Ministry of Trade, Industry and Energy

Korea-Saudi Business Forum

Minister for Trade Inkyo Cheong attended the Korea-Saudi Business Forum launched on July 30 at Westin Josun Seoul and stated in his welcome address that the two countries’ cooperation has, in step with the Saudi Vision 2030, expanded to key industries like automobiles and shipbuilding, and highlighted that the Korea-GCC FTA is expected to not only diversify trade in goods like medical devices, cosmetics, and food products, but also spur services market exchanges in industries like film and healthcare as well.   The Forum was attended by 250 persons of both countries, composed of government officials and business figures. date2024-07-30

Minister Ahn meets Saudi Arabia’s Minister of Commerce

Trade, Industry and Energy Minister Dukgeun Ahn met Saudi Arabia’s Minister of Commerce Majid bin Abdullah Al-Kassabi on July 30 in Seoul to discuss measures for trade and investment expansion, follow-up to the two countries’ economic summit diplomacy, and for the Korea-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA)’s swift entry into force. date2024-07-30

Korea elected as inaugural chair of IPEF Crisis Response Network

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 30 that all three of the supply chain bodies under the Indo-Pacific Economic Framework for Prosperity (IPEF)—Supply Chain Council, Crisis Response Network (“CRN”), and Labor Rights Advisory Board—have officially launched and entered the implementation phase, and that Korea has been elected as the inaugural chair of CRN. CRN is the world’s first supply chain emergency response platform introduced by IPEF for seeking joint response measures among the 14 partner countries through emergency meetings in the case of supply chain disruptions. At the request of a single country, an emergency meeting is convened within 15 days to discuss support measures for joint procurement, swift customs procedures, and securing alternative supply chain and transportation routes, and may be elevated to either ministerial or summit level according to need. During non-crisis times, CRN assists programs for strengthening partner countries’ response capacity, such as developing disruption countermeasure strategies, conducting tabletop exercises, and making assessments on partner countries’ emergency response experience and related policies. On July 24, Korea was elected as the CRN’s chair with unanimous consent, indicating that Korea’s experience and policy know-how in supply chain emergency response were highly appraised by partner countries. Moreover, Japan’s election as vice chair places the two countries in a position to take the joint initiative in building a global cooperative system for supply chain management. Minister for Trade Inkyo Cheong stated that CRN is an innovative platform that enables solidarity and cooperation between industrial powers and resource-rich countries.   date2024-07-30

Korea’s retail industry grows 10.5% in H1 2024

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 30 that Korea’s retail industry grew 10.5 percent year-on-year in the first half (H1) of 2024, with offline and online sales advancing 3.4 percent and 17.5 percent, respectively. During H1, offline retail sales steadily expanded across close-proximity convenience stores (up 5.2 percent) and super supermarket (SSM) operators (up 5.6 percent). Sales at hypermarkets (up 0.7 percent) and department stores (up 3.1 percent) likewise increased.  Online retail sales for H1 soared on the backs of various discount promotions and wider range of deliverable items, coupled with the routinization of online purchases for travel, performances, and food products. MOTIE releases monthly retail sales figures based on surveys of 25 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 12 are online retailers. For the month of June, Korea’s retail industry jumped 11.1 percent year-on-year, with offline and online sales climbing 3.7 percent and 18.4 percent, respectively. The growth is attributed to a higher number of holidays during the month (+2), stronger demand for eating in and buying in smaller quantities within one’s neighborhood. Factors driving online sales include demand for seasonal home appliances and instant/processed food products. By offline retail channel, hypermarket sales rose 2.1 percent in June as sales of food products (up 4.3 percent) and clothing (up 5.2 percent) improved, while those of home appliances/culture (down 3.3 percent) and sports (down 11.9 percent) dropped. Department store sales surged 5 percent overall as foreign designer labels (up 2.3 percent) and household goods (up 14.9 percent) increased, while women’s suits (down 2.6 percent) and men’s clothing (down 0.9 percent) shrank. Convenience stores (up 3.8 percent) enjoyed sales growth across all items, led by beverages/processed food products (up 5.7 percent), instant food products (up 1.7 percent), and tobacco/other (up 2.0 percent). SSM operators showed an uptick of 2.0 percent overall in spite of the fall of nonfood categories (down 3.8 percent), as sales of agriculture, fishery, and livestock products (up 3.3 percent) and processed food products (up 2.1 percent) increased. Online sales spiked 18.4 percent overall, led by strong demand for air conditioners and other seasonal home appliances/electronic devices (up 10.4 percent) amid the early heat wave. Sales of services/other (up 67.5 percent) drove online sales as well, thanks to the continued growth of food products (up 20.1 percent) amid high inflation and high demand for home-cooked meals, fueled by free delivery and e-coupon discounts. Meanwhile, fashion/clothing (down 10.4 percent) and sports (down 8.7 percent) experienced slower sales.   date2024-07-30

