Ministry of Trade, Industry and Energy

45th Korea-Australia Economic Cooperation Committee (ECCC) meeting

Minister for Trade Inkyo Cheong attended the 45th Korea-Australia Economic Cooperation Committee (ECCC) meeting opening ceremony on September 2 in Perth and gave a congratulatory message.   The event was attended by representatives of both countries’ governments and relevant companies. date2024-09-03

Minister Ahn and bipartisan U.S. lawmaker group discuss stronger Korea-U.S. economic cooperation

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn held a luncheon meeting with a bipartisan group of U.S. lawmakers today in Yeouido, Seoul, and discussed measures for stronger Korea-U.S. cooperation in advanced industries and other wide-ranging areas. Led by Republican Senator Bill Hagerty from Tennessee, the group consisted of seven U.S. Senators, including Republican Senator Katie Britt from Alabama, Republican Senator Dan Sullivan from Alaska, Democratic Senator Chris Coons from Delaware, Democratic Senator Gary Peters from Michigan, Republican Senator Eric Schmitt from Missouri, and Republican Senator John Thune from South Dakota. Minister Ahn remarked that amid recently intensifying changes in the global economy, Korea and the U.S. can secure both national prosperity and global supply chain stability through continued bilateral cooperation. He also highlighted the need for the two economic partners to solidify their shared understanding through various channels across diverse areas based on close communication and trust. Moreover, the minister noted that Korean businesses have sharply increased investments in the U.S.’ advanced industries like semiconductors, batteries, and electric vehicles (EVs), playing a major part in nurturing the U.S.’ industrial ecosystem. Requesting interest and support at the Congress-level, he asked that U.S. trade policies be carried out in ways favorable to Korean businesses in the local market so that Korean firms can further contribute to strengthening the U.S. supply chain while maintaining smooth business operations.   date2024-09-03

Korea and Bulgaria enter MOU on bilateral energy cooperation

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn met Bulgaria's caretaker Minister of Energy Vladimir Malinov today in Seoul to sign a memorandum of understanding (MOU) on energy cooperation and discuss measures for collaboration in nuclear power and other energy areas. They first acknowledged the importance of bilateral cooperation in strengthening energy security and expanding clean energy in view of frequent climate anomalies and persisting geopolitical uncertainties, such as the Middle East tensions and the Russia-Ukraine war. Minister Ahn highlighted that prospects for bilateral cooperation are high, as Bulgaria is actively harnessing clean energy sources like nuclear power (35 percent of power generation) and renewables (20 percent), while Korea is accelerating efforts to attain energy security and carbon neutrality based on carbon-free energy sources. He added that he looks forward to seeing today’s talks act as a catalyst for invigorating the Korea-Bulgaria energy collaboration. On the occasion of the talks, the two sides entered an energy cooperation MOU to enhance cooperation across areas of common interest. A wholly amended version of the energy cooperation MOU previously sealed in 2019, the fresh MOU extends the scope of bilateral cooperation by adding liquefied natural gas (LNG), energy storage, and supply chains to the existing areas of cooperation. In addition, it further specifies the areas of cooperation for nuclear energy, including nuclear new build, continued operation, decommissioning, radioactive waste management, small modular reactors (SMRs), and manpower training. Minister Ahn also introduced the Korean government’s Carbon Free Energy (CFE) Initiative, which aims for the effective achievement of carbon neutrality through the utilization of various carbon-free energy sources, and asked Bulgaria’s support and interest in its global diffusion.   date2024-09-03

Korea and IEA announce joint statement expressing support for Carbon-Free Energy (CFE) Initiative

