Ministry of Trade, Industry and Energy

Minister Ahn visits Washington D.C. for 1st Korea-U.S.-Japan industry ministers' meeting

Trade, Industry and Energy Minister Dukgeun Ahn is visiting the U.S. through June 24–28 on the occasion of attending the first Korea-U.S.-Japan trilateral industry ministers’ meeting on June 26 in Washington D.C.   In accordance with the agreement made during the Trilateral Leaders' Summit held at Camp David in August 2023 on launching and regularizing the trilateral industry ministerial, the three countries will discuss measures to strengthen economic security and industrial cooperation during the inaugural meeting. They also plan to launch a business conference led by their major economic groups to extend the scope of trilateral cooperation to private sectors.   On the margins of this visit to Washington D.C., Minister Ahn will be meeting with the U.S. Secretary of Commerce and other key figures in industrial and energy areas for wider bilateral cooperation. Following the first meeting held last year, Korea and the U.S. will hold the second Supply Chain and Commercial Dialogue (SCCD) on June 27 to seek concrete outcomes in semiconductors, bio, and such advanced industries. In addition, the two sides will be holding the Korea-U.S. SCCD Semiconductor Forum (June 27), the Korea-U.S. Advanced Industry and Technology Cooperation Forum (June 27), and the Clean Energy Business Forum (June 25) to facilitate business collaboration and networking between the two countries.   Minister Ahn stated that this visit is significant in terms of laying down the private-public institutional groundwork to deepen Korea-U.S. cooperation and to expand the cooperation among Korea, the U.S., and Japan, adding that he looks forward to seeing wide-ranging and active discussions for stronger bilateral and trilateral cooperation in advanced industries and clean energy. date2024-06-24

Korea and Germany discuss economic cooperation for building future industrial competitiveness

Trade, Industry and Energy Minister Dukgeun Ahn met Germany's Vice Chancellor and Federal Minister for Economic Affairs and Climate Action Robert Habeck on June 21 in Seoul in the attendance of the German economic delegation comprising representatives of 13 German companies and discussed global economic issues and bilateral cooperation measures for strengthening future industrial competitiveness.   In his welcome address, Minister Dukgeun Ahn stated that “Cooperation among like-minded countries is all the more important amid the recently rising global economic uncertainties” and underscored the strong potential synergy of the two countries’ partnership in industrial competitiveness, digital, and decarbonization owing to their solid manufacturing base.   With Germany being Korea’s largest trading partner in Europe, the two sides reaffirmed their close economic cooperative ties in view of the all-time high bilateral trade volume recorded last year. Both sides agreed to continue joint efforts in areas like standards and data sharing for the digital transition and acceleration of industrial AI utilization and to maintain their cooperation and understanding on energy policies through the Korean-German Energy Partnership. Furthermore, they decided to bolster mutually complementary relations through joint R&D projects in future mobility areas as well. date2024-06-21

Korea’s automobile exports hit all-time high for May

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 20 that Korea’s automobile exports logged in the past month climbed 4.8 percent year-on-year to USD 6.5 billion, a historic high for the month of May. The accumulated value from January to May this year is another all-time high for the period at $30.8 billion (up 4.7 percent year-on-year).   In May, eco-friendly vehicle exports grew 4 percent to $2.2 billion, driven by the steep growth of hybrid electric vehicles (HEVs) (up 48 percent) and surpassing $2 billion for three months straight.   By destination, automobile exports to North America advanced 36 percent to $4 billion, whereas those to the EU declined. Exports to Oceania improved 7 percent on the backs of new Korean model releases in the Australian market.   May’s automobile production volume amounted to 372,810 units (down 2 percent) and domestic sales recorded 141,313 units (down 7 percent). Domestic sales of eco-friendly vehicles rose 10 percent to 52,335 units as demand for HEVs climbed 19 percent to 38,134 units, while sales of battery electric vehicles (BEVs) marked a 3 percent downtick to 13,255 units. date2024-06-20

K-Shipyard Export Financing Support MOU conference

Trade, Industry and Energy Minister Dukgeun Ahn and Financial Services Commission (FSC) Chairman Kim Joo-hyun held the K-Shipyard Export Financing Support MOU ceremony on June 17 in Seoul with the participation of five major nationwide banks, three local banks, four policy financing institutions, and three shipyards for securing Korea’s global shipbuilding dominance and expanding exports. date2024-06-17

Export financing authorities pool $10.8 bln refund guarantees for domestic shipyards

Trade, Industry and Energy Minister Dukgeun Ahn and Financial Services Commission (FSC) Chairman Kim Joo-hyun held the K-Shipyard Export Financing Support MOU ceremony on June 17 in Seoul with the participation of five major nationwide banks, three local banks, four policy financing institutions, and three shipyards for securing Korea’s global shipbuilding dominance and expanding exports.   Korean shipyards are currently on a tailwind of bulk orders for LNG carriers and such high value-added ships, winning over four years’ worth of work. Ship exports have also risen 57 percent year-on-year to USD 10.4 billion (Jan–May, 2024).   Amid these developments, the Ministry of Trade, Industry and Energy (MOTIE) and FSC agreed to increase the amount of advance payment refund guarantee (RG) for shipbuilders through collaboration with related ministries, banks, and policy financing institutions. Accordingly, RGs worth $10.1 billion and $0.7 billion will be provided to large and mid-sized shipyards, respectively, totaling $10.8 billion worth of RGs to homegrown shipyards.   The K-Shipyard Export Financing Support MOU is meaningful in that it is the first RG jointly issued by nationwide and local banks to mid-sized shipyards. date2024-06-17

