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FTA/Economic Cooperation
The Bipartisan Council for the Korea-China FTA holds the 4th General Meeting
The Ministry of Trade, Industry and Energy (MOTIE) announced on November 30 that the Bipartisan Council for the Korea-China FTA held the 4th General Meeting on November 20 and agreed on a budget of 1.6 trillion won ($ 1.3 billion) to be allocated over a period of 10 years. Some of the important details are as follows: Fixed subsidy for all items produced from open field farming subject to support open field farming will be gradually increased to 600,000 won per ha until 2020. Research on the advantages of promoting the regional development accounting will be available for open field farming. Among the fishery policy budgets, fixed interest rates on loans for the construction of fishing facilities will be reduced from 2.5 percent to 2 percent. The ratio of debit system for damage preservation will be increased from 90 percent to 95 percent. Calculation methods and procedures for the level of contribution will be verified by a committee comprised of professors and experts, and the support committees represented by farmers and fishers will have the chance to object before the final decisions are made. The consignment guarantee money from the Korea Credit Guarantee Fund for farmers and fishers will be increased from 30 million won to 50 million won from December 1 and research will be conducted to improve the allocation of agricultural policy budget. The maximum tax-free allowance will be increased from 20 million won to 30 million won for any income from coastal fisheries, island fishing and fish farming. Jeju Island will be included in the list of less favored areas subject to the debit system for fisheries. The debit amount for less favored areas will be gradually increased to 700,000 won per ha between 2017 and 2020, and 700,000 won per fishery household. As for pastures, the amount will be increased from 250,000 won per ha to 450,000 won by 2020. The power rate for rice processing centers operated by a farmers’ cooperative and water supply and draining systems at sea salt farms will be reduced by 20 percent. Power rates applied with TMR used by a farmer or farmers’ cooperative will be converted to agricultural use. The co-ownership system for trade profits only exists in Korea and it's impossible to implement the system due to technical and legal reasons. For these reasons, an alternative measure is implemented to create a budget of 1 trillion won over a period of 10 years through voluntary donation of 100 billion won from public organizations, Nonghyup and National Federation of Fisheries Cooperatives. This is a voluntary program. The government will provide support incentives in order to promote the voluntary activities in forms of tax exemption on the donation, matching amount for losses incurred and giving Mutual Growth Index Points. * Short version date2015-11-30
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FTA/Economic Cooperation
Motion on Korea-China FTA ratifications passed at the National Assembly meeting
The Ministry of Trade, Industry and Energy (MOTIE) announced on November 30 that Korean National Assembly passed the motion on the Korea-China ratifications. According to the motion, customs duties on some of the trade items will be removed immediately if the Korea-China FTA is put in force within this year, and other items will also be free of customs duties on January 1, 2016. This will help Korean companies gain price competitiveness over other foreign companies in the Chinese market. China currently accounts for about 25 percent of entire Korean exports. As such, the removal of customs duties following the FTA is likely to help Korean companies maintain the largest share of the Chinese import market. Korean companies have been holding the largest share of the Chinese import market ever since achieving the largest share of the Chinese import market at 9.2 percent in 2013. Once the Korea-China FTA is put in force, Korean companies will also be able to tap into some of the most promising service markets such as construction, environment, entertainment and law. The Korea-China FTA is also expected to promote the growth of the Korean agricultural industry. Korean farm produce is very popular in China, which has been recording a two-digit growth in the agricultural industry since 2005. The Korean government plans to take additional steps to set up a budget and offer tax rates that have been discussed as complementary measures at the bipartisan council meeting. * Short version date2015-11-30
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Energy
Energy vouchers to be issued from December 2015
The Ministry of Trade, Industry and Energy (MOTIE) announced on November 30 that energy vouchers (Heating Card) will be issued from December 2015. There are two different types of Energy Voucher: Plastic Card and Virtual Card. Plastic cards are issued by any of the Public Happiness Card Companies (BC, Lotte, Samsung). If you already have one, you don't have to have another one issued, and you can start using the card from December 2015. The credit card companies currently accept applications via phone. If you want to have the card issued to you faster, visit one of the branches nearby. The Virtual Card is for disabled people or those living in an apartment. Virtual Card holders don't have to have an actual card to choose power, gas or regional heating bill to be automatically paid from the voucher amount. The Energy Voucher can be used from December 2015 to the end of March 2016. If you have any balance left in the voucher, it will be automatically deducted from the April power bill. Welfare/medical beneficiaries who are over 65 years old or any households with a child under the age of 6 or under or a disabled person can qualify for the Energy Voucher. The voucher amount differs by the number of family members, but it's usually 100,000 won ($90). The application deadline is the end of January 2016. In the month of November 2015 alone, more than 200,000 people have applied for the voucher. * Short version date2015-11-30