Korea’s Ministry of Trade, Industry and Energy and the International Energy Agency (IEA) held a press conference today at the Korea Press Center in Seoul and announced the Korea-IEA Joint Statement as follows.     Joint Statement International Energy Agency - Republic of Korea September 3rd, 2024 - Seoul   We, Dr. Fatih Birol, Executive Director of the International Energy Agency, and H.E. Ahn Duk-geun, Minister of Trade, Industry and Energy of the Republic of Korea, emphasize the critical importance of decarbonizing the energy sector, which is fundamental to global economic activity, in order to keep the 1.5°C goal within reach. We also recognize that the growing application of information and communications technology (ICT), the electrification of industries, and rapid industrialization present new opportunities as well as challenges in achieving global carbon neutrality.   We note that at a global level, leveraging all available carbon-free energy sources from a technology-neutral standpoint offers an effective opportunity to limit global warming in the near term while also helping to ensure energy security. We understand that this approach aligns with the United Nations Framework Convention on Climate Change (UNFCCC, 1992), which underscores 'common but differentiated responsibilities and respective capabilities,' taking into account each country’s economic and geographical conditions.   We welcome the outcomes of COP28 in Dubai and the 2024 IEA Ministerial Meeting, which emphasized the need to further develop clean energy technologies and accelerate the deployment of existing, emerging, and new carbon-free technologies, depending on national circumstances and choices.   Support for the CFE Initiative: We note that on October 27, 2023, the Korean government and the Carbon Free Alliance (CF Alliance) jointly launched the 'CFE Initiative,' a global campaign aimed at fostering the decarbonization of Scope 1 and 2 emissions through the comprehensive implementation of various carbon-free energy sources. We highlight that the initiative’s goal is to expand the availability of clean energy sources, thereby helping to reduce the costs borne by nations and industries in achieving net zero by 2050. We underline that this initiative represents a collaborative effort between the public and private sectors, emphasizing not only the utilization of innovative decarbonization technologies and financial investments by individual industries but also the efforts of governments to establish infrastructure and enhance institutions to support these endeavors. We agree that the CFE Initiative is an effective means to accelerate progress towards achieving net zero emissions by 2050, consistent with efforts to limit the rise in average global temperatures to 1.5°C as outlined in the IEA’s 'Net Zero by 2050' roadmap. We encourage all countries and industries to review the key elements of the CFE Initiative to see how it can contribute to their own decarbonization plans.   Highlighting Collaboration: We note the collaborative research project between the IEA and the Republic of Korea, which commenced in March 2024. The project’s primary objective is to analyze the viability of deploying a diverse range of carbon-free energy sources in major global economies and to publish a report titled 'Achieving Net Zero Based on the CFE Initiative' to advance global efforts towards meeting energy security and sustainability objectives. We welcome the joint efforts by the IEA Secretariat and Korea in organizing the World Climate Industry Expo (WCE) to be held in Busan from September 4-6, 2024. We emphasize that the WCE aims to showcase the benefits of embracing a range of carbon-free energy solutions and the latest advancements in carbon reduction technologies. It will offer new opportunities to address the urgency date2024-09-03

Trade Minister meets Australia’s Minister for Resources

Minister for Trade Inkyo Cheong met with Australia’s Minister for Resources and Minister for Northern Australia Madeleine King on September 1 in Perth on the margins of the 6th Korea-Australia FTA Joint Committee meeting held in commemoration of this year marking the 10th anniversary of the Korea-Australia FTA’s entry into force, and discussed mutually beneficial cooperation concerning liquefied natural gas (LNG), critical minerals, and carbon capture and storage (CCS) and also asked for support towards Korean firms investing in the Australian market. date2024-09-02

Korea and IEA to co-host World Climate Industry Expo 2024

The Korean government and the International Energy Agency (IEA) are co-hosting the World Climate Industry Expo 2024 (WCE 2024) through September 4–6 in Busan to facilitate the international dialogue on accelerating the global diffusion of carbon-free energy sources. Under the theme of “Ushering in a Carbon-Free Energy Era with Climate Technology,” the WCE 2024 will consist of conferences, exhibitions, bilateral talks, and sidelines events with the participation of 30 embassies to Korea, 24 national delegations, and 10 international organizations, involving altogether over 50 countries from around the world. Keynote speakers for the opening ceremony are Fatih Birol, IEA Executive Director, and James Bacchus, Distinguished University Professor of Global Affairs and Director of the Center for Global Economic and Environmental Opportunity at the University of Central Florida.  The Expo will launch a total of 11 conferences categorized into three Summits—CFE Summit, Industrial and Technology Summit, and Climate Summit—each organized by relevant ministries and organizations. At Halls 1 and 2 of the Busan Exhibition & Convention Center (BEXCO), the latest and future technologies on carbon-free energy are showcased by 537 companies, including Samsung Electronics, LG Electronics, POSCO, Hyundai Motor, Korea Hydro & Nuclear Power (KHNP), and RWE. On the second day (September 5), 45 climate and energy public institutions will hold recruitment briefings and one-on-one counseling with hiring managers to promote interest among youth in the climate industry. Visitors can access a rich array of programs open to public participation, such as climate and energy talk shows and booths for experiencing augmented reality (AR), virtual reality (VR), and recycling. Korea and the IEA, beginning with WCE 2024, will continue to make joint efforts for the global diffusion of carbon-free energy sources. They plan to announce a joint statement through a press conference on the second day of the Expo. Meanwhile, Korea’s Prime Minister Han Duck-soo will highlight the need for carbon-free energy sources and the importance of their global diffusion through a video message to be shared at the opening ceremony. He will also visit the Expo in person to view the booths and encourage companies tackling the climate crisis in various aspects like nuclear power and hydrogen.   date2024-09-02