Korea's ICT exports rise 31.8% in May

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 17 that Korea’s export and import of information and communications technology (ICT) goods for May recorded USD 19.1 billion and $11.5 billion, respectively, and the trade balance stood at a surplus of $7.6 billion.   The ICT export growth rate entered the 30 percent thresholds in May (up 31.8 percent year-on-year) for the second consecutive month, thanks to robust exports of semiconductors, displays, mobile phones, and computers/peripherals.   By item, semiconductors (up 52.4 percent), displays (up 15.3 percent), mobile phones (up 10.8 percent), and computers/peripherals (up 42.5 percent) advanced.   By region, exports to China (including Hong Kong) (up 35.3 percent), Vietnam (up 30.6 percent), the U.S. (up 20.7 percent), and Europe (up 21.3 percent) expanded.   Meanwhile, increased demand for parts of major items like semiconductors and displays raised overall imports 2.4 percent year-on-year. date2024-06-17

Korean government to assign 7 new vessels in response to rising ocean freight rates

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 14 that the Korean government established emergency measures for maritime logistics support to prepare against container shortages and minimize the toll on exports amid the rising cargo shipping costs.   Based on situation analysis, direct impact on export cargo loading is limited but rerouting around the Cape of Good Hope and ensuing transport delays are increasing costs for exporters.   Accordingly, the Government will prepare against shipping container shortage risks through cooperation with Hyundai Merchant Marine (HMM) via a number of measures, including the emergency deployment of three temporary vessels (total 9,000 TEU) for destinations busy in June–July like the U.S.’ West and East Coast and the Middle East; assigning seven new large-sized containerships (70,000 TEU) to major shipping routes during the second half of this year; and supplying vessels exclusively for the use of SMEs and middle-market companies (1,685 TEU per voyage).   Next, for liquidity support and reducing exporters’ cargo expense, the Government will be moving up the execution schedule of the KRW 20.2 billion worth of export voucher budget initially allocated to the latter half of 2024, while also mulling additional logistics assistance measures in consideration of future cargo rate hikes. The scope and time window of support will be extended as well, granting exporters preferential limits on export credit guarantee and prompt insurance money payment. Moreover, a 700 TEU public container yard is to be installed around the Busan New Port area, offering below-market rates.   Lastly, the Government plans to run an emergency maritime cargo response task force for tight monitoring and response, while also tackling issues through an emergency export support task force led by the MOTIE’s International Trade and Investment Deputy Minister. Korea Trade-Investment Promotion Agency (KOTRA) and Korea International Trade Association (KITA) will also be operating internal help desks. date2024-06-14

FUJIFILM Electronic Materials Korea establishes color photoresist plant in Pyeongtaek

Director General for Cross-Border Investment Policy Park Deok-yeol visited the foreign investment zone in Pyeongtaek in Gyeonggi Province on June 14 to attend the completion ceremony of the FUJIFILM Electronic Materials Korea Co., Ltd's plant for producing photoresists, which are fine chemical materials for semiconductor manufacturing.   FUJIFILM Electronic Materials Korea is a 100% owned subsidiary of FUJIFILM Corporation, a Japanese global company producing photoresists for color filter manufacturing used for image sensors and accounting for over 80 percent of market share worldwide.   The first color photoresist manufacturing site in Korea, FUJIFILM Electronic Materials Korea’s Pyeongtaek plant is anticipated to substantially contribute to stabilizing Korea's advanced industrial supply chains by supplying to domestic semiconductor firms. date2024-06-14

Vice Minister holds conference with high-growth middle-market companies

Trade, Industry and Energy Vice Minister Kang Kyungsung held a conference luncheon on June 12 in Seoul with CEOs of seven high-growth middle-market companies to accelerate policy implementation of corporate growth ladder measures through stronger communication and gathered companies’ opinions on tax incentives, financing, and regulations. date2024-06-12

Vice Minister hosts luncheon to 7 high-growth middle-market companies

Trade, Industry and Energy Vice Minister Kang Kyungsung held a conference luncheon on June 12 in Seoul with the CEOs of high-growth middle-market companies (annual average growth rate of 10 percent or above) and shared the Korean government’s measures for “building the corporate growth ladder” and gathered companies’ opinions on tax incentives, financing, and regulations.   The luncheon was held to accelerate policy implementation following the Government’s announcement of the above corporate growth ladder measures through stronger communication with middle-market companies.   Attending the luncheon were seven homegrown companies that posted steep average yearly growth rates (between 10 to 46 percent) over the past five years: HL Klemove (car parts), Woojin Industrial Systems (railway parts), Oasis (food and daily necessities retailer), iloom (furniture), Global Standard Technology (semiconductor equipment), LOT Vacuum (vacuum pump), and Daejoo Electronic Materials (secondary battery cathodes). The average growth rate of these firms was 26.0 percent.   The business leaders stated that what is needed for a company to keep advancing from SME status to middle-market, then to a large-sized corporation, is a harmonious mix of government support policies and companies’ willingness to achieve innovation. They called for increased support in terms of securing financial liquidity, quality talent, as well as domestic and overseas market penetration, underscoring the need for bold reforms of various regulations undermining corporate growth.   Vice Minister Kang remarked that regulatory innovations and other tailored support policies will be further considered to spread high-growth middle market companies’ success knowhow to other innovative middle-market companies. date2024-06-12