Ministry of Trade, Industry and Energy

Vice Minister chairs Corporate Investment Conference with top 10 manufacturers

Trade, Industry and Energy Vice Minister Kang Kyungsung chaired the Corporate Investment Conference on May 16 and reviewed the first quarter’s investment situation and corporate issues with representatives of Korea’s top 10 manufacturers.   Vice Minister Kang remarked that measures will be pushed to strengthen support for advanced industries, extend sunset-due tax credit incentives, and inspect business issues and foster conditions enabling companies’ timely investment.   The meeting was attended by representatives of 10 major manufacturers, including Samsung Display, SK Hynix, POSCO, and HD Korea Shipbuilding & Offshore Engineering. date2024-05-20

Government to give strong backing to corporate investment

Trade, Industry and Energy Vice Minister Kang Kyungsung chaired the Corporate Investment Conference on May 16 and reviewed the first quarter’s investment situation and corporate issues. The conference is a follow-up to the Industrial Investment Strategy Meeting held in February this year.   Korea’s top 10 manufacturing sectors, namely semiconductors, automobiles, displays, secondary batteries, shipbuilding, bio, machinery/robotics, steel, petrochemicals, and textiles, were found to have implemented approximately 96 percent of the annual investment plan of 100 trillion won in 2023, and implemented 20 percent of the 10 percent-upped 110 trillion-won investment plan for 2024 during its first quarter.   Companies attending the conference voiced suggestions for stronger government support, such as heightening investment tax credit for securing advanced industrial super gaps and for the green transitioning of major industries, securing investment for advanced industries, and enhancing cost competitiveness. They also proposed measures for creating a sound industrial ecosystem through imposing stricter punishment on tech leaks and nurturing materials, parts, and equipment (MPE) manufacturers.   The Korea Chamber of Commerce and Industry (KCCI) suggested that it is necessary to introduce investment policies in line with global standards to address the issue of funding shortages, such as extending sunset-due investment tax credit incentives and expanding the subject scope to include buildings, introducing direct payment of tax credits, and improving the corporate inheritance tax system. date2024-05-17

MOTIE and steel companies take stock of global trade issues impacting domestic industry

Industrial Policy Deputy Minister Lee Seung-ryeol at the Ministry of Trade, Industry and Energy (MOTIE) chaired a meeting on May 17 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul with major steel companies to review trade issues.   Korea’s steel industry is currently up against a number of challenges, including the 40 percent jump in China’s steel exports, Latin American countries’ heightened steel import duties, and the U.S.’ announcement on imposing a three-fold increase in the Section 301 tariff rate for Chinese steel imports. The “super low yen” and its impact on the domestic steel industry is yet another factor to watch.   Based on opinions gathered from the conference, MOTIE plans to establish detailed measures to support Korea’s steel businesses build competitiveness amidst the global oversupply and rising protectionism.   Deputy Minister Lee stated that “the Government will actively engage in dialogue with major countries on trade issues impacting our steel industry, while in the mid-to-long term, establish a system for domestic steel companies’ fair competition against foreign steel companies.” date2024-05-17

Korea to push state-led expansion of renewable energy distribution

Trade, Industry and Energy Minister Dukgeun Ahn chaired a conference on May 16 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul with renewable energy generator, manufacturer, and buyer companies and announced the strategy on widening renewable energy distribution and strengthening the supply chain.   In step with the global shifts, the Korean government has been making effort to expand renewable energy by balancing out the utilization of nuclear, hydrogen, and other carbon-free energy sources. Moreover, it has also concentrated on solving issues arising in the process of expanding renewable energy distribution, such as those concerning electric power systems and cost, in order to nurture an environment suitable for the sustainable distribution of renewable energy.   As a result, the energy market ecosystem has been showing signs of recovery, and the Ministry of Trade, Industry and Energy (MOTIE) intends to push a more orderly expansion for the renewable energy market. First, the Government will be taking up a leading role in the distribution process. For offshore wind power development, laws on providing state support for site location, licensing, and local consensus building are to be swiftly put in place. For solar power, public demonstration projects and regulatory improvements will be rolled out with focus on agrivoltaics and around industrial complexes to reduce challenges in local consensus building and electric power system capacity.   In line with domestic distribution expansion, preemptive efforts will be made to bolster the overall industrial base. Through widening and strengthening the competitive tendering of solar and wind power facilities, supply chain and security factors will be thoroughly addressed. Moreover, early securing of next-generation technology is another key task for future market dominance. By tackling technology development issues and strengthening support for shared infrastructure utilization, Korea aims to achieve early commercialization of tandem solar cells by 2026 and 35 percent efficiency rate by 2030.   The Government also plans to lower public burden while strengthening the state’s role in renewable energy supply by improving the renewable portfolio standards (RPS) program in accordance with market and policy landscape changes through extensive discussions with the National Assembly, industries, and experts on the subject. Furthermore, power purchasing regulations will be eased and transaction convenience enhanced to expand the market for companies’ direct power purchases from renewable energy power generators, while opening separate brokerage markets on the side.   Stronger support will go towards companies looking to penetrate overseas renewable energy markets. Korean firms have won a total of 41 overseas renewable energy projects over the last four years, worth USD 14.3 billion and equivalent to 20.4GW. The Government plans to establish a cooperative system between companies and assisting institutions, while launching locally tailored support programs as well.   MOTIE will be designing follow-up policies with other related ministries per each specific task and continue to seek measures for nurturing a balanced energy mix development plan among renewable energy and other carbon-free energy sources like nuclear and hydrogen. date2024-05-17

