Ministry of Trade, Industry and Energy

32nd Energy Commission meeting

MOTIE Minister Dukgeun Ahn chaired the 32nd Energy Commission meeting on December 3 in Seoul and proposed project tasks in line with the K-grid global market strategy, including AI-driven energy system transition policies.   The meeting was attended by related ministries, academia, and organizations like the Korea NGO's Energy Network (ENET). date2024-12-04

K-Grid Export Alliance launching ceremony

Trade, Industry and Energy Minister Dukgeun Ahn attended the public-private K-Grid Export Alliance launching ceremony on December 3 in Seoul and announced Korea's global grid market strategy. The ceremony was attended by representatives of related institutions and companies including those specializing in EPC (engineering, procurement, construction) and power grids. date2024-12-04

Power grid industry to rise as Korea’s next energy export growth engine

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today the launching of a public-private K-Grid Export Alliance (“Alliance”) and its strategy for penetrating global grid markets. Amid major countries’ efforts to achieve carbon neutrality and the rising power demand fueled by AI and such high-tech industries, the demand for old grid replacement and new grid establishment is expected to sharply increase in the future. Grid establishment projects are long-term projects (app. 10 years) entailing large-scale investments and maintenance work, leading to anticipation of economic spillovers for Korean companies by means of joint entries accompanying nuclear reactor exports. The Alliance was formed under the aim to promote exports across the entire electrical power industry value chain spanning power generation, transmission, distribution, and ancillary services under a national brand dubbed as “Team Korea,” combining the strengths of public power companies, EPC (engineering, procurement, construction) specialized firms, and grid businesses. As buyers and developers of materials and equipment, public power companies and large corporations will play the central role of the Alliance, while EPC companies are to focus on utilizing homegrown materials. Meanwhile, Korea Electrotechnology Research Institute (KERI), Korea Trade Insurance Corporation (K-SURE), and Korea Trade-Investment Promotion Agency (KOTRA) are to concentrate on assisting in areas like test certification, financing, and overseas marketing. Major law firms will be supporting Korean companies respond to legal issues in the process of overseas market entry. At the 32nd Energy Commission meeting following the ceremony, MOTIE proposed 13 project tasks in line with the K-grid global penetration strategy. MOTIE Minister Dukgeun Ahn stated that the ministry will make the utmost effort to support the industry reach USD 15 billion in grid exports and occupy over five percent of the global market by 2030.   date2024-12-03

KPX announces results of clean hydrogen power competitive bidding

The Korea Power Exchange (KPX) under the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today the competitive bidding results of the world’s first clean hydrogen power generation bidding market. Following KPX’s bid announcement on May 24, six power plants (five companies) participated in the bid with a net 6,172 GWh. Based on the resolution of the hydrogen power generation bidding market committee and the bid proposal evaluation by the evaluation committee composed of external experts, a power plant with a bid of 750GWh/year was selected as the final successful bidder. The bid winner plans to produce electricity using clean fuel that fulfills Korea’s clean hydrogen certification standard requiring that greenhouse gas emissions be 4㎏CO2eq or less per 1kg of hydrogen.  Commercial operation will begin in 2028 ensuing the preparation time for infrastructure establishment and power plant renovation. Electrical power can be auctioned for up to 15 years starting from the commercial operation date.   date2024-12-02

3rd strategy meeting on East Sea deep-sea gas field development

Korea’s Minister for Trade, Industry and Energy Dukgeun Ahn chaired the third strategy meeting on East Sea deep-sea gas field development on November 27 at the Korea Trade-Investment Promotion Agency (KOTRA) in Seoul, where attendees agreed to give final approval on the Korea National Oil Corporation (KNOC)'s drilling plan for Block 8 and the northern part of Block 6-1 of the gas field, referred to as the “Blue Whale.” The meeting was attended by relevant ministries, national policy research institutes, academia, resource institutions, and private companies. date2024-11-27

East Sea “Blue Whale” Gas Drilling Plan Granted Final Approval

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea held the third strategy meeting on East Sea deep-sea gas field development on November 27 at the Korea Trade-Investment Promotion Agency (KOTRA) in Seoul with the participation of relevant ministries, national policy research institutes, academia, resource institutions, and private companies, where attendees agreed to give final approval on the Korea National Oil Corporation (KNOC)'s drilling plan for Block 8 and the northern part of Block 6-1 of the gas field, referred to as the “Blue Whale.” They also discussed the investment attraction progress and measures to improve the mining royalty system. Concerning the mining royalty system reform, the Government has established an amended version of the enforcement ordinances and regulations under the Mineral Resources Development Act and completed the legislative proposal notice and consultations with related ministries in line with plans to finish the amendment process by the year end. Meanwhile, KNOC has been launching investment briefing sessions for both global and domestic companies since this July and plans to carry out investment attraction strategies following the first borehole drilling. Upon approval of KNOC’s first borehole drilling plan, a drilling rig will enter Busan Port this December to begin preparations for commencing the two-month drilling process. After analyzing the drilling data, the Korean government plans to announce the first borehole drilling results in the first half of next year.   date2024-11-27

