Ministry of Trade, Industry and Energy

FDI pledged to Korea in H1 2024 reaches $15.3 bln

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 5 that foreign direct investments (FDIs) pledged to Korea in the first half (H1) of 2024 reached USD 15.3 billion, the third highest in record. FDIs that actually arrived in Korea over the same period amounted to $6.9 billion.   As a result of the high base effect from last year’s FDI pledge outcomes from the state visits during H1 2023 ($3.1 billion), this year’s H1 pledges are down by 10.3 percent year-on-year, but still surpass 130 percent of the recent five-year average.   By industry, the manufacturing sector saw a pledged investment of $8.1 billion in the first half of the year, up 6.5 percent. Items that experienced growth were electrical/electronics (up 25.7 percent), machinery/equipment/precision medicine (up 102.6 percent), pharmaceuticals (up 70.6 percent), and other advanced industries and those related to MPE (materials, parts, equipment) sectors. Semiconductors (up 120.7 percent) and bio (up 207.5 percent) saw steep boosts in FDI in this half.   The service sector’s FDI pledges totaled $6.4 billion, down 24.3 percent and occupying 41.8 percent of total FDI. Its growth centered around information and communications (up 25.3 percent), R&D/specialization/science technology (up 10.8 percent), and other sectors with high degrees of economic growth contribution.   By region, FDI pledged from China and other regions, including Hong Kong, Singapore, Taiwan, and Malaysia, increased 25.7 percent to $3.9 billion; FDI pledged from Japan rose 18.9 percent to $2.9 billion; FDI commitments from the U.S. surged 17.0 percent to $2.6 billion; and FDI pledged by the EU climbed 12.8 percent to approximately $2.0 billion.   By type, M&A and greenfield investments pledged to Korea both dropped 13.7 percent and 9.1 percent, respectively, to $3.8 billion and $11.5 billion. date2024-07-05

Electric power equipment industry gearing up as Korea's new export growth engine

Trade, Industry and Energy Minister Dukgeun Ahn visited HD Hyundai Electric on July 4 in Gyeonggi Province to discuss export assistance measures for the electric power equipment and materials industry.   As vast amounts of electric power are needed in the recent expansion of artificial intelligence (AI) datacenters and the diffusion of carbon-free power sources like renewables and nuclear power, the electric power equipment and materials market has recently been enjoying its supercycle. The industry’s exports are likewise on the rise, competing with bio health and secondary batteries after surpassing home appliances and textiles in 2023. Should electric power equipment and materials attain this year’s export and bid targets of USD 16.2 billion and KRW 20 trillion, respectively, they will rank among Korea’s top 10 export items.   At HD Hyundai Electric, Minister Ahn toured the exhibition hall showcasing the world’s first direct current (DC) distribution facilities for 1 megawatt-class buildings. This was followed by the signing of the “K-grid Export Cooperation MOU” among Korea Electric Power Corporation (KEPCO), Korea Trade-Investment Promotion Agency (KOTRA), and K-SURE. Viewed as a leading export business model for energy sectors, the MOU is significant in that it brings public companies in electrical power and export assistance together for collaboration.   With aim to support power equipment and materials exports, the Government plans to supply the industry with a ₩2.7 trillion special preference trade insurance program this year. Moreover, for the North American, European, and ASEAN markets where power grid demands are forecast to surge, trade centers will be designated with emphasis on power materials and equipment. Overseas marketing support will be strengthened through increased matching opportunities with domestic and overseas clients via trade shows. In the latter half of this year, the Government will establish measures for expediating the export of power equipment and materials with plans for a stronger ecosystem, export committee, and increased R&D.   Minister Ahn stated that the public and private sectors will work in tandem to support not only “K-grid”, but also energy sectors like renewables, energy efficiency, and energy storage systems (ESS) to grow into pillar export industries. date2024-07-05

Trade Minister holds conference with firms operating in Indonesia

Minister for Trade Inkyo Cheong met representatives of Korean firms operating in the local Indonesian market, including POSCO and Lotte Chemical, on July 3 in Jakarta and discussed measures for Korea-Indonesia economic and business cooperation. date2024-07-05

Korea and Indonesia sign smart e-mobility cooperation MOU

Minister for Trade Inkyo Cheong attended the ceremony for the inking of MOUs on electric two-wheelers and for smart e-mobility cooperation with Indonesia’s Investment Minister Bahlil Lahadalia and gave a congratulatory message with participation of both countries’ government delegations. date2024-07-04

Vice Minister chairs Renewable Energy Policy Meeting

Trade, Industry and Energy Vice Minister Namho Choe chaired the Renewable Energy Policy Meeting on July 3 in Seoul with participation of 40 attendees consisting of government officials, local authorities, and related institutions, and announced the ministry’s measures for invigorating solar power generation across industrial complexes, then discussed renewable energy distribution strategies, demonstration projects, and local issues. date2024-07-04

