Ministry of Trade, Industry and Energy

Ministers make joint visit to Changwon Industrial Complex

Trade, Industry and Energy Minister Dukgeun Ahn and the Culture, Sports and Tourism Minister Yu In-chon visited the Changwon Industrial Complex on March 28 to meet with tenant business representatives, young workers, and cultural artists and seek ways to integrate cultural life into the industrial complex.   The talks were also attended by Land, Infrastructure and Transport Ministry officials, governor of South Gyeongsang Province and the mayor of Changwon City. date2024-03-29

Korea's industrial complexes to be enriched with cultural life for appeal to younger workforce

Trade, Industry and Energy Minister Dukgeun Ahn and Culture, Sports and Tourism Minister Yu In-chon visited the Changwon Industrial Complex on March 28 to meet with tenant business representatives, young workers, and cultural artists and seek ways to integrate cultural life into the industrial complex.   The talks were also attended by Land, Infrastructure and Transport Ministry officials, governor of South Gyeongsang Province and the mayor of Changwon City.   The talks were held as part of a follow-up measure to the order instructed by President Yoon through the 14th public forum on enriching the industrial complexes with cultural life and making them more appealing to youth.   Industrial complexes have led Korea’s industrialization and economic growth at the helm over the last six decades. However, their lack of cultural lifestyle infrastructure is growing more prominent as they age and younger workers are inclined to avoid applying for jobs in these complexes, while companies also face manpower shortages. For example, the Changwon Industrial Complex enjoyed an all-time high of KRW 60 trillion in production value last year, but employment remained at 1,813 new recruits.   Accordingly, the Government is designing several measures to blend cultural life into industrial complexes, such as expanding cultural life infrastructure, increasing support for cultural life programs, promoting cooperation between relevant ministries and local authorities from the planning stages of industrial complex development to foster cultural life facilities, and assisting cultural life related tenant businesses’ entry into industrial complexes.   Minister Ahn remarked that the Government will increase pan-ministerial efforts to incorporate cultural life into industrial complexes. date2024-03-29

Preemptive business realignments to accelerate New Industrial Policy 2.0

The Ministry of Trade, Industry and Energy (MOTIE) held the 41st deliberation committee meeting for business realignment on March 28 and granted approval to seven domestic companies that submitted plans to realign their business portfolio towards digital transition and carbon neutrality.   TOPIND, a Korean manufacturer of special vehicle parts and prototype vehicles, aims to start producing lightweight electric vehicle (EV) parts using carbon-fiber reinforced plastic materials. Another car parts manufacturer Samhyun plans to secure its future growth engine in smart actuators for EVs with a three-in-one motor, controller, and brake system. Woorikidsplus, a cosmetics startup, plans to move into the global market with eco-friendly, water-soluble packaging. The approved seven companies revealed plans to make over KRW 91.1 billion in investment and create 285 new job openings over the next five years.   MOTIE has announced that a support system for digital transition and carbon neutrality business realignment will be installed starting March 29, with the Corporate Vitality Improvement Special Act turning permanent and the special provisions of the Commercial Act and Fair Trade Act becoming applicable on all business realignments as of the second half of this year. date2024-03-29

Global auto parts production facility completed, bolstering Korea's future mobility supply chain

Deputy Minister for International Trade and Investment Choi Woo-seok attended the completion ceremony of Valeo Mobility Korea’s production facility for manufacturing self-driving vehicle parts on March 28 in the Daegu National Industrial Complex.   The French company Valeo has steadily invested in Korea for over 35 years since its first joint investment with a Korean company in 1988, and its accumulated investment in Korea amounts to USD 485 million. It currently runs a total of 11 business sites in Korea.   Upon making the $56 million investment decision in August 2022, the company launched the construction of the production facility in the Daegu National Industrial Complex for manufacturing future mobility core parts like sensors and image-recognition cameras of autonomous vehicles. The investment is anticipated to strengthen Valeo’s supply chain for future mobility transition and contribute to the local economy by generating an estimated 110 new job openings and KRW 200 billion in annual sales of future mobility.   Since taking office, Korea’s current administration has focused on nurturing the world’s top investment environment for domestic and overseas companies by increasing investment tax credit, strengthening incentives for advanced industry sectors, and taking deregulatory measures. As part of these efforts, the budget for foreign investment cash grants has spiked from the previous 50 billion won (2023) to 200 billion won (2024). date2024-03-28

MOTIE and Thermo Fisher Scientific discuss investment prospects for raw biomaterials facility in Korea