Korea and Australia bolster clean energy cooperation commemorating 10th anniversary of bilateral FTA’s entry into force

In commemoration of this year marking the 10th anniversary of the Korea-Australia Free Trade Agreement (FTA)’s entry into force, Minister for Trade Inkyo Cheong is visiting Perth through September 1–3 to attend the sixth Korea-Australia FTA Joint Committee meeting and sign the memorandum of understanding (MOU) between the Ministry of Trade, Industry and Energy (MOTIE) and the Government of Western Australia on clean energy cooperation. He also engaged in a business exchange between the two countries for enhancing cooperation in critical minerals and clean energy. First, Trade Minister Cheong and Australia’s Trade and Tourism Minister Don Farrell held the sixth Korea-Australia FTA Joint Committee meeting to assess how their FTA has strengthened bilateral trade and economic cooperation and discussed both sides’ issues regarding the FTA implementation of the trade of goods and services, as well as investment.  This was followed by the Korea-Australia Annual Trade Ministers’ Meeting, where the two trade chiefs discussed measures to deepen both bilateral and multilateral economic cooperation in energy, carbon neutrality, critical minerals supply chain, the World Trade Organization (WTO), and Asia-Pacific Economic Cooperation (APEC).  During talks with Australia’s Minister for Resources and Minister for Northern Australia Madeleine King, Trade Minister Cheong discussed mutually beneficial cooperation concerning liquefied natural gas (LNG), critical minerals, and carbon capture and storage (CCS). He also asked for support towards Korean firms investing in the Australian market. Meanwhile, the Korean trade leader and Western Australia Premier Roger Cook signed a MOTIE-Western Australia MOU on the development and processing of clean energy. Western Australia is rich in critical minerals and has vast potential for clean hydrogen and ammonia production, leading to anticipation that the MOU will advance bilateral energy collaboration in various areas including critical minerals, hydrogen, CCS, and renewables. At the 45th Korea-Australia Economic Cooperation Committee (ECCC) meeting held to promote private sector business exchange, Trade Minister Cheong highlighted the importance of forward-looking cooperation in supply chains, clean economy, digital, and defense in order to upgrade the two countries’ cooperation amid recent global uncertainties. He ensured that the Korean government will closely support efforts to foster a more stable trade and investment environment for both countries’ businesses.   date2024-09-02

Korea’s exports climb 11.4% in August

The Ministry of Trade, Industry and Energy (MOTIE) announced on September 1 that Korea’s August monthly exports and imports climbed 11.4 percent and 6.0 percent year-on-year to USD 57.9 billion and $54.1 billion, respectively, and the trade balance stood at a surplus of $3.8 billion. The export value for August reached a record high for the month, increasing at a double-digit pace despite the lower number of working days (-1 weekday) year-on-year.  By item, seven out of 15 major export items posted growth. Semiconductor exports came in at a historic $11.9 billion (up 38.8 percent) for the month, entering the $11 billion thresholds for the fourth consecutive month and growing for the 10th.   Computer exports skyrocketed 183 percent to $1.5 billion, growing for the eighth consecutive month. Wireless communication devices soared 50.4 percent to $1.8 billion, growing for the sixth consecutive month. Automobile exports dropped 4.3 percent to $5.1 billion as a result of the production line modernization and operating rate decline from wage and collective bargaining agreement (CBA) negotiations at some automakers. Meanwhile, ship exports snapped the three-month losing streak, surging 80 percent to $2.8 billion. Petroleum products and petrochemicals each amounted to $4.5 billion (up 1.4 percent) and $4.2 billion (up 6.9 percent), rising for the sixth and fifth consecutive month, respectively. Bio-health jumped 39 percent and logged an all-time high $1.3 billion for August monthly exports, growing for the second consecutive month. By region, Korea’s exports to eight of nine major destinations increased.  Exports to China grew 7.9 percent to $11.4 billion, advancing for the sixth consecutive month, as demand for semiconductors and wireless communication devices heightened on the backs of China’s revitalized IT industry.  U.S.-bound exports hit a record $10 billion (up 11.1 percent), renewing each all-time monthly record for 13 months straight. Exports to the EU enjoyed sharp demand for ships, wireless communication devices, computers, and other IT items, breaking the seven-month downward streak and logging $6.4 billion (up 16.1 percent) overall. Notably, the August export value surpassed the previous high ($6.3 billion) set in March 2021 for the first time in 41 months. Exports to ASEAN and India each increased 1.7 percent and 2.3 percent to $9.8 billion and $1.6 billion, respectively, both expanding for the fifth consecutive month. Exports to Japan (up 6.8 percent to $2.5 billion), Latin America (up 29.4 percent to $2.6 billion), and the Commonwealth of Independent States (up 11.2 percent to $1.0 billion) all increased for the second consecutive month. Meanwhile, the country’s energy imports increased 17.3 percent to $12.6 billion in August as demand hiked for crude oil (up 30.1 percent) and gas (up 5.7 percent). Korea’s total trade balance recorded a surplus for the 15th consecutive month. The accumulated trade balance through January–August this year reached $30.6 billion in surplus, three-fold of last year’s entire trade deficit.   date2024-09-02

