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Industry
Korea’s automobile exports hit historic high of $37 bln for H1
The Ministry of Trade, Industry and Energy (MOTIE) announced on July 16 that Korea’s automobile exports reached a record-breaking USD 37 billion (up 3.8 percent year-on-year) in the first half (H1) of 2024. In spite of high inflation and shrinking disposable income, H1 automobile exports achieved the feat on the backs of robust North America-bound exports and increasing global demand for hybrid electric vehicles (EVs). For the month of June, automobile exports amounted to $6.2 billion despite the lower number of working days (-1.5 year-on-year). With the exception of February when Seollal holidays landed this year, automobile exports have been entering the $6 billion thresholds each month since last November. By destination, H1 automobile exports to North America jumped 26 percent to $21.7 billion, driving overall exports. The decline in exports to Europe can be attributed to the recently slowing EV sales across Germany and Northern Europe. In June, exports to North America kept their lead and those to the Middle East turned to an expansion for the first time in eight months since last October, when the Israel-Hamas war broke out. The production volume for H1 approached 2.2 million units (down 2.4 percent year-on-year), maintaining over a monthly average of 350,000 units as major plants in Ulsan and Hwaseong operated at maximum capacity. Once Kia’s Gwangmyeong plant launches into full operation in July, exports are expected to gain greater momentum in H2. Domestic sales dropped 10.7 percent to 798,544 units in H1 2024, set back by a high base effect from last year. Meanwhile, eco-friendly vehicle sales logged an all-time high of approximately 300,000 units. date2024-07-16
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Industry
Korea and Israel spur tech synergy at Innovation Day 2024
The Ministry of Trade, Industry and Energy (MOTIE) and the Israel Innovation Authority (IIA) co-hosted Korea-Israel Innovation Day 2024 (“Innovation Day”) on July 16 at the Seongnam Global Convergence Center. The largest technology collaboration event held between the two countries, this year’s Innovation Day drew the participation of a record high total of 30 Israeli universities and companies, including Israel Aerospace Industries (IAI), Foresight Automotive, and TriEye. From Korea, roughly 70 companies are taking part in the bilateral technology exchange, including Samsung Electronics and Hyundai Motor. To note, this year’s Innovation Day is also launching technical seminars and one-on-one business meetings in areas with high synergy potential, such as semiconductor and smart mobility. On the occasion of the event, promising projects will be uncovered and granted funding via the Korea-Israel Industrial R&D Foundation (KORIL-RDF). At last year’s Innovation Day, a smart aviation motor project led by IAI and Korean firm Contromax was selected for the two countries’ joint global R&D. Once the project is completed, Contromax will be supplying its smart motors to major domestic aircraft manufacturers. Since 2001, the Korean and Israeli governments have co-invested a total of USD 93 million in 206 commercialization-focused technology development projects. Every year, around seven joint R&D projects are selected for grant support. date2024-07-16
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Industry
Korea’s ICT exports climb 28.2% in H1 2024
The Ministry of Trade, Industry and Energy (MOTIE) announced on July 15 that Korea’s export of information and communications technology (ICT) goods for the first half (H1) of 2024 climbed 28.2 percent year-on-year to USD 108.9 billion, the second highest H1 record for ICT exports. Meanwhile, the import of ICT goods decreased 0.7 percent to $67.8 billion and the trade balance stood at a surplus of $41.1 billion. Increased demand for semiconductors and the surge in their unit price were some of the drivers boosting the ICT industry, which posted double-digit growth for the past six consecutive months. By item, exports of semiconductors (up 49.9 percent), displays (up 14.6 percent), and computers/peripherals (up 35.6 percent) advanced in H1, but those of mobile phones (down 2.8 percent) retreated. By region, ICT exports to China (including Hong Kong) (up 37.3 percent), Vietnam (up 21.7 percent), the U.S. (up 19.2 percent), and EU (up 8.2 percent) expanded, while those to Japan (down 9.3 percent) shrank. Despite the rising import of semiconductors and displays, the import of ICT goods in H1 2024 inched down year-on-year, partially owing to the reduced import of mobile phones. For June, Korea’s export of ICT goods amounted to a record high of $21.1 billion for the month. Imports reached $10.9 billion, and the trade balance stood at a surplus of $10.2 billion. By item, semiconductors (up 49.4 percent), displays (up 22.6 percent), mobile phones (up 8.0 percent), and computers/peripherals (up 48.9 percent) were among the majority of ICT goods that enjoyed growth. Thanks to unit price hikes and strong demand for downstream industries like servers and personal computers, semiconductor exports achieved new monthly highs ($13.4 billion) and led the overall ICT industry’s export growth rate over the 30 percent thresholds for three consecutive months. By destination, ICT exports to China (including Hong Kong) (up 29.2 percent), Vietnam (up 36.8 percent), the U.S. (up 27.0 percent), and the EU (up 1.5 percent) increased, whereas those to Japan (down 8.6 percent) fell. Korea’s monthly import of ICT goods for June dropped 5.1 percent year-on-year as the import of semiconductors and secondary batteries decreased. date2024-07-15
