aims: invigorating the ecosystem of private-led resources development; strengthening national resources security; and securing policy coherence. The Government plans to stimulate private-led resources development by increasing financial and tax incentives, launching project tasks for mid-to-long term technology development and talent training, invigorating domestic resources development, strengthening public companies’ support for private firms, and bolstering resources diplomacy with resource-rich countries. Minister Ahn emphasized that public-private cooperation is of utmost importance in stimulating the ecosystem for overseas resources development, as securing a stable energy resources supply chain is a priority task for economic stability and development of advanced industries. date2024-03-21
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Industry
MOTIE to support groundbreaking for cutting-edge memory chip fab slated for March 2025
Trade, Industry and Energy Minister Dukgeun Ahn, on March 21, visited SK Hynix’s Yongin Semiconductor Cluster, a pillar of the semiconductor mega cluster plan announced during the public forum in January. Approximately 35 percent of Fab 1 has been completed so far and site renovation is in smooth progress. By 2046, over KRW 120 trillion in investment will be poured to complete Fabs 1 through 4, and construction of Fab 1’s production line will commence in March next year. Once completed, the infrastructure will rank as the world’s largest three-story fab. Having launched an electrical power supply task force in February this year to support the completion of cluster infrastructure, MOTIE plans to form another task force by March to steer the establishment of the high-tech specialization cluster for chips and other advanced industries. Amid increasing demand for AI chips and high bandwidth memory (HBM), the ministry will aim to swiftly establish a comprehensive strategy for dominance in the AI chip market and devise measures for strengthening chip equipment competitiveness within the first half of this year. MOTIE also plans to push forward the prefeasibility study for minifab projects in the Yongin testbed and inject policy funding to competent fabless and MPE (materials, parts, equipment) companies. date2024-03-21
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Industry
Korea's accumulated Jan-Feb automobile exports grow 7.5% YoY
The Ministry of Trade, Industry and Energy (MOTIE) announced on March 19 that the accumulated January-February exports of automobiles in 2024 reached USD 11.4 billion, up 7.5 percent year-on-year. The export unit price is also on an upward trajectory lately, around $1,000 higher than that recorded early last year. February automobile exports recorded a monthly decline of 7.8 percent year-on-year at $5.2 billion, attributable to the relatively lower number of shipping days and the high base effect from last year’s steep climb, in addition to automakers’ production line maintenance work for future mobility transition. This year’s accumulated number of automobiles produced from January-February grew 0.7 percent year-on-year to 658,923 units, with February’s monthly production volume alone surpassing 300,000 units despite the lower number of working days owing to the Seollal holidays. Meanwhile, domestic car sales from January-February shrank 11.9 percent year-on-year to 232,217 units, but it is anticipated that sales will pick up pace once more as electric vehicle (EV) subsidies are issued and the plants in Asan and Ulsan resume operation. date2024-03-19
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Industry
Public and private sectors join hands for global standards leadership in hydrogen and fuel cells
Korean Agency for Technology and Standards (KATS) President Jin Jong-wook under the Ministry of Trade, Industry and Energy (MOTIE) held a business conference on March 19 at a hydrogen fuel tank manufacturing site to strengthen international standards in hydrogen and fuel cells in line with reaching the national policy targets for sustainable carbon neutrality. KATS representatives attending the conference shared the current progress and policy directions in hydrogen and fuel cell standards development and gathered opinions and suggestions from firms participating in related projects. Companies suggested that, in view of the technology and market of hydrogen and fuel cells still being in their early stages of development, firms be given support through standards development of Korean technologies in future key areas like hydrogen mobility, liquid hydrogen storage and transport, which can serve as a springboard for export to global markets. KATS President Jin remarked that “based on today’s discussions, KATS will newly install and operate the ‘International Standards Forum on Hydrogen Technology’ for supporting companies’ participation and Korea’s leadership in international standards development.” date2024-03-19
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Industry
MOTIE and U.S. DOC discuss healthcare industry cooperation
The Ministry of Trade, Industry and Energy (MOTIE) and the U.S. Department of Commerce (DOC) held the Korea-U.S. Supply Chain and Commercial Dialogue Healthcare Working Group meeting on March 14 via videoconferencing. Launched in 2022, the Korea-U.S. Supply Chain and Commercial Dialogue (SCCD) is a bilateral ministerial-level channel between MOTIE and the U.S. DOC consisting of four Working Groups (WGs): 1. Advanced Manufacturing and Supply Chain Resilience, 2. Dual-Use Export Controls, 3. Digital Economy, and 4. Healthcare and Healthcare Technology. The Healthcare WG meeting was held to seek measures for enhancing the two countries' mutual understanding and cooperation with regard to their healthcare industries. The two sides shared their respective healthcare industry issues and policies and discussed measures for expanding cooperation in the healthcare industry and related technologies. They also agreed to uncover opportunities for collaboration in joint private-sector R&D projects and to continue to actively utilize the SCCD Healthcare WG channel for advancing bilateral industrial cooperation. date2024-03-14
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Industry
Vice Minister chairs pan-ministerial consultative committee for high-tech specialization complex
Trade, Industry and Energy Vice Minister Kang Kyungsung chaired a pan-ministerial consultative committee meeting on March 13 to coalesce efforts among local authorities, related ministries and companies for supporting the establishment of the national high-tech strategic industry specialization complex. date2024-03-14