Ministry of Trade, Industry and Energy

Minister Addresses EU Investors Ahead of FTA Effectuation

Minister Addresses EU Investors Ahead of FTA Effectuation A luncheon meeting hosted by the European Union Chamber of Commerce in Korea (EUCCK) drew nearly 70 European business leaders on April 13. Minister of Knowledge Economy Choi Joong-Kyung delivered the keynote speech. With the Korea–EU FTA due to take effect in July, the strong ties between Korea and the European Union are about to grow even stronger, Minister Choi explained. Pointing to Korea’s progress on FTAs with major coun date2011-04-25

Parts and Materials Industry Trade Figures for First Quarter

The Ministry of Knowledge Economy has released its parts and materials industry trade figures for the first three months of 2011. The trade balance for that sector posted a $20 billion surplus—ore than twice as much as the corresponding figure for all industries combined. Amid external factors such as political instability in Libya and the recent earthquake in Japan, exports in the parts and materials industry posted an 18.3 percent increase to record $61 billion. In particular, exports of basic metals and general machinery parts showed a marked increase. This strong showing is partly attributable to the global economic recovery. Notably, outbound shipments to China reached the highest quarterly level, totaling $21.2 billion; however, with increased exports to other trading partners China accounted for 34.7 percent of all exports, down from 35.9 percent in the fourth quarter of 2010. Shipments both to and from Japan have increased, suggesting the earthquake has had minimal effects on bilateral trade in the short term.   * Released by the Components and Materials Policy Division date2011-04-13

Foreign Investment Figures for First Quarter

Foreign direct investment (FDI) pledges amounted to $2.01 billion, representing a year-on-year decline of 30.1 percent in the first quarter of the year. Despite external factors such as political instability in the Middle East and North Africa and a devastating earthquake in Japan, the inflow of foreign capital into Korea has continued its upward swing on the back of the recovery of the global economy, a positive outlook for domestic growth, and an improved business environment.     Inward capital flows from the United States displayed a marked expansion, having jumped 1,068 percent to $467 million. Notably, FDI from the United States in the manufacturing sector surged 3,333 percent. The recent earthquake did not seem to hinder investment from Japan, which posted a 40.1 percent year-on-year increase. Investment from the European Union, however, dropped 48.5 percent to $434 million. Foreign capital from China went up 103.1 percent to $65 million, partly due to the launch of the “China Desk.”     For the first three months of 2011, both the manufacturing and service sectors saw foreign investment rise. FDI in the manufacturing sector climbed 20.3 percent to $787 million, while capital flows into the service sector gained 45.7 percent to record $1.19 billion. Greenfield investments stood at $1.49 billion, an increase of 48.7 percent, and FDI through mergers and acquisitions dropped 5.1 percent to $506 million.   * Released by the Foreign Investment Policy Division   date2011-04-11

IT Trade Figures for March

The Ministry of Knowledge Economy has released its IT trade figures for March. Despite uncertainties stemming from political turmoil in Libya and the recent earthquake in Japan, IT exports gained 6.2 percent to record $13.5 billion. This upward trend has remained in place for 18 consecutive months. For the first three months of 2011, IT exports totaled $37.5 billon, the highest quarterly level on record. (The previous record was $33.4 billion for the first quarter of 2010.) The national trade balance in the information technology sector stood at $6.28 billion.   Most of Korea’s key export items displayed positive growth. With shipments to China and Japan growing 10.6 percent and 10.8 percent, respectively, exports of semiconductors gained 10.9 percent to record $4.48 billion. An upswing in smartphone exports pushed outbound shipments of all mobile phones up 6 percent to $2.17 billion. Exports of smartphones shot up 248.7 percent from a year ago. Amid concerns over a slowdown in the global economy, exports of televisions went up 11.4 percent to $720 million. Outbound shipments of LED, 3D and smart televisions surged 504 percent, 1,151 percent and 1,851 percent, respectively. Meanwhile, display panel exports fell 4.8 percent to $2.7 billion, partly due to a continued decline in prices of display panels for LCD televisions. Outbound shipments of solid state drives surged 36 percent to $36 million.     Exports to major trading partners increased, but shipments to the United States and the European Union were exceptions to this trend. Notably, despite the earthquake, exports to Japan posted double-digit growth, with outbound shipments of mobile phones jumping 67 percent.     IT imports rose 11.9 percent compared with the same period the previous year to record $7.22 billion. With inbound shipments of semiconductors rising 8.2 percent, imports of electronic components gained 6.1 percent to reach $3.93 billion. Notably, inbound shipments of mobile phones surged 69.5 percent to $600 million.     * Released by the Electronics and IT Policy Division   date2011-04-07

