Ministry of Trade, Industry and Energy

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

Minister Ahn attends conference on catered financing support for businesses

Trade, Industry and Energy Minister Dukgeun Ahn attended a conference on February 15 in Seoul for discussions on measures to provide catered financial support to businesses.   The conference was attended by the representatives of policy financing institutions and banks, including Financial Services Commission (FSC) Chairman Kim Joo-hyun and SMEs and Startups Minister Oh Youngju. date2024-02-15

Korea's ICT exports advance 25.1% in January

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 15 that Korea's exports and imports of information and communications technology (ICT) goods for January recorded USD 16.4 billion (up 25.1 percent year-on-year) and $11.9 billion (down 3.2 percent), respectively. The trade balance stood at a surplus of $4.5 billion.   January ICT export growth was powered by semiconductors, as they posted double-digit growth for the third consecutive month and led ICT exports at the helm, which recorded double-digit growth for the first time in 20 months since May 2022. Memory chips’ fixed price rose for the fourth consecutive month, driving the entire semiconductor exports rebound.   Displays (up 2.6 percent to $1.5 billion) advanced in exports for the sixth consecutive month as high value-added items like panels for TVs and laptops met increasing demand.   Exports of mobile phones (down 20.1 percent to $1.1 billion) dropped, owing to the high base effect from the spike of last year’s finished product exports and as major global firms’ demand for parts declined.   Computers and peripherals (up 33.6 percent to $0.8 billion) returned to an expansion for the first time in 19 months as demand for solid-state drives (SSDs) hiked 57.5 percent.   Communications equipment (up 27.6 percent to $0.2 billion) enjoyed growing demand in regions like Vietnam and the U.S.   By region, exports to China and Hong Kong (up 43.1 percent to $7.5 billion), Vietnam (up 11.6 percent to $2.5 billion), the U.S. (up 4.9 percent to $1.8 billion), EU (up 1.9 percent to $0.9 billion) and Japan (up 1.5 percent to $0.3 billion) showed growth.   Korea’s ICT imports for January shrank as those of major devices like mobile phones (down 28.7 percent to $0.8 billion) and computers and peripherals (down 10.5 percent to $1.5 billion) contracted. date2024-02-15

Minister Ahn chairs conference with international standards experts

Trade, Industry and Energy Minister Dukgeun Ahn chaired a conference on February 7 in Seoul with international standards experts to discuss measures for expanding the leadership of homegrown technologies in the domain of international standards.   Minister Ahn gave an opening address and led discussions on Korea’s current international standards activities and future plans.   The conference was attended by 33 international standards experts, including International Organization for Standardization (ISO) President Sung Hwan Cho. date2024-02-08

Experts lay down vision for international standards leadership of Korea's homegrown technologies

Trade, Industry and Energy Minister Dukgeun Ahn chaired a conference on February 7 in Seoul with international standards experts to discuss measures for expanding the leadership of homegrown technologies in the domain of international standards.   Conference attendees included International Organization for Standardization (ISO) President Sung Hwan Cho among a number of other leaders initiating the standards strategy development and legislation of international standards in organizations like the International Electrotechnical Commission (IEC).   Standards experts voiced in unison the importance of securing competitive advantage in international standards as not only an essential part of overseas market entry but also a means for gaining hegemony in advanced technologies and outpacing rival countries in the intensifying race for international standards dominance.   In this regard, a wide range of opinions were presented on ways to expand the development of draft international standards in collaboration with R&D, training next-generation international standards experts, and strengthening partnerships with leading countries in international standards.   Minister Ahn stated that “the ministry will establish the advanced industries’ standards strategy within the first half of this year to bolster the leadership of homegrown technologies in international standards and related organizations.” date2024-02-08

Korea to spur economic vitality with 110 tln won private investment in 2024

Trade, Industry and Energy Minister Dukgeun Ahn chaired the first Industrial Investment Strategy Meeting on February 7 with representatives of Korea’s 10 major manufacturing companies and economic groups to discuss investment plans and business support measures for 2024.   The top 10 manufacturing companies’ major facility investment plans for 2024 amount to KRW 110 trillion, up 10 percent from last year’s 100 trillion won. Amid persistent high interest rates and supply chain anxieties, the Korean government intends to provide strong support to companies for smooth investment facilitation. Top 20 key investment projects will be selected, to which Trade, Industry and Energy Ministry (MOTIE)’s director-level officials will be assigned to monitor the investment project situation on a monthly basis until issues are resolved.   The Government will also support the fostering of favorable investment conditions for firms through a number of measures. First, the Government will extend the deadline for investment tax credit regarding national strategic technologies and for temporary investment tax credits.   Second, for advanced industries, three major regulatory innovations will be pushed: easing of existing regulations through the National High-Tech Strategic Industry Committee; high-tech industry impact evaluation for preliminary assessment of new regulations; and the development of high-tech industry regulation indices for assessing the regulation level on an annual basis.   Third, local governments are to establish a win-win belt for sharing investment returns to prevent large-scale manufacturing facility investments from being delayed by local governments’ belated licensing.   Lastly, the Government will push three major projects for the making of investments in concert with the private sector’s investment plans: infrastructure investment for establishing the power and water infrastructure; supply chain self-reliance investment for supporting the development of domestic MPEs (materials, parts, equipment) in line with production facility investment; and preemptive securing of manpower investment for time-appropriate activation of production lines.   Attendees also discussed “New Industrial Policy 2.0”, which lays out the Government’s new policy directions. Over the last two years, the Government has pushed “New Industrial Policy 1.0” to construct the industrial innovation basis for the 20-plus law enactments for sector- and function-specific industrial strategies, advanced industries, digital transition and talent training, such as the initiation of the industrial transformation and strategy for nurturing Korea into a semiconductor powerhouse. Now the time has arrived for Korea to build on the past policy tasks and seek future industrial strategy directions through New Industrial Policy 2.0.   New Industrial Policy 2.0 is speed- and goal-oriented, designed to secure super gaps in advanced industries, achieve industrial transformation across core sectors and upgrade Korea’s export portfolio, while simultaneously setting the convergence of AI and industries as the nation’s future priority task and aiming to create industry policies for this AI era.   Minister Ahn stated that “investment is a core element for recovering economic vitality,” and asked that companies make bold investment commitments, as MOTIE will likewise be making across-the-board effort to stimulate corporate investment this year. date2024-02-07