Minister for Trade Inkyo Cheong met Mark Smedley, a senior vice president of Thermo Fisher Scientific, on March 28 in Seoul to discuss the global pharma and biotech company’s prospects of investment in establishing a raw and subsidiary biomaterials production facility in Korea.   Trade Minister Cheong remarked that “Samsung, Lotte, Celltrion and other major domestic firms are aggressively expanding investment to bolster productivity in line with Korea’s aim to become a global pharmaceutical manufacturing powerhouse,” and added that “there is a reason why Merck, Sartorius, Cytiva, and other world-leading biomaterials companies have selected Korea as the final investment destination.”   Meanwhile, in addition to bio, the global pharma company revealed plans for cooperation with Korea’s battery and semiconductor firms to seek solutions to battery quality improvement. date2024-03-28

Vice Minister attends “Smart Factory + Automation World 2024” opening ceremony

Trade, Industry and Energy Vice Minister Kang Kyungsung and SMEs and Startups Vice Minister Oh Kee-woong attended the “Smart Factory + Automation World 2024” on March 27 in COEX, Seoul, the largest exhibition in Korea showcasing various products and solutions for digital transition of 500 domestic and overseas companies. date2024-03-27

“Smart Factory + Automation World 2024” showcases leading solutions for digital transition

Trade, Industry and Energy Vice Minister Kang Kyungsung and SMEs and Startups Vice Minister Oh Kee-woong attended the “Smart Factory + Automation World 2024” on March 27 in COEX, Seoul, the largest exhibition in Korea showcasing various products and solutions for digital transition of 500 domestic and overseas companies, including automation parts, internet of things (IoT), and AI-based industrial robots. The exhibition is held for three days (March 27-29) and garners approximately 70,000 visitors.   On the sidelines of the exhibition, over 100 sessions will be held to show the latest technologies related to digital transition and the successful application cases from around the world. New products and technologies will be introduced in seminar format, while buyer companies and suppliers in digital transition technology can meet via one-on-one business matchings through an online exhibition booth.   Vice Minister Kang Kyungsung emphasized that “Digital technology is a practical means for heightening onsite safety, resolving the issues of skilled manpower shortage, and advancing companies’ competitiveness.” He added that “MOTIE and the Ministry of SMEs and Startups (MSS) will join hands as ‘one team’ to assist our companies take up the challenge of utilizing digital transition technologies.” date2024-03-27

Korea to push tailored measures in establishing high-tech strategic industry specialization complexes

Trade, Industry and Energy Minister Dukgeun Ahn attended the fifth meeting of the National High-Tech Strategic Industry Committee, chaired by Prime Minister Han Duck-soo on March 27 at the Government Complex Seoul, where members discussed agenda items and measures for comprehensive support on the establishment of the seven high-tech strategic industry specialization complexes designated in July 2023.   The Korean government established the High-Tech Strategic Industry Specialization Complex Comprehensive Support Measures to nurture the specialization complexes in step with the plan for KRW 681 trillion in private investment by 2047.   First, the Government plans to concentrate support towards establishing infrastructure for high-tech strategic industry specialization complexes through state funding and public institutions. Succeeding the 100 billion won state funding for the Yongin and Pyeongtaek specialization complexes granted in 2023, 43.9 billion won in 2024 will go towards building the specialization complexes in Pohang, Gumi, Saemangeum and Ulsan, while also pushing for over 10 trillion won worth of projects exempt from public-led prefeasibility studies for the Yongin National Industrial Complex. The current limit on government expense support (up to two) for infrastructure is to be abolished, and according to investment size and region, the government expense support ratio will be enlarged by up to 10 percentage points.   With aim to establish a high-tech ecosystem within the specialization complex, 4.5 billion won will be placed toward R&D in 2024, and a large-scale R&D project is to be planned within the year to push forward prefeasibility exemptions, fast tracks, and other related early implementations.   Second, nine related ministries, including MOTIE, the Ministry of Economy and Finance (MOEF) and the Ministry of Education (MOE), jointly presented the implementation plan for 2024 as a follow-up to the first basic plan (May 2023) on nurturing and protecting national high-tech strategic industries. The plan includes a 10 percent raise in the R&D budget in 2024 for semiconductors, displays, secondary batteries and bio, the four major high-tech strategic industries.   Third, more specialization courses will be offered at universities and graduate schools to nurture high-tech strategic industry talent. In 2023, three schools were designated to offer master's and doctoral semiconductor specialized courses to train 261 professional talents, and eight specialization project groups, consisting of 12 schools, launched bachelor’s degree programs to train 865 professional talents. MOTIE plans to further designate three more semiconductor-focused graduate schools and additional graduate schools for specialization in secondary batteries (3), displays (1), and bio (1) in April 2024.   Lastly, in accordance with the fourth Committee meeting outcomes, an open call was announced for the designation of the bio specialization complex, drawing a total of 11 designation applications through December 2023 to February 2024 from Korea’s metropolitan local authorities. The final results will be announced by the first half of this year following the relevant ministries and experts’ evaluation process. date2024-03-27

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

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