Korea and Saudi Arabia to make joint efforts for Korea-GCC FTA’s swift entry into force

Trade, Industry and Energy Minister Dukgeun Ahn met Saudi Arabia’s Minister of Commerce Majid bin Abdullah Al-Kassabi on July 30 in Seoul to discuss measures for trade and investment expansion, follow-up to the two countries’ economic summit diplomacy, and for the Korea-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA)’s swift entry into force. Minister Ahn expressed high regard for the summit diplomacy exchanges held over the last two years (Saudi Arabian Crown Prince and Prime Minister Mohammed bin Salman’s visit to Korea in November 2022, followed by President Yoon Suk Yeol’s state visit to Saudi Arabia in October 2023) with respect to bolstering bilateral ties and underscored that the conclusion of the Korea-GCC FTA last year has further solidified the two countries’ institutional economic cooperation. The minister asked Saudi Arabia's support as a member of the GCC for expediting the legal scrubbing process on both sides, as domestic procedures for the FTA’s entry into force can commence only upon the finalization of the FTA Agreement. MOTIE plans to complete the Agreement in September, then consult with GCC countries with aim to make as much progress as possible with the formal signing and necessary domestic procedures. Meanwhile, Minister for Trade Inkyo Cheong attended the Korea-Saudi Business Forum launched on the same day, co-hosted by Korea’s Ministry of Trade, Industry and Energy (MOTIE) and the Saudi Ministry of Commerce and co-organized by both countries’ Chambers of Commerce at the Westin Josun Seoul. From Saudi Arabia, an economic delegation of 80 members participated in the event, including Minister of Commerce Majid bin Abdullah Al-Kassabi among other high-level government officials and business figures. From Korea, roughly 170 representatives from 100 companies attended, including those of Kolon Group and Hyundai Motor Group. Also participating in the Forum are Aljomaih Energy & Water Company (AEC), Abdulaziz Saud Abunayyan Trading, and Al Yamama, which are Saudi companies known to have created economic summit diplomacy outcomes, leading to anticipation that further progress will be made with regard to the timely implementation of contracts and memorandums of understanding (MOUs) signed during the meetings in Seoul (November 2022) and Riyadh (October 2023), as well as the uncovering of additional joint projects. Moreover, with the Korea-GCC FTA poised to open up services markets across Korea and the Middle East, Saudi companies specializing in healthcare, entertainment, food, and other relevant sectors displayed interest by seeking new business opportunities with Korean firms at the Forum.    In his welcome address, Trade Minister Cheong stated that the two countries’ cooperation has, in step with the Saudi Vision 2030, expanded to key industries like automobiles and shipbuilding, and highlighted that the Korea-GCC FTA is expected to not only diversify trade in goods like medical devices, cosmetics, and food products, but also spur services market exchanges in industries like film and healthcare as well.   date2024-07-30

Korea’s future talent for advanced technology to take part in Korea-U.S. youth exchange initiative

