Ministry of Trade, Industry and Energy

Korea and Singapore sign 10 MOUs on margins of bilateral Business Forum

MOTIE Minister Dukgeun Ahn and Singapore’s Minister for Manpower and Second Minister for Trade and Industry Tan See Leng attended the Korea-Singapore MOU signing ceremony on October 8 in Singapore on the margins of the bilateral Business Forum with the participation of the two countries governments, companies and institutions, where they signed 10 MOUs in energy, infrastructure, high-tech industries, retail, and commerce. date2024-10-10

Korea and Singapore advance cooperation in supply chains, energy, and high-tech industries

The Ministry of Trade, Industry and Energy (MOTIE) announced on October 8 that the ministry will be expanding forward-looking cooperation in areas like supply chains, energy, and high-tech industries with Singapore, the global hub of logistics, technology, and energy, on the occasion of Korean President Yoon Suk Yeol and First Lady Kim Keon-hee’s state visit. First, on the margins of the Korea-Singapore summit talks (October 8), MOTIE entered into three intergovernmental memorandums of understanding (MOUs) with Singapore’s Ministry of Trade and Industry (MTI). The two ministries sealed the Supply Chain Partnership Arrangement (SCPA), Korea’s first bilateral supply chain partnership agreement. Under the SCPA, Korea and Singapore will closely monitor and exchange supply chain disruptions, convene emergency meetings, and provide mutual customs support. MOTIE also inked an MOU with Singapore for cooperation in liquefied natural gas (LNG) areas such as LNG swaps and joint purchases with an aim to stabilize domestic natural gas supplies and reduce costs. Lastly, the two ministries forged a technology cooperation MOU to push joint R&D in future mobility, artificial intelligence (AI), renewable energy, and other high-tech industries, through which both sides look forward to creating synergy from Singapore’s advanced innovative capacity and Korea’s high-tech manufacturing technology. The MOU signing ceremony was followed by the Korea-Singapore Business Forum, organized by the Korea Chamber of Commerce and Industry (KCCI) and Singapore Business Federation (SBF) with the participation of 250 persons, including MOTIE Minister Dukgeun Ahn and Singapore’s Minister for Manpower and Second Minister for Trade and Industry Tan See Leng. The two countries’ companies and institutions signed 10 MOUs in energy, infrastructure, high-tech industries, retail, and commerce. In hydrogen, LNG, and other energy and infrastructure areas, the two sides sealed five MOUs. They plan to engage in joint research in next-generation energy systems, hydrogen technology, and clean energy areas with the participation of both countries’ businesses and universities. In high-tech, two MOUs were inked, including one on the commercialization and market expansion of autonomous cars. Through the MOU, it is expected that Korea’s self-driving carmakers will be able to establish a base for entry into Southeast Asian markets. In retail and commerce, Korea and Singapore closed two MOUs, spurring anticipation for Korean food and retail businesses’ further entry into Asia’s logistics hub. In entertainment, the two sides inked an MOU for promoting K-POP performances and events across Singapore and other Asian markets as well as supporting the discovery of new artists. MOTIE plans to provide active assistance so that the MOUs forged on this occasion can lead to tangible outcomes.   date2024-10-10

Korea and other GFSEC members discuss measures for stronger action against challenges from steel excess capacity

Deputy Minister for Industry Policy Lee Seung-ryeol attended the virtual meeting of the Global Forum on Steel Excess Capacity (GFSEC) on October 8, where the members adopted a joint ministerial statement on response against issues concerning the increase in steel excess capacity. This seventh meeting of the GFSEC was convened based on the members’ shared recognition of the need for stronger measures against the intensifying challenges arising from steel excess capacity. Global steel excess capacity increased to 0.55 billion metric tons in 2023 and is projected to reach 0.63 billion metric tons by 2026. In the joint statement, GFSEC members addressed various means to solve the problem, including closer monitoring and encouraging new membership.  Deputy Minister Lee stated that Korea acknowledges the graveness of the situation and has been taking steps to promote sustainable steel production and a fair trade order, vowing commitment in international endeavors to tackle the excess capacity issue through multifaceted cooperation.   date2024-10-10

