Ministry of Trade, Industry and Energy

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

Minister Ahn chairs 4th public-private exports promotion meeting

Trade, Industry and Energy Minister Dukgeun Ahn chaired the fourth public-private joint meeting on exports promotion measures on March 25 in Seoul to discuss the trade insurance expansion plan for 2024, e-mobility overseas market competitiveness, and measures for supporting exporting firms’ TBT response.   The meeting was attended by relevant ministries’ officials and representatives of companies and institutions, including K-SURE, Samsung Electronics, KOTRA, and Hana Bank. date2024-03-26

Korea to provide up to KRW 255 tln in trade insurance to promote exports

Trade, Industry and Energy Minister Dukgeun Ahn held the fourth public-private joint meeting on export promotion measures on March 25 at the Korea Chamber of Commerce and Industry (KCCI) and led discussions on the measures for strengthening trade insurance support, overseas market competitiveness of small-sized e-mobility, and support for exporting companies’ technical barriers to trade (TBT) response.   The above agenda items were selected as part of a follow-up to the pan-ministerial export promotion strategy established in February for achieving this year’s USD 700 billion export target, incorporating detailed finance, certification, and marketing strategies.   First, the plan is to provide up to an all-time high KRW 255 trillion in trade insurance and drastically improve the terms regarding recipient eligibility and provision method. Automobile, secondary battery, machinery, shipbuilding, petrochemicals, steel, and IT and other major export sectors will be eligible for 136 trillion won in total insurance. Defense, plant, nuclear power, and other energy industries will be eligible to receive up to 26 trillion won, while promising consumer goods like agriculture, fishery and cosmetic products and other Hallyu-leading items will be eligible for a total of 18 trillion won in insurance support. As a means to boost service exports, programs will be rolled out to grant production funding to global over-the-top (OTT) companies in charge of creating K-content. SMEs and middle-market companies in weakened state of financing from persistent high interest rates will be assisted with up to 90 trillion won for relief from funding burdens.   Second, relevant ministries will support overseas market penetration of small e-mobility items, as the market is forecast to grow into a hefty $120 billion market by 2030. Regions with low rates of e-mobility utilization and highly competitive markets can be target markets for tailored strategies. Meanwhile, South Jeolla Province, Gangwon and North Gyeongsang Province are some of the regions in Korea that can be connectively nurtured into an export cluster to establish a shared e-mobility platform for operation, charging, and after-sales services as part of the plan to reinforce the domestic industrial ecosystem.   Third, ministries and related institutions are seeking measures for responding more quickly and systematically to the increasingly complex TBTs to mitigate the burden on exporting firms, such as by improving the information provision service on unnotified and hard-to-find regulations and holding on-site business consultations for one-stop problem solving. date2024-03-26

Korea and EU enter 3rd official negotiating round for bilateral digital trade agreement

The Ministry of Trade, Industry and Energy (MOTIE) announced on March 25 that the third official negotiating round for the Korea-EU Digital Trade Agreement is to be held through March 25-27 in Brussels, Belgium, with approximately 30 persons participating in the two countries’ government delegations.   Having agreed on establishing the bilateral digital trade agreement in accordance with the high standards of the Korea-EU digital trade principles laid down in November 2022 on securing consumer and business confidence, facilitating digital trade, and taking joint response against digital protectionism, the two sides declared the launch of negotiations in October last year, followed by two rounds of official negotiations. This third negotiating round will aim to make headway by establishing the stance of both sides through discussions per each clause and narrowing differences in opinion.   The Korea-EU digital trade agreement is anticipated to set the rules for the digital economy and accelerate digital innovation through the introduction of new trade rules, while enhancing firms’ business competitiveness by expanding Korea’s digital trade network with the EU, the world’s vast economic bloc. date2024-03-25

Korea and Romania hold 10th Industrial Cooperation Committee Meeting

Trade, Industry and Energy Minister Dukgeun Ahn and Romania’s Economy, Entrepreneurship and Tourism Minister Ștefan-Radu Oprea held the 10th Korea-Romania Industrial Cooperation Committee Meeting on March 25 in Seoul to discuss measures for wider cooperation in trade, investment, industry, and energy.   Noting the two countries’ establishment of diplomatic ties in 1990 and emphasis on automotive parts and steel industry cooperation, Minister Ahn proposed in his opening address that they further the strategic partnership ties established in 2008 by building on their manufacturing industrial cooperation to expand into other areas like industrial technology, nuclear energy, defense, and infrastructure. date2024-03-25

Signing the Agreed Minutes to 10th Korea-Romania Industrial Cooperation Committee Meeting

Trade, Industry and Energy Minister Dukgeun Ahn and Romania’s Economy, Entrepreneurship and Tourism Minister Ștefan-Radu Oprea signed the Agreed Minutes to the 10th Korea-Romania Industrial Cooperation Committee Meeting on March 25 in Seoul. date2024-03-25

Korea and Romania discuss wider industrial, trade, and energy cooperation

Trade, Industry and Energy Minister Dukgeun Ahn and Romania’s Economy, Entrepreneurship and Tourism Minister Ștefan-Radu Oprea held the 10th Korea-Romania Industrial Cooperation Committee Meeting on March 25 in Seoul to discuss measures for wider cooperation in trade, investment, industry, and energy.   Launched in 2004, the Committee meeting has been held alternately in the two countries, and the 10th meeting was convened for more in-depth discussions on nuclear energy, defense, and other major bilateral issues.   Noting the two countries’ establishment of diplomatic ties in 1990 and emphasis on automotive parts and steel industry cooperation, Minister Ahn proposed in his opening address that they further the strategic partnership ties established in 2008 by building on their manufacturing industrial cooperation to expand into other areas like industrial technology, nuclear energy, defense, and infrastructure.   In view of the bilateral trade volume having achieved a record high last year, both sides agreed to expand bilateral trade and investment through exchange of trade data and participation in trade show exhibitions. The Korean delegation stated interest in joint research and development in areas like information and communications, chemicals, and bio, and the Romanian delegation introduced Romania’s energy mix policy on expanding nuclear and renewables. The two sides agreed to work together to achieve their shared goal of carbon neutrality and make joint effort towards the global diffusion of the Carbon-Free Energy (CFE) Initiative.   Furthermore, Romania expressed interest in defense cooperation with Korea, to which the Korean delegation highlighted the prospects of creating economic gains through related local investment and technology transfer. date2024-03-25