Ministry of Trade, Industry and Energy

Korea and Japan to step up cooperation in carbon regulation response

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea and Japan’s Ministry of Economy, Trade and Industry (METI) held the second Korea-Japan Global Green Policy Dialogue (“Dialogue”) today in Seoul and discussed cooperation in global carbon regulation response, carbon-neutrality policies, and clean energy areas. Launched as a follow-up measure to the two countries’ trade and industry ministers’ meeting held in April 2024, the Dialogue was elevated to director general-level in view of the rising importance of responding to global carbon regulations. The two sides concurred with making joint efforts to prevent global carbon regulations from acting as trade barriers. They also reaffirmed the need for cooperation in clean energy areas and agreed to strengthen bilateral and multilateral cooperation in achieving carbon neutrality.  MOTIE’s New Trade Strategy and Policy Support Officer Shim Jin-soo stated that as countries are taking steps to introduce carbon-related regulations, wider cooperation with likeminded countries like Japan will help to bolster Korean industries’ carbon competitiveness and minimize negative impact on exports.  Ryuzaki Takatsugu, Director-General for GX Promotion at Japan’s METI, said that it is important for Japan and Korea to work closely together to effectively respond to the green transformation and other related changes across the global landscape. Going forward, the Korean government plans to heighten support to boost domestic companies’ capacity to respond against global carbon regulations through briefings, help desks, and consultations.   date2025-01-17

Korea’s auto exports enter $70 bln thresholds for 2nd year running

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that Korea’s automobile exports for 2024 reached USD 70.8 billion, entering the $70 billion thresholds for the second year running.  Marking the second highest export record following the $70.9 billion set in 2023, the achievement is attributable to the strong performance of eco-friendly vehicles driven by the sharp growth of hybrid cars (up 45.8 percent year-on-year to $11.3 billion) despite the slowing global demand for electric vehicles. For the month of December 2024, automobile exports shrank 5.3 percent year-on-year to $6.0 billion as a consequence of safety inspections and parts manufacturing setbacks from the heavy November snow and unit export price falls from reduced EV exports. Meanwhile, overseas shipments of automobiles for the month of December rose to 251,847 units, continuing their strong upward trajectory. Korea’s annual automobile production recorded 4,128,447 units (down 2.7 percent) in 2024, 67 percent (2,782,639 units) of which were sold to overseas markets. Domestic sales in 2024 dropped 6.5 percent to 1,625,848 units as a result of dampened consumer confidence and weakened demand for EVs. However, the domestic sales of eco-friendly cars soared 18.2 percent to 650,122 units in 2024, four out of 10 newly sold cars being eco-friendly vehicles. Notably, hybrid electric vehicle (HEV) sales grew 32 percent year-on-year to 495,577 units, taking up 76 percent and 30 percent of Korea’s eco-friendly car sales and entire domestic car sales in 2024, respectively.   date2025-01-16

Korea and China hold 10th round of subsequent negotiations on bilateral FTA for services and investment

Director General for FTA Negotiations Kwon Hye-jin at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea is leading the Korean delegation in the 10th subsequent negotiating round of the Korea-China Free Trade Agreement (FTA) for services and investment through January 15–17 in Seoul. Chen Zhiyang, Deputy Division Director of the Department of International Trade and Economic Affairs at China’s Ministry of Commerce, is the chief delegate for the Chinese delegation. A total of 40 delegates from both countries are participating in the negotiations. Following the bilateral FTA’s entry into force in 2015, Korea and China launched subsequent negotiations on services and investment in March 2018 in accordance with the FTA guideline and have maintained discussions through official negotiating rounds as well as intersessional and chief delegate meetings. The 10th round is the first official round to take place since the ninth official negotiating round convened in 2020. In this round, the Korean government aims to accelerate discussions for upgrading the bilateral FTA in areas like service, investment, and finance.   date2025-01-16

Korea’s annual ICT exports achieve new highs in 2024

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced on January 14 that exports of Korea’s information and communications technology (ICT) goods for 2024 logged an all-time high of USD 235.0 billion, surpassing the previous record set in 2022 ($233.2 billion). Annual ICT imports reached $143.2 billion and the trade balance stood at a surplus of $91.8 billion.  ICT exports have maintained an upward trajectory for 14 consecutive months, entering the $20 billion thresholds for five straight months since August 2024.  Semiconductor exports led overall ICT exports with a historic high of $142.0 billion, boosted by strong demand for artificial intelligence (AI) related goods. The double-digit growth of finished mobile phones and parts exports as well as the sharp growth of computers/peripherals’ solid-state drive (SSD) exports further contributed to last year’s ICT exports performance. By region, ICT exports to China (including Hong Kong) advanced 25.3 percent year-on-year to $97.9 billion in 2024, as robust demand for semiconductors, displays, and mobile phones spurred a powerful rebound from the previous year. To Vietnam (up 14.4 percent to $36.8 billion), semiconductors and mobile phones backed the rebound from the previous year, pushing overall ICT exports over the $30 billion thresholds for the fourth consecutive year. U.S.-bound ICT exports centered on semiconductors and computers/peripherals on the backs of demand for servers and datacenters, achieving fresh annual highs of $29.6 billion (up 31.9 percent). To the EU (up 11.4 percent to $12.2 billion), continued growth of mobile phones and computers/peripherals turned Korea’s ICT exports to an expansion. ICT exports to Japan (down 9.7 percent to $3.8 billion) fell despite the growth of displays and computers/peripherals, as exports of semiconductors and mobile phones shrank. Korea’s export and import of ICT goods for December 2024 recorded $22.7 billion and $13.3 billion, respectively, and the trade balance stood at a surplus of $9.3 billion. ICT exports for the month of December ranks highest among monthly exports in 2024, entering the $20 billion thresholds for the fifth consecutive month since August.   date2025-01-14

