Ministry of Trade, Industry and Energy

Government, industry and academia experts seek measures for overcoming global trade uncertainties in 2024

Trade, Industry and Energy Minister Dukgeun Ahn chaired the 1st Global Trade Strategy Meeting on February 26 at Lotte Hotel Seoul to discuss the global trade environment forecast and analysis and to review the response strategies and directions for the Korean government and industries in accordance with the shifting international landscape, in view of this year’s upcoming elections in 76 countries and the expected surge of global uncertainties and trade risks.   The Global Trade Strategy Meeting members were composed of representatives of relevant industries, trade, industry and international relations experts and Government officials.   Minister Ahn stated that “As the state of the global trade environment is critical, the Government will identify and share information at a faster pace and provide a more detailed response by utilizing the Global Trade Strategy Meeting as a platform.”   He added that “Trade authorities are closely negotiating through multilevel channels over various issues, including the U.S.’ Inflation Reduction Act (IRA), ‘foreign entity of concern’ (FEOC), chip subsidies and the EU’s Carbon Border Adjustment Mechanism (CBAM), and plan to team up with industries to redouble the efforts so that our position can be taken into utmost consideration.”   The Ministry of Trade, Industry and Energy (MOTIE) plans to launch a two-track system within this year consisting of the Global Trade Strategy Meeting, as a minister-chaired public-private joint cooperation channel, and a consultative working group. The consultative working group will be held on a regular basis as a follow-up to the Global Trade Strategy Meeting for developing response strategies per each possible scenario based on detailed analysis on various risks by issue, region, and business in order to give full attention to managing the trade risks for this year. date2024-02-27

Korea's public and private sectors join hands to secure semiconductor super gap

Trade, Industry and Energy Minister Dukgeun Ahn held a conference on February 26 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul to meet with semiconductor industry leaders to discuss the recently intensifying global semiconductor market competition and its impact on Korea’s chip industry, and to seek response measures. Government and corporate representatives at the meeting decided to combine public and private sector efforts as “one team” to claim the AI semiconductor market with aim to overcome the nation’s semiconductor industry challenges, while also discussing the follow-up measures necessary for the successful implementation of the Semiconductor Mega Cluster plan announced through the recent public forum. Minister Ahn is to spearhead the efforts to resolve chip industry challenges by installing a communication hotline with CEOs of major companies.   Representatives of leading MPE (materials, parts, equipment) companies like Samsung Electronics, SK Hynix and Dongjin Semichem attended the conference and stated that they will join efforts with the Government in achieving this year’s investment and export targets of KRW 60 trillion and 120 billion won, respectively, for the semiconductor industry. Moreover, they suggested measures for improving the investment environment in terms of sustainability, such as providing new investment subsidies, expanding support for base facilities of the Mega Cluster and establishing an MPE testbed.   Ever since the inauguration of the current administration, MOTIE has been introducing bold support measures for the semiconductor industry, which include sharply raising the investment credit rate, creating an unprecedented chip mega cluster and training 150,000 chip talents. The ministry also plans to continue to push these types of bold support measures to “level the playing field” for homegrown companies. One example would be the upcoming memorandum of understanding (MOU) to be signed on February 27 between Korea Electric Power Corporation (KEPCO), Korea Land and Housing Corporation (LH), power companies and buyer companies to swiftly implement the Yongin General Industrial Complex power supply plan finalized at the end of last year under the Government’s aim to take charge of establishing the essential infrastructure like those for electrical power and water.   In addition, the “Comprehensive Support Measures for the High-Tech Strategic Industry Specialization Complex” to be announced in March will incorporate additional investment incentives for semiconductors and other advanced industries. Furthermore, MOTIE plans to inject a total of 24 trillion won worth of policy funds to train world-class MPE and fabless talent, while also establishing a public-private joint demonstration fab steering team to speedily propel forward the MPE mass-producing mini fab project selected as the prefeasibility study project last week. Not only that, but the ministry also intends to launch a 19.8 billion won technology development project in April this year to support the advanced packaging technology development industry to meet urgent market demands and roll out a large-scale prefeasibility study within this year. To raise fabless competitiveness, it plans to establish a semiconductor design and inspection center this year, while also forming an AI semiconductor cooperation forum within the domestic semiconductor industry association. By the first half of this year, MOTIE also aims to establish measures for nurturing Korea’s fabless industry.   Minister Ahn stated that it is important to establish industrial support policies that are tangible and hands-on for companies and emphasized that “The Government and companies must join as ‘one team’ to strengthen communication and cooperation.” He added that “Related licensing procedures for semiconductor industrial date2024-02-27

Trade ministers issue joint ministerial declaration on IFD on margins of MC13

Minister for Trade Inkyo Cheong took part in issuing the joint ministerial declaration on the Investment Facilitation for Development (IFD) Agreement, of which Korea co-chaired with Chile, on February 26 at the Abu Dhabi National Exhibition Centre (ADNEC) in the United Arab Emirates (UAE) on the margins of the WTO’s MC13 together with the WTO Director General Ngozi Okonzo-Iweala and trade ministers of other participating and interested countries. date2024-02-26

Trade Minister meets with Singapore's Trade and Industry Minister

Minister for Trade Inkyo Cheong met with Singapore’s Trade and Industry Minister Gan Kim Yong on February 25 in Abu Dhabi, UAE, on the margins of the WTO’s MC13 to discuss cooperation in EV investment, supply chain partnership and the implementation and improvement of the Korea-Singapore FTA. date2024-02-26