Korea on track to laying foundation for mutual recognition of carbon footprint verification

The Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy of the Republic of Korea, announced on November 25 that the Korea Laboratory Accreditation Scheme (KOLAS) has signed a Multilateral Recognition Arrangement (MLA) with the International Accreditation Forum (IAF) for greenhouse gas verification, including carbon footprint verification. Carbon footprint verification involves companies calculating the greenhouse gas emissions generated throughout a product’s entire lifecycle—from raw material extraction to manufacturing, distribution, and disposal. Accredited third-party verification bodies then review these calculations and issue verification certificates. Recently, major economies such as the European Union (EU) have signaled plans to mandate carbon footprint verification for imported products as part of their carbon emission regulations. The EU's Battery Regulation and Ecodesign Directive are notable examples of these initiatives. Since KOLAS introduced a carbon footprint verification accreditation system in January 2023, eight organizations, including Korea Testing & Research Institute (KTR), Korea Testing Laboratory (KTL), and Korea Testing Certification (KTC), have been accredited as verification bodies. To ensure the international reliability of these bodies, KOLAS has actively pursued the signing of the IAF MLA. This agreement signifies that the verification capabilities and reliability of KOLAS-accredited carbon footprint verification bodies (currently eight) are now internationally recognized. With a framework for mutual recognition of verification certificates established through collaboration with overseas accredited bodies, Korean exporters are expected to significantly reduce the time and costs associated with local verification processes abroad. Notably, major testing institutions with extensive international networks, such as KTR, KTL, and KTC, are among the KOLAS-accredited verification bodies, promising seamless collaboration with overseas counterparts in the future.   KATS President Jin Jong-wook stated that the technical capabilities and reliability of KOLAS-accredited verification bodies have gained international recognition through this agreement, paving the way for carbon footprint verification certificates issued in Korea to be widely accepted overseas. He added that KATS will continue to foster an environment where Korean companies can access global markets with a single round of testing, certification, and verification.   date2024-11-26

Vice Minister visits Ulsan petroleum storage facility

Trade, Industry and Energy Vice Minister Namho Choe visited the Ulsan petroleum storage facility on November 14 and received a briefing on petroleum storage operations and issues and encouraged employees. date2024-11-15

Vice Minister attends Korea Energy Terminal (KET) completion ceremony

Korea’s Trade, Industry and Energy Vice Minister Namho Choe attended the Korea Energy Terminal (KET) completion ceremony on November 14 in Ulsan with the attendance of executive leaders and employees from the Korea National Oil Corporation (KNOC), SK Gas, Ulsan Metropolitan City, and Ulsan Port Authority (UPA), and gave a congratulatory message and presented government awards to project contributors. date2024-11-15

Korea Energy Terminal starts commercial operation

Korea’s Trade, Industry and Energy Vice Minister Namho Choe attended the Korea Energy Terminal (KET) completion ceremony today in Ulsan with the attendance of executive leaders and employees from the Korea National Oil Corporation (KNOC), SK Gas, Ulsan Metropolitan City, and Ulsan Port Authority (UPA), among other project contributors. The completion of KET is significant in three main aspects. First, KET is a key project under Korea’s Northeast Asia Energy Hub Project and the second domestic energy hub to be completed following the Oilhub Korea Yeosu Co. (OKYC) completed in 2013. Based on Korea’s favorable geopolitical location and port environment, OKYC is currently in successful operation, leading to anticipation of Ulsan KET’s smooth operation as well. Second, KET is Korea’s first mixed terminal for storing both petroleum and gas. In accordance with the recent changes in the global energy paradigm, the design for KET has evolved from the initial petroleum-centered model to a mixed terminal capable of dealing with other sources like natural gas. An innovative model built to address changing needs, KET has the potential and capacity to function as a terminal for storing various clean energy sources such as hydrogen and ammonia, and for carbon capture and storage (CCS) going forward. Third, KET is a culmination of public-private cooperation. The government has been concentrating effort on improving the institutional framework to expand the terminal’s scope of use by newly installing the international petroleum trading business under the Petroleum Business Act and permitting the blending of domestic oil products within the general bonded area. KNOC has contributed to designing and building a safe terminal facility based on its experiences in large-scale oil stockpile facility projects. In the private sector, SK Gas responded swiftly to Ulsan’s private sector demand for liquefied natural gas (LNG) by proposing the establishment of the city’s first LNG terminal, thereby dramatically boosting KET’s commercial value. With companies around the world showing heated interest in KET, its 4.4 million barrels of storage space for oil and gas are fully rented out at the moment. Oil storage space of 1.7 million barrels is to be used for trading of overseas companies’ petroleum products, while 2.7 million barrels—equivalent to 200,000 metric tons—of gas storage are to be provided to domestic companies for new power generation and industrial fuel purposes. Vice Minister Choe stated that KET is an example of best practice of synergy between values of public benefit and private sector creativity. During the completion ceremony, he presented government awards to KNOC, SK Gas, and UPA for their contribution to KET completion.   date2024-11-14