Ministry of Trade, Industry and Energy

Trade Minister Cheong discusses trade and economic cooperation with Louisiana Governor

Minister for Trade Inkyo Cheong of the Republic of Korea held talks with Louisiana Governor Jeff Landry today and discussed Korean companies’ investment in the state of Louisiana and measures for stronger Korea-U.S. economic and trade cooperation.  During the talks, Trade Minister Cheong mentioned that he looks forward to deeper collaboration with the state of Louisiana in areas like petrochemicals, hydrogen, and CCUS (carbon capture, utilization, and storage), as it is the third largest natural gas producing state in the U.S. With regard to creating a stable business environment for Korean firms engaging in joint projects and investment in the U.S., both sides concurred that continuity of major U.S. policies is important, especially those likely to directly impact the two countries’ trade and economic cooperation such as the inflation reduction act (IRA), which incentivizes clean hydrogen production and carbon capture. They further noted that this kind of policy continuity is beneficial for not only bilateral economic cooperation, but for the U.S. economy as well. The two sides also agreed that current Korea-U.S. relations are more solid than ever on account of the bilateral summit and the Camp David Summit. They shared the view that bilateral ties are growing closer and stronger centering on advanced industries, giving a joint nod towards the need to maintain stable cooperative relations for both countries’ development.   date2024-10-31

From latest global trends to export strategy, Overseas Certification Trends 2024 provides one-stop update

The Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea launched the Overseas Certification Trends 2024 (“Trends 2024”) on October 31 at the Seoul Trade Exhibition Center (SETEC) together with 13 overseas certification assistance institutions, including the Korean Standards Association (KSA) and the Korea Trade-Investment Promotion Agency (KOTRA). With the participation of 170 attendees from export businesses and relevant organizations, the event was held to help companies at the forefront of certification issues through several programs, including a session dedicated to addressing the latest global certification trends on cybersecurity, environmental, social, and governance (ESG) principles, halal, and trade, followed by briefings on export assistance programs by KOTRA, Korea SMEs and Startups Agency (KOSMES), and the Korea International Trade Association (KITA). Meanwhile, another session engaged participants in consultations on overseas certifications concerning key items like electrical and electronic devices, textiles, and daily necessities. MOTIE plans to further launch these kinds of certification assistance briefings and consultations on a greater scale with focus on specific regions and items, while strengthening the ministry’s three main support policies in the following ways: by continuously broadening the range of items for which overseas certifications can be obtained within Korea under mutual agreement; by building more equipment and infrastructure for domestic testing to boost the competitiveness of high-tech industries such as future mobility and medical devices; and by enhancing cooperation with testing and certification bodies and export assistance institutions in order to resolve onsite issues. KATS President Jin Jong-wook stated that cooperation with related institutions is vital when it comes to overseas certifications due to the wide range of countries and products involved, adding that KATS will give full measure to help Korea’s export companies swiftly respond to the changing regulatory environment.   date2024-10-31

Deputy Trade Minister meets U.S. economic delegation

Deputy Minister for Trade Park Jong-won at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea met the U.S. economic delegation led by U.S.-Asia Institute (USAI) Vice Chair Tami Overby on October 30 in Seoul and discussed measures for wider bilateral trade and industrial cooperation. date2024-10-31

Korea aiming for “Nuclear Renaissance,” commemorates Shin Hanul 1 & 2 final completion