Lotte Biologics’ biopharma plant groundbreaking ceremony

Trade, Industry and Energy Vice Minister Kang Kyungsung attended the groundbreaking ceremony of Lotte Biologics’ biopharmaceuticals manufacturing plant on July 3 in Incheon, with the participation of Health and Welfare Vice Minister Park Min-soo, Lotte Group Chairman Shin Dong-bin, Lotte Biologics CEO Richard Lee, and global pharmaceutical companies. date2024-07-04

Solar power distribution blueprint built around Korea's industrial complexes

Trade, Industry and Energy Vice Minister Namho Choe chaired the Renewable Energy Policy Meeting on July 3 and announced the ministry’s measures for invigorating solar power generation across industrial complexes as part of implementing the previously announced strategy for expanding renewable energy distribution and bolstering supply chains.   As the demand for carbon-free energy sources is on the rise, the Korean government is pushing for an orderly distribution of renewable energy sources in addition to nuclear power. In realizing the distribution of 6GW per annum in accordance with the 11th Basic Plan on Electricity Supply and Demand, some of the existing challenges include power system stabilization and local residents’ receptivity issues. In view of these challenges, the Ministry of Trade, Industry and Energy (MOTIE) is eyeing the industrial complexes as candidate sites, as they are low in residential population and undergo planned development. Industrial complexes are also highly concentrated with companies and consume large quantities of power.   In this vein, MOTIE has established measures for invigorating the distribution of 6GW solar power installed across industrial complexes by 2030. The plan is to provide tailored support spanning the entire process of securing site location, licensing, and facility operation. Project and investment briefings will be held to draw the participation of tenant businesses. Business models are to be determined in detail through consultations. In the licensing stage, real-time information sharing will be available, and the overall licensing process will be shortened. At the management stage, the goal is to secure stability through organized maintenance.   The Government will also strengthen the role of the public sector for an orderly distribution of solar power. A committee consisting of members from the Government, local authorities, and related institutions will steer public demonstration projects and site location. This year, demonstration projects amounting to an aggregate 240MW will be launched across industrial clusters in Cheonan, Daebul, Ulsan, and Pohang. Committee members will seek measures to include the joint participation of plant owners and workers.   Vice Minister Choe remarked that “Korea’s industrial clusters are the optimal sites for orderly solar power distribution,” adding that the ministry will aim to carry out a cost-effective distribution centering on state-led projects. date2024-07-04

Lotte Biologics' biopharma plant breaks ground in Songdo

Trade, Industry and Energy Vice Minister Kang Kyungsung attended the groundbreaking ceremony of Lotte Biologics’ biopharmaceuticals manufacturing plant on July 3 in Incheon, with the participation of Lotte Group Chairman Shin Dong-bin, major domestic and overseas pharmaceutical companies, and government officials, including Prime Minister Han Duck-soo, whose congratulatory message was shared via video.   In view of the announcement by Ministry of Trade, Industry and Energy (MOTIE) on June 27 on the designation of five strategic high-tech bio industrial complexes, Lotte Biologics is investing KRW 4.6 trillion for the establishment of a large-scale biopharma production plant in Songdo, Incheon.   With the goal of ranking among the global top 10 biopharma contract development and manufacturing organizations (CDMO), Lotte Group launched Lotte Biologics in June 2022. With the acquisition of an overseas biopharma manufacturing plant (BMS) in 2023, it officially entered the CDMO market within one year of launch. Starting this year, it plans to build up its global biopharma manufacturing competitiveness through a ₩4.6 trillion investment in the establishment of three biopharma plants with a total manufacturing volume of 360,000L by 2030.   The completion and operation of the plants are anticipated to create an economic effect of ₩7.6 trillion and 37,000 related jobs, according to the company’s estimation. Moreover, Lotte Group will actively support the provision of tenant space for biotech venture capital firms entering the site and nurture professional talent through industry-academia joint programs.   With Korea’s biopharma exports achieving 8.8 percent year-on-year growth to USD 7.4 billion in H1 2024, MOTIE aims to continue supporting the bio sectors become future economic growth engines through the expansion of the national strategic high-tech bio industrial complexes. date2024-07-04

Nano Korea 2024 opening ceremony

Industry Policy Deputy Minister Lee Seung-ryeol attended the opening ceremony of Nano Korea 2024 on July 3 at KINTEX in Ilsan and in the ribbon cutting ceremony after giving congratulatory remarks, then toured the exhibition booths. The event was also attended by Science and ICT Ministry Vice Minister Lee Chang Yune and lawmaker Choi Soo-jin. date2024-07-04

Vice Minister attends 1st General Assembly of SMR Alliance

Trade, Industry and Energy Vice Minister Namho Choe attended the first General Assembly of the SMR Alliance marking its one-year anniversary on July 3 at the Plaza Hotel Seoul, and gave a congratulatory message to 200 attendees, vowing that utmost priority will be placed on safety in invigorating the SMR industry, while also strongly supporting private sector’s flexible and efficient performance. date2024-07-04