Ministry of Trade, Industry and Energy

Korea to expand application of self-reporting and grading of buildings' energy efficiency

Trade, Industry and Energy Minister Dukgeun Ahn attended the “Green Building Conference for Climate Crisis Response” on May 2 at the Seoul City Hall to give a congratulatory message and co-signed the memorandum of understanding (MOU) for reducing greenhouse gas (GHG) emissions of buildings with Seoul Mayor Oh Se-hoon, Land, Infrastructure and Transport Minister Park Sang-woo, and Co-Chairperson of the Presidential Commission on Carbon Neutrality and Green Growth Kim Sang-hyup.   This February, MOTIE started enforcing the energy intensity target management system on buildings to manage their energy use, which sets an energy use target per unit area for medium- and large-sized, non-residential buildings with a total area of 5,000 square meters or larger, and applies a five-tiered target efficiency achievement grading method (A–E).   Based on the above system, Seoul City announced its “Climate Building Project” for reducing GHG emissions. According to the project, Seoul City will disclose the energy use target grades of the approximately 500 buildings it owns (May 2), which will then be extended to the 1,800 public buildings and self-governing districts’ buildings.   The MOU signing ceremony was followed by a conference on existing buildings’ green transition, where experts of related academic fields and research institutes gathered to announce carbon neutrality achievement strategies for buildings.   In his congratulatory message, Minister Dukgeun noted that Korea’s total energy use declined by 3.2 percent in 2023, but that of commercial and public buildings rather increased, stating that MOTIE intends to expand the application of the energy use self-reporting and grading system with aim to enhance energy efficiency of buildings, beginning with public institutions. He added that stronger support will go towards assisting R&D projects for energy efficiency improvement and small business owners’ energy saving equipment and electrical power fees, while tightening inspections on stores leaving doors open during air-conditioning. date2024-05-02

Anchor project for carbon neutrality forecast to annually reduce 70,000 tCO2eq of GHG

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 30 that three more companies have been added to the list of SMEs and middle-market firms leading in the area of carbon neutrality, raising their total number to 12. These 12 companies are forecast to reduce an estimated annual 70,000 tCO2eq of greenhouse gases (GHGs) through a KRW 67.8 billion investment in new facility and equipment.   For firms in carbon-intensive industries making leading efforts to reduce GHG emissions, the Korean government is providing support in terms of state funding up to 40 percent (maximum of 3 billion won over two years) of the expenses needed to make improvements in processes, equipment replacement, and facility expansion.   On April 30, MOTIE held a performance exchange meeting at AJU Steel’s Gimcheon Plant, a firm that is currently replacing its equipment with low emissions systems and equipment, along with the 12 companies selected for anchor projects in plant establishment support for carbon neutrality. Prior to the exchange meeting, attendees were able to experience firsthand the application technologies for carbon neutrality AJU Steel is introducing to its production site, such as automation systems for process optimization and convergence systems for plating and coating.   At the meeting, five firms that completed establishing their respective low-carbon systems shared emissions reduction outcomes and business knowhow to other firms. These twelve companies’ outcomes will be updated via reports and videos through the Korea National Cleaner Production Center (KNCPC) YouTube channel and website (www.kncpc.or.kr). Moreover, the World Climate Industry EXPO slated for September this year in Busan will also promote the content to other companies, experts, and general public. date2024-05-02

