Ministry of Trade, Industry and Energy

Minister Ahn chairs 49th Industrial Technology Protection Committee

Trade, Industry and Energy Minister Dukgeun Ahn chaired the 49th Industrial Technology Protection Committee on February 29 in Seoul and led the deliberation and resolution on the proposed amendment regarding 31 technologies across nine areas out of a total of 75 technologies over 13 areas. date2024-02-29

Korea to make amendments concerning 31 national core technologies to incorporate changing technological landscape

Trade, Industry and Energy Minister Dukgeun Ahn chaired the 49th Industrial Technology Protection Committee (“Committee”) meeting on February 29 in Seoul and led the deliberation and resolution on proposed amendments concerning 31 national core technologies in semiconductors, automobiles, railway transport, steel, nuclear power plants and other sectors for incorporation of new technology designations, revocations, standards adjustment, and scope specification to reflect the shifts in the technological landscape.   The amendment will be touching on 31 technologies across nine areas out of a total of 75 technologies over 13 areas. Details of the amendment will be notified during the first half of this year via administrative notice and other procedures.   The Committee members discussed measures to improve deliberation and resolution standards for technology export and mergers and acquisitions (M&As). Members agreed on the need to clarify deliberation standards for export declaration and approval in order to prevent export delays caused by application of excessive deliberation criteria on technologies mandated for declaration and developed without government support. They also agreed to further specify deliberation standards to reduce ambiguity, and newly install a special criterion for M&As that pose risks of technology leak.   In his opening address, Minister Ahn presented policy measures for the protection of industrial technology in 2024, including plans to introduce the blanket review system and other simplified review procedures not only to areas like semiconductors and biotechnology (2023), but also to shipbuilding, batteries, and automobiles starting this year.   The Committee meeting held this day saw export approval granted to 15 national high-tech strategic technologies and national core technologies in the areas of semiconductors (3), displays (2), secondary batteries (6), automobiles (1), and biotechnology (3). date2024-02-29

Korea's retail industry climbs 8.2% in January

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 27 that Korea’s retail sales for January gained 8.2 percent year-on-year.   Offline sales inched down 0.3 percent as the Seollal holiday effect paled in comparison for January, with the holiday landing in February and driving down hypermarkets’ sales by 9.2 percent and reducing overall sales.   Online sales soared 16.8 percent, thanks to reservation promotions for newly released mobile phone models, heightened demand for travel package reservations and growing sales of convenience food products as a result of persisting inflation.   By item, sales of kids/sports (down 0.3 percent) fell, while home appliances/culture (up 11.4 percent), home/living (up 11.1 percent) and services/other (up 15.8 percent) rose.   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 fell 9.2 percent, with sales declining across all items, including miscellaneous goods (down 21.3 percent), home/living (down 19.4 percent), sports (down 18.6 percent), clothing (down 13.8 percent) and food products (down 7.4 percent).   Department store chains saw sales increase 0.7 percent overall, with clothing and fashion items showing declines, but household goods (up 16.4 percent) and foreign designer labels (up 6.6 percent) expanded.   Convenience stores advanced 6.1 percent as close proximity, small purchase shopping and eat-in trends continued, driving sales of all items, including instant food products (up 12.8 percent) and beverages/processed food products (up 5.7 percent).   SSM operators grew 7.1 percent in spite of declines in daily necessities (down 10.6 percent), miscellaneous goods (down 1.2 percent) and other non-food items, as sales of agriculture, fishery and livestock products (up 11.2 percent), fresh/prepared food products (up 9.9 percent) and processed food products (up 3.5 percent) advanced.   Sales per store dropped sharply for hypermarkets (down 8.3 percent), while those for department stores (up 0.7 percent), convenience stores (up 1.5 percent) and SSM operators (up 4.2 percent) increased.   Online retail sales (up 16.8 percent) shrank in fashion/clothing (down 4.7 percent), but low pricing promotions and reservation purchases of Seollal holiday travel packages and gifts raised overall online sales.   To note, reservation promotions for newly released mobile phones delivered a strong boost for home appliances and electronics (up 13.2 percent). date2024-02-28

