Ministry of Trade, Industry and Energy

Korea and Indonesia to push forward cooperation in future new industries

Deputy Minister for Trade Yang Byeong-nae visited Jakarta, Indonesia, from March 3-5 to hold high-level meetings with Indonesian counterparts and talks with locally operating Korean companies with aim to solidify the base for Korea-Indonesia bilateral economic cooperation.   This comes as part of the two countries’ efforts to push forward the agenda items discussed during the Korea-Indonesia summit meeting in September, concerning EVs, batteries, critical minerals supply chain and “root (foundational)” technology talent nurturing, while also expanding cooperation in areas for facilitating carbon neutrality goals and future industries, such as nuclear energy and carbon capture and storage (CCS) in depleted oil and gas reservoirs.   Deputy Trade Minister Yang first met with Jisman P. Hutajulu, Directorate General of Electricity at Indonesia’s Energy and Natural Resources Ministry, to discuss measures for expanding cooperation in EVs, critical minerals supply chain and clean energy. The two sides affirmed plans for launching the Korea-Indonesia E-Mobility Cooperation Center within the first half of this year and agreed to closely cooperate on building an EV and battery ecosystem. They also discussed measures for establishing a stable critical minerals supply chain for batteries, including investment in mines, refineries and smelteries.   In his meeting with Andi Rizaldi, Head of the Standardization and Industrial Services Policy Agency (BSKJI) of Indonesia’s Ministry of Industry, the deputy trade chief discussed measures for resolving issues Korean companies face in entering the local market, such as talent training and import regulations. On this occasion, a memorandum of understanding (MOU) was entered for cooperation in foundational technology talent training between Indonesia’s PT Krakatau POSCO, Banten Petrochemical Industry Polytechnic and the Korea National Ppuri Industry Center as a follow-up to the Korea-Indonesia Industrial Cooperation MOU signed between the two countries’ industry ministries during the summit meeting held last September. This MOU is expected to help provide local Korean companies with quality industrial talent. Deputy Trade Minister Yang further asked for support in resolving issues regarding Indonesia’s import quota.   The talks were followed by a conference with representatives of 10 locally operating Korean companies to gather opinions on issues related to entering and expanding the Indonesian and ASEAN markets, which are to be incorporated into agenda items for bilateral governmental cooperation channels like the annual Korea-Indonesia Economic Cooperation Committee and in removing obstacles to Korean firms’ export and investment. date2024-03-05

Korea engages in MSP meeting to further global collaboration in critical minerals supply chain

The Ministry of Trade, Industry and Energy (MOTIE) announced on March 4 that Korea’s Foreign Affairs Vice Minister Kang Insun and MOTIE's Resources Industry Policy Director General Peob-min Ryu attended the Minerals Security Partnership (MSP) Chief Delegates Meeting, chaired by the Under Secretary of State for Economic Growth, Energy, and the Environment Jose Fernandez, on March 3 in Toronto, Canada, and discussed measures for diversifying the critical minerals supply chain for lithium, graphite, nickel and rare earth elements with 14 other MSP partners, composed of 13 countries and the EU.   MSP partners launched the MSP Forum for the sustainable diversification of the critical minerals supply chain and provided the occasion for non-MSP partners to engage in the MSP, through which MSP partners aim to gather joint efforts to push forward effective policies. Partners also welcomed Estonia’s joining the MSP partnership.   Moreover, MSP partners agreed to expand policy support for pilot projects selected for global supply chain diversification and clean energy transition.   Held on the margins of the Prospectors & Developers Association of Canada (PDAC) Convention 2024, the MSP Chief Delegate Meeting saw the exchange of views on measures for sustainable minerals development cooperation among both MSP partners and non-MSP, resource-rich Latin American partners.   On the margins of the MSP Chief Delegates Meeting, Foreign Affairs Vice Minister Kang will be hosting an in-depth meeting on March 4 in Toronto on graphite supply chain issues with MSP partners’ governments, minerals experts, major global graphite business project participating firms and industry personnel to discuss measures for strengthening and stabilizing the global supply chain of graphite, a key material for producing battery anodes.   Meanwhile, Industry Policy Director General Ryu plans to hold bilateral talks with Japan’s Economy, Trade and Industry Ministry (METI) Director General Sadamichu Yuki, Natural Resources Canada’s Director General Debora Yu and Invest in Canda CEO Laura Broten on March 4 in Toronto to discuss bilateral cooperation measures in critical minerals. date2024-03-04

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