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea attended the final completion ceremony of Shin Hanul units 1 and 2 and the groundbreaking ceremony of Shin Hanul units 3 and 4 today held in Uljin County of North Gyeongsang Province with the participation of local residents, nuclear industry personnel, nuclear energy majoring university students, and Korea Nuclear Meister High School students.   Also attending the ceremonies were a number of key industry figures including the Korea Hydro and Nuclear Power (KHNP) President to congratulate the successful completion of Shin Hanul 1 and 2, as well as the groundbreaking of the Shin Hanul 3 and 4 following the recently granted construction permit.   As a twin unit, Shin Hanul 1 and 2 each began commercial operation in December 2022 and April 2024, respectively. They are Korea’s seventh case of APR1400 technology application.   Their final completion is meaningful in that Shin Hanul 1 and 2 can help secure a more stable power source to respond to the sharply rising power demand brought on by the rise of high-tech industries. The amount of power needed to operate a single cutting-edge semiconductor production facility requires 1–1.5GW of electrical power, so by this calculation, Shin Hanul units 1 and 2 are producing enough power to run 2–3 semiconductor plants.   Moreover, the completion of the two units signal another step towards achieving carbon neutrality. As nuclear energy is a carbon-free energy source, carbon dioxide emissions can be reduced by roughly 17.9 million metric tons per annum on the premise that Shin Hanul units 1 and 2 are to replace coal-fired power generation.   Lastly, the activation of Shin Hanul 1 and 2 is expected to considerably help improve Korea’s trade balance and reduce energy imports in view of the nation’s given conditions. Should the two units replace LNG power generation, more than 1.37 million tons of LNG imports will be trimmed, generating approximately KRW 1.5 trillion worth of import substitution effect.   Meanwhile, the Yoon administration further made the decision to resume construction of Shin Hanul units 3 and 4 under the new regime’s energy policy directions announced in July 2022 with an aim to normalize the then flailing nuclear energy industry hit by the previous phase-out policy.   In tandem with the Yoon administration’s decision, the Korean government continued to increase the supply of work across the nuclear industry to restore the ecosystem. Through collaboration with policy funding institutions, the Government has been providing loans and guarantees to troubled SMEs and middle-market companies to heighten liquidity in the wake of the nuclear phase-out.   As a result, the size and scale of the nuclear energy industry and related business investments have turned to an expansion since the current administration’s taking office, laying down the groundwork for Korea’s nuclear power industry to make new leaps.   The completion of the Shin Hanul units 1 and 2 and the groundbreaking of units 3 and 4 are considered a decisive step towards realizing the full normalization of Korea’s nuclear energy ecosystem, alongside KHNP’s recent selection as preferred bidder for the Czech Republic’s new nuclear reactor project. Building on this momentum, the Korean government plans to push the following four chief policy tasks to develop the nation’s nuclear industry into a global powerhouse.   First, the Government will establish a support system to enhance the domestic ecosystem’s competitiveness by designing a predictable and sustainable mid-to-long term nuclear energy policy, while promptly moving forward legislative procedures for the special act on nuclear industry assistance to maintain consistent support. It also plans to announc date2024-10-30

Deputy Trade Minister discusses bilateral economic & industrial cooperation with U.S. delegation

Deputy Minister for Trade Park Jong-won at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea met the U.S. economic delegation led by the U.S.-Asia Institute (USAI) today and discussed measures for wider bilateral trade and deeper cooperation in bio and other advanced industries. Headed by USAI Vice Chair Tami Overby and composed of representatives of companies like Coupang, Organon, MPSC, and FedEx, the delegation visited Korea to bolster Korea-U.S. economic cooperation and create new business opportunities, expressing strong interest in the Asia-Pacific Economic Cooperation (APEC) Summit 2025 to be hosted by Korea.  During the talks, Deputy Trade Minister Park took stock of U.S. firms’ business situation in Korea and articulated the Korean government’s commitment to strengthening bilateral economic cooperation. He highlighted the need for companies’ active cooperation for the two countries’ relations to advance towards a solid alliance of high-tech industries and supply chains. Meanwhile, the deputy trade chief remarked that Korea is giving full measure to host a successful APEC summit upon its resuming the APEC chairmanship in 20 years and asked for U.S. business leaders’ interest and support so that the summit can serve as a platform for cooperation across the Asia-Pacific region’s political, economic, social, and such diverse areas.   date2024-10-30

Korea’s retail industry grows 6.7% in September

The Ministry of Trade, Industry and Energy (MOTIE) announced today that Korea’s retail industry grew 6.7 percent year-on-year for the month of September 2024, with offline and online sales each shrinking 0.9 percent and expanding 15.7 percent, respectively. MOTIE's monthly retail sales figures are based on surveys of 23 major retailers. Thirteen of them are brick-and-mortar retailers: three department store chains, three hypermarket chains, three convenience store chains, and four super supermarket (SSMs) operators. The remaining 10 are online retailers. By offline retail channel, hypermarket sales dropped 6.5 percent overall as food products (down 9.1 percent) suffered, but the late heat wave drove sales of home appliances (up 17.9 percent). Department store sales rose 0.3 percent in spite of weak demand for food products (down 5.9 percent) and women’s suits (down 9.0 percent), as household goods (up 14.4 percent) and foreign designer labels (up 3.7 percent) advanced. Convenience store sales climbed 2.5 percent as the late heat wave fueled demand for processed food products (up 3.6 percent) like ice cream and functional beverages. Tobacco sales also increased 2.4 percent. SSM operators contracted 2.7 percent as all categories minus fresh food products (up 4.9 percent) declined. Online retail sales soared 15.7 percent as the late heat wave boosted sales of home appliances and electronics (up 18.1 percent), as well as service/other (up 52.9 percent) such as e-coupons, travel packages, and food deliveries. Demand for food products (up 14.7 percent), living furniture (up 10.3 percent), and cosmetics (up 11.4 percent) showed steady growth, whereas fashion/clothing (down 16.0 percent) and sports (down 11.4 percent) continued to slide.   date2024-10-29