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Industry
Trade-related technical regulations issued in H1 2024 reach 2,009
The Ministry of Trade, Industry and Energy (MOTIE) announced on July 14 that the number of trade-related technical regulations issued by World Trade Organization (WTO) member countries during the second quarter (Q2) of 2024 amounted to 818, slightly lower than the 932 of Q2 2023. This adds up to a total of 2,009 technical regulations issued over the first half (H1) of this year, close to the 2,053 of H1 2023. In accordance with the Technical Barriers to Trade (TBT) Agreement, WTO member countries are required to report cases of technical regulatory establishments and revisions that are viewed to significantly impact trade. In Q2 2024, the U.S. issued the highest number of technical regulations (106), taking up 13 percent of total, followed by Egypt (62) and Brazil (55). By industry, food and drug (23 percent), agriculture, livestock and fishery products (18 percent), and ceramic chemistry (16 percent) are among the sectors that issued the highest number of technical regulations this quarter, followed by electrical and electronics (14 percent). Korea’s 15 top and emerging export destinations issued a total of 279 technical regulations, taking up 34 percent. They were led by the U.S. and China, pertaining to regulations concerning energy efficiency and electrical device safety requirements, respectively. date2024-07-15
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Industry
Vice Minister attends Bioplus Interphex Korea (BIX) 2024
Vice Minister Kang Kyungsung gave a congratulatory message at the Bioplus Interphex Korea (BIX) 2024 opening ceremony on July 10 at COEX in Seoul, held with the participation of 15 countries’ 250 companies and their 450 booths. The event was attended by representatives of participating organizations and companies, including Kbio Chairman Ko Han-seung and Türkiye’s Industry and Technology Deputy Minister Çetin Ali Dönmez. date2024-07-11
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Industry
MOTIE lays out initial blueprint for K-design and AI convergence
Trade, Industry and Energy Minister Dukgeun Ahn held the AI Design Conference on July 9 at LG Science Park in Seoul with design companies and experts and announced the AI Design Diffusion Strategy. Based on a shared understanding of the need to enhance across-the-board industrial competitiveness through design innovation, the AI Design Diffusion Strategy was established over a four-month process of discussions and opinion gathering. This process involved design working group committee members, relevant organizations, and AI and design companies. On May 8, the Ministry of Trade, Industry and Energy (MOTIE) launched the Committee on New Industrial Policies for the AI Era, aiming to establish strategies for six major areas. The AI Design Diffusion Strategy is MOTIE’s second in its series of AI utilization strategies. MOTIE’s execution of the AI Design Diffusion Strategy will center around four main initiatives: launching flagship projects; gaining competitive edge; creating new markets; and institutionalizing AI design systems and norms. By increasing the rate of design utilization to 60 percent (from the current 37 percent), the strategy aims to raise design firms’ AI adoption rate to 50 percent and nurture 10,000 AI designers and 500 innovative design firms. The ministry will first roll out the AI Design Flagship Project across seven major areas. Currently, the AI utilization rate is low (5.5 percent), with the initial market primarily built around global design solution companies. This year, the Korea Institute of Design Promotion (KIDP) will lead the development of AI services in three major areas: trend analysis, design similarity search, and smaller Large Language Model (sLLM). By 2025, MOTIE intends to identify demands in four key areas with high AI design synergy prospects (consumer goods design, optimal design of engineering components, automated design of manufacturing process, and automation of digital generative design) and support the development of 20 AI design models over three years. Secondly, aiming to secure AI design competitiveness (technology, company, data, and talent), the ministry will announce the AI design technology roadmap for the following five major areas by the end of this year and provide R&D assistance beginning in 2025: design concept, generative design, prototyping, design-production synchronization, and design knowledge and protection. For each of the country’s six major regions, a design creation lab and a company-catered support system will be established. The latter will focus on AI transition and nurturing AI design software companies. Moreover, MOTIE will seek measures for design funding and financial assistance. Furthermore, through collaboration with design promotion institutions and overseas entities, a