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FTA/Economic Cooperation
Korea elected as inaugural chair of IPEF Crisis Response Network
The Ministry of Trade, Industry and Energy (MOTIE) announced on July 30 that all three of the supply chain bodies under the Indo-Pacific Economic Framework for Prosperity (IPEF)—Supply Chain Council, Crisis Response Network (“CRN”), and Labor Rights Advisory Board—have officially launched and entered the implementation phase, and that Korea has been elected as the inaugural chair of CRN. CRN is the world’s first supply chain emergency response platform introduced by IPEF for seeking joint response measures among the 14 partner countries through emergency meetings in the case of supply chain disruptions. At the request of a single country, an emergency meeting is convened within 15 days to discuss support measures for joint procurement, swift customs procedures, and securing alternative supply chain and transportation routes, and may be elevated to either ministerial or summit level according to need. During non-crisis times, CRN assists programs for strengthening partner countries’ response capacity, such as developing disruption countermeasure strategies, conducting tabletop exercises, and making assessments on partner countries’ emergency response experience and related policies. On July 24, Korea was elected as the CRN’s chair with unanimous consent, indicating that Korea’s experience and policy know-how in supply chain emergency response were highly appraised by partner countries. Moreover, Japan’s election as vice chair places the two countries in a position to take the joint initiative in building a global cooperative system for supply chain management. Minister for Trade Inkyo Cheong stated that CRN is an innovative platform that enables solidarity and cooperation between industrial powers and resource-rich countries. date2024-07-30
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FTA/Economic Cooperation
Korea and Saudi Arabia to make joint efforts for Korea-GCC FTA’s swift entry into force
Trade, Industry and Energy Minister Dukgeun Ahn met Saudi Arabia’s Minister of Commerce Majid bin Abdullah Al-Kassabi on July 30 in Seoul to discuss measures for trade and investment expansion, follow-up to the two countries’ economic summit diplomacy, and for the Korea-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA)’s swift entry into force. Minister Ahn expressed high regard for the summit diplomacy exchanges held over the last two years (Saudi Arabian Crown Prince and Prime Minister Mohammed bin Salman’s visit to Korea in November 2022, followed by President Yoon Suk Yeol’s state visit to Saudi Arabia in October 2023) with respect to bolstering bilateral ties and underscored that the conclusion of the Korea-GCC FTA last year has further solidified the two countries’ institutional economic cooperation. The minister asked Saudi Arabia's support as a member of the GCC for expediting the legal scrubbing process on both sides, as domestic procedures for the FTA’s entry into force can commence only upon the finalization of the FTA Agreement. MOTIE plans to complete the Agreement in September, then consult with GCC countries with aim to make as much progress as possible with the formal signing and necessary domestic procedures. Meanwhile, Minister for Trade Inkyo Cheong attended the Korea-Saudi Business Forum launched on the same day, co-hosted by Korea’s Ministry of Trade, Industry and Energy (MOTIE) and the Saudi Ministry of Commerce and co-organized by both countries’ Chambers of Commerce at the Westin Josun Seoul. From Saudi Arabia, an economic delegation of 80 members participated in the event, including Minister of Commerce Majid bin Abdullah Al-Kassabi among other high-level government officials and business figures. From Korea, roughly 170 representatives from 100 companies attended, including those of Kolon Group and Hyundai Motor Group. Also participating in the Forum are Aljomaih Energy & Water Company (AEC), Abdulaziz Saud Abunayyan Trading, and Al Yamama, which are Saudi companies known to have created economic summit diplomacy outcomes, leading to anticipation that further progress will be made with regard to the timely implementation of contracts and memorandums of understanding (MOUs) signed during the meetings in Seoul (November 2022) and Riyadh (October 2023), as well as the uncovering of additional joint projects. Moreover, with the Korea-GCC FTA poised to open up services markets across Korea and the Middle East, Saudi companies specializing in healthcare, entertainment, food, and other relevant sectors displayed interest by seeking new business opportunities with Korean firms at the Forum. In his welcome address, Trade Minister Cheong stated that the two countries’ cooperation has, in step with the Saudi Vision 2030, expanded to key industries like automobiles and shipbuilding, and highlighted that the Korea-GCC FTA is expected to not only diversify trade in goods like medical devices, cosmetics, and food products, but also spur services market exchanges in industries like film and healthcare as well. date2024-07-30
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FTA/Economic Cooperation
Korea and Canada hold working-level meeting as follow-up to 2+2 High-Level Dialogue on Economic Security
