Ministry of Trade, Industry and Energy

Public and private sectors gather to discuss joint measures concerning UK's CBAM

The Ministry of Trade, Industry and Energy (MOTIE) held a conference on May 14 regarding the UK’s Carbon Border Adjustment Mechanism (CBAM) with related industries' representatives to gather opinions and discuss joint response measures.   The UK CBAM is to cover steel, aluminum, cement, fertilizer, hydrogen, ceramics, and glass and push for legislation after collecting stakeholders’ opinions by June 13 this year. As of 2023, Korea exports USD 300 million worth of steel to the UK, equivalent to 98 percent of the aggregate export value of the seven aforementioned items.   The majority of industries’ representatives viewed that the UK’s CBAM will not likely incur significant additional costs owing to its similarity to the EU’s CBAM, while some raised concerns regarding the quarterly report of greenhouse gas emissions and absence of transition periods prior to full enforcement in 2027. date2024-05-14

UK-based Edwards' new EUV parts and equipment plant completed in Asan

Deputy Minister for International Trade and Investment Choi Woo-seok attended the completion ceremony of UK-based company Edwards’ newest plant on May 14 in Asan, South Chungcheong Province, for producing key components for extreme ultraviolet lithography (EUV).   The global leader of vacuum pumps for semiconductor manufacturing, Edwards moved its production facilities from the UK to Korea in 2009 and has since built a total of five plants in Cheonan and Asan, including the newly built Asan plant. Minister for Trade Inkyo Cheong visited the older Asan plant in January this year to discuss business issues and future investment plans.   Edwards’ new Asan plant will be producing integrated vacuum solutions and waste gas treatment equipment to be used in the EUV process, which will then be supplied to a number of semiconductor producers, including Samsung Electronics, SK Hynix, Intel, and TSMC.   The Asan plant is anticipated to stabilize the supply chain of EUV parts and equipment, bolster Korea’s own parts and equipment production competitiveness, and help to secure the semiconductor super gap, while also strengthening cooperative ties with advanced chip firms around the world. The domestic economy expects to benefit from local job creation and the estimated yearly KRW 300 billion plus in exports as well. date2024-05-14

Korea-Cambodia 1st FTA Joint Committee meeting

Minister for Trade Inkyo Cheong met with Cambodia's Commerce Minister Cham Nimul on May 13 in Seoul and held the first Korea-Cambodia Free Trade Agreement (FTA) Joint Committee meeting to assess the bilateral FTA’s implementation progress and discuss Korea-Cambodia trade and investment performance and implementation outcomes following FTA's entry into force. date2024-05-13

Korea and Cambodia hold 1st FTA Joint Committee meeting following entry into force

Minister for Trade Inkyo Cheong met with Cambodia's Commerce Minister Cham Nimul on May 13 in Seoul and held the first Korea-Cambodia Free Trade Agreement (FTA) Joint Committee meeting to assess the bilateral FTA’s implementation progress.   Key agenda items included Korea-Cambodia trade and investment performance and implementation outcomes following FTA's entry into force. The two sides welcomed the positive effect of their bilateral FTA, such as the Korea-Cambodia trade hitting record highs last year despite the slow global economy, increase in trade across two countries’ major FTA items, and bilateral people-to-people exchange also recovering pre-COVID levels.   The three implementation committees under the bilateral Joint FTA Committee, namely those for trade in goods, country-of-origin and customs procedures, and economic cooperation, suggested updating the Harmonized System (HS) codes, expanding Cambodia’s scope of approved exporter system, and other measures for enhancing Korean and Cambodian companies’ FTA utilization. They also gave a briefing on FTA-based economic cooperation projects and decided to review their implementation progress on a regular basis in the future.   Trade Minister Cheong stated that he looks forward to seeing the two countries’ companies effectively leverage the bilateral FTA for trade and market expansion opportunities. He also asked the Cambodian government’s interest and support towards Korean firms for diversifying the supply chain in areas like automobiles, electronics, and food, based on the Korea-ASEAN FTA, Regional Comprehensive Economic Partnership (RCEP), and the Korea-Cambodia FTA. date2024-05-13