Korea to boost industrial technology innovation via bilateral collaboration with Israel and Japan

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea held bilateral meetings with the Israel Innovation Authority and Japan’s Ministry of Economy, Trade and Industry today, respectively, to discuss measures for high-tech cooperation. During the Korea-Israel Industrial R&D Foundation (KORIL-RDF) board of directors videoconference, Korea’s Director General for Industrial Technology Convergence Policy Je Kyung-hee and Dror Bin, CEO, at the Israel Innovation Authority reviewed the two countries’ joint projects slated for this year in areas like artificial intelligence (AI), quantum cryptography communication, semiconductors, autonomous driving, and bio, agreeing to make joint effort for smooth progress. The two countries are currently engaging in industrial, academic, and R&D collaboration via joint R&D support and technical seminars based on a joint annual funding of USD 8 million through the binational KORIL-RDF established in 2001. At present, 16 joint R&D projects are underway and seven new projects are in line for 2025. It is anticipated that the two countries can look forward to creating synergy by combining Korea’s leading manufacturing base and Israel’s powerful startup business ecosystem and technology talents in advanced industries like cybersecurity, AI, and semiconductors. Prior to the Korea-Israel videoconference, Director General Je also held a meeting with Kikukawa Jingo, Director General for Innovation and Environment Policy at Japan’s Ministry of Economy, Trade and Industry. They discussed government policies for innovation, measures for private-sector R&D investment support, and technological cooperation with the incoming U.S. administration. Sharing an understanding on the need for cooperation amid the changing industrial technology landscape, both sides agreed to expand the scope of joint research and bilateral industrial, academic, and R&D exchanges going forward while seeking further areas for collaboration.   date2025-01-13

Minister Ahn discusses strengthening U.S.-Korea cooperation on industry, energy, and trade with U.S. federal and state governments

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea visited the state of Georgia and Washington, D.C. on January 6 to January 9. During his visit, he held meetings with the U.S. Secretary of Energy, the U.S. Trade Representative (USTR), the Governor of Georgia, state legislators, federal senators and representatives, leading think tanks, and other stakeholders. Additionally, Minister Ahn participated in a roundtable discussion with Korean companies operating in Georgia. During his meetings with members of the U.S. Senate Committee on Finance and House Committee on Ways and Means, which oversee trade and taxation matters, Minister Ahn emphasized the strengthened supply chain connections between the two countries, driven by investments made by Korean companies in the United States. He urged U.S. legislators to continue fostering a favorable environment for Korean companies. In a separate meeting with Senator Todd Young, co-sponsor of the "SHIPS for America Act," a bill aimed at strengthening the U.S. shipbuilding industry, Minister Ahn discussed the ongoing collaboration in formulating policies and legislation to revitalize the U.S. shipbuilding sector. Furthermore, in discussions with legislators representing states such as Georgia, Tennessee, and Alabama—key hubs for Korean investment in the U.S.—he sought active support and attention to ensure the smooth and stable implementation of Korean investment projects in these regions. Minister Ahn also held bilateral meetings with U.S. Secretary of Energy Jennifer Granholm and USTR Ambassador Katherine Tai, respectively. In these meetings, he reviewed the achievements derived from the mutually beneficial cooperation between the two governments and highlighted the need for continued collaboration in the industrial, energy, and trade sectors under the new U.S. administration. Minister Ahn stated, "This visit provided an opportunity to actively highlight the activities of Korean investors to U.S. federal and state governments as well as legislators, while reaffirming the strength of the Korea-U.S. relationship, regardless of the evolving political landscape in both countries." He added, "We will closely monitor the policies introduced by the new U.S. administration and continue to strengthen U.S.-Korea cooperation to ensure that Korean investments and business operations in the U.S. remain stable amid the changing global environment." date2025-01-10

Joint Statement of the United States of America and the Republic of Korea on the Expansion of Peaceful Nuclear Energy

The Department of Energy and the Department of State of the United States of America signed today with the Ministry of Trade, Industry and Energy and Ministry of Foreign Affairs of the Republic of Korea a Memorandum of Understanding (MOU) on Principles Concerning Nuclear Exports and Cooperation.  This MOU finalizes the provisional understanding reached by the participants in November 2024. The United States and Republic of Korea have worked together on civil nuclear power for more than 70 years.  The cornerstone of this cooperation reflects the two countries’ mutual dedication to maximizing the peaceful uses of nuclear energy under the highest international standards of nuclear safety, security, safeguards, and nonproliferation.  This MOU continues to build upon this long-standing partnership and provides a framework for the parties to cooperate in expanding civil nuclear power in third countries while strengthening their respective administration of export controls on civil nuclear technology.  It will also provide a pathway to help