Korea's exports climb 13.8% in April

The Ministry of Trade, Industry and Energy (MOTIE) announced on May 1 that Korea’s April exports advanced 13.8 percent year-on-year to USD 56.3 billion, rising for the seventh consecutive month. Imports rose 5.4 percent to $54.7 billion and the trade balance stood at a surplus of $1.5 billion.   The daily average export value, accounting for the number of working days, increased 11.3 percent to $2.5 billion, maintaining double-digit growth for the third consecutive month and building up a strong upward momentum.   The month of April saw the highest number of items gain in exports for this year as 13 out of 15 major items achieved growth.   IT items, namely semiconductors, displays, computers, and wireless communication devices, enjoyed an across-the-board expansion for two months straight. Their aggregate export value grew by an unprecedented 46.6 percent, advancing for the sixth consecutive month. Semiconductor exports reached a second highest monthly value of $9.96 billion (up 56.1 percent) for April, sustaining growth for the sixth consecutive month. Displays logged a record-breaking $1.4 billion (up 16.3 percent) for the year and increased for the ninth consecutive month. Computers (up 76.2 percent) and wireless communication devices (up 11.4 percent) made their steepest climb for the year as well, each gaining for the fourth and second consecutive month, respectively.   Automobile exports broke their previous all-time highs set in November 2023 by recording $6.8 billion (up 10.3 percent). General machinery exports snapped their one-month losing streak and grew 1.5 percent to $4.7 billion, a record high for April. Ship exports increased 5.6 percent and grew for the ninth consecutive month. Bio health exports (up 21.3 percent) posted their first double-digit growth for this year and carried on the expansion for the sixth consecutive month. Petroleum products (up 19.0 percent) rose for the second consecutive month, while textiles (up 1.7 percent), home appliances (up 9.4 percent), automotive parts (up 2.9 percent), and petrochemicals (up 12.3 percent) snapped their two-month losing streak.   By region, exports to seven out of nine major destinations increased in April. To the U.S., a record high of $11.4 billion (up 24.3 percent) broke the previous record set in December 2023, carrying the upward momentum for the ninth consecutive month.   Exports to China (up 9.9 percent) reached $10.5 billion and grew for the second consecutive month.   Exports to Latin America (up 38.2 percent) grew at a sharpest pace out of all nine major destinations, increasing for the fourth consecutive month.   Exports to ASEAN (up 10.5 percent) and Japan (up 18.4 percent) broke their one-month downward streak, while those to India (up 18.0 percent) and the Middle East (up 1.0 percent) switched to an expansion after two months of decline.   Imports increased for the first time in 14 months since February 2023. The import value of energy rose 14.6 percent to $12.5 billion on increased demand for crude oil (up 17.8 percent) and gas (up 21.9 percent). The energy import volume also rose on the backs of heightened refinery utilization and increased gas demand for power generation and industrial application. Meanwhile, non-energy imports showed an uptick of 2.9 percent to $42.2 billion.   With the trade balance for April achieving a surplus for the 11th consecutive month, the accumulated surplus through January–April this year amounted to $10.6 billion, surpassing last year’s annual trade deficit of $10.3 billion and recording an all-time high in five years.   MOTIE's April monthly trade figures are based on Korea Customs Service (KCS) data for April 1–30, which are subject to change prior to data finalization in February 2025. date2024-05-02

Vice Minister visits Hanwha Aerospace Daejeon Plant

Trade, Industry and Energy Vice Minister Kang Kyungsung led the Defense Exports Task Force in his meeting with Hanwha Aerospace CEO Son Jae-il on April 30 at the company’s Daejeon plant and discussed recent exports outcomes.   The Vice Minister received a briefing on company management and issues from CEO Son and exchanged views regarding measures for expanding defense exports and developing the arms industry prior to touring the production facilities and encouraging employees.   The Defense Exports Task Force is composed of representatives from the Ministry of Trade, Industry and Energy (MOTIE), Korea Defense Industry Trade Support Center (KODITS), K-SURE, and Korea Planning & Evaluation Institute of Industrial Technology (KEIT). date2024-04-30

Korea's Defense Exports Task Force launched into high gear

Trade, Industry and Energy Vice Minister Kang Kyungsung led the Defense Exports Task Force in his meeting with Hanwha Aerospace CEO Son Jae-il on April 30 at the company’s Daejeon plant and discussed recent exports outcomes.   Launched as a follow-up measure to the Defense Industry Ecosystem Competitiveness Strategy announced on April 17, the Defense Exports Task Force is composed of representatives from the Ministry of Trade, Industry and Energy (MOTIE), Korea Defense Industry Trade Support Center (KODITS), K-SURE, and Korea Planning & Evaluation Institute of Industrial Technology (KEIT).   Hanwha Aerospace representatives shared their status quo on arms exports, including the executive contract with the Polish Armaments Agency on supplying an additional fleet of Chunmoo Multiple Rocket Launcher Systems (MRLS) amounting to USD 1.6 billion, and requested policy funding for export contract implementation, designation of advanced aircraft engine materials and parts as national high-tech strategic technology, and government assistance on R&D of arms systems for export.   Vice Minister Kang explained that as announced in April, MOTIE plans to strengthen support through the Defense Industry Ecosystem Competitiveness Strategy by securing advanced critical technologies in arms materials, parts, and equipment (KRW 400 billion investment in 2024), expanding the scope of trade insurance and policy funding (10 trillion won), and establishing a tailored defense exports strategy (June 2024). date2024-04-30