Korea and Philippines agree to stronger supply chain and nuclear energy cooperation

The Ministry of Trade, Industry and Energy (MOTIE) and Korea Hydro & Nuclear Power (KHNP) reached a new milestone with the Philippines today for cooperation in supply chain and nuclear energy with the Filipino Department of Trade and Industry (DTI), Department of Environment and Natural Resources (DENR), and the Department of Energy (DOE) on the margins of Korean President Yoon Suk Yeol’s state visit to the Philippines for a bilateral summit. First, MOTIE entered into a memorandum of understanding (MOU) for supply chain in critical raw materials with the Philippines, the world’s second largest nickel producer. The MOU is expected to help the two countries build a mutually beneficial supply chain and take joint response against sudden supply chain disruptions amid the ongoing U.S.-China competition and global economic fragmentation. KHNP sealed an MOU with the Philippines’ Department of Energy for cooperation on the feasibility study for resuming construction of the Bataan nuclear power plant, which has been put on pause in 1986. They aim to launch feasibility investigations in terms of assessing the safety of continuing the Bataan project and its economic value. On the heels of the MOU signing ceremony, the two countries’ economic groups organized the Korea-Philippines Business Forum with the participation of roughly 300 business leaders of both sides, where they inked a total of 13 additional MOUs between economic groups and companies in areas like nuclear reactors, energy, construction, infrastructure, aircraft maintenance, defense, agriculture, and retail. In nuclear reactors and energy, three MOUs were signed for cooperation on nuclear energy technology and gas-fired combined cycle power plant (CCPP) projects. Korea’s major plant company and the Philippines’ largest independent power producer (IPP) entered into two MOUs, fueling anticipation for collaboration over all energy sectors going forward. In line with the numerous large-scale construction and infrastructure projects recently pushed by the Filipino government, four MOUs were signed in construction and infrastructure areas such as manpower and information exchange as well as smart city. Based on these MOUs, Korean businesses are looking forward to enhanced chances of winning more projects put out by the Philippines. Five MOUs were forged in aircraft maintenance, defense, agriculture, and retail, which has helped establish stable grounds for cooperation in not only manufacturing but in all industries including service and food, while also contributing to boosting Korean businesses’ exports. Meanwhile, the Federation of Korean Industries (KFI) and the Philippines Chamber of Commerce and Industry (PCCI) sealed an MOU to spur bilateral economic cooperation and widen the scope of information exchange, which is anticipated to further catalyze exchanges and cooperation between the two countries’ economic groups. MOTIE plans to actively support the MOUs closed between businesses and economic groups today on the sidelines of the Korea-Philippines Summit to ensure they translate into tangible outcomes.   date2024-10-07

Korea makes official launch of CFE Global Working Group

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced on October 6 that the Carbon-Free Energy (CFE) Initiative officially launched its global working group (“CFE Global Working Group”) on October 3. Moreover, Korea will be serving as chair of the Clean Energy Ministerial (CEM) in 2025. At the 15th Clean Energy Ministerial (CEM) and the G20 Energy Ministerial held through October 1–4 in Brazil, the Korean delegation highlighted the need to harness various carbon-free energy sources. At CEM, it announced the official launch of the CFE Global Working Group and convened a kickoff meeting.  The CFE Global Working Group is a consultative body for discussions on CFE implementation standards and utilization measures with the participation of Korea, Japan, the United Arab Emirates (UAE), the Czech Republic, and the International Energy Agency (IEA). Going forward, it is expected that the scope of participation will keep expanding. At the CFE Global Working Group kickoff meeting, MOTIE Minister Dukgeun Ahn emphasized via a video message how Korea has been laying the groundwork for consensus building with various countries over the use of diverse carbon-free energy sources, sharing plans to continue discussions through the CFE Global Working Group. Head of the Clean Energy Ministerial Secretariat Jean-François Gagné also expressed strong agreement to the need for utilizing all carbon-free energy sources, voicing support for the CFE Initiative’s role in the international community. First proposed by Korean President Yoon Suk Yeol during the United Nations General Assembly meeting in September 2023, the CFE Initiative has thus far won the support of a total of 10 countries and international organizations. The United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP28) resolution (December 2023) and the IEA 2024 Ministerial Meeting (February 2024) joint communique both reaffirm the need to utilize technology-neutral carbon-free energy sources.  In view of member countries’ support for Korea’s chairmanship of next year’s CEM, the international community’s shared understanding for the CFE initiative is anticipated to widen further in the future.   date2024-10-07