Trade Minister attends WTO Ottawa Group trade ministers' meeting

Minister for Trade Inkyo Cheong attended the WTO Ottawa Group Trade Ministers’ meeting on February 25 in Abu Dhabi, UAE, with 13 other Group member countries’ trade ministers to discuss measures for MC13 agenda items and for the WTO dispute settlement reform on the margins of the 13th WTO Ministerial Conference (MC13). date2024-02-26

Trade Minister takes part in Coalition of Trade Ministers on Climate

Minister for Trade Inkyo Cheong took part in the Coalition of Trade Ministers on Climate meeting on February 25 in Abu Dhabi, UAE, on the margins of the 13th WTO Ministerial Conference (MC13) with trade ministers of other coalition member countries and voiced strategic views on the coalition’s priorities and voluntary actions. date2024-02-26

Trade Minister meets with Korean businesses in UAE to discuss Korea-UAE CEPA

Minister for Trade Inkyo Cheong met with representatives of Korean companies operating in the local UAE market and gave a briefing on the Korea-UAE CEPA inked last October and led discussions on measures for securing a competitive advantage utilizing this Agreement.   The conference was attended by representatives of Korea’s companies operating in UAE as well as related institutions, including Hyundai Motor, Hanwha Systems, POSCO International, aT Center and Korea Trade-Investment Promotion Agency (KOTRA). date2024-02-26

Trade Minister meets with WTO Director General

Minister for Trade Inkyo Cheong held bilateral talks with World Trade Organization (WTO) Director General Ngozi Okonjo-Iweala on February 24 on the margins of the WTO's MC13 and delivered a KRW 1.4 billion certificate of contribution for developing countries’ implementation of the Fisheries Subsidies Agreement and discussed WTO reform for restoring the multilateral trade system, along with other agenda items of MC13. date2024-02-26

Trade Minister meets with UAE's Minister of State for Foreign Trade

Minister for Trade Inkyo Cheong, on the margins of the 13th World Trade Organization (WTO) Ministerial Conference (MC13), held bilateral talks with the United Arab Emirates (UAE)’ Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi on February 24 to discuss measures for implementing the Korea-UAE Comprehensive Economic Partnership Agreement (CEPA) and the Korea-UAE Trade and Investment Promotion Framework (TIPF). date2024-02-26

Trade Minister holds bilateral talks with WTO Director General & UAE's Trade Minister on margins of MC13

Minister for Trade Inkyo Cheong, on the margins of the 13th World Trade Organization (WTO) Ministerial Conference (MC13), held bilateral talks with the WTO Director General Ngozi Okonjo-Iweala and the MC13 host country United Arab Emirates (UAE)’ Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi, respectively, on February 24, followed by a meeting with representatives of Korean businesses operating in the local UAE market to discuss measures for facilitating the utilization of the Korea-UAE Comprehensive Economic Partnership Agreement (CEPA).   Minister Cheong expressed agreement to Director General Okonjo-Iweala on the need for the WTO reform and for making significant progress in key negotiations for the restoration of the WTO-led multilateral trade system amid concerns raised over the contraction and disruptions in global trade, and also exchanged views over in-depth talks on the key agenda items for MC13.   Trade Minister Cheong emphasized the importance of making progress on the WTO reform for normalizing the dispute settlement system by the end of this year, incorporation of the Investment Facilitation for Development (IFD) Agreement into the WTO system, and the extension of the moratorium on customs duties on electronic transmissions. He also stated that Korea will engage actively for a successful MC13 based on support for multilateral trade and assessed that the Korea-WTO cooperation has strengthened owing to the Director General’s visit last May, requesting interest in opportunities for Korea’s capable trade talent to take an active part in the WTO.   On the margins of the talks, Trade Minister Cheong officially announced the Korean government’s decision to provide KRW 1.4 billion for the WTO Fisheries Funding Mechanism to support developing countries’ implementation of the Agreement on Fisheries Subsidies.   Trade Minister Cheong also met with Thani bin Ahmed Al Zeyoudi, MC13 Chair and UAE’s Minister of State for Foreign Trade. The two trade ministers shared the anticipation for the Korea-UAE relations to further deepen through the Korea-UAE CEPA signed last October based on the bilateral diplomatic ties established in 1980, and agreed to swiftly proceed with the formal signing and ratification submission so that both countries’ peoples and businesses can benefit early on from the Agreement. Moreover, Trade Minister Cheong noted that Korea will make continued efforts to implement the Korea-UAE Trade and Investment Promotion Framework (TIPF) sealed on the occasion of the state visit last January and expressed Korea’s support for the UAE’s accession to the Digital Economic Partnership Agreement (DEPA), to which Korea acceded last June.   On the heels of the two bilateral talks, the trade chief met with representatives of Korean companies operating in the local UAE market and gave a briefing on the Korea-UAE CEPA inked last October and led discussions on measures for securing a competitive advantage utilizing this Agreement. The conference was attended by representatives of Korea’s major and promising export sectors like automobiles and defense, as well as those expecting to benefit from the opening of the services market through the Korea-UAE CEPA, such as healthcare and e-commerce.   Trade Minister Cheong will be participating in the WTO’s MC13 through February 26-29 and hold bilateral talks with other countries’ trade leaders. date2024-02-26