Ministry of Trade, Industry and Energy

Korea and UAE hold formal signing of bilateral CEPA

Trade, Industry and Energy Minister Dukgeun Ahn and the United Arab Emirates (UAE) Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi formally signed the Korea-UAE Comprehensive Economic Partnership Agreement (CEPA) on May 29 at the presidential office in Seoul in the presence of both countries’ presidents.   The Korea-UAE CEPA was pushed forward with the state visit of President Yoon Suk Yeol’s to UAE in January 2023 and concluded in October of same year after intensive negotiations. The Government has since proceeded with legal scrubbing of agreement documents and other domestic procedures necessary for the formal signing.   The Korean government plans to swiftly implement follow-up measures and submit the ratification documents to the National Assembly. Once both countries complete their respective domestic legal procedures for the CEPA’s ratification and entry into force, the bilateral CEPA takes effect on the first day of the second month following the exchange of written notifications certifying the completion of necessary legal procedures.   As of 2023, the UAE is Korea’s 14th largest trade partner and a growing export destination for automobiles, car parts, electronic devices, and synthetic resins, while Korea imports crude oil, petroleum products, natural gas, aluminum, and other energy and resource materials from the UAE. The CEPA is anticipated to spur Korean firms’ entry further into the Middle East, Africa, and South Asia as well. date2024-05-29

Trade Minister attends groundbreaking ceremony for Merck's Bioprocessing Production Center

Minister for Trade Inkyo Cheong attended on May 29 the groundbreaking ceremony for Germany-based Merck’s KRW 430 billion (300 million euros) bioprocessing plant to be built within the Daejeon International Science Business Belt, also attended by government officials, related institutions, and companies’ representatives. date2024-05-29

Public and private sectors make final preparations for Korea-Africa Summit 2024

Minister for Trade Inkyo Cheong chaired the second meeting of the Public-Private Committee for Korea-Africa Economic Cooperation on May 29 in Seoul with major economic groups, companies, and related institutions to prepare for the upcoming Korea-Africa Summit 2024 (June 4–5).   The meeting was held for a final monitoring of planned events slated for the Summit. Korea International Trade Association (KITA) and five other economic groups are co-organizing the Korea-Africa Business Summit (June 5), where 400 experts and representatives of both sides’ governments and companies are to seek measures for bilateral cooperation in industrialization, stimulating investment, expanding trade and job creation, food and critical minerals security, decarbonization, and climate change response.   Korea Trade-Investment Promotion Agency (KOTRA) will be holding a Business Partnership for one-on-one matching between 200 Korean companies and 50 African companies in areas like energy, infrastructure, automobiles, shipbuilding, bio, and home appliances.   The Ministry of Trade, Industry and Energy (MOTIE) plans to reach tangible results through supporting the private sector’s business-to-business (B2B) contract deals and memorandums of understanding (MOUs) on the sidelines of the Summit, while also pushing forward the Trade and Investment Promotion Framework (TIPF) with  African governments. date2024-05-29

Merck invests KRW 430 bln in bioprocessing materials plant in Daejeon

Minister for Trade Inkyo Cheong attended on May 29 the groundbreaking ceremony for Germany-based Merck’s KRW 430 billion (EUR 300 million) Bioprocessing Production Center to be built within the Daejeon International Science Business Belt.   Having entered the Korean market in 1989, Merck currently operates 13 production and R&D facilities in areas like Pyeongtaek, Anseong, and Incheon, employing approximately 1,730 workers.   The groundbreaking ceremony is an outcome following the memorandum of understanding (MOU) on investment cooperation for a bioprocessing materials plant signed in May 2023 by the Ministry of Trade, Industry and Energy (MOTIE), Daejeon Metropolitan City, and Merck. On completion of the plant in 2026, the German company will be supplying raw and subsidiary materials essential for processing biopharmaceuticals to domestic buyers as well as biopharma manufacturers in the Asia-Pacific region, with plans for 300 new local hires in Daejeon.   Trade Minister Cheong stated that “Merck’s investment is expected to not only expand exports and secure a stable domestic supply chain for bioprocessing raw and subsidiary materials, but also stimulate the local economy through creation of quality jobs in Daejeon,” and added that the Government will continue to nurture a choice investment environment for Merck and other advanced global companies. date2024-05-29