FDI pledged to Korea in Q1–Q3 reach historic $25.2 bln

The Ministry of Trade, Industry and Energy (MOTIE) announced today that the accumulated foreign direct investments (FDIs) pledged to Korea through January–September in 2024 (Q1–Q3) rose 5.2 percent year-on-year to an unprecedented USD 25.2 billion. The manufacturing sector soared 36.4 percent to $12.3 billion, renewing the quarterly high reached in Q3 2023. Electrical/electronics (up 35.9 percent to $4.5 billion), machinery/equipment/precision medicine (up 128.5 percent to $1.7 billion), and pharmaceuticals (up 136.4 percent to $0.7 billion) are among sectors that enjoyed steep climbs. Meanwhile, the service sector slowed to $12.0 billion (down 13.3 percent) as a result of the base effect from last year’s large-scale investments. FDI pledged from Japan hit historic highs at $4.7 billion (up 412.7 percent), followed by investments from China (up 316.3 percent to $4.6 billion), the EU (down 1.4 percent to $4.0 billion), and the U.S. (down 39.9 percent to $3.1 billion). By type, M&A investments pledged to Korea shrank 12.7 percent to $6.3 billion, whereas greenfield investments pledged to Korea grew 12.9 percent to $18.9 billion. FDI commitments made to non-capital regions hiked 2.7 percentage points to 26.4 percent of the entire FDI pledged to Korea.   date2024-10-02

Korea’s exports advance 7.5% in September

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced on October 1 that September monthly exports rose 7.5 percent year-on-year to USD 58.8 billion. Imports inched up 2.2 percent to $52.1 billion and the trade balance stood at a surplus of $6.7 billion. Maintaining growth for the 12th consecutive month, the export value for September hit an all-time high for the month and the daily average export value also reached a historic high of $2.9 billion (up 12.9 percent). By item, six out of 15 major export items advanced. Semiconductors (up 37.1 percent to $13.6 billion) increased for the 11th consecutive month, surpassing their record high set this June. Computer exports and wireless communication devices expanded 132.0 percent and 19.0 percent to $1.5 and $1.9 billion, respectively, growing for the ninth and seventh consecutive month. Snapping the four-month losing streak, automobile exports logged $5.5 billion (up 4.9 percent) despite the lower number of operating days (-1.0) and achieved a record high for September. Meanwhile, ship exports surged 76.2 percent to $2.4 billion and exceeded the 50 percent growth rate thresholds for the second consecutive month. Bio-health exports climbed 9.9 percent to $1.2 billion, gaining for the third consecutive month. By region, September exports to China marked this year’s highest at $11.7 billion (up 6.3 percent) on the backs of strong demand for semiconductors and wireless communication devices. The trade balance to China also broke the seven-month downward streak and stood at a surplus of $0.5 billion. Exports to the U.S. amounted to a record high for September at $10.4 billion (up 3.4 percent) and renewed monthly export highs for the 14th consecutive month. To the EU, exports hiked 5.1 percent to $6.0 billion amid steep growth of IT goods including wireless communication devices and computers, renewing monthly export highs for the second consecutive month. Exports to ASEAN and CIS countries showed an uptick of 0.6 percent and 8.2 percent to $9.5 billion and $1.0 billion, respectively, each rising for the sixth and third consecutive month.  To the Middle East, exports turned to an expansion after a month of decline, growing 15.5 percent to $1.6 billion. Energy imports decreased 8.4 percent to $10.4 billion as imports shrank for crude oil (down 11.6 percent) and gas (down 0.6 percent).  The trade balance kept up the surplus trend for the 16th consecutive month, surpassing that of last year by roughly $3.0 billion. As for exports for the third quarter (Q3) of 2024, Korea achieved $173.9 billion (up 10.7 percent year-on-year). Semiconductor exports logged all-time highs of $36.7 billion (up 41.4 percent) and exports to the U.S. ($30.6 billion) and the EU ($18.0 billion) likewise outperformed their previous Q3 highs. The trade balance for Q3 stood at a surplus of $13.9 billion, an improvement of $7.5 billion compared to Q3 2023.   date2024-10-02

