Ministry of Trade, Industry and Energy

Joint Korea-Czech nuclear power cooperation committee discusses measures to enter third countries

The Ministry of Trade, Industry and Energy (MOTIE) announced on December 03 that MOTIE and Czech Ministry of Industry and Trade held the Joint Korea-Czech Nuclear Power Cooperation Committee meeting in Prague on December 1, 2015. The meeting was attended by over 40 delegates and representatives of businesses in the nuclear power industry.     The meeting was focused on establishing a plan for promoting new nuclear power plants in Czech, joint marketing in third countries and joint research on EU-APR.     The meeting was followed by a business conference the afternoon with the participation of business representatives, who had one-on-one conversation on nuclear power plant operation, fuel, maintenance and materials, as well as localization and cooperation in tapping into third countries.     Also after the joint committee meeting, an MOU on nuclear power cooperation was signed between Skoda Praha, a subsidiary of CEZ, and KEPCO. According to the MOU, the two companies agreed to jointly develop new nuclear power businesses, operate/maintain nuclear power plants, establish a supply network and exchange new technologies.     On the next day, KHNP signed a consulting agreement with Skoda Praha on obtaining the EUR certificate. The EUR (European Utility Requirements) are nuclear reactor design requirements for European businesses necessary when bidding for a new nuclear power plant project.     The two companies agreed to make joint efforts to obtain the EUR certificate until 2017.     According to the New Nuclear Power Plant Construction Plan announced by CEZ in May 2015, the Republic of Czech will decide on a new nuclear power business model by June 2015 and suppliers through public bidding before 2019.     The Republic of Czech currently has a total of 6 nuclear power plants ---4 in Dukovany and 2 in Temelin --- and these power plants generate about 35 percent of the electricity used in the country.     * Short version   date2015-12-03

The Center for Creative Economy and Innovation to become a birthplace of smart factories

The Ministry of Trade, Industry and Energy (MOTIE) announced on December 02 that the Center for Creative Economy and Innovation will play a leading role in the Smart Factory Promotion Project.     The Korea Smart Factory Foundation (KOSF), which is a supervisory body for smart factory projects, signed a project agreement with the 18 Centers for Creative Economy and Innovation located throughout the country at the KT Building in Seoul on December 2, 2015.     According to the agreement, the Centers for Creative Economy and Innovation will receive a total of 30 billion won ($27 million) and over 150 Samsung engineers from the TF over a period of two years, and convert the existing factories of over 600 SME's into a smart factory.     Both the ministry and Samsung agreed in August this year to give 15 billion won each to the TF to be used in building smart factories.     The Samsung engineers to be sent to the Centers for Creative Economy and Innovation will provide hand-on technical support through the process of identifying businesses subject to support, building the system and follow-up services.     The ministry will receive applications from SME's wishing to build a smart factory next year as early as December this year. Companies wishing to participate in this program can submit an application to the Center for Creative Economy and Innovation in their area.     * Short version date2015-12-02

Military supplies to become user-friendly fashion items

The Ministry of Trade, Industry and Energy (MOTIE) and Ministry of National Defense (MND) held an initiation report meeting on the 'Military Supply Quality and Design Improvement Project' on December 2, 2015 at the Korea Institute of Design Promotion and signed an MOU to invest a total of 600 million won ($ 540,000) over a period of 16 months.     Military supplies subject to this project include rifle slings, shovels, winter gloves, camouflage cover for bullet-proof helmet and protect date2015-12-02

South Korea's National Assembly Approves FTA with China

      South Korea's National Assembly yesterday approved a bilateral free trade agreement (FTA) with China, clearing the final hurdle for the implementation of the deal possibly within this year.   The parliamentary bill was passed with a 196-33 majority for the Korea-China FTA, which was signed in June to eventually remove tariffs on about 90 percent of goods traded between the two countries.   The National Assembly also approved FTAs with New Zealand and Vietnam.   In a press briefing, Kim Hak-do, assistant minister for trade negotiations at the Ministry of Trade, Industry and Energy (MOTIE), welcomed the passage of the FTA bill with Korea's largest trading partner and pledged to make all efforts to implement it as quickly as possible before the new year. date2015-12-01

ROK and China Discuss Industrial Cooperation Complex

ROK and China Discuss Industrial Cooperation Complex   The Republic of Korea (South Korea) and China held the first vice ministerial-level meeting in Seoul yesterday to discuss how to develop a joint industrial complex as agreed in their free trade agreement (FTA) and at their summit meeting in October. During the meeting, the Ministry of Trade, Industry and Energy (MOTIE)'s First Vice Minister Lee Kwan-sup and China's Vice Commerce Minister Gao Yan led their delegations to exchange views o date2015-12-01

MOTIE and EEC Sign MoU on Economic Cooperation

      The Ministry of Trade, Industry and Energy (MOTIE) signed a memorandum of understanding (MoU) with the Eurasian Economic Commission (EEC) on promoting economic cooperation between South Korea and the Eurasian Economic Union (EEU) at a ceremony held in Seoul this week. After the ceremony, MOTIE Minister Yoon Sang-jick and EEC Board Commissioner Andrey Alexandrovich Slepnev discussed various bilateral issues including industrial technology cooperation. date2015-12-01

Sales Trends by Major Retailers in October 2015

  □ The sales by major retailers, including those of department stores and convenience stores increased from a year earlier, while those of hypermarkets and super supermarkets fell in Oct. 2015. □ The sales of department stores had a double-digit increase for the first time in 2015 due to massive sales events such as Korea Black Friday, which took place during the first two weeks. □By product group, the sales of food, clothing, and miscellaneous goods decreased.   date2015-11-30

Automobile Industry Trends for October 2015

    □ South Korean automobile production, exports, and domestic sales numbers grew by 11.1 percent, 7.5 percent, and 18.6 percent, respectively, from a year earlier, led by a rise in exports of major export models. Domestic sales increased due to a reduction in the country’s individual consumption tax, the effect of new model launches, and strong sales of multi-purpose vehicles.   □ : Production rose by 11.1 percent from a year earlier to 405,167 units. This was caused by a decline in output following a strike in the previous year, along with a rise in domestic sales and strong exports of cars made by Kia.   □ : Domestic sales grew by 18.6 percent from a year earlier to 164,507 units. This was led by a cut in the country’s individual consumption tax, new models of the Avante, the Sportage, and others, and a steady rise in sales of multi-purpose vehicles, such as the Santa Fe, the Tucson, and the Tivoli.   - Sales of imported cars surged by 18.3 percent from a year earlier to 21,229 units. They fell by 12.7 percent over the month due to the Volkswagen emissions scandal.   □ : Exports increased by 7.5 percent from a year earlier to 259,306 units, reflecting a rise in exports of key models such as the Accent, the Soul, and the Tucson.   □ Exports of auto parts fell by 7.5 percent from a year earlier to USD 2.27 billion. This was attributable to recording their largest-ever increase in the same month in 2014. Continuing economic slowdowns in emerging countries also played a major role.   date2015-11-30

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

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