Ministry of Trade, Industry and Energy

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

17th Nonferrous Metals Day

Industry Policy Deputy Minister Lee Seung-ryeol attended the 17th Nonferrous Metals Day on June 3 at Grand Intercontinental Seoul Parnas, along with 80 industry representatives and awarded government commendations to the top 14 contributors to Korea’s nonferrous metals industry development, including the Presidential Commendation to Im Won-sik of Poongsan Corp. for boosting Korea’s export of semiconductor metal wafer materials. date2024-06-04

Commendations awarded to 14 industry contributors on 17th Nonferrous Metals Day

Industry Policy Deputy Minister Lee Seung-ryeol attended the 17th Nonferrous Metals Day on June 3 at Grand Intercontinental Seoul Parnas, along with 80 industry representatives and awarded government commendations to the top 14 contributors to Korea’s nonferrous metals industry development.   Im Won-sik of Poongsan Corp. was awarded the Presidential Commendation for boosting Korea’s export of semiconductor metal wafer materials. So Soon-hwan of Seoul Metal Corporation and Lee Sang-ho of Ulsan Aluminum were each presented the Prime Minister’s Commendation for promoting exports of aluminum conductor steel reinforced (ACSR) cables and localization of previously import-dependent aluminum can materials, respectively.   In his congratulatory message, Deputy Minister Lee commended the nonferrous metals companies' representatives for strengthening the industry’s global competitiveness and asked for their active response and communication with regard to the Government’s plans to support the low carbon transition through carbon neutrality R&D and establishment of a stable supply chain for rare metals and critical nonferrous metals. date2024-06-04

Vice Minister attends seminar on measures for supporting SMEs' scale-up

Trade, Industry and Energy Vice Minister Kang Kyungsung attended the seminar on measures for “building the corporate growth ladder” on June 3 at the FKI Tower in Seoul, with focus on measures for supporting SMEs’ scale-up to middle-market tier.   The seminar was attended by around 80 persons, including representatives of related associations like the Federation of Korean Industries (FKI) and Federation of Middle Market Enterprises of Korea (FOMEK). date2024-06-04

Government to build corporate growth ladder for supporting SMEs' scale-up to middle-market tier

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 3 that the Korean government announced measures for “building the corporate growth ladder” during the cabinet ministers' meeting for economic matters with focus on supporting SMEs’ transitional growth to middle-market tier.   First, the Government will increase support for middle-market companies that just graduated from SME status. These companies will be able to receive “SME incentive” tax credit for up to five instead of the current three years after growing out of SME tier. SMEs listed on KOSPI or KOSDAQ will be granted an additional two-year grace period, receiving a seven-year period in total for SME incentive eligibility. For companies that are past the grace period and have entered the middle-market tier, high rates of R&D and investment tax credit will be provided to induce corporate growth.   Moreover, the Government will roll out the “Growth Ladder Jump Up Program (tentative)” and select 100 promising SMEs to provide support over a three-year period. A public-private network pool consisting of experts with corporate work experience and venture capital knowhow will formulate catered strategies and conduct exclusive director matchings for company-tailored scale-ups. Firms will have access to various growth service vouchers and receive preferential treatment with regard to existing government assistance programs for promoting export and R&D.   Third, the Government aims to resolve SMEs’ growth obstacles and aid entry into new markets and businesses. SMEs that had previously been leveraging policy funding will be connected to low interest loans exclusively for middle-market companies. A primary collateralized bond obligation (P-CBO) of KRW 600 billion and guarantee of 500 billion won will be supplied to promising SMEs. A 50 billion won joint investment fund composed of a fund of funds (FOF) and corporate venture capital (CVC) will be launched under the “Tech Investor Program for Scale-up (TIPS)” in 2024 to strengthen support for private investment securing firms’ R&D.   From 2025 on, an M&A center will be established at Korea Technology Finance Corporation (Kibo) to provide joint support with the Industrial Bank of Korea (IBK)’s M&A platform to companies aiming for new business entry. To scale-up companies posting qualified levels of investment and growth, the Government will mull the granting of family-owned business inheritance tax exemption incentives.   Lastly, infrastructure for public information utilization will be reinforced by releasing Kibo’s SME technical evaluation data and the financial data analytics owned by Korea Credit Information Services (KCIS) to offer access to private banks. By 2025, an integrated platform will be established to facilitate firms’ better understanding and easier use of policy funding. date2024-06-04

25th Steel Day

The Ministry of Trade, Industry and Energy (MOTIE) and Korea Iron & Steel Association (KOSA) held the 25th Steel Day on June 3 at the POSCO Center in Seoul, attended by MOTIE Minister Dukgeun Ahn, Minister for Trade Inkyo Cheong, and representatives of steel industries and companies, including POSCO Group Chairman Jang In-hwa.   Meanwhile, MOTIE awarded orders of merit and government commendations to 31 persons for their contribution to the steel industry’s growth. The Silver Tower Order of Industrial Service Merit went to Hankum CEO Ryu Ho-chang for contributing to the localization of high carbon steel and technological development of automobiles and shipbuilding materials. POSCO’s Executive Director Lee Sang-ho was awarded the Bronze Tower Order of Industrial Service Merit for the local optimization of the company’s integrated steel mill system in Indonesia. date2024-06-03

Government and steel industries join hands to achieve carbon neutrality goals

The Ministry of Trade, Industry and Energy (MOTIE) and Korea Iron & Steel Association (KOSA) held the 25th Steel Day on June 3 at the POSCO Center in Seoul, attended by MOTIE Minister Dukgeun Ahn, Minister for Trade Inkyo Cheong, and representatives of steel industries and companies, including POSCO Group Chairman Jang In-hwa. Steel Day was launched in 2000 to commemorate the POSCO Pohang steel plant’s inaugural batch of molten iron tapped on June 9, 1973.   In his congratulatory message, Minister Ahn held the steel industry in high regard for its efforts toward shared growth and innovation, assuring that the Government will also work in tandem with the industry for carbon neutrality and supply chain stabilization goals through a number of measures, such as establishing a steel scrap processing industry nurturing plan for securing steel resources, conducting hydrogen-reduced steel demonstrations, actively responding to steel trade barriers, and improving investment conditions.   Trade Minister Cheong attended the Steel ESG Win-Win Fund agreement ceremony held on the sidelines of Steel Day. The Steel ESG Win-Win Fund is a private fund created in 2020 by POSCO, Hyundai Steel, and Industrial Bank of Korea to raise the competitiveness of steel SMEs, middle-market companies, and contractors, and support their carbon reduction endeavors. In accordance with the agreement, the fund will expand from the initial KRW 150 billion to 200 billion won. Moreover, starting this year, support can go towards facility funding and steel scrap processors are ach eligible to apply for assistance.   Meanwhile, MOTIE awarded orders of merit and government commendations to 31 persons for their contribution to the steel industry’s growth. The Silver Tower Order of Industrial Service Merit went to Hankum CEO Ryu Ho-chang for contributing to the localization of high carbon steel and technological development of automobiles and shipbuilding materials. POSCO’s Executive Director Lee Sang-ho was awarded the Bronze Tower Order of Industrial Service Merit for the local optimization of the company’s integrated steel mill system in Indonesia. date2024-06-03