Ministry of Trade, Industry and Energy

Korea’s retail industry grows 10.5% in H1 2024

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 30 that Korea’s retail industry grew 10.5 percent year-on-year in the first half (H1) of 2024, with offline and online sales advancing 3.4 percent and 17.5 percent, respectively. During H1, offline retail sales steadily expanded across close-proximity convenience stores (up 5.2 percent) and super supermarket (SSM) operators (up 5.6 percent). Sales at hypermarkets (up 0.7 percent) and department stores (up 3.1 percent) likewise increased.  Online retail sales for H1 soared on the backs of various discount promotions and wider range of deliverable items, coupled with the routinization of online purchases for travel, performances, and food products. 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 super supermarket (SSMs) operators. The remaining 12 are online retailers. For the month of June, Korea’s retail industry jumped 11.1 percent year-on-year, with offline and online sales climbing 3.7 percent and 18.4 percent, respectively. The growth is attributed to a higher number of holidays during the month (+2), stronger demand for eating in and buying in smaller quantities within one’s neighborhood. Factors driving online sales include demand for seasonal home appliances and instant/processed food products. By offline retail channel, hypermarket sales rose 2.1 percent in June as sales of food products (up 4.3 percent) and clothing (up 5.2 percent) improved, while those of home appliances/culture (down 3.3 percent) and sports (down 11.9 percent) dropped. Department store sales surged 5 percent overall as foreign designer labels (up 2.3 percent) and household goods (up 14.9 percent) increased, while women’s suits (down 2.6 percent) and men’s clothing (down 0.9 percent) shrank. Convenience stores (up 3.8 percent) enjoyed sales growth across all items, led by beverages/processed food products (up 5.7 percent), instant food products (up 1.7 percent), and tobacco/other (up 2.0 percent). SSM operators showed an uptick of 2.0 percent overall in spite of the fall of nonfood categories (down 3.8 percent), as sales of agriculture, fishery, and livestock products (up 3.3 percent) and processed food products (up 2.1 percent) increased. Online sales spiked 18.4 percent overall, led by strong demand for air conditioners and other seasonal home appliances/electronic devices (up 10.4 percent) amid the early heat wave. Sales of services/other (up 67.5 percent) drove online sales as well, thanks to the continued growth of food products (up 20.1 percent) amid high inflation and high demand for home-cooked meals, fueled by free delivery and e-coupon discounts. Meanwhile, fashion/clothing (down 10.4 percent) and sports (down 8.7 percent) experienced slower sales.   date2024-07-30

Korea’s future talent for advanced technology to take part in Korea-U.S. youth exchange initiative

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 29 its plans for the second-round selection of students for a Korea-U.S. youth exchange support program. The program is part of implementing the “KorUS Educational Exchange Initiative for Youth in STEM” in accordance with the bilateral summit outcomes reached in April 2023.  The “KorUS Educational Exchange Initiative for Youth in STEM” is a USD 30 million grant initiative (2024–2027) launched to support the large-scale exchange between 2,023 Korean students and 2,023 U.S. students in commemoration of last year marking the two countries’ 70th anniversary of the establishment of diplomatic relations. For eligible Korean students majoring in natural sciences and engineering, the program will provide them the opportunity to study at U.S. universities and experience the U.S.’ high-tech industries and advanced technologies via field trips and webinars. MOTIE selected 222 Korean students in the first half of this year for the program’s first-round scholarship and will select another 118 eligible students in the second half for the second-round scholarship for next year’s spring semester exchange. Further information is available at universities’ offices for international affairs and on Korea Institute for Advancement of Technology (KIAT)’s website (www.kiat.or.kr).   date2024-07-29

Minister Ahn meets Czech Minister of Industry and Trade

Trade, Industry and Energy Minister Dukgeun Ahn met with Czech Minister of Industry and Trade Jozef Síkela on July 24 in Prague on the occasion of his visit as special presidential envoy and expressed appreciation over the selection of KHNP as preferred bidder for the Czech Republic’s nuclear reactor project and discussed measures for bilateral energy, economic, and industrial cooperation. date2024-07-26