Korea and Georgia hold 2nd official negotiating round for bilateral EPA

Director General for FTA Negotiations Peob-min Ryu is leading the Korean delegation in the second official round of negotiations for the Korea-Georgia Economic Partnership Agreement (EPA) through May 29–31 in Seoul. Georgia’s delegation is headed by Economy and Sustainable Development Deputy Minister Genadi Arveladze.   Following the launch of negotiations in November 2023, the two sides have managed to swiftly reach agreements in many areas through the first official negotiating round and the intersessional negotiations held in February and April this year, respectively.   In this second round, negotiations will take place across a total of 13 Working Groups on various areas, including goods, services, digital, and cooperation. The Korean government anticipates that the bilateral EPA will contribute to strengthening the two countries’ economic ties. date2024-05-29

Korea's retail industry grows 10.8% in April

The Ministry of Trade, Industry and Energy (MOTIE) announced on May 28 that Korea’s retail industry grew 10.8 percent year-on-year in April 2024, with offline sales inching down 0.2 percent and online sales soaring 22.2 percent, respectively.   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.   Offline sales slid as supermarket discount promotions that were concentrated in April 2023 became relatively dispersed this year. Online sales increased on the backs of strong demand for convenience food products, travel packages, delivery services, and other various discounts.   By offline retail channel, hypermarket sales dropped 6.7 percent, as most items like home/living (down 13.9 percent), home appliances/culture (down 13.2 percent), miscellaneous goods (down 11.7 percent), and sports (down 10.8 percent) decreased, while sales of clothing (up 2.7 percent) increased.   Department store sales fell 2.0 percent as men’s clothing (down 7.8 percent), women’s suits (down 5.1 percent), kids/sports (down 3.7 percent), and foreign designer labels (down 3.3 percent) declined. Sales of household goods (up 2.9 percent) improved.   Convenience (up 5.9 percent) stores enjoyed growth across all items, especially for tobacco/other (up 5.5 percent), miscellaneous goods (up 3.7 percent), beverages/processed food products (up 7.3 percent), and instant food products (up 3.5 percent).   SSM operators gained 3.2 percent despite the shrink in daily necessities (down 8.2 percent), as sales of food products like agriculture, fishery, and livestock products (up 7.8 percent) and processed food products (up 1.0 percent) expanded.   Online sales jumped 22.2 percent, driven by the steep ascent of food products (up 28.1 percent), living/furniture (up 19.0 percent), and service/other (up 54.4 percent) with the rollout of various discounts. Meanwhile, sales of fashion/clothing (down 4.1 percent) decreased. date2024-05-28

Korea holds JTC3 Inaugural Plenary Meeting

Standards Policy Director General Oh Kwang-hae attended the Inaugural Plenary Meeting of the IEC/ISO JTC 3 (“JTC3”), to be held from May 28–30 at the Plaza Hotel Seoul, where approximately 100 representatives from 22 countries, including the U.S., UK, Germany, and China, gathered to discuss quantum technology development and standards strategies. date2024-05-28

Korea-UAE Business & Investment Forum

Minister for Trade Inkyo Cheong attended the Korea-UAE Business & Investment Forum on May 28 with UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi, as well as 200 business leaders of both countries, where Medytox (Korea) and Tecom Group (UAE) signed a letter of intent (LOI) on the establishment of a plant in UAE producing botulinum toxin, the world’s first and only non-animal liquid toxin drug. date2024-05-28

Korea and New Zealand hold 6th FTA Joint Committee meeting

Director General for FTA Policy Ahn Chang-yong led the Korean delegation in the sixth Korea-New Zealand Free Trade Agreement (FTA) Joint Committee meeting held on May 28 in Seoul. His counterpart Greg Andrews from the Ministry of Foreign Affairs and Trade (MFAT) headed the New Zealand delegation. They covered FTA outcomes, measures for enhancing exporters and importers’ convenience, and joint projects in conjunction with FTA among other various issues of interest. date2024-05-28

Trade Minister meets ASEAN Secretary-General

Minister for Trade Inkyo Cheong met with the Association of Southeast Asian Nations (ASEAN) Secretary-General Kao Kim Hourn on May 28 in Seoul to discuss measures for expanding Korea-ASEAN trade, investment, and joint projects. date2024-05-28