Minister Ahn holds conference with semiconductor industry leaders

Trade, Industry and Energy Minister Dukgeun Ahn held a conference on February 26 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul to meet with semiconductor industry leaders to discuss the recently intensifying global semiconductor market competition and its impact on Korea’s chip industry, and to seek response measures.   The minister gave an opening message and led discussions on the follow-up measures for nurturing the semiconductor mega cluster announced via the public forum on January 15, as well as investment and export forecast, and gathered opinions on corporate challenges.   Attendees were composed of representatives of leading MPE (materials, parts, equipment) companies like Samsung Electronics, SK Hynix and Dongjin Semichem. date2024-02-27

Korea's public and private sectors join hands to secure semiconductor super gap

Trade, Industry and Energy Minister Dukgeun Ahn held a conference on February 26 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul to meet with semiconductor industry leaders to discuss the recently intensifying global semiconductor market competition and its impact on Korea’s chip industry, and to seek response measures. Government and corporate representatives at the meeting decided to combine public and private sector efforts as “one team” to claim the AI semiconductor market with aim to overcome the nation’s semiconductor industry challenges, while also discussing the follow-up measures necessary for the successful implementation of the Semiconductor Mega Cluster plan announced through the recent public forum. Minister Ahn is to spearhead the efforts to resolve chip industry challenges by installing a communication hotline with CEOs of major companies.   Representatives of leading MPE (materials, parts, equipment) companies like Samsung Electronics, SK Hynix and Dongjin Semichem attended the conference and stated that they will join efforts with the Government in achieving this year’s investment and export targets of KRW 60 trillion and 120 billion won, respectively, for the semiconductor industry. Moreover, they suggested measures for improving the investment environment in terms of sustainability, such as providing new investment subsidies, expanding support for base facilities of the Mega Cluster and establishing an MPE testbed.   Ever since the inauguration of the current administration, MOTIE has been introducing bold support measures for the semiconductor industry, which include sharply raising the investment credit rate, creating an unprecedented chip mega cluster and training 150,000 chip talents. The ministry also plans to continue to push these types of bold support measures to “level the playing field” for homegrown companies. One example would be the upcoming memorandum of understanding (MOU) to be signed on February 27 between Korea Electric Power Corporation (KEPCO), Korea Land and Housing Corporation (LH), power companies and buyer companies to swiftly implement the Yongin General Industrial Complex power supply plan finalized at the end of last year under the Government’s aim to take charge of establishing the essential infrastructure like those for electrical power and water.   In addition, the “Comprehensive Support Measures for the High-Tech Strategic Industry Specialization Complex” to be announced in March will incorporate additional investment incentives for semiconductors and other advanced industries. Furthermore, MOTIE plans to inject a total of 24 trillion won worth of policy funds to train world-class MPE and fabless talent, while also establishing a public-private joint demonstration fab steering team to speedily propel forward the MPE mass-producing mini fab project selected as the prefeasibility study project last week. Not only that, but the ministry also intends to launch a 19.8 billion won technology development project in April this year to support the advanced packaging technology development industry to meet urgent market demands and roll out a large-scale prefeasibility study within this year. To raise fabless competitiveness, it plans to establish a semiconductor design and inspection center this year, while also forming an AI semiconductor cooperation forum within the domestic semiconductor industry association. By the first half of this year, MOTIE also aims to establish measures for nurturing Korea’s fabless industry.   Minister Ahn stated that it is important to establish industrial support policies that are tangible and hands-on for companies and emphasized that “The Government and companies must join as ‘one team’ to strengthen communication and cooperation.” He added that “Related licensing procedures for semiconductor industrial date2024-02-27

Korea's automobile export value hits all-time high of $6.2 bln for January

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 21 that the value of Korea’s automobile exports for the month of January grew 24.7 percent year-on-year, reaching an all-time high of USD 6.2 billion for January. The trade balance stood at $5.4 billion, ranking automobiles first among export items in terms of trade surplus and as the largest driver behind Korea’s overall January trade surplus. The number of automobiles exported in January amounts to 245,255 units, a first to enter the 240,000 units threshold in nine years since January 2015.   The automobile production volume in January achieved 358,423 units, up 16.9 percent. The growth can be attributed to the base effect from last year and the increased number of working days. Meanwhile, production trends for January over the last five years indicate that automobile production has emerged to pre-COVID levels thanks to the normalization of the supply chain and parts supply.   Domestic sales of automobiles contracted 0.4 percent year-on-year to 116,152 units in January. Homegrown models saw a 2.5 percent growth in demand and sold 103,057 units in Korea, whereas foreign models declined by 18.8 percent and sold 13,095 units. In terms of passenger car sales, consumer preference for SUVs was prominent.   This January, MOTIE announced the eco-friendly mobility regulatory innovation measures for removing obstacles to corporate activities and stimulating automotive investment. The ministry plans to complete 33 of the 43 project tasks by the end of this year and also intends to strengthen support for the automotive parts industry through the “Future Car Parts Industry Act” scheduled to take effect this July. date2024-02-21