Director General for Trade Policy Chang Sung-gil at the Ministry of Trade, Industry and Energy (MOTIE) and Director-General for Bilateral Economic Affairs Kim Jin-dong at the Ministry of Foreign Affairs (MOFA) held a videoconference with Senior Director for Foreign Investment Review and Economic Security James Burns at Innovation, Science and Economic Development Canada and Director General for North-East Asia Joya Donnelly at Global Affairs Canada on July 24 to exchange views on measures to bolster cooperation in critical minerals, supply chains, and core and emerging technology areas as part of follow-up measures to the Korea-Canada 2+2 High-Level Dialogue on Economic Security launched on May 16, 2023. In light of increasing instability from supply chain disruptions caused by global value chain shifts and rising protectionism, both sides agreed on the importance of close cooperation for stronger supply chain resilience. With the implementation plan for the “Korea-Canada Memorandum of Understanding (MOU) on Cooperation in Critical Mineral Supply Chains, the Clean Energy Transition and Energy Security” established this April, the two sides decided to continue cooperation centered around the Minerals Security Partnership (chaired by Korea) for diversifying the global supply chain, while also furthering standards cooperation in core and emerging technology areas anticipated to spur changes in the global economic security paradigm. Taking note of the enhanced investment cooperation between the two countries’ companies, the Korean delegation requested Canada’s continued support for Korean firms’ smooth local business operations. Meanwhile, both sides reaffirmed the agreed outcomes from the Korea-Canada 2+2 High-Level Dialogue on Economic Security held in May last year and agreed to prepare for the next meeting by leveraging this bilateral working-level communication channel between their industry and foreign affairs authorities. They also plan to share policies regarding major economic security issues and actively exchange opinions to uncover joint projects that would enable more tangible cooperation. date2024-07-24
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FTA/Economic Cooperation
Korea and India launch 11th negotiating round on upgrading bilateral CEPA
Director General for FTA Negotiations Peob-min Ryu is leading the Korean delegation in the 11th round of official negotiations for upgrading the Korea-India Comprehensive Economic Partnership Agreement (CEPA) through July 17–19 in Seoul. The Korean delegation is composed of representatives of the Ministry of Trade, Industry and Energy (MOTIE), Ministry of Economy and Finance (MOEF), Ministry of Agriculture, Food and Rural Affairs (MAFRA), and the Ministry of Oceans and Fisheries (MOF) and will negotiate goods, services, rules of origin, and investment with the Indian delegation, headed by Additional Secretary for the Department of Commerce Anant Swarup. With aim to further invigorate bilateral trade and investment, the two countries have been engaging in negotiations since 2016 on upgrading the initial Korea-India CEPA, which entered into force in 2010. In this 11th round, the Korean government will be focusing on expediating the negotiation progress by narrowing the differences based on outcomes gained from the 10th official negotiating round that took place this January. date2024-07-17
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FTA/Economic Cooperation
Korea participates in 7th RCEP Joint Committee Meeting
Director General for Free Trade Agreement (FTA) Policy Ahn Chang-yong is attending the seventh Regional Comprehensive Economic Partnership (RCEP) Joint Committee meeting as Korea’s Chief Delegate through July 15–17 in the Lao People's Democratic Republic (PDR), this year’s ASEAN Chair. Partner countries hold the RCEP Joint Committee on a quarterly basis to review and discuss various matters concerning the smooth implementation and management of the RCEP Agreement, as well as economic and technological cooperation issues. This year’s Joint Committee Co-Chairs are Indonesia and China, each representing ASEAN and non-ASEAN partner countries. The seventh RCEP Joint Committee meeting will proceed with the participation of the 15 partner countries’ Chief Delegates and representatives of the ASEAN Secretariat and the Lao PDR’s Ministry of Industry and Commerce. By the end of this year, partner countries attending this Joint Committee meeting aim to install a support unit in the form of a secretariat for implementing the RCEP, which entered into force in 2022. Other agenda items include RCEP accession procedures and the outcomes of the Joint Committee on RCEP Implementation. Meanwhile, Director General Ahn plans to visit the Lao Ministry of Industry and Commerce on the occasion of his visit to discuss measures for economic cooperation and launching of joint seminars for RCEP promotion. date2024-07-15
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FTA/Economic Cooperation
Korea and Thailand enter 1st official negotiating round for bilateral EPA
Deputy Minister for FTA Negotiations Roh Keon-ki and Chotima Iemsawasdikul, Director-General of the Department of Trade Negotiations of the Ministry of Commerce of Thailand, are leading their respective delegations in the first official round of negotiations for the Korea-Thailand Economic Partnership Agreement (EPA) through July 9–11 in Bangkok. date2024-07-09
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FTA/Economic Cooperation
Korea and Thailand launch 1st official negotiating round for bilateral EPA
Deputy Minister for FTA Negotiations Roh Keon-ki is leading the Korean delegation in the first official round of negotiations for the Korea-Thailand Economic Partnership Agreement (EPA) through July 9–11 in Bangkok. With Deputy Minister Roh as Chief Delegate, the Korean delegation is composed of representatives of relevant ministries, including the Ministry of Trade, Industry and Energy (MOTIE), Ministry of Economy and Finance (MOEF), Ministry of Agriculture, Food, and Rural Affairs (MAFRA), and the Ministry of Health and Welfare (MOHW). The Thai delegation is led by Chotima Iemsawasdikul, Director-General of the Department of Trade Negotiations of the Ministry of Commerce of Thailand. The two delegations are to engage in negotiations on goods, services, investment, digital, government procurement, and intellectual property. Since jointly declaring the commencement of negotiations in March, Korea and Thailand have pushed forward with preliminary procedures for the official negotiating round, during which they aim to lay down the groundwork for accelerating future negotiations. Deputy Minister Roh stated that while the two countries have already established trade agreements through the Korea-ASEAN Free Trade Agreement (FTA) and the Regional Comprehensive Economic Partnership (RCEP), the level of their trade and economic cooperation has room for improvement, highlighting that a bilateral EPA catered to both countries’ needs will serve as an institutional foundation for upgrading the Korea-Thailand economic cooperation. date2024-07-09
