Ministry of Trade, Industry and Energy

Korea’s ICT exports climb 28.5% in August

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that Korea’s export and import of information and communication technology (ICT) goods for the month of August 2024 reached USD 20.6 billion and $11.6 billion, respectively, and the trade balance stood at an estimated surplus of $9.0 billion. ICT exports (up 28.5 percent year-on-year) logged double-digit growth for the eighth consecutive month on the backs of robust growth of semiconductors (up 37.6 percent), mobile phones (up 60.1 percent), and computers and peripherals (up 144.2 percent). By item, semiconductors posted double-digit growth for the 10th consecutive month as memory chips (up 71.7 percent to $7.3 billion) and system chips (up 2.7 percent to $4.1 billion) simultaneously advanced. Mobile phone exports surged over 60 percent as finished products (up 95.0 percent to $0.3 billion) and parts (up 53.0 percent to $1.3 billion) enjoyed strong demand. Computers and peripherals skyrocketed as solid-state drives (SSDs) hit a monthly export value of $1.3 billion (up 249.8 percent). By region, exports increased for most destinations, including China (including Hong Kong) (up 27.0 percent), Vietnam (up 7.5 percent), the U.S. (up 57.6 percent), and the EU (up 44.3 percent), whereas exports to Japan declined (down 17.2 percent).   date2024-09-13

Trade Minister Cheong engages in wide-ranging outreach to U.S.

Korea’s Minister for Trade Inkyo Cheong met various key figures in the Biden administration, U.S. Congress, academia, and financial circles in Washington D.C. and New York City during his visit from September 11–12 as part of outreach activities to advance the mutually beneficial economic and trade cooperation between Korea and the U.S. amid increasing changes in the trade environment. Among those in the current administration, Trade Minister Cheong met with Deputy Secretary of Commerce Don Graves and discussed the outcomes and follow-up measures to the Korea-U.S. Supply Chain and Commercial Dialogue Ministerial Meeting and the Korea-Japan-U.S. trilateral Commerce and Industry Ministerial Meeting held in June, as well as Korea’s Indo-Pacific Economic Framework for Prosperity (IPEF) Crisis Response Network chairmanship and other trade issues.  The trade chief met U.S. Representative Young Kim to discuss visa issues and asked support for investment incentives under the Inflation Reduction Act (IRA) and other agendas of interest for Korean businesses. He also met with former Representatives Ron Kind, Jim Davis, and Tom Davis to discuss response measures to future U.S. industrial and trade policies. At Google’s New York headquarters, he sat down with executives to exchange views on digital trade policy development and ways to deepen Korea-U.S. advanced technology cooperation in AI, smart devices, and cloud computing before touring the cutting-edge working environment at Google’s New York campus.   Meanwhile, Trade Minister Cheong took part in the various events convened on the occasion of his visit. He attended the Korea-U.S. Economic Cooperation Seminar and Investors Roundtable for wider scope of bilateral cooperation and gathered business issues from locally operating Korean companies. On the last day of his trip, he met with experts from LG Business Research and U.S. law firm Arnold & Porter at the Korea-U.S. Economic Cooperation Seminar to take stock of trade, investment and technology cooperation outcomes. Lastly, the trade minister met Eurasia Group President Ian Bremmer among other leaders of major think tanks like Asia Society to assess the Korea-U.S. alliance and its role amid the rapidly changing global dynamics. In view of the growing geopolitical importance placed on East Asia, they discussed tasks to tackle for Korea to rise as a key country in terms of trade, economy, and security. Trade Minister Cheong stated that this trip to the U.S. leading up to its presidential elections is expected to further catalyze the two countries’ economic exchanges going forward.   date2024-09-13

K-Defense slicks up design, making ready for global market

The Ministry of Trade, Industry and Energy (MOTIE) and the Defense Acquisition Program Administration (DAPA) of the Republic of Korea held the first Defense Industry and Design Convergence Forum (“Forum”) today at the Korea Institute of Design Promotion (KIDP) in Gyeonggi Province, following the signing of a memorandum of understanding (MOU) for stronger collaboration in weapon systems design, with the participation of 30 related institutions including the Korea Defense Industry Association (KDIA) and design and defense specialized companies. Amid the recent increase of Korea’s arms exports, MOTIE and DAPA held the Forum based on a shared recognition of the need to closely cooperate in developing weapon systems design with aim to preemptively incorporate importers’ requests on not only the performance but also the weapon systems design, user convenience, and safety of Korean defense goods. In his congratulatory remarks, MOTIE’s Vice Minister Sungtaek Park vowed active policy support for the two industries’ collaboration and convergence, sharing plans to strengthen the technological prowess of design firms with respect to AI-based modeling as well as virtual reality (VR)- and augmented reality (AR)-based mockup environment technology.  Plans further include a joint project to support the development of optimal design for defense goods, providing education and design consulting to defense industry insiders at the Design-Driven Manufacturing Innovation Center, selecting and launching pilot projects by the first half of 2025 on improving the weapon systems’ usability and efficiency, and continuing to uncover collaboration items to tie in with project outcomes. For continued collaboration between the two industries, DAPA will uncover projects and conduct demand surveys on weapon systems design improvement, while MOTIE will aim for early commercialization through matching of design-specialized firms and joint projects. Vice Minister Park highlighted that design is a form of soft power that enhances product competitiveness and attractiveness, expressing anticipation for cooperation between MOTIE and DAPA to reduce industrial boundaries and creates synergy for discovering new growth engines.   date2024-09-13