Trade Figures for March

The Ministry of Knowledge Economy has released its trade figures for the month of March. The trade surplus totaled $3.1 billion, up from $2.46 billion in February. Despite unfavorable overseas conditions including the political turmoil in Libya and the earthquake in Japan, exports rose 30.3 percent year on year, reaching an all-time high of $48.6 billion. Exports for the first quarter, which ended in March, set a new record with $131.8 billion. (The previous record was $128.7 billion for the fourth quarter of 2010.) The average value of exports per day climbed 30.3 percent to record $2.03 billion. With outbound shipments of petroleum products and ships surging 87.8 percent and 70.1 percent, respectively, most of Korea’s key exports displayed double-digit growth. Exports to key trading partners increased for the first 20 days of March. Notably, exports to Oceania jumped 116 percent from 2010 levels. Outbound shipments of petroleum products to China and Japan shot up 72 percent and 154.6 percent, respectively, while exports of petrochemicals to the United States surged 139.1 percent. Exports of ships to the European Union and ASEAN countries were down. China accounted for 25.8 percent of all exports, making it Korea’s No. 1 export destination for the month. Meanwhile, imports gained 27.9 percent to record $45.5 billion. The average value of imports per day climbed 27.9 percent from a year ago to reach $1.9 billion. Higher energy prices drove up inbound shipments of raw materials, which posted a 31.7 percent increase. While imports of capital goods gained 5.4 percent, the corresponding figure for consumer goods was 31.3 percent.     * Released by the Export and Import Division   date2011-04-01

Minister Meets With Chinese Investors

Minister of Knowledge Economy Choi Joong-Kyung joined Chinese investors on March 22 to celebrate the launch of a “China Club.” With assistance from the Ministry of Knowledge Economy, this new club will help companies from both countries to share information and work together to address any obstacles to business activities. Pointing to China’s emergence as a major player in Korea’s foreign investment market, Minister Choi expressed enthusiasm about the exciting prospects for bilateral investment. Inbound FDI from China displayed an impressive year-on-year increase of 160 percent in 2010. With more Chinese businesses looking to invest in Korea, in May the Ministry of Knowledge Economy set up the “China Desk,” which is dedicated to offering potential Chinese investors up-to-date information and matching them with suitable projects. The China Desk will assist companies in building active business networks within the China Club. The China Desk currently has branches in Seoul and Shanghai; later this year the Ministry plans to set up new branches in Beijing and Guangzhou. An investment roadshow in June will address areas of special interest to Chinese investors such as renewable energy, regional development and cultural content. * Released by the Foreign Investment Promotion Division date2011-03-28

Korea, Russia Launch Business Council

Korea, Russia Launch Business Council Vice Minister for Industry and Technology Ahn Hyunho speaks at the opening ceremony for the Korea-Russia Business Council on February 21 in Seoul. The event drew nearly 100 dignitaries from both countries. date2011-03-02

Korea, Russia Open Joint Technology Center

Korea, Russia Open Joint Technology Center Minister of Knowledge Economy Choi Joong-Kyung addresses representatives of government bodies, businesses and research institutes from Korea and Russia at the opening ceremony for a joint technology center on February 24 in Seoul. date2011-03-02

Trade Figures for February

The Ministry of Knowledge Economy has released its trade figures for the month of February. The trade surplus recorded $2.85 billion, down from $2.9 billion in January. The month-on-month decline is attributable to the Lunar New Year holiday, which fell in February this year and resulted in four fewer business days. Despite unfavorable conditions in the global market, brisk outbound shipments of petroleum products and automobile parts drove exports up 17.9 percent year on year to $38.96 billion. Most of Korea’s key export items displayed doubledigit growth. Notably, the average value of exports per day hit an all-time high, totaling $2.05 billion. The previous record was $1.94 billion.     With the exception of Latin America and Oceania, exports to most of Korea’s key trading partners increased during the first 20 days of February. Outbound shipments to China of textiles, automobile parts and petrochemicals grew 34.5 percent, 24.3 percent, and 19.3 percent, respectively. Outbound shipments of petroleum products to Japan surged 107.2 percent; while exports of ships to the United States and the European Union shot up 110.6 percent and 435.3 percent, respectively.     Meanwhile, imports climbed 16.3 percent to record $36.11 billion. The average value of imports per day stood at $1.9 billion, representing an increase of 25.5 percent from a year ago. During the first 20 days of February, with coal and crude oil gaining 63.3 percent and 34.1 percent, respectively, inbound shipments of raw materials went up 15.1 percent. While imports of capital goods slid 8.6 percent, the corresponding figure for consumer goods was 18.7 percent.       * Released by the Export and Import Division   date2011-03-02

Minister Meets with Leading Foreign Entrepreneurs

Pointing to a significant increase in foreign direct investment (FDI) to Korea in 2010, Minister of Knowledge Economy Choi Joong-Kyung expressed great enthusiasm about prospects for Korea’s business environment during a recent meeting with representatives of key foreign-invested businesses. Korea’s FDI inflow last year amounted to $13 billion, which marked a ten-year high. Minister Choi pointed specifically to Korea’s much-expected progress on bilateral trade partnerships with major trading partners, which will give significant improvements to its investment environment. He also encouraged foreign investors to take full advantage of the country’s strengths in information technology and new growth engine industries. With a three-year plan for facilitating FDI inflows in the works, the Minister urged foreign investors to seize opportunities to benefit from the proactive efforts of the Korean government to provide an ideal business climate as well as favorable living environment. According to the Minister, investors from major partner countries should consider partnerships with local businesses to make the most of Korea’s strong economic growth. He emphasized that such partnerships could greatly boost the performance of both foreign-invested and local firms by tapping into each other’s comparative strengths.   * Released by the Foreign Investment Policy Division   date2011-02-23