Korea and Slovakia establish comprehensive base for wider cooperation in trade, industry, and energy

Trade, Industry and Energy Minister Dukgeun Ahn of the Republic of Korea and Deputy Prime Minister and Minister of Economy of the Slovak Republic Denisa Saková signed a bilateral Trade and Investment Promotion Framework (TIPF) memorandum of understanding (MOU) today in Seoul in the presence of Korean President Yoon Suk Yeol and Slovak Prime Minister Robert Fico on the margins of the Korea-Slovakia summit. Slovakia is among Korea’s top 10 EU trade partners and home to roughly 140 Korean businesses, where active bilateral supply chain collaboration is ongoing in automobiles and home appliances. Their cooperation is extending to future-oriented industries as well, such as electronic vehicles (EVs) and clean energy.   Korea and Slovakia plan to leverage their TIPF to not only advance trade and investment but also expand their comprehensive cooperation base across various areas such as industry, energy, and supply chains through joint corporate project development, promotion of business and institutional exchanges, and removal of trade barriers. The bilateral TIPF MOU sealed today follows those Korea previously inked with Poland, Hungary, and the Czech Republic, laying down the groundwork for wider economic cooperation with the Visegrád Group (V4). Korea’s trade volume with the V4 has continued to rise by an average of 15 percent every year through 2004–2023, reaching a historic USD 26.1 billion last year.  With the existing Korea-V4 cooperation in automobiles and home appliances newly spreading to other areas like EV batteries, nuclear reactors, and defense, the complete Korea-V4 TIPF channel established on this occasion is anticipated to create fresh momentum for broadening the scope of Korea’s economic cooperation with the V4 countries.   date2024-09-30

Minister Ahn meets Utah Governor

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn held talks on September 27 in Seoul with the U.S. National Governors Association (NGA) Chair and Utah Governor Spencer Cox, who is leading the trade delegation from the State of Utah, to discuss measures for Korea-Utah economic cooperation in aerospace, life science, healthcare, financial services, semiconductors, and carbon-free energy areas including nuclear energy and clean hydrogen. date2024-09-30

Delivery ceremony of 1st homegrown engine for Korea’s self-propelled howitzers

The Ministry of Trade, Industry and Energy (MOTIE) and the Defense Acquisition Program Administration (DAPA) of the Republic of Korea held the delivery ceremony of the first homegrown engine for Korea’s self-propelled howitzers, the K9 Thunders, on September 27 at STX Engine’s Changwon plant. MOTIE Vice Minister Park underscored the importance of self-reliance in the production of vital defense materials and parts for Korea’s defense industry to keep up its pace amid the intensifying global exports race, vowing that the ministry will make further effort to secure critical technology for high value-added defense materials, parts, and equipment. The ceremony was attended by 60 persons including MOTIE Vice Minister Sungtaek Park, DAPA Minister Seok Jong-gun, STX Engine CEO Lee Sang-su, and Hanwha Aerospace Vice President Moon Ji-hoon. date2024-09-27