Korea to host 1st World Standards Forum in Seoul in 2025

The Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) attended the General Assembly of the International Organization for Standardization (ISO/GA) held from September 9–13 in Cartagena, Colombia, and announced today that the first World Standards Forum will kick off in Seoul in December 2025. Having discussed the launching of a business-led global standards forum for some time, the ISO, the International Electrotechnical Commission (IEC), and the International Telecommunication Union (ITU) officialized plans for the World Standards Forum on the occasion of ISO/GA. The World Standards Forum was proposed by ISO President Sung Hwan Cho’s to the World Standards Cooperation (WSC) with aim to create a next-generation standards forum addressing worldwide issues such as artificial intelligence (AI) and climate change with the participation of global business leaders.  Held under the theme of “Standards for a Better World,” the World Standards Forum 2025 will share best practices and facilitate open discussions on standards strategies from a business perspective among world-leading CEOs and CTOs.  The event is anticipated to serve as an opportunity for strengthening Korean companies’ international standards leadership through strategic cooperation and establishment of collaboration channels with global firms in line with the national standardization strategy for advanced industries announced by the Korean government this May.   date2024-09-12

IPEF partner countries to simulate first mock drill for supply chain crisis response

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that Indo-Pacific Economic Framework for Prosperity (IPEF) partner countries will conduct a mock drill to simulate supply chain emergency response on September 13 (local time) in Washington D.C. under the leadership of Korea, which was elected as the inaugural chair of the Crisis Response Network (“CRN”). CRN is a network created under the IPEF to foster collaboration during supply chain disruptions. The mock drill will simulate a situation where a partner “Country A” requests Korea to convene an emergency meeting owing to damages from a logistics crisis incurred by global anxieties. The objective of this first drill lies in helping partners grasp the CRN mechanism. Any deficiency discovered during the drill will be addressed through necessary measures such as amendment of rules, system improvements, and joint projects if needed. In the drill, the group assigned as “exporter countries” will propose detailed support measures such as increasing production output through existing contacts, finding alternative suppliers, and expediting customs and shipping. Meanwhile, the importer group of partners including Country A is to share stockpile status and seek ways for price stabilization through demand control such as restricting the act of market cornering. Partners can also consider sourcing from non-partner countries outside of IPEF. This mock drill is significant in that it takes stock of vulnerable items of the 14 partner countries’ supply chain and examines feasible measures prior to the occurrence of an actual emergency in order to establish a swift and systematic response process. Minister Dukgeun Ahn underscored that now is the time when multilateral cooperation-based collective resilience is required, as when and where a supply chain crisis will occur is unknown.  According to the CRN roadmap MOTIE announced today, mock drills are to be held twice a year based on various scenarios involving pandemic outbreaks, natural disasters, and supply chain bottlenecks. Next year, Korea plans to host an in-person drill alongside its regular CRN meeting. During the two years of chairmanship, Korea aims to manage CRN in ways that can tangibly benefit partner countries by constructing initiatives to support the region’s developing countries bolster supply chain resilience and establishing a mechanism for sharing best practices and policies on supply chain crisis response.   date2024-09-12

Korea and Philippines hold 3rd Joint Commission for Trade and Economic Cooperation meeting