Korea and Georgia enter first official negotiating round for bilateral EPA

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 20 that the first round of official negotiations for the Korea-Georgia Economic Partnership Agreement (EPA) is to be held through February 20-22 in Tbilisi, Georgia.   Director General for FTA Negotiations Chang Sung-gil and Deputy Minister of Economy and Sustainable Development Genadi Arveladze are each heading the Korean and Georgian delegation in this negotiating round.   The two countries launched a joint economic feasibility study on the Korea-Georgia EPA in 2021 based on the mutual need for cooperation and this first official negotiating round comes on the heels of the March public hearing and National Assembly briefing in April. The Korean delegation plans to narrow down the two sides’ differences through a total of 15 working groups’ in-depth discussions on goods, services, and cooperation.   The Korean government expects to see the Korea-Georgia EPA not only broaden the base for bilateral trade and cooperation, but also serve as an opportunity for Korean firms to expand their presence in the European and Middle Eastern markets. date2024-02-20

Korea and Netherlands launch Semiconductor Dialogue to bolster chip cooperation

High Technology Industry Director General Lee Yong-pil at the Ministry of Trade, Industry and Energy (MOTIE) met with Serpil Tascioglu, Director of Top Sectors and Industrial Policy at the Netherlands’ Ministry of Economic Affairs and Climate Policy and head of the Dutch delegation, for the first Korea-Netherlands Semiconductor Dialogue on February 19 in Eindhoven to discuss joint efforts for semiconductor policies as part of implementing the bilateral summit agreement in December on the establishment of a “chip alliance” encompassing the two countries’ governments, companies and universities.   The two sides shared semiconductor industrial policies, including the creation of the Mega Cluster announced in January. The Korean delegation emphasized the need for collaboration with major countries regarding policy implementation, particularly for semiconductors in view of their internationally divided specialization structure. The delegations discussed measures for technological cooperation in engineering, equipment, and packaging. They also considered taking turns hosting the Korea-Netherlands Advanced Semiconductor Academy program and expanding the range of participating universities and institutions to diversify the program in tackling the global chip industry’s shared issue of nurturing specialized talent.   Moreover, the delegations agreed on the need to strengthen the Korea-Netherlands industrial cooperation for stabilizing the semiconductor supply chain and discussed measures on supporting opportunities for launching new businesses through events like roundtables on the margins of the Korea-Netherlands Advanced Semiconductor Academy course for incumbent employees and other important occasions. They agreed to hold the Semiconductor Dialogue regularly on an annual basis to review the bilateral chip cooperation progress and bolster organic collaboration between their governments, industry, academia and R&D sectors.   Director General Lee said that MOTIE will continue efforts to further the two countries’ cooperation through the Korea-Netherlands Semiconductor Dialogue. date2024-02-20

Korea and Netherlands launch advanced semiconductor academy program to train chip talent

