Ministry of Trade, Industry and Energy

Korea’s first solar power joint utilization R&D center in full operation

Trade, Industry and Energy Ministry's Deputy Minister for Energy Policy Lee Ho-hyeon attended on March 27 in Daejeon the completion ceremony for Korea’s first solar power joint utilization R&D center equipped with a 100MW pilot line for solar photovoltaics (PV) research.   At companies’ request for a facility that would enable the testing of solar PV products prior to mass production, the joint utilization R&D center was established through joint investment of MOTIE, Daejeon Metropolitan City, and the Korea Institute of Energy Research (KIER).   The completion ceremony was attended by approximately 100 representatives of relevant industries, academia, and research institutions, including the Chairman of the Presidential Commission on Carbon Neutrality and Green Growth and Deputy Mayor of Daejeon City for Economics and Science.   The center is equipped with a cutting-edge 50MW solar cell line and a 100MW module line that enables the development and verification of cells of various structures and sizes. Companies and R&D institutions will be able to access certification service by utilizing the center’s advanced equipment for assistance in cell and module efficiency measurement, certification, and analysis. The center is also expected to enhance companies’ productivity by allowing product development and inspection without having to halt their own production lines. date2024-03-28

Vice Minister chairs discusses cooperation among MOTIE, FEZs, and companies

Trade, Industry and Energy Vice Minister Kang Kyungsung chaired a meeting on March 27 at K-SURE in Seoul to discuss measures for cooperation between MOTIE, Free Economic Zones (FEZs), and tenant businesses in promoting foreign investment. date2024-03-27

Vice Minister attends “Smart Factory + Automation World 2024” opening ceremony

Trade, Industry and Energy Vice Minister Kang Kyungsung and SMEs and Startups Vice Minister Oh Kee-woong attended the “Smart Factory + Automation World 2024” on March 27 in COEX, Seoul, the largest exhibition in Korea showcasing various products and solutions for digital transition of 500 domestic and overseas companies. date2024-03-27

“Smart Factory + Automation World 2024” showcases leading solutions for digital transition

Trade, Industry and Energy Vice Minister Kang Kyungsung and SMEs and Startups Vice Minister Oh Kee-woong attended the “Smart Factory + Automation World 2024” on March 27 in COEX, Seoul, the largest exhibition in Korea showcasing various products and solutions for digital transition of 500 domestic and overseas companies, including automation parts, internet of things (IoT), and AI-based industrial robots. The exhibition is held for three days (March 27-29) and garners approximately 70,000 visitors.   On the sidelines of the exhibition, over 100 sessions will be held to show the latest technologies related to digital transition and the successful application cases from around the world. New products and technologies will be introduced in seminar format, while buyer companies and suppliers in digital transition technology can meet via one-on-one business matchings through an online exhibition booth.   Vice Minister Kang Kyungsung emphasized that “Digital technology is a practical means for heightening onsite safety, resolving the issues of skilled manpower shortage, and advancing companies’ competitiveness.” He added that “MOTIE and the Ministry of SMEs and Startups (MSS) will join hands as ‘one team’ to assist our companies take up the challenge of utilizing digital transition technologies.” date2024-03-27

Korea to push tailored measures in establishing high-tech strategic industry specialization complexes

Trade, Industry and Energy Minister Dukgeun Ahn attended the fifth meeting of the National High-Tech Strategic Industry Committee, chaired by Prime Minister Han Duck-soo on March 27 at the Government Complex Seoul, where members discussed agenda items and measures for comprehensive support on the establishment of the seven high-tech strategic industry specialization complexes designated in July 2023.   The Korean government established the High-Tech Strategic Industry Specialization Complex Comprehensive Support Measures to nurture the specialization complexes in step with the plan for KRW 681 trillion in private investment by 2047.   First, the Government plans to concentrate support towards establishing infrastructure for high-tech strategic industry specialization complexes through state funding and public institutions. Succeeding the 100 billion won state funding for the Yongin and Pyeongtaek specialization complexes granted in 2023, 43.9 billion won in 2024 will go towards building the specialization complexes in Pohang, Gumi, Saemangeum and Ulsan, while also pushing for over 10 trillion won worth of projects exempt from public-led prefeasibility studies for the Yongin National Industrial Complex. The current limit on government expense support (up to two) for infrastructure is to be abolished, and according to investment size and region, the government expense support ratio will be enlarged by up to 10 percentage points.   With aim to establish a high-tech ecosystem within the specialization complex, 4.5 billion won will be placed toward R&D in 2024, and a large-scale R&D project is to be planned within the year to push forward prefeasibility exemptions, fast tracks, and other related early implementations.   Second, nine related ministries, including MOTIE, the Ministry of Economy and Finance (MOEF) and the Ministry of Education (MOE), jointly presented the implementation plan for 2024 as a follow-up to the first basic plan (May 2023) on nurturing and protecting national high-tech strategic industries. The plan includes a 10 percent raise in the R&D budget in 2024 for semiconductors, displays, secondary batteries and bio, the four major high-tech strategic industries.   Third, more specialization courses will be offered at universities and graduate schools to nurture high-tech strategic industry talent. In 2023, three schools were designated to offer master's and doctoral semiconductor specialized courses to train 261 professional talents, and eight specialization project groups, consisting of 12 schools, launched bachelor’s degree programs to train 865 professional talents. MOTIE plans to further designate three more semiconductor-focused graduate schools and additional graduate schools for specialization in secondary batteries (3), displays (1), and bio (1) in April 2024.   Lastly, in accordance with the fourth Committee meeting outcomes, an open call was announced for the designation of the bio specialization complex, drawing a total of 11 designation applications through December 2023 to February 2024 from Korea’s metropolitan local authorities. The final results will be announced by the first half of this year following the relevant ministries and experts’ evaluation process. date2024-03-27