Korea’s reshoring support policy starting to yield results

Having reshored from China in November 2022, the Korean automobile parts company Hwashin held the completion ceremony of its new plant today in Yeongcheon, North Gyeongsang Province. Hwashin is a middle-market manufacturer and supplier of chassis and body parts for major automakers like Hyundai Motor, Kia, and Volkswagen. With the KRW 40 billion investment subsidy from the Korean government and local authorities, the company was able to establish facilities in the Yeongcheon High Tech Park District to produce over 100,000 units worth of electric vehicle (EV) battery pack cases and lightweight chassis parts (e.g., front cross member) per year.  Hwashin has plans to produce battery pack cases and such future mobility parts at the new plant through an ₩80 billion fresh investment, which is anticipated to create 120 new hires and help stimulate the local economy and domestic investment. Moreover, Hwashin’s lightweight car parts manufacturing and strategic technologies on related materials, parts, and equipment (MPE) are expected to contribute to the Government’s supply chain stabilization policy. This May, the Korean government announced the Reshoring Company Support Strategy 2.0 policy to invigorate the reshoring of companies in advanced industries through the employment of stronger incentives and a broader recognition range of reshoring. Notably, the state funding cap was heightened for companies with national high-tech strategic technologies, allowing those reshoring to Korea’s capital region to receive up to KRW 20 billion (up ₩5 billion) and those reshoring to non-capital regions to receive up to ₩40 billion (up ₩10 billion).   date2024-10-29

Korea launches “K-FEZ DAY in Singapore”

The Ministry of Trade, Industry and Energy (MOTIE) held “K-FEZ DAY in Singapore” on October 29 in Marina Bay Sands, Singapore, to promote Korea’s free economic zones (K-FEZs). The event was attended by approximately 90 persons from Singaporean companies, venture capital firms, and financial institutions. A group composed of authorities from the Gyeonggi, Gwangyang Bay Area, Busan-Jinhae, Ulsan, and Incheon FEZs led the local K-FEZ promotion, taking advantage of their first opportunity to promote K-FEZs to Singaporean investors. A prominent investor through the Government of Singapore Investment Corporation (GIC) and Temasek, Singapore recently invested in Korean firms such as Kakao Entertainment and Celltrion. The Southeast Asian country’s accumulated investment in Korea amounts to USD 33 billion. Following an overview on K-FEZs, each of the K-FEZ Authorities presented their respective economic zone’s local strengths and held one-on-one consultations with Singaporean investors. In addition to Korea’s existing investors, those from 50 major investor companies including Enterprise Singapore (ESG), Temasek, and GIC’s PE also took part in the consultations.   date2024-10-29

MOTIE & MSIT launch technical exchange for Next-Gen Intelligent Chip Technology Development PJT

The Ministry of Trade, Industry and Energy (MOTIE) and the Ministry of Science and ICT (MSIT) of the Republic of Korea hosted a technical exchange for the Next-Generation Intelligent Semiconductor Technology Development Project (“Project”) from October 28–29 on Jeju Island to promote sharing of research outcomes and latest technology trends. The Project is a joint initiative by MOTIE and MSIT with over KRW 1 trillion in investment over a 10-year period since 2020 for developing technologies related to semiconductor devices, design, and manufacturing processes. Project outcomes so far include the ultra-low power phase change memory (KAIST), next-generation datacenter accelerator (FuriosaAI), sensor convergence AI system-on-chip (SoC) and autonomous vehicle electronic control unit (ECU) platform (Nextchip), and chemical mechanical planarization (CMP) equipment for 10nm-level shallow trench isolation (STI) processes (KCTech). Over the last five years, the Project has produced 1,472 patent applications, 1,155 Science Citation Index-Expanded (SCIE) journal paper publications, and 1,284 research talents. A total of 114 project-executing institutions are participating in this year’s technical exchange including Korea’s major AI semiconductor fabless companies, Electronics and Telecommunications Research Institute (ETRI), and Seoul National University to share their research progress and outcomes.  Attendees discussed the development of next-generation angstrom-level chip technology for responding to scaling trends in view of the sub-nanometer era. They also touched on the AI chip technology development situation with respect to supporting the super-giant AI model and on-device AI, as well as measures for commercializing five key general-purpose system chip technologies and technical development of processes and equipment needed to manufacture next-generation semiconductors. In conjunction with the exchange, a workshop for training system chip convergence professional manpower was launched to catalyze cooperation between semiconductor manpower training efforts and R&D projects. In addition, the Automobile Semiconductor Manpower Training Center (“Center”) held a joint session with the Korea Automotive Technology Institute (KATECH) to share automobile semiconductor R&D experiences with students taking the master's and doctorate course at the Center, followed by a Q&A session regarding employment in related fields.   date2024-10-29

Minister Ahn attends AI Autonomous Manufacturing Anchor Project Agreement Ceremony

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea attended the AI Autonomous Manufacturing Anchor Project Agreement Ceremony today in Seoul and announced 26 projects set for launch this year with the participation of 400 industry representatives and 15 local government bodies, where the AI Autonomous Manufacturing Anchor Project Agreement was signed among MOTIE, Korea Evaluation Institute of Industrial Technology (KEIT), and local authorities. date2024-10-28