The Ministry of Trade, Industry and Energy (MOTIE) is launching the first Korea-Netherlands Advanced Semiconductor Academy (“Academy”) program through February 19-23 (local time) at the Eindhoven University of Technology (TU/e) in the Netherlands as part of the smooth implementation of the Korea-Netherlands memorandum of understanding (MOU) for training highly skilled talent in advanced semiconductor areas, as signed in December 2023.   The Academy program is an education course led by 20 international experts from seven institutions and taught at advanced global semiconductor companies like ASML, Imec, and NXP Semiconductors, integrating corporate professionals’ knowhow to train approximately 60 Korean (50) and Dutch (10) students with master’s and doctoral degrees specializing in semiconductor areas. In this program, ASML and Imec developers will be giving special lectures and facilitating discussions on Imec’s chip manufacturing processes, including extreme ultraviolet (EUV) lithography technology for micropattern fabrication, process development, atomic layer deposition technology development, and wafer surface control. Domestic talents taking the program can learn about the latest trends in global companies’ technological development and strategies difficult to pick up in Korea.   Participating students are composed of those with master’s and doctoral degrees in semiconductor specialization graduate schools designated last year for training highly skilled semiconductor talent. To enhance the effectiveness of the on-site courses, SK Hynix and other MPE (machinery, equipment, parts) companies’ experts were invited to give preliminary courses teaching advanced technologies like plasma etching and EUV lithography for semiconductor micropatterning. Moreover, courses on processes, materials and equipment will also open to articulate with the semiconductor specialization graduate schools’ courses during the first half of this year to push for mutual school exchanges.   MOTIE’s High Technology Industry Director-General Lee Yong-pil stated that “securing the semiconductor technology super gap hinges on sourcing highly-skilled talent” and added that “the Korea-Netherlands Academy for incumbent employees will likewise open in the first half of this year, and the plan is to launch the Academy program every year for the next five years to train 500 Korean and Dutch top talents and seriously push forward cooperation in advanced semiconductor R&D.” date2024-02-19

Korea rolls out financial support package to better cater to companies

Trade, Industry and Energy Minister Dukgeun Ahn attended a conference on February 15 in Seoul to discuss measures for providing catered financial support to businesses.   Financial Services Commission (FSC) Chairman Kim Joo-hyun stated that the support measures are focused on backing companies making bold and innovative investments in advanced industries, middle-market companies. and SMEs and struggling companies facing high interest rates. The measures were established through numerous conferences and consultations with relevant ministries, policy financing institutions and city banks.   First, KRW 26 trillion worth of strategic financial support is to go towards companies in advanced industries, Korea’s future growth engine sectors. The Ministry of Economy and Finance (MOEF) and Suhyup Bank will aim to smoothly operate the “Supply Chain Stabilization Fund” created for supporting companies in need of funding for import channel diversification, alternative technology development and securing overseas resources. Korea Development Bank (KDB) will offer low-interest (down 1.2 percentage points) funds amounting to 15 trillion won for companies pursuing business in five core areas, including semiconductors, secondary batteries and bio.   Second, 15 trillion won worth of intensive support has been prepared for middle-market companies that were comparatively overlooked in past policy funding. Middle-market companies are low in number (5,600, only 1.5 percent of total number of companies) but take up a considerable chunk of the national economy, occupying 16.1 percent and 12.9 percent of Korea’s total sales and employment, respectively.   Accordingly, a number of funding measures have been devised to strengthen their competitiveness, which can translate into a more resilient value chain for the economy and drive innovative growth. With banks’ investment, a five trillion won funding exclusively for middle-market enterprises will be launched, which is anticipated to mitigate middle-market firms’ burden in many ways through equity investments and other means to inject the funds needed for new project participation and business expansion.   Not only that, but five major Korean banks and KDB are rolling out a six trillion won low-interest loan program for middle-market companies entering new businesses. Moreover, a 1.8 trillion won worth of new corporate bonds will be issued to facilitate various funding channels and a 2.3 trillion won “stepping stone” fund program through the collaboration of banks and guarantee institutions.   Third, swift recovery programs will be offered for companies and entrepreneurs struggling with high interest rates and related management challenges. For SMEs experiencing deteriorating sales, five major banks and the Industrial Bank of Korea (IBK) will jointly provide a special five trillion won program by slashing interest rates. IBK will further provide a forbearance program for companies struggling with interest rates by allowing interest repayment after their management conditions improve in the future. To reinforce the overall industrial dynamics, entrepreneurs with failed business experiences in the past will receive support for recovery in order.   FSC Chairman Kim stated that these measures are a result of joint public-private efforts and added that MOEF, MOTIE, and the SMEs and Startups Ministry (MSS) have actively helped out and banks have also extended support of 20 trillion won. In explaining the measures, he said that the industry-specific data in Korea Credit Information Services will be segmented in the future to better cater to companies so that private banks can handle corporate financing more readily.   Minister Ahn said that these corporate financial support measures will facilitate financial support for advanced industries’ competitiveness building, SM date2024-02-15