Korea proposes global workstream for CFE Initiative at Clean Energy Ministerial

Director General for Energy Policy Choi Yeon-woo at the Ministry of Trade, Industry and Energy (MOTIE) attended the Clean Energy Ministerial (CEM) Senior Officials' Meeting and Mission Innovation (MI) Annual Gathering held from May 15-17 in Bali, Indonesia, and partook in discussions on technology development and measures for accelerating clean energy transition.   Representatives of 29 member countries gathered for in-depth discussions on the effective management methods for the 24 clean energy working groups on nuclear power, renewables, battery, and efficiency, as well as measures for developing the seven Missions on areas like clean hydrogen, clean power, and carbon dioxide removal (CDR).   On this occasion, MOTIE proposed the launching of a new global workstream for Carbon Free Energy (CFE) Initiative as a platform for dialogue and cooperation on the schemes to expand and implement carbon-free energy utilization with member countries, and as a means to diffuse the CFE Initiative. The Initiative was initially suggested by President Yoon Suk Yeol during the United Nations General Assembly in September 2023 for achieving carbon neutrality and mitigating the climate change adaptation gap, winning official support from countries like Japan, the UK, France, the Netherlands, the United Arab Emirates, Saudi Arabia, and Romania.   On the margins of the CEM meetings, MOTIE and the Carbon Free (CF) Alliance held the “Advancing Climate Goals with Carbon-Free Energy,” where government officials, industries’ representatives, and experts engaged as panel speakers to exchange views on the need for wider utilization of carbon-free energy sources.   MOTIE and the CF Alliance aim to officially launch the global workstream for the CFE Initiative in the next CEM slated for October this year in Brazil. date2024-05-16

Korea and Chile to push forward cooperation in critical minerals supply chain

Resources Industry Policy Director General Yoon Chang-hyun at the Ministry of Trade, Industry and Energy (MOTIE) led the Korean delegation in the fifth Korea-Chile Resources Cooperation Committee meeting on May 15 (local time) in Santiago for discussions on bilateral collaboration in supply chains of lithium and such critical minerals. The Chilean delegation was led by Chile’s Mining Minister Aurora Williams.   The world’s largest lithium reservoir (9.3 million metric tons), Chile takes up 33.2 percent of global lithium reserves and is one of Korea’s key partner countries for building a stronger supply chain on critical minerals like lithium for batteries and other advanced industries. LG Energy Solution and Samsung SDI are some of the Korean firms importing lithium carbonate from Chile.   The fifth Resources Cooperation Committee meeting is a follow-up to the two countries’ agreement to discuss detailed lithium cooperation measures on the occasion of the Asia-Pacific Economic Cooperation (APEC) Summit held November 2023. Both sides shared their critical minerals strategies and discussed prospects of collaboration, including Chile’s tailings reprocessing technology development and Korea’s eco-friendly lithium extraction technology.   On the margins of the Committee meeting, MOTIE held a Korea-Chile symposium for business exchanges and networking, where Korean firms like LX International and POSCO Holdings and Chilean critical minerals firms like Sociedad Química y Minera (SQM) and Chilean national mining company ENAMI (Empresa Nacional de Minería) gathered to discuss bilateral lithium development, trade, and technology development.   Meanwhile, Director General Yoon and Minister Williams also discussed the Chilean government’s lithium salt flat development bid project among other areas of interest to Korean companies, as well as measures for strengthening the bilateral critical minerals supply chain. date2024-05-16

Trade Minister visits Kia’s West Point plant in Georgia

Minister for Trade Inkyo Cheong visited Kia’s West Point plant in Georgia, U.S., on May 15 and met with automakers and parts manufacturers to discuss the recent announcement by the U.S. Department of Commerce (DOC) on the preliminary determination on anti-dumping investigations covering Korean aluminum extrusions. date2024-05-16

Trade Minister visits Georgia Institute of Technology

Minister for Trade Inkyo Cheong visited Georgia Institute of Technology in Atlanta, Georgia, on May 14 and met with its Korean professors and researchers to discuss Korea-U.S. advanced industrial cooperation and toured research facilities. date2024-05-16

Trade Minister meets with Georgia Tech Vice Provost for International Initiatives

Minister for Trade Inkyo Cheong met with Bernard Kippelen, Vice Provost for International Initiatives at Georgia Institute of Technology, on May 14 and discussed universities’ technology commercialization process and U.S.’ exports controls. date2024-05-16

Korea and U.S. hold opening ceremony for launching of eCERT for steel customs clearance

The Ministry of Trade, Industry and Energy (MOTIE), Korea Customs Service (KCS), and U.S. Customs and Border Protection (CBP) held the opening ceremony of the Electronic Certification System (eCERT), established as a bilateral platform for steel customs clearance, on May 15 (EDT) at CBP Headquarters in Washington D.C.   The eCERT is a filing system for quota-subject Korean steel that can manage quotas and customs, operated in sync with the export quota management system run by Korea Iron and Steel Association (KOSA). CBP will compare and cross-check the export approval document submitted by KOSA with the import declaration form and reply back on whether or not to approve customs clearance.   Beginning May 20, CBP will automatically reject filings with incompatible steel importer data. In other words, the export approval document from KOSA and import declaration form submitted to CBP must match for customs to clear.   MOTIE's Deputy Minister for FTA Negotiations Roh Keon-ki commented that “Whereas in the past it took over a week for Korean exporters to confirm customs clearance on their own through U.S. importers, now they can view the entire customs process with a single mouse click.” date2024-05-16