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea held the Korea-Philippines Joint Commission for Trade and Economic Cooperation (“Commission”) meeting via videoconference with the Philippines’ Department of Trade and Industry on September 12 to discuss the Korea-Philippines Free Trade Agreement (FTA) and measures for cooperation in areas like shipbuilding and eco-friendly vehicles.   The first ASEAN country with which Korea established diplomatic relations, the Philippines is currently home to approximately 300 Korean firms that are locally operating on the islands and contributing to bilateral economic cooperation.   Convened after a two-year hiatus, the Commission meeting was led by Korea’s Deputy Minister for Trade Yang Byeong-nae and the Philippines’ Assistant Secretary for Industry Development and Trade Policy Allan B. Gepty as Chief Delegates heading their respective delegations. The Chief Delegates assessed the Korea-Philippines FTA (signed in September 2023) as a major milestone in bilateral efforts to expand economic cooperation and agreed to take steps for the Agreement’s swift entry into force. Moreover, the two sides shared the progress on their agendas under the Indo-Pacific Economic Framework for Prosperity (IPEF), for which they have engaged in cooperation since its initial launch, and concurred on making joint effort to produce tangible outcomes.   By leveraging the Philippines’ archipelagic advantage and Korea’s shipbuilding competitiveness, the two sides are aiming to seek collaboration prospects across various areas such as offshore wind power and ship maintenance, as well as expanding cooperation in eco-friendly vehicles including the development of electric buses to run in the Philippines.   Next, the Korean delegation shared its energy policy directions and introduced Korea’s Carbon Free Energy (CFE) Initiative and other climate change response endeavors, to which the Philippines expressed hope for future collaboration in energy security, carbon reduction, and various related areas. They also agreed to launch working-level talks on measures to strengthen cooperation in critical raw materials. date2024-09-12

Advanced materials and logistics companies pledge $83.6 mln investments in Korea

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced on September 11 that United Parcel Service (UPS), Toray Advanced Materials Korea, and a semiconductor specialty gas manufacturer (“Company A”) submitted investment declarations worth approximately USD 83.6 million (KRW 112 billion) during Trade Minister Inkyo Cheong’s visit to the U.S. The world’s largest package delivery service company UPS currently operates a logistics business in Korea centering around its air express hub at Incheon International Airport (ICN). The multinational shipping company has pledged investment to advance its freight handling system at ICN, which is viewed to strengthen Korea’s logistics industry competitiveness through expedited services. Alongside the UPS' investment declaration, two other companies pledged investment during the trade chief's visit to the U.S. Toray Advanced Materials Korea, a global supplier of advanced material solutions, plans to expand facilities for producing polyester film, an advanced material used in the manufacturing process for displays and multilayer ceramic condensers (MLCCs). Meanwhile, Company A, producer of specialty gases used in the etching and cleaning process for manufacturing semiconductors, plans to expand facilities for producing specialty gases used for leading-edge chip manufacturing. These investments are expected to not only expand the advanced materials production base in Korea but also help stabilize the domestic chip industrial supply chain. On the heels of the investment declaration ceremony, Trade Minister Cheong attended the Investors Roundtable and discussed global industry trends as well as plans and issues concerning investments in Korea with representatives of DuPont, UPS, Emp Belstar, Factorial Energy, and Morgan Stanley.   MOTIE will be assigning ministry officials to take exclusive charge of each project for the swift and smooth facilitation of the declared investments and take steps to attract new foreign direct investment (FDI) in advanced industry sectors like semiconductors, secondary batteries, bio, and electric vehicles (EVs) to spur the economy and attain this year’s FDI target of $35 billion. date2024-09-12

Korea-U.S. Economic Security Conference 2024 seeks to boost public-private cooperation on security agendas

Korea’s Minister for Trade Inkyo Cheong attended the Korea-U.S. Economic Security Conference 2024 on September 10 in Washington D.C. alongside U.S. Under Secretary of Commerce for Industry and Security Alan Estevez. Now in its third year, the Korea-U.S. Economic Security Conference 2024 is an event hosted by the Korea Strategic Trade Institute (KOSTI) and sponsored by the Ministry of Trade, Industry and Energy (MOTIE) where Korea and U.S.’ public-private experts gather to seek opportunities for joint response to changes across the global economic security environment and discuss measures for wider cooperation. Attending this year’s bilateral Economic Security Conference were policy authorities from the U.S. Department of Commerce (DOC) and Department of State (DOS), as well as relevant experts from the Center for Strategic and International Studies (CSIS), Samsung Electronics, and the Semiconductor Industry Association (SIA). Participants exchanged views on the latest economic security issues such as export controls, financial sanctions, foreign investment review, technology protection, supply chains, and their implications. They also discussed joint projects in Korea-U.S. economic security cooperation. On the margins of the event, KOSTI and the Middlebury Institute's James Martin Center for Nonproliferation Studies (CNS) entered into a memorandum of understanding (MOU) for cooperation on economic security related joint research and exchanges going forward. CNS is a world-renowned nongovernmental organization in the U.S. committed to research on nonproliferation and export control developments. In his keynote speech, Trade Minister Cheong articulated plans to upgrade the trade, investment, and technology security system for a more seamless protection over Korea’s strategic assets, while also increasing joint efforts with the U.S. based on their shared core values with regard to supply chains, advanced technology cooperation, and other economic security agendas.   date2024-09-11