Korea’s Nuclear Exports Strategy Committee consolidates follow-up efforts to Czech PJT, building further export momentum

Trade, Industry and Energy Vice Minister Namho Choe chaired the fifth Nuclear Exports Strategy Committee (“Committee”) meeting on July 25 in Seoul with the participation of Committee members composed of representatives from related ministries, companies, trade organizations, academia, and legal experts. The Committee assessed that the Czech Republic’s selection of Korea Hydro Nuclear Power (KHNP) as the preferred bidder for its new reactor project is a culmination of the Korean government’s nuclear industry normalization policy and strong “sales diplomacy” that gained the client country’s trust, combined with joint efforts of KHNP, contractors, academia and research institutions, ministries, and support organizations. Based on the recent outcome, the Committee reviewed the following project tasks for nurturing the nuclear energy sector into Korea’s anchor exporting industry. The Committee’s first aim is to fully back the follow-up measures regarding the new Czech reactor project to ensure the final contract is inked without setback by March 2025. Upon the preferred bidder announcement, Korea launched a task force (TF) on July 22 exclusively for project negotiations and held a kickoff meeting with the client company on July 24. With public and private sectors fully committed to creating mutually beneficial outcomes for both countries, authorities also opened a new bilateral hotline for close communication and negotiation support. Second, the Committee plans to make swift progress in consultations with promising export destinations to further expand Korea’s scope of nuclear exports, while also nurturing a favorable environment in the mid-to-long term through talent training and joint site investigations in emerging Asian and African countries that are currently mulling the prospects of nuclear new build projects. Moreover, upcoming international events to be hosted by Korea, such as the World Climate Industry EXPO (September 2024) and the Asia-Pacific Economic Cooperation (APEC) Summit (November 2025), will serve as great opportunities for promoting Korea’s nuclear power plants, in conjunction with international exhibitions, trade shows, and special delegations. Third, the Committee plans to back not only nuclear new builds but also power plant equipment exports. Within 20 months under the Yoon administration, Korea’s nuclear equipment export contracts surpassed KRW 4 trillion, six-fold the amount accumulated over the past five years. Building on this momentum, the Government is aiming to clinch additional large-scale project orders to reach this year’s ₩5 trillion nuclear equipment export target. Gaining traction from the Czech project win, stronger support will go towards backing middle-market companies and SMEs’ European market entry with plans for heavy marketing scheduled for the second half via the World Nuclear Symposium 2024 and Enlit Europe 2024. Fourth, the Committee will lay out a mid-to-long term nuclear export vision and reorganize the support system to establish a strong foundation for Korea’s nuclear industry to grow into a global powerhouse through the “Mid-to-Long Term Nuclear Industry Roadmap 2050,” which will be announced by the end of this year, along with legal procedures to assist the nuclear industry in tandem with the National Assembly during this second half. The support system will branch out via overseas missions, Korea Trade-Investment Promotion Agency (KOTRA)’s Global Business Platforms, and reinforced nuclear sales diplomacy. Added efforts will be made to build comprehensive cooperative relations with major partner countries in joint entry, supply chains, and small modular reactors (SMRs).   date2024-07-25

Minister Ahn meets Czech Republic Ambassador to Korea

Trade, Industry and Energy Minister Dukgeun Ahn held talks with Czech Republic Ambassador to Korea Ivan Jančárek on July 22 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul and expressed appreciation over the Czech government’s selection of Korea Hydro & Nuclear Power (KHNP) as the preferred bidder to build new nuclear reactors in the Czech Republic and requested that the two countries closely cooperate for a successful project execution. date2024-07-22

AI Autonomous Manufacturing Alliance

Trade, Industry and Energy Minister Dukgeun Ahn attended the AI Autonomous Manufacturing Alliance launching ceremony on July 22 with the participation of 250 industry, academia, and research institutions’ representatives and spoke on the initiative of enhancing the productivity, safety, and eco-friendliness of manufacturing sectors through the introduction of AI. date2024-07-22

