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Trade/Investment
Korea holds 2nd “Sales Diplomacy Support Group” meeting
On July 17, Minister for Trade Inkyo Cheong of the Ministry of Trade, Industry and Energy (MOTIE) convened the second “Sales Diplomacy Support Group” meeting in Seoul with the participation of economic agencies and companies to review economic outcomes and future plans following several significant events: the state visit of the United Arab Emirates (UAE) President to Korea (May 28 to 29), the Korea-Africa Summit 2024 (June 3 to 5) and the state visits of President Yoon Suk Yeol to three Central Asian countries (June 10 to 15). At the meeting, Trade Minister Cheong went over the implementation of 447 memorandums of understanding (MOUs) and contracts in the private sector, which have been signed during the presidential visits by President Yoon since his inauguration, and discussed follow-up measures with the companies involved. MOTIE assessed that the UAE President’s state visit to Korea, the Korea-Africa Summit attended by leaders from 33 countries, President Yoon’s state visit to Central Asia have significantly bolstered economic security cooperation in critical minerals and energy, while broadening the scope of collaboration with the Global South countries. The Ministry also indicated that it will accelerate the implementation of follow-up actions to key achievements―the establishment of critical minerals supply chain partnerships, support for bidding on energy plant projects, and the signing of the Trade and Investment Promotion Framework (TIPF). Of the 447 MOUs and contracts in place, 439 are currently in effect, while eight have been placed on hold due to changes in business conditions. As follow-up measures, the signing of export contracts, the establishment of joint ventures, and technology development are underway. Trade Minister Cheong said, “The government has created vast economic value amounting to USD 97 billion in exports, project contracts, and investments over the last two years through sales diplomacy led by the President. This has resulted in tangible outcomes such as a contract for 27 LNG carriers in Qatar, followed by numerous subsequent contracts.” Trade Minister Cheong also emphasized by saying, “The government, economic agencies, and companies will work as one team to closely monitor the implementation of each private sector outcome. The government will also support businesses facing difficulties in financing, export marketing, and securing local information in collaboration with relevant ministries, diplomatic missions, and trade centers as well as through a channel of communication between high-ranking government officials.” date2024-07-19
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Energy
Korea’s carbon footprint verification system steps closer to gaining mutual recognition with Europe
The Ministry of Trade, Industry and Energy (MOTIE) announced on July 18 that the Korea National Cleaner Production Center (KNCPC), established under Korea Institute of Industrial Technology (KITECH), entered into a memorandum of understanding (MOU) with Italy’s Carbon Footprint Italy (CFI) for the mutual recognition of carbon footprints. The MOU is considered a significant step towards expanding the global scope of the carbon footprint verification system run by MOTIE and KITECH in terms of international acceptance. Despite the demands for carbon footprint verification recently rising out of the EU over the import and export of goods, Korean firms are experiencing time and cost issues in the local carbon footprint verification process. Accordingly, MOTIE and KITECH have been making joint effort to establish a carbon footprint verification system that is compatible with other countries’ systems to ensure mutual recognition of verification outcomes. Through the signing of this MOU, KITECH and CFI have agreed to cooperate to forge a mutual recognition agreement (MRA) between the two countries’ verification systems. Once the MRA is sealed, it is anticipated that Korea’s domestic footprint verification results will be more easily accepted throughout Europe. KITECH and CFI aim to bolster cooperation based on this MOU and plan to ink the MRA on the sidelines of the UN Climate Change Conference (UNFCCC COP 29) coming this November. date2024-07-18
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Industry
Korea, China, and Japan step up international standards cooperation
Korea Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) hosted the 22nd Northeast Asia Standards Cooperation Forum (NEAS Forum) through July 15–17 in Seoul. A total of 127 government officials and private experts from Korea, China, and Japan participated in the event. Launched in 2002 and rotated among Korea, China, and Japan, the NEAS Forum serves as a trilateral public-private standards cooperation and exchange platform for the major standards institutions of the three countries. The Forum also facilitates the sharing of national standards strategies and exchanges among private-sector standards experts. Through these interactions, the experts of three countries were able to publish 29 international standards. In conjunction with the Forum, Korea’s KATS, Japan’s Ministry of Economy, Trade, and Industry (METI), and China’s State Administration for Market Regulation (SAMR) hold bilateral and trilateral director general-level meetings to discuss measures for enhancing standards cooperation among the three nations. During the 22nd NEAS Forum, the three countries engaged in in-depth discussions on 18 new joint projects, including one on metaverse healthcare service, and nine existing joint projects, including one on freight containers. They also agreed to consider launching a working group of experts from each country to oversee the new projects. In relation to Korea’s technical white paper project on medium voltage direct currents (MVDC), which was selected by the International Electrotechnical Commission (IEC), Korea requested the participation of experts from China and Japan. Additionally, Korea sought support from the two countries for six international standards proposals, such as the service robot testing method, to submit to the International Organization for Standardization (ISO). date2024-07-17