MOTIE and MOLIT announce SAF Diffusion Strategy

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn and Land, Infrastructure and Transport Minister Park Sang-woo jointly announced the Sustainable Aviation Fuel Diffusion Strategy today at the Incheon International Airport Terminal 2 with the participation of oil refinery and aviation industry personnel. Sustainable aviation fuel (“SAF”) is an eco-friendly fuel produced based on biomass derived from animals and plants and the carbon captured from the atmosphere. Using SAF for powering air transport can reduce up to 80 percent of the carbon emissions released from using fossil-based jet fuels. Further advantages of SAF include the exclusion of fossil fuels, its similar chemical makeup to conventional aviation fuel, and that its use does not require the altering of aircraft structures. SAF is recognized as the most effective aviation means of decarbonization, with 19 countries worldwide currently using SAF for commercial flights, some of which have mandated the use of blended SAF. Korea is now the 20th country in the world to incorporate SAF for commercial flights. As Korea is the world’s top exporter of aviation fuel and as global SAF demand is expected to increase to 18.4 million metric tons by 2030 (according to International Air Transport Association), the situation calls for bold policy support to claim the SAF market, which is viewed as the new growth engine of the future. The Ministry of Trade, Industry and Energy (MOTIE) and the Ministry of Land, Infrastructure and Transport (MOLIT) have made effort to closely communicate with oil refinery and aviation industries, related institutions, and relevant experts to establish the SAF Diffusion Strategy (“Strategy”) outlining Korea’s mid-to-long term vision and comprehensive support measures for invigorating the domestic SAF industry. First, the commercial use of SAF begins August 30, 2024. Across the nation’s airports, domestic airlines are to use SAF produced in Korea and certified by the International Civil Aviation Organization (ICAO) in operating international regular flights. Domestic airlines can freely determine the details concerning air routes and SAF blend ratios and enter SAF purchase contracts with domestic oil refineries. Second, the Strategy aims to promote the voluntary use of SAF by 2026 through public-private cooperation. MOTIE, MOLIT, domestic carriers, oil refinery companies, Incheon International Airport, and the Korea Airports Corporation (KAC) signed a memorandum of understanding (MOU) today on using SAF for commercial flights. The objective is to advance mutual cooperation in expanding the SAF diffusion throughout Korea. MOLIT and Incheon International Airport plan to offer various incentives to airlines that use SAF for their flights. Third, the Strategy will be imposing a SAF blending mandate on all international flights departing from Korea beginning 2027, the year when international flight carbon regulations are scheduled to tighten. This comes against the backdrop of the ICAO requiring all member countries to comply with its Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Fourth, related ministries will promote investment for expanding SAF production. To accommodate companies’ timely investments in R&D and infrastructure, the Government is mulling measures to increase investment tax credit and offer incentives in the future to lessen the pressure from high SAF production costs.  Fifth, the Strategy will help to upgrade Korea’s technological capacity to produce SAF from a wide variety of raw materials. MOTIE will launch joint investigations on overseas bio resources like used cooking oil, animal fat, and palm oil residuals that can be repurposed through existing technologies. Sixth, MOTIE will work on strengthening the competitiveness of the entire biofuel supply chain. The Korea National Oil Corporati date2024-08-30

MOTIE and MOLIT announce SAF Diffusion Strategy

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn and Land, Infrastructure and Transport Minister Park Sang-woo jointly announced the Sustainable Aviation Fuel Diffusion Strategy on August 30 at the Incheon International Airport Terminal 2 with the participation of oil refinery and aviation industry personnel.   MOTIE, MOLIT, domestic carriers and oil refinery companies, Incheon International Airport, and the Korea Airports Corporation (KAC) signed a memorandum of understanding (MOU) today for the commercial use of SAF to advance mutual cooperation in expanding the domestic SAF diffusion.  date2024-08-30