Korea's retail industry grows 10.9% in March

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 29 that Korea’s retail industry grew 10.9 percent year-on-year in March 2024, with offline and online sales advancing 6.0 percent and 15.7 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 rose across all major items on the backs of higher number of working days (+2) and increased sales of food, living/household goods, and foreign designer labels. Online sales saw enlarged demand for spring outings, performance reservations, and food deliveries alongside steady sales of convenience foods and e-coupons.   The number of purchases increased 0.5 percent overall, rising for department stores, hypermarkets, and SSMs, thanks to the added number of working days (+2), but decreased for convenience stores (down 0.2 percent), a first in 25 months.   Hypermarket sales increased 6.2 percent, attributable to the growth of food product sales (up 10.7 percent). Non-food items declined, including sports (down 7.9 percent), miscellaneous goods (down 3.7 percent), clothing (down 3.6 percent), and home appliances/culture (down 2.4 percent).   Department store sales increased 8.9 percent overall, as women’s suits showed a 1.2 percent downtick, but household goods (up 15.3 percent), foreign designer labels (up 13.9 percent), and miscellaneous goods (up 5.4 percent) advanced.   Convenience (up 3.0 percent) stores saw all items grow in sales, led by daily necessities (up 7.7 percent) and miscellaneous goods (up 9.3 percent), followed by strong demand for cost-effective food products like beverages and processed food products (up 4.1 percent) and instant food products (up 1.7 percent).   SSM operators gained 5.1 percent overall as most items enjoyed growth, including agricultural, livestock, and fishery products (up 9.6 percent), processed food products (up 3.9 percent), and fresh/prepared food products (up 1.8 percent).   In terms of sales per store, hypermarkets (up 7.9 percent), department stores (up 8.9 percent), and SSM operators (up 1.1 percent) gained, whereas those of convenience stores dipped (down 0.9 percent).   Online sales decreased in fashion/clothing (down 13.0 percent) and sports (down 3.7 percent), while books/stationery (up 24.1 percent), food products (up 28.9 percent), and service/other (up 37.5 percent) climbed sharply. date2024-04-30

Korea and Angola hold Business Forum

Minister for Trade Inkyo Cheong attended the Korea-Angola Business Forum, co-hosted by Korea’s Ministry of Trade, Industry and Energy (MOTIE) and the Angolan government, on April 29 in Seoul on the occasion of Angola’s President João Lourenço’s state visit, and held extensive bilateral discussions on cooperation in trade, investment, renewable energy, shipbuilding, and offshore plant projects.   The forum was attended by approximately 180 representatives of both countries’ governments, institutions, and companies, including the Sonangol Group and HD Hyundai Heavy Industries.   In his opening address, Trade Minister Cheong extended gratitude towards President Lourenço’s interest in pursuing economic cooperation with Korea and stated that the Korean government will likewise provide full support to expand bilateral cooperation in manufacturing, renewable energy, and other areas, based on the initial collaboration centering on energy, shipbuilding, and offshore plant.   Moreover, the trade promotion institutions of both countries, namely Korea Trade-Investment Promotion Agency (KOTRA) and Agency for Private Investment and Promotion of Exports of Angola (AIPEX), entered a memorandum of understanding (MOU) on establishing the basis for supporting the two countries’ business exchanges, including partner matchings and exchange of trade and investment information. Accordingly, KOTRA plans to set up a Korea promotion exhibition booth in the international symposium to be held in Luanda, Angola, in July as part of pushing forward projects for promoting bilateral trade. date2024-04-30

Korea and Oman to resume bilateral Economic Cooperation Committee after 8-year hiatus

Minister for Trade Inkyo Cheong met Chairman of the Oman Public Authority for Special Economic Zones and Free Zones (OPAZ) Ali Masoud Al Sunaidy on April 29 in Seoul to discuss the resumption of the two countries’ bilateral Economic Cooperation Committee.   The sixth Korea-Oman Economic Cooperation Committee meeting had originally been slated for 2019 in Muscat, Oman, but was put on pause by the pandemic outbreak.   The resumption discussion was proposed by Chairman Al Sunaidy, noting Oman’s push for industrial diversification and focused investment on new renewable energy areas. Trade Minister Cheong replied that he looks forward to discussing measures for deepening the two countries’ investment, joint project discovery, and other economic collaborations through the Economic Cooperation Committee in the near future. date2024-04-30

Korea-Angola Business Forum

Minister for Trade Inkyo Cheong attended the Korea-Angola Business Forum on April 29 in Seoul in the attendance of both countries’ government delegations and companies, where Korea Trade-Investment Promotion Agency (KOTRA) and the Agency for Private Investment and Promotion of Exports of Angola (AIPEX) held a MOU signing ceremony. date2024-04-30

Trade Minister meets OPAZ Chairman

Minister for Trade Inkyo Cheong met Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ) Ali Masoud Al Sunaidy on April 29 in Seoul to discuss key agenda items including the resumption of the two countries’ bilateral Economic Cooperation Committee. date2024-04-30