Minister Ahn chairs petrochemicals industry meeting

On July 19 (Friday), the Ministry of Trade, Industry and Energy held a meeting with the presidents of major petrochemical companies. Chaired by Minister Ahn, the meeting had attendees discuss ways to overcome the crisis currently faced by the petrochemical industry.  date2024-07-22

Korea and Czech Republic discuss stronger cooperation following announcement of preferred bidder for new Czech reactor project

Trade, Industry and Energy Minister Dukgeun Ahn held talks with Czech Republic Ambassador to Korea Ivan Jančárek on July 22 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul and expressed appreciation over the Czech government’s selection of Korea Hydro & Nuclear Power (KHNP) as the preferred bidder to build new nuclear reactors in the Czech Republic and requested that the two countries closely cooperate for a successful project execution. KHNP was announced as the preferred bidder of the Czech Republic’s reactor project on July 17, which will be Korea's first nuclear power plant project since the state-run energy corporation won the United Arab Emirates (UAE)’ Barakah Nuclear Power Plant in 2009. The largest investment in Czech history, this new reactor project is expected to serve as a springboard for Korea’s entrance into nuclear power plant markets across Europe. During talks with Ambassador Jančárek, Minister Ahn stated that the Czech government’s fair bid process and rational evaluation have once again highlighted the prowess of Korea’s nuclear industry worldwide, “reaffirming the two countries’ 34 years of trust-building since the establishment of diplomatic ties.” He suggested that Korea and the Czech Republic aim to establish a singular nuclear ecosystem in line with President Yoon Suk Yeol’s vision for the joint construction of nuclear reactors, asking for concerted efforts to foster a cooperative system that incorporates collaboration in all areas, including talent nurturing, technology development, joint entry into third countries, and small modular reactors (SMRs).  Minister Ahn underscored that the Czech Republic is a key economic partner to Korea, noting how bilateral trade has continued to expand (USD 4.4 billion in 2023) since their relations were elevated to a strategic partnership in 2015. In view of next year marking the two countries’ 35th anniversary of the establishment of diplomatic relations, he expressed anticipation towards the Korea-Czech Republic partnership advancing to a whole new level through a deeper and more extensive economic cooperation in not only nuclear reactors, but also in advanced industries, technology, and transport infrastructure. The minister remarked that efforts will be made for a comprehensive and across-the-board economic cooperation with the Czech Republic based on this nuclear power plant project, as well as for maintaining an intergovernmental communication channel for negotiating project issues with regard to inking the contract. At the meeting, active support for the two countries’ economic cooperation was pledged by representatives of Korea’s six major economic groups, including the Korea Chamber of Commerce and Industry (KCCI), Federation of Korean Industries (KFI), Korea International Trade Association (KITA), Korea Federation of SMEs (KBIZ), Federation of Middle Market Enterprises of Korea (FOMEK), and Korea Enterprises Federation (KEF).   date2024-07-22