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Trade/Investment
G7 Trade Ministers’ Meeting Outreach Session
Deputy Minister for FTA Negotiations Roh Keon-ki attended the G7 Trade Ministers’ Meeting Outreach Session as Chief Delegate of the Korean government on July 16 in Reggio Calabria, Italy. The Session was attended by representatives of the G7 countries, Outreach countries, the business community of G7 countries (B7), and international organizations for discussions on strengthening the resilience of supply chains. date2024-07-17
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Trade/Investment
Korea discusses measures for bolstering supply chain resilience with G7 member countries
Deputy Minister for FTA Negotiations Roh Keon-ki attended the G7 Trade Ministers’ Meeting Outreach Session as Chief Delegate of the Korean government on July 16 in Reggio Calabria, Italy. The Session was attended by representatives of the G7 countries, Outreach countries, the business community of G7 countries (B7), and international organizations for discussions on strengthening the resilience of supply chains. During the Session, Deputy Minister Roh stated that unlike the past when low-cost and high-efficiency were endowed utmost priority, the global supply chain as of late is undergoing drastic changes. Highlighting the importance of cooperation with trustworthy partners in establishing a resilient and stable supply chain, he said that Korea is currently engaging in multilateral cooperation, including the Indo-Pacific Economic Framework for Prosperity (IPEF) and the Minerals Security Partnership (MSP), as well as bilateral cooperation with Africa, Latin America, and other regions. Moreover, he introduced Korea’s domestic policies, including the early warning system and the industrial supply chain strategy of lowering key items’ dependency to 50 percent or less by 2030. On the margins of the G7 Trade Ministerial, Deputy Minister Roh met with World Trade Organization (WTO) Director General Ngozi Okonjo-Iweala to discuss measures for securing follow-up outcomes to the WTO's 13th Ministerial Conference (MC13) and asked for interest in Korean trade talent’s participation in WTO internships. The deputy minister also met with a government representative of Brazil, which holds this year’s G20 presidency, and discussed the Korea-Brazil Trade and Investment Promotion Framework (TIPF) implementation, Korea’s preparations for Asia Pacific Economic Cooperation (APEC) chairmanship in 2025, and both bilateral and multilateral measures for stronger cooperation. date2024-07-17
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FTA/Economic Cooperation
Korea and India launch 11th negotiating round on upgrading bilateral CEPA
Director General for FTA Negotiations Yoo Beop-min is leading the Korean delegation in the 11th round of official negotiations for upgrading the Korea-India Comprehensive Economic Partnership Agreement (CEPA) through July 17–19 in Seoul. The Korean delegation is composed of representatives of the Ministry of Trade, Industry and Energy (MOTIE), Ministry of Economy and Finance (MOEF), Ministry of Agriculture, Food and Rural Affairs (MAFRA), and the Ministry of Oceans and Fisheries (MOF) and will negotiate goods, services, rules of origin, and investment with the Indian delegation, headed by Additional Secretary for the Department of Commerce Anant Swarup. With aim to further invigorate bilateral trade and investment, the two countries have been engaging in negotiations since 2016 on upgrading the initial Korea-India CEPA, which entered into force in 2010. In this 11th round, the Korean government will be focusing on expediating the negotiation progress by narrowing the differences based on outcomes gained from the 10th official negotiating round that took place this January. date2024-07-17
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Energy
Experts discuss situation and outlook of carbon-free energy sources at CFE Initiative Conference
Trade, Industry and Energy Minister Dukgeun Ahn held the Carbon Free Energy (CFE) Initiative Conference on July 16 in Seoul to review the CFE Initiative’s achievements and plans and to gather opinions from experts. The CFE Initiative is a global campaign which aims for the decarbonization of electricity (Scope 2) by utilizing carbon-free energy sources including renewables, nuclear, and hydrogen, as well as the decarbonization of industrial process (Scope 1) by transitioning to carbon-free fuels and feedstocks. Initially introduced by President Yoon Suk Yeol during his keynote speech at the United Nations General Assembly in September 2023, the CFE Initiative has so far received the official support of eight countries, including the UK, France, and Japan. Based on the international community’s common understanding of the need to utilize various carbon-free energy sources, the Ministry of Trade, Industry and Energy (MOTIE) and the International Energy Agency (IEA) will co-host the World Climate Industry Expo 2024 (WCE 2024) in Busan this September. In particular, alongside WCE 2024, MOTIE plans to launch a Korea-Japan CFE Working Session in conjunction with Japan. In the following October, MOTIE will also launch a “CFE Global Working Group” jointly with other countries on the sidelines of the Clean Energy Ministerial (CEM) to be held in Brazil and commence on establishing the CFE certification scheme, which includes the specific scope as well as procurement and certification methods of carbon-free energy. Companies who attended the conference pointed out that international standards for recognizing businesses’ efforts to achieve carbon neutrality are either yet to be developed or still ill-designed, making it difficult for businesses to establish net zero strategies. In this respect, the companies emphasized the need for establishing an internationally-acceptable CFE certification scheme by pursuing public-private as well as intergovernmental cooperation. Chairman of the CF Alliance, Mr. Hoesung Lee stressed that, as the CFE Initiative promotes the comprehensive use and development of a wide range of carbon-free energy sources, the Initiative will be able to attract the participation of both manufacturing-oriented countries and developing countries and accelerate the achievement of net zero on a global scale. Minister Ahn mentioned that MOTIE will expedite the establishment of CFE Initiative certification scheme with a view to enhancing the competitiveness of Korea’s advanced and key industries as well as achieving net zero and taking the lead in global climate action. date2024-07-16
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Energy
Minister Ahn holds Carbon Free Energy Initiative Conference
Trade, Industry and Energy Minister Dukgeun Ahn held a Carbon Free Energy Initiative Conference on July 16 in Seoul to discuss outcomes and outlook of the CFE Initiative with experts and discussed international carbon regulation response and global diffusion of the CFE Initiative. The conference was attended by representatives of related institutions, companies, and academia, including Korea Institute of Industrial Technology (KITECH), Samsung Electronics, POSCO, GS Energy, Hanwha Solutions, Doosan Enerbility, and Konkuk University. date2024-07-16
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Industry
Korea’s automobile exports hit historic high of $37 bln for H1
The Ministry of Trade, Industry and Energy (MOTIE) announced on July 16 that Korea’s automobile exports reached a record-breaking USD 37 billion (up 3.8 percent year-on-year) in the first half (H1) of 2024. In spite of high inflation and shrinking disposable income, H1 automobile exports achieved the feat on the backs of robust North America-bound exports and increasing global demand for hybrid electric vehicles (EVs). For the month of June, automobile exports amounted to $6.2 billion despite the lower number of working days (-1.5 year-on-year). With the exception of February when Seollal holidays landed this year, automobile exports have been entering the $6 billion thresholds each month since last November. By destination, H1 automobile exports to North America jumped 26 percent to $21.7 billion, driving overall exports. The decline in exports to Europe can be attributed to the recently slowing EV sales across Germany and Northern Europe. In June, exports to North America kept their lead and those to the Middle East turned to an expansion for the first time in eight months since last October, when the Israel-Hamas war broke out. The production volume for H1 approached 2.2 million units (down 2.4 percent year-on-year), maintaining over a monthly average of 350,000 units as major plants in Ulsan and Hwaseong operated at maximum capacity. Once Kia’s Gwangmyeong plant launches into full operation in July, exports are expected to gain greater momentum in H2. Domestic sales dropped 10.7 percent to 798,544 units in H1 2024, set back by a high base effect from last year. Meanwhile, eco-friendly vehicle sales logged an all-time high of approximately 300,000 units. date2024-07-16
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Industry
Korea and Israel spur tech synergy at Innovation Day 2024
The Ministry of Trade, Industry and Energy (MOTIE) and the Israel Innovation Authority (IIA) co-hosted Korea-Israel Innovation Day 2024 (“Innovation Day”) on July 16 at the Seongnam Global Convergence Center. The largest technology collaboration event held between the two countries, this year’s Innovation Day drew the participation of a record high total of 30 Israeli universities and companies, including Israel Aerospace Industries (IAI), Foresight Automotive, and TriEye. From Korea, roughly 70 companies are taking part in the bilateral technology exchange, including Samsung Electronics and Hyundai Motor. To note, this year’s Innovation Day is also launching technical seminars and one-on-one business meetings in areas with high synergy potential, such as semiconductor and smart mobility. On the occasion of the event, promising projects will be uncovered and granted funding via the Korea-Israel Industrial R&D Foundation (KORIL-RDF). At last year’s Innovation Day, a smart aviation motor project led by IAI and Korean firm Contromax was selected for the two countries’ joint global R&D. Once the project is completed, Contromax will be supplying its smart motors to major domestic aircraft manufacturers. Since 2001, the Korean and Israeli governments have co-invested a total of USD 93 million in 206 commercialization-focused technology development projects. Every year, around seven joint R&D projects are selected for grant support. date2024-07-16