MOTIE and FEZs share resolve for $1.1 bln foreign investment target in 2024

Trade, Industry and Energy Vice Minister Kang Kyungsung chaired a meeting on March 27 at K-SURE in Seoul to discuss measures for cooperation between MOTIE, Free Economic Zones (FEZs), and tenant businesses in promoting foreign investment.   At the meeting, tenant businesses presented opinions on FEZ experience and business environment. FEZs assessed working plans for investment promotion and shared success cases of foreign investment promotion in advanced industries like bio, secondary batteries, displays, requesting that the Government provide support concerning various onsite issues.   Moreover, the nine FEZs of Korea pledged to securing this year’s foreign investment target of USD 1.1 billion, up 11 percent from the $994 million drawn in 2023, through attracting advanced and core strategic industry businesses, for which they proposed to the Government several measures like deregulation, stronger incentives, and additional FEZ designations. date2024-03-27

Trade Minister holds conference with Korean firms locally operating in Malaysia

Minister for Trade Inkyo Cheong held a conference with Korean firms operating locally in Malaysia on March 26 in Kuala Lumpur to discuss investment, customs, and other local business issues.   Attending the conference were representatives of Korean firms, including POSCO, Kia, and Samsung C&T. date2024-03-26

Korea and Malaysia hold trade ministerial talks

Minister for Trade Inkyo Cheong met with Tengku Zafrul Aziz, Malaysia’s Minister of Investment, Trade and Industry (MITI), on March 26 in Kuala Lumpur for trade ministerial talks and the declaration on resuming bilateral FTA negotiations, installing a trade ministerial dialogue channel, and signing an MOU on supply chain cooperation. date2024-03-26

Korea and Malaysia to resume negotiations for bilateral FTA

Minister for Trade Inkyo Cheong met with Tengku Zafrul Aziz, Malaysia’s Minister of Investment, Trade and Industry (MITI), on March 26 in Kuala Lumpur for trade ministerial talks and the two ministers declared the resuming of bilateral Free Trade Agreement (FTA) negotiations between the two countries, which have been on pause since 2019.   The declaration comes four years and six months after the third official negotiating round held in September 2019, and the two sides agreed to establish working groups for service, investment, digital, green, and bio in addition to those that had already been in progress, with aim to push for a more comprehensive FTA.   Among ASEAN countries, Malaysia is Korea’s third and fourth largest partner in terms of trade and investment, respectively. In view of the two countries’ mutually supplementary trade structure comprising natural gas, petroleum products, semiconductors, and fine chemicals, it is anticipated that the FTA will bolster Korea’s trade and investment base in ASEAN.   Meanwhile, during the Korea-Malaysia trade ministerial talks held prior to the declaration of FTA resumption, the two sides agreed to install a bilateral trade ministerial dialogue as a platform for advancing their economic cooperation and decided to further close cooperation in areas like supply chains and new industries.   On the margins of the visit, Trade Minister Cheong held a conference with Korean companies locally operating in Malaysia to discuss measures for resolving issues concerning onsite management, including investment incentives and customs challenges. date2024-03-26

Korea's retail industry grows 13.7% in February

The Ministry of Trade, Industry and Energy (MOTIE) announced on March 26 that Korea’s retail sales for February increased 13.7 percent year-on-year.   Offline sales shot up 11.5 percent along with higher number of working days, and all categories showed growth, led by food products (up 20.8 percent).   Online sales hiked 15.7 percent on the backs of growing demand for Seollal holiday travel packages, products related to graduation and performances and convenience foods and e-coupons.   By item, sales of food products (up 26.7 percent), service/other (up 13.6 percent) and living/home (up 12.8 percent) advanced.   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 SSM operators. The remaining 12 are online retailers.   By offline channel type, sales at hypermarket chains leaped 21.0 percent as a result of inflation and Seollal holiday effect, with growth seen across all items aside from home appliances/culture (down 2.2 percent).   Department store chains gained 7.2 percent in overall sales despite the drop in women’s suit (down 8.1. percent) and household goods (down 2.5 percent), as foreign designer labels (up 6.4 percent) and miscellaneous goods (up 3.3 percent) rose.   Convenience stores advanced 9.4 percent, with strong growth in cost-effective food items like beverages/processed food products (up 11.2 percent) and instant food products (up 8.4 percent). Demand for school supplies and stationery sales boosted sales of all items, including daily necessities (up 16.1 percent) and miscellaneous goods (up 13.7 percent).   SSM operators posted a 12.6 percent jump overall, as agriculture, fishery, and livestock products (up 15.7 percent), processed food products (up 15.0 percent), fresh/prepared foods (up 6.8 percent), daily necessities (up 6.8 percent) and all other items recorded growth.   As for sales per store, hypermarkets (up 22.9 percent), department stores (up 7.2 percent), convenient stores (up 5.1 percent), and SSM operators (up 8.2 percent) all increased.   Online retail sales (up 15.7 percent) contracted in fashion/clothing (down 9.5 percent) and sports (down 4.3 percent) due to inflation and decline in consumer sentiment, but other items enjoyed growth from the Seollal holiday effect and cheap price promotion events.   Holiday gift items, instant food products and bulk convenience food products met robust demand, driving online sales of overall food products (up 36.2 percent). date2024-03-26