MOTIE and Airbus D&S sign ITC MOU

Industry and Policy Deputy Minister Lee Seung-ryeol at the Ministry of Trade, Industry and Energy (MOTIE) met with Airbus Defense and Space (D&S) Chief Operating Officer (COO) Francisco Sánchez Segura on May 10 for the signing of the memorandum of understanding (MOU) between MOTIE and Airbus D&S on the establishment of Airbus’ International Technology Center (ITC) in Korea and discussed measures for wider international cooperation in aerospace and defense. date2024-05-10

Minister meets Kyrgyz Energy Minister

Trade, Industry and Energy Minister Dukgeun Ahn met with Kyrgyz Energy Minister Taalaibek Ibraev on May 10 in Seoul and discussed renewable energy, energy efficiency and the Korea-Kyrgyzstan memorandum of understanding (MOU) on energy cooperation. date2024-05-10

MOTIE and Airbus D&S seal MOU on establishing International Technology Center

Industrial Policy Deputy Minister Lee Seung-ryeol at the Ministry of Trade, Industry and Energy (MOTIE) met with Airbus Defense and Space (D&S) Chief Operating Officer (COO) Francisco Sánchez Segura on May 10 for the signing of the memorandum of understanding (MOU) between MOTIE and Airbus D&S on the establishment of Airbus’ International Technology Center (ITC) in Korea.   A closed-door roundtable was also held on the margins of the MOU signing ceremony, attended by representatives of government-funded research institutes and companies, for discussions on expanding international cooperation in aerospace and defense.   An outcome of bilateral working level meetings following talks held between the MOTIE minister and Airbus D&S CEO in November 2022, the MOU articulates MOTIE-Airbus cooperation on the ITC establishment and joint global research and development (R&D) projects. Airbus is aiming to establish the ITC as part of a greenfield investment project and select the site for the ITC’s location by the end of this year.   During the MOU period, the two sides will develop an operating model to secure ITC’s self-reliance, catalyze innovation and collaboration across their aviation industries, and uncover projects in line with the ITC’s strategic vision. The ITC is Airbus’ first R&D center to be built in Korea and will serve as a joint platform for bilateral R&D. date2024-05-10

Korea and Kyrgyzstan discuss cooperation in renewable energy

Trade, Industry and Energy Minister Dukgeun Ahn met with Kyrgyz Energy Minister Taalaibek Ibraev on May 10 in Seoul and discussed renewable energy, energy efficiency and the Korea-Kyrgyzstan memorandum of understanding (MOU) on energy cooperation.   Minister Ahn introduced the Korean government’s efforts for distributing renewable energy like solar and wind power and asked for the Kyrgyz government’s support towards Korean firms' participation in Kyrgyzstan’s renewable energy projects in the future.   Moreover, as both countries are pushing policies for energy efficiency in view of climate crisis response and stronger energy security, the two sides agreed to cooperate in promoting bilateral people-to-people and technology exchanges.   Lastly, Minister Ahn invited Kyrgyzstan’s active support and participation in the upcoming World Climate Industry Expo (WCE) 2024 slated for September in Busan. date2024-05-10

Trade Minister attends 18th Trade Advisory Committee Meeting

Minister for Trade Inkyo Cheong attended the 18th Trade Advisory Committee Meeting on May 8 at Lotte Hotel Seoul to discuss future trade policy directions in view of recent changes in the global trade landscape. date2024-05-09

U.S.' BorgWarner establishes future mobility R&D center in Daegu National Industrial Complex

Director General for Cross-Border Investment Policy Park Deok-yeol attended the completion ceremony of the U.S.-based BorgWarner’s USD 43.6 million “Future Mobility Electrification Driving System R&D Center” on May 9 in the Daegu National Industrial Complex.   Since its initial establishment of transmission clutch production facilities in 1988, BorgWarner has invested a total of $140 million in Korea. The global automotive and e-mobility supplier currently operates seven production lines in Korea, including BorgWarner Changnyeong and BorgWarner Chungju, and has hired an estimated 1,400 employees. The construction of the R&D center commenced after BorgWarner's submission of its investment declaration during President Yoon’s state visit to the U.S. in September 2022.   The newly constructed R&D center is expected to complete a one-stop support system for the R&D, testing, and demonstration of electric vehicles’ driving systems, while also strengthening Korea’s automobile industry’s technological competitiveness and stabilizing the supply chain. The company will be further recruiting 43 highly skilled technical talents within the Daegu National Industrial Complex in the future, contributing to local employment.     date2024-05-09