Korea’s manufacturing sectors to undergo AI transformation

The Ministry of Trade, Industry and Energy (MOTIE) held the AI Autonomous Manufacturing Alliance launching ceremony on July 22 with the participation of 250 industry, academia, and research institutions’ representatives under the initiative of enhancing the productivity, safety, and eco-friendliness of manufacturing sectors through the introduction of AI. It is anticipated that 200 anchor projects will kick into high gear, backed by public-private investment of more than KRW 2.5 trillion. A total of 153 companies and institutions across 12 different industry sectors are participating in the AI Autonomous Manufacturing Alliance. The aggregate sales value of the participating companies amounts to nearly 40 percent of Korea’s entire manufacturing sales combined, indicating the high degree of participation by major manufacturers. Composed of 12 working groups per sector, each working group consists of middle-market companies and SMEs that make up the supply chain’s backbone along with the sector’s representative anchor company. By number, large corporations, middle-market companies, and SMEs each take up 21 percent, 23 percent, and 56 percent of the total, respectively.   Specialized R&D institutions like Korea Institute of Industrial Technology (KITECH) and Korea Electronics Technology Institute (KETI) will also be closely assisting the administration of the Alliance’s overall activities. Beginning with over 10 AI autonomous anchor projects this year, the Alliance is set to uncover and execute 200 projects by 2028. In particular, the demand survey for this year’s projects completed last month showed that 213 participants entered the competition for 10 projects, indicating a high level of interest among companies, local authorities, and research institutions despite the short length of preparation time. The demand survey confirms that manufacturers regard AI autonomous manufacturing as a future strategy for survival with respect to product upgrading, responding to the working age population decline, and enhancing production efficiency.  Having affirmed the industrial sectors’ strong willingness for participation, MOTIE is considering the prospects of increasing the number of this year’s projects from the initial 10 to 20. Public-private investment in AI autonomous manufacturing for the 20 projects is estimated to surpass ₩2.5 trillion and this year’s project lineup will be finalized in September 2024 after experts’ evaluation process. Moreover, the Alliance plans to develop and diffuse a standard model based on the technology and data accumulated through the anchor project. Whereas the anchor project aims for the orderly and vertical diffusion of large corporations to tier one, tier two, tier three, and tier four vendor SMEs and middle-market firms within the value chain, the standard model aims for a horizontal diffusion beyond the value chain. The plan is to establish and distribute a standard model across more than 100 business sites by 2028. At the launching ceremony, strategies for the sectoral diffusion of AI autonomous manufacturing were presented by companies representing each sector, including Hyundai Motor, LG Electronics, DN Solutions, POSCO, EcoPro, GS Caltex, KAI, and HD Korea Shipbuilding and Offshore Engineering. Their common goal lies in diffusing the utilization of AI across the entire value chain and achieving groundbreaking improvements in productivity and quality. Real-time facility and process monitoring, coupled with AI-based data analysis, will enable the establishment of a production system capable of optimizing the work schedule and allocation of resources. This will help reduce energy consumption and carbon emissions. Moreover, AI-driven automatic detection of product defects and equipment failure prediction can substantially boost the production quality. For anchor projects, the Government will date2024-07-22

Meeting held to discuss ways to enhance petrochemical competitiveness amid global oversupply

On July 19 (Friday), the Ministry of Trade, Industry and Energy held a meeting with the presidents of major petrochemical companies. Chaired by Minister Ahn, the meeting had attendees discuss ways to overcome the crisis currently faced by the petrochemical industry. Since launching the public-private “Consultative Body on Competitiveness Building of the Petrochemical Industry” in April, the ministry has been steadfastly collecting opinions of the petrochemical industry through meetings on specific topics and on-site conferences. * Attendees: LG Chem, Lotte Chemical, SK geo centric, Korea Petrochemical Industry, Yeochun NCC, HD Hyundai Chemical, GS Caltex The participants at the meeting shared the understanding that the petrochemical industry was hit by a historical oversupply last year, and it would not be easy to recover from its impact in the short term given the aggressive expansion by China and the risk of further expansion from the Middle East as the oil peak becomes more of a reality. The presidents recommended actively creating government incentives for business restructuring, because the high interest and uncertainties in the peterochemical industry are hindering investment decisions despite the need for rapid restructuring. In addition, the attendees discussed ways to step up cooperation among resident companies in industrial complexes to reduce costs, expanding policy-driven financial support, and creating an early market for eco-friendly products. MOTIE plans to actively consult with the relevant ministries on the suggestions made by the companies and continue to formulate measures to strengthen the competitiveness of the petrochemical industry. Minister Ahn said, “The government will provide full support to help the Korean petrochemical industry leverage its global-level competitiveness to overcome the current crisis and rise once again.” He also urged the participant businesses to “give their best to prepare against disasters and keep their sites safe, as the recent heavy rain may affect on-site safety.” KITECH and CFI aim to bolster cooperation based on this MOU and plan to ink the MRA on the sidelines of the UN Climate Change Conference (UNFCCC COP 29) coming this November. date2024-07-19