K-design big data hub will be set up around four areas: design archive, K-heritage design, color, materials, finish (CMF), and human data. The Industrial Skills Council will lead the development and distribution of AI design education programs, open five design-AI convergence major tracks, and run an online education program, “Design Ground,” for teaching AI design trends and design tool utilization. Third, MOTIE will contribute to invigorating the AI design market by selecting and supporting 150 joint projects in market analysis, product design, design automation, and service prototype generation based on generative AI technology with a special focus on four major industrial sectors: manufacturing, nudge, engineering, and packaging. The ministry will also provide support for the establishment of a marketplace for user and supplier companies while extending comprehensive assistance to manufacturers via engineering big data platforms established at the Korea Institute of Industrial Technology (KITECH). Fourth, MOTIE will establish a design rules system that aligns with the AI era. In the second half of this year, i date2024-07-10
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Industry
Minister Ahn attends AI Design Conference
Trade, Industry and Energy Minister Dukgeun Ahn attended the AI Design Conference on July 9 at LG Science Park in Seoul where he announced the AI Design Diffusion Strategy and exchanged views with industry insiders. Prior to the conference, he had the opportunity to experience firsthand the latest generative AI technologies at the Gen AI Studio. The conference was attended by design experts and representatives of relevant organizations and companies, including Lotte Holdings, LG CNS, Korea Agency for Technology and Standards (KATS), and Korean Federation of Design Association (KFDA). date2024-07-09
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Industry
World Accreditation Day 2024
Korea Agency for Technology and Standards (KATS) President Jin Jong-wook attended the World Accreditation Day 2024 on July 9 at aT Center in Seoul to give a congratulatory message and award individuals and organizations for contributing to the development of the testing, inspection and certification industry. The event was attended by representatives of related academia, industries, and research institutions. date2024-07-09
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Industry
Electric power equipment industry gearing up as Korea's new export growth engine
Trade, Industry and Energy Minister Dukgeun Ahn visited HD Hyundai Electric on July 4 in Gyeonggi Province to discuss export assistance measures for the electric power equipment and materials industry. As vast amounts of electric power are needed in the recent expansion of artificial intelligence (AI) datacenters and the diffusion of carbon-free power sources like renewables and nuclear power, the electric power equipment and materials market has recently been enjoying its supercycle. The industry’s exports are likewise on the rise, competing with bio health and secondary batteries after surpassing home appliances and textiles in 2023. Should electric power equipment and materials attain this year’s export and bid targets of USD 16.2 billion and KRW 20 trillion, respectively, they will rank among Korea’s top 10 export items. At HD Hyundai Electric, Minister Ahn toured the exhibition hall showcasing the world’s first direct current (DC) distribution facilities for 1 megawatt-class buildings. This was followed by the signing of the “K-grid Export Cooperation MOU” among Korea Electric Power Corporation (KEPCO), Korea Trade-Investment Promotion Agency (KOTRA), and K-SURE. Viewed as a leading export business model for energy sectors, the MOU is significant in that it brings public companies in electrical power and export assistance together for collaboration. With aim to support power equipment and materials exports, the Government plans to supply the industry with a ₩2.7 trillion special preference trade insurance program this year. Moreover, for the North American, European, and ASEAN markets where power grid demands are forecast to surge, trade centers will be designated with emphasis on power materials and equipment. Overseas marketing support will be strengthened through increased matching opportunities with domestic and overseas clients via trade shows. In the latter half of this year, the Government will establish measures for expediating the export of power equipment and materials with plans for a stronger ecosystem, export committee, and increased R&D. Minister Ahn stated that the public and private sectors will work in tandem to support not only “K-grid”, but also energy sectors like renewables, energy efficiency, and energy storage systems (ESS) to grow into pillar export industries. date2024-07-05
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Industry
Lotte Biologics’ biopharma plant groundbreaking ceremony
Trade, Industry and Energy Vice Minister Kang Kyungsung attended the groundbreaking ceremony of Lotte Biologics’ biopharmaceuticals manufacturing plant on July 3 in Incheon, with the participation of Health and Welfare Vice Minister Park Min-soo, Lotte Group Chairman Shin Dong-bin, Lotte Biologics CEO Richard Lee, and global pharmaceutical companies. date2024-07-04