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FTA/Economic Cooperation
Korea and EU launch 4th negotiating round for Digital Trade Agreement
The Ministry of Trade, Industry and Energy (MOTIE) announced on July 2 that the fourth official negotiating round for the Korea-EU Digital Trade Agreement is held through July 2–4 in Seoul with the participation of both governments’ delegations, composed of roughly 30 members. With the consensus on establishing a high-level digital trade agreement grounded on the Korea-EU Digital Trade Principles signed in November 2022, the two sides have thus far held three negotiating rounds. In this fourth round, they aim to seek measures for narrowing down differences and make further progress. It is anticipated that the Korea-EU Digital Trade Agreement will establish the trade order for the digital economy, lay down new digital trade rules for accelerating related innovations, and bolster the Korea-EU digital trade network. date2024-07-02
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FTA/Economic Cooperation
Korea-U.S. Supply Chain and Commercial Dialogue (SCCD)
Trade, Industry and Energy Minister Dukgeun Ahn attended the Korea-U.S. Supply Chain and Commercial Dialogue (SCCD) on June 27 in Washington D.C. with attendance of U.S. Secretary of Commerce Gina Raimondo and the two countries’ government delegations to discuss measures for working group outcomes and wider future cooperation. date2024-06-28
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FTA/Economic Cooperation
Joint Readout: United States-Korea Supply Chain and Commercial Dialogue Ministerial Meeting
Joint Readout: United States-Korea Supply Chain and Commercial Dialogue Ministerial Meeting FOR IMMEDIATE RELEASE Thursday, June 27, 2024 WASHINGTON, D.C. - Today, U.S. Department of Commerce Secretary Gina Raimondo and Korean Minister of Trade, Industry, and Energy (MOTIE) Ahn Duk-geun held the second United States-Korea Supply Chain and Commercial Dialogue (SCCD) Ministerial Meeting. The Secretary and Minister reviewed progress made to-date between Commerce and MOTIE to deepen bilateral economic and commercial cooperation between the countries. Secretary Raimondo and Minister Ahn noted the significant, substantive progress that is being undertaken through the SCCD working groups, which include: Advanced Manufacturing and Supply Chain Resilience including Semiconductors, Dual-Use Export Controls, Healthcare and Healthcare Technologies, and the Digital Economy. They also instructed staff to continue discussions through an SCCD critical minerals Sub-Working group to deepen U.S.–Korea critical minerals supply chain collaboration. The Secretary and Minister noted deepening semiconductor investment cooperation, including the Department of Commerce recently signing non-binding preliminary memoranda of terms with Samsung Electronics to support a state-of-the-art leading-edge ecosystem in Central Texas, and with Absolics, an affiliate of the Korea-based SKC, to support a facility in Georgia for the development of advanced packaging substrates technology. The Secretary and Minister celebrated this progress at the U.S.-Korea SCCD Semiconductor Forum, co-hosted by the Semiconductor Industry Association and Korea Semiconductor Industry Association, which was held immediately before the SCCD Ministerial meeting. The Forum highlighted U.S.-Korea semiconductor cooperation in the key areas of supply chain, workforce development, and R&D as outcomes of the SCCD. Secretary Raimondo and Minister Ahn acknowledged the increasing momentum under the SCCD healthcare and healthcare technologies working group, including a joint Commerce–MOTIE telehealth virtual showcase that was held in May 2024 with 72 attendees, and a U.S.-Korea Biopharma Roundtable at the 2024 BIO International Convention in San Diego at the beginning of June. They committed to further strengthening cooperation on healthcare innovation and supply chains between the two countries. The Secretary and Minister also acknowledged the meaningful outcomes of the Advanced Manufacturing working group, including an October 2023 Commerce-MOTIE hosted Additive Manufacturing Industry Showcase with over 100 U.S. and Korean companies who were able to learn about opportunities to compete and invest in one another’s markets. Recognizing the need to protect our critical and emerging technologies from countries that may misuse them to undermine peace and security, they agreed to continue existing export control cooperation to address national security threats while minimizing supply chain disruption under the dual-use export controls working group. Finally, Secretary Raimondo and Minister Ahn discussed current and future cooperation under the SCCD digital economy working group, including cooperation on standard-related activities, and cooperation between Korean and U.S. industrial Artificial Intelligence companies. The Secretary and Minister also committed to exploring opportunities for collaboration in third countries, where governments are seeking to increase their access to investment and global markets to enhance economic opportunity for their citizens. date2024-06-28