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 29 its plans for the second-round selection of students for a Korea-U.S. youth exchange support program. The program is part of implementing the “KorUS Educational Exchange Initiative for Youth in STEM” in accordance with the bilateral summit outcomes reached in April 2023.  The “KorUS Educational Exchange Initiative for Youth in STEM” is a USD 30 million grant initiative (2024–2027) launched to support the large-scale exchange between 2,023 Korean students and 2,023 U.S. students in commemoration of last year marking the two countries’ 70th anniversary of the establishment of diplomatic relations. For eligible Korean students majoring in natural sciences and engineering, the program will provide them the opportunity to study at U.S. universities and experience the U.S.’ high-tech industries and advanced technologies via field trips and webinars. MOTIE selected 222 Korean students in the first half of this year for the program’s first-round scholarship and will select another 118 eligible students in the second half for the second-round scholarship for next year’s spring semester exchange. Further information is available at universities’ offices for international affairs and on Korea Institute for Advancement of Technology (KIAT)’s website (www.kiat.or.kr).   date2024-07-29

Minister Ahn attends Industrial Supply Chain Carbon Neutrality Alliance launching ceremony

Trade, Industry and Energy Minister Dukgeun Ahn attended the Industrial Supply Chain Carbon Neutrality Alliance launching ceremony on July 25 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul and discussed issues regarding global carbon regulations and the domestic response situation.   The ceremony was held with the participation of representatives of major industry sectors’ associations, including Co-Chairperson of the Presidential Commission on Carbon Neutrality and Green Growth Kim Sang-hyup and KCCI Chairman Chey Tae-won. date2024-07-26

Vice Minister chairs 5th Nuclear Exports Strategy Committee meeting

Trade, Industry and Energy Vice Minister Namho Choe chaired the fifth Nuclear Exports Strategy Committee meeting on July 25 in Seoul to consolidate follow-up efforts to the Czech PJT and build further export momentum.   The meeting was held with the participation of representatives from related ministries, companies, trade organizations, academia, and legal experts, including Korea Atomic Energy Research Institute (KAERI) and Doosan Enerbility. date2024-07-26

Minister Ahn meets Czech Minister of Industry and Trade

Trade, Industry and Energy Minister Dukgeun Ahn met with Czech Minister of Industry and Trade Jozef Síkela on July 24 in Prague on the occasion of his visit as special presidential envoy and expressed appreciation over the selection of KHNP as preferred bidder for the Czech Republic’s nuclear reactor project and discussed measures for bilateral energy, economic, and industrial cooperation. date2024-07-26

Public and private sectors to jointly launch Industrial Supply Chain Carbon Data Platform

The Ministry of Trade, Industry and Energy (MOTIE) launched the Industrial Supply Chain Carbon Neutrality Alliance on July 25 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul with the participation of 11 major industry sectors’ associations and announced the “Industrial Supply Chain Carbon Neutrality Strategy.”  Amid increased demand from the EU and other regions on calculation and mitigation of product-specific carbon emissions generated across the supply chain, concerns are being raised that lack of timely response will deteriorate competitiveness and incur export setbacks. Accordingly, MOTIE established the Industrial Supply Chain Carbon Neutrality Strategy as below to promote public-private efforts through the Industrial Supply Chain Carbon Neutrality Alliance. First, MOTIE will establish a “Korean Industrial Supply Chain Carbon Data Platform” for carbon data exchanges among businesses participating in the supply chain. Unlike the cloud’s data storage mechanism, this platform will adopt the data space method and serve as only a data passageway, while ensuring private businesses’ data sovereignty to heighten companies’ voluntary participation and utilization. The platform will initially be established around five industries with relatively greater need for carbon regulatory response (batteries, automobiles, home appliances, steel/aluminum, and textiles), which will later extend to cover all industries and industrial data. Second, the calculation and mitigation of carbon emissions will be realigned to provide integrated support to companies linking the export supply chain, instead of the previous method of distributing siloed support to individual companies. Efforts will go toward supporting collaboration with industrial complexes and local authorities, expanding the scope of mutual international recognition of carbon footprint verification outcomes, and streamlining projects based on cross-ministerial joint budget systems. Third, the ministry will use the FTA and Trade Support Center as a one-stop service for assisting companies with consulting and information provision. For the abovementioned five critical industries, MOTIE will launch a “Carbon Trade Regulatory Response Committee” for more effective regulatory response and information sharing. In implementing these initiatives, the Government, economic groups, related institutions, associations, and companies aim to leverage the Industrial Supply Chain Carbon Neutrality Alliance and its working groups to maintain close communication and consolidate domestic efforts.   date2024-07-25