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Trade/Investment
MOTIE Deputy Trade Minister Woo Hosts 4th Special Private-Government Meeting on WTO EGA
The Ministry of Trade, Industry and Energy (MOTIE)'s Deputy Trade Minister Woo Tae-hee, hosted the fourth private-government meeting to discuss the Environmental Goods Agreement (EGA) of the World Trade Orgnization. At the meeting, Deputy Minister Woo discussed the latest developments in the EGA negotiations and how South Korea should respond to its implementation, which is expected to take place from 2017. date2015-11-30
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FTA/Economic Cooperation
MOTIE Vice Minister Lee Attends France-Korea Joint Forum on Innovative Industry
MOTIE Vice Minister Lee Attends France-Korea Joint Forum on Innovative Industry The Ministry of Trade, Industry and Energy (MOTIE)'s First Vice Minister Lee Gwan-sup attended the France-Korea Joint Forum on Innovative Industry in Paris yesterday, which was also joined by France's Economy Minister Emmanuel Macron. In a keynote speech at the forum, attended by about 150 government and business representatives from both countries, Vice Minister Lee celebrated the 130th anniversary of diploma date2015-11-27
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Energy
Third MOTIE-ADB Joint Energy Forum Discusses Better Parnership for Energy-Related New Businesses
The Third MOTIE-ADB Joint Energy Forum took place in Seoul yesterday under the theme of `Strengthening Cooperation Partnership for Energy-Related New Business to Cope with New Climate Change Regime.' About 160 participants from eight developing countries, including Bambang Susantono, vice president for Knowledge Management and Sustainable Development of the Asian Development Bank (ADB), attended this year's gathering. In an opening speech, Lee Sang-jin, the MOTIE's director-general for economic cooperation, introduced South Korea's plan to develop energy-related new businesses over the next 15 years. He also stressed the importance of regional cooperation in the Asia-Pacific in the areas such as energy storage systems (ESS) and energy management systems (EMS) with support from South Korea and the ADB. date2015-11-27
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Trade/Investment
MOTIE Hosts CEO Forum for Foreign-Invested Companies 2015
MOTIE Hosts CEO Forum for Foreign-Invested Companies 2015 The Ministry of Trade, Industry and Energy (MOTIE) hosted the CEO Forum for Foreign-Invested Companies 2015 in Seoul this week, which marked its 10th anniversary this year. During the forum, Deputy Minister for Internatinal Trade and Investment Lee Inho pledged all support to foreign-invested companies to develop their businesses in South Korea. date2015-11-27
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FTA/Economic Cooperation
MOTIE Vice Minister Moon and Swedish Minister Damberg Discuss Bilateral Economic Cooperation
The Ministry of Trade, Industry and Energy (MOTIE)'s Second Vice Minister Moon Jae-do received a visit by Swedish Minister for Enterprise and Innovation Mikael Damberg in Seoul yesterday. During the meeting, the two exchanged views on how to strenghten bilateral economic cooperation between South Korea and Sweden and other global trade issues such as the 10th ministerial meeting of the World Trade Organization in Nairobi, Kenya, next month. Minister Damberg is leading a trade delegation to South Korea and Japan from November 25-27, which is accompanied by executives from major Swedish companies like Telenor, Volvo, Ericsson, Scania. This Asian trip includes meetings with several ministers and leaders of major Korean and Japanese companies and a srminar on the Internet of Things (IoT). The Swedish government unveiled a new export strategy in September, which includes a range of measures to improve the country's exports and international opportunities in growth market, especially in Asia. date2015-11-26
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FTA/Economic Cooperation
MOTIE 1st Vice Minister Lee Visits Italy for Industrial and Technology Cooperation
MOTIE 1st Vice Minister Lee Visits Italy for Industrial and Technology Cooperation The Ministry of Trade, Industry and Energy (MOTIE)'s First Vice Minister Lee Gwan-sup led the South Korean delegation at the first meeting for industrial and technology cooperation with Italy this week. During the meeting held in Rome, Vice Minister Lee and Italy's Deputy Minister for Economic Development Carlo Calenda discussed various ways to promote bilateral cooperation in fashion design, textile date2015-11-26
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FTA/Economic Cooperation
Korea and France to jointly develop new industry technologies such as self-driving car
The Ministry of Trade, Industry and Energy (MOTIE) announced on November 26 that the 2nd Korea-France Joint Forum for Innovation Industry took place on the same day in Paris, France and two countries decided on joint R&D objectives to launch technical cooperation from the end of this year. They discussed matters of cooperation aimed at the promotion of innovation industries, and decided on joint R&D objectives in the areas of self-driving car and digital health care. date2015-11-26