Ministry of Trade, Industry and Energy

Trade Minister Cheong’s meeting with NCAPEC on preparations for APEC summit 2025

Minister for Trade Inkyo Cheong met with Monica H. Whaley, president of the U.S.’ National Center for Asia-Pacific Economic Cooperation (NCAPEC), and other NCAPEC members from Google, Airbnb, and Amazon on August 6 in Seoul on the margin of their visit to Korea.  At this meeting, Minister Cheong shared Korea’s preparations for hosting the Asia-Pacific Economic Cooperation (APEC) Economic leaders’ meeting held in 2025, as well as Korea’s plans and major deliverables such as the cooperation of sustainable supply chains and an establishment of artificial intelligence (AI)-based cooperative system within the APEC region.  In addition, he asked NCAPEC to share its knowhow of how it hosted a series of business events such as APEC Business Advisory Council (ABAC) Dialogue with Economic Leaders and the APEC CEO Summit with the Korea Chamber of Commerce and Industry (KCCI) which will host the business events next year. In turn, NCAPEC representatives proposed APEC-level cooperation in establishing digital trade principles and restoring supply chain resilience. Minister Cheong highlighted Korea’s aim to produce tangible outcomes during Korea’s APEC chairmanship in 2025 such as strengthening intraregional business networks through various events for public-private exchanges, and requested NCAPEC to prepare meaningful business events in cooperation with KCCI.   date2024-08-06

Korea to train overseas shipbuilding talent for deployment at K-shipyards

The Ministry of Trade, Industry and Energy (MOTIE) announced that it is opening an Overseas Shipbuilding Manpower Center in Serang, Indonesia, on August 5 to locally train skilled shipbuilding talent through Korean language and technology education in order to employ the educated manpower at Korean shipyards. Initially suggested in March as part of the MOTIE-led K-Shipbuilding Next-Generation Initiative, the proposed measure has culminated into the aforesaid program over five months of consultation between Korea offshore & Shipbuilding Association (KOSHIPA) and Indonesia’s Ministry of Manpower. Korea’s shipbuilding industry is presently riding the waves of opportunity towards new growth, having secured 39.1 million compensated gross tonnage (CGT) worth of orders (as of August 2) and improving the nation’s industrial constitution and management conditions by winning high value-added ship projects. However, the long-term recession and ensuing manpower leakage are acting as headwind to the industry. Accordingly, the Government added 16,000 workers to the production manpower last year by improving the visa and training system, but the industry expects that demand for quality foreign workers will continue for some time. The Overseas Shipbuilding Manpower Center was launched for the purpose of teaching local workers the Korean language and shipbuilding technology for preliminary site execution to enable seamless deployment without retraining in Korea, as well as establishing a stable workforce supply channel and bolstering industrial cooperation between the two countries. Over a three-month period, the first batch of 30-40 trainees will be learning the welding techniques required across Korean shipyards, then apply for the welder qualification and certification program. Meanwhile, they will also study to take the Test of Proficiency in Korean (TOPIK) and be given safety education courses for the prevention of safety accidents. In this process, the Indonesian government is to recruit and educate the trainees and KOSHIPA is to dispatch experts and assist with testing. The Government aims to leverage this pilot project to address areas that need improvement and increase the number of trainees to strengthen the Overseas Shipbuilding Manpower Center’s role, while also establishing additional manpower training centers in other countries. Further plans include institutional support measures, such as streamlining visa procedures and tying in with official development assistance (ODA) via cross-ministerial consultations.   date2024-08-05

Korea’s exports rise 13.9% in July

The Ministry of Trade, Industry and Energy (MOTIE) announced on August 1 that Korea’s exports for July 2024 increased 13.9 percent year-on-year to USD 57.5 billion, the second highest in record for the month. Imports grew 10.5 percent to $53.9 billion and the trade balance stood at a surplus of $3.6 billion. Exports maintained their upward trajectory for the 10th consecutive month.  By item, 11 out of 15 major export items advanced, with the total export value (up 44.0 percent to $15.6 billion) of information technology (IT) items climbing for the ninth consecutive month. Notably, semiconductor exports logged $11.2 billion (up 50.4 percent), their growth rate surpassing the 50 percent mark for the fourth consecutive month. The export of displays (up 2.4 percent to $1.7 billion), computers (up 61.6 percent to $1.2 billion), and wireless communication devices (up 53.6 percent to $1.5 billion) achieved growth for the 12th, seventh, and fifth consecutive month, respectively. Automobile exports (down 9.1 percent to $5.4 billion) were impacted by major carmakers’ summer holidays landing in the month, but automobile parts (up 9.5 percent to $2.2 billion) enjoyed growth, snapping the three-month losing streak. General machinery exports recorded an all-time high for July, moving up 12.5 percent to $4.9 billion and turning to an expansion for the first time in three months. Petroleum products (up 16.7 percent to $4.5 billion) and petrochemicals (up 18.5 percent to $4.2 billion) surged for the fifth and fourth consecutive month, respectively. Meanwhile, bio-health (up 29 percent to $1.2 billion), textiles (up 1.6 percent to $0.9 billion), and home appliances (up 9.4 percent to $0.7 billion) all turned to growth after a month of decline. By region, exports to eight out of nine major destinations experienced growth. Exports to China logged $11.4 billion (up 14.9 percent), the highest in 21 months, and entered the $10 billion thresholds for the fifth consecutive month on the backs of rising exports of semiconductors, wireless communication devices, and other IT items amid the IT industry recovery. As a result, the aggregate China-bound export value through January–July this year recorded $74.8 billion (up 6.7 percent) for Korea, the highest among its export destinations for the period. U.S.-bound July exports also set a fresh record for the month at $10.2 billion (up 9.3 percent), renewing monthly highs for the 12th consecutive month. To ASEAN, exports posted $9.9 billion (up 12.1 percent) as major export items in IT, petroleum products, and petrochemicals met strong demand, advancing for the fourth consecutive month alongside those to India (up 13.4 percent to $1.6 billion). Exports to the Middle East jumped 50.6 percent to $2.2 billion, improving for two straight months. Exports to Japan (up 10.1 percent to $2.6 billion), Latin America (up 31.3 percent to $2.6 billion), and the Commonwealth of Independent States (CIS) (up 4.0 percent to $1.0 billion) all switched to an expansion. As for July imports, those of energy expanded 11.9 percent year-on-year to $10.9 billion, driven by increased shipments of crude oil (up 16.1 percent) and gas (up 23.8 percent). Korea’s accumulated trade balance through January–July expanded $51.2 billion year-on-year, amounting to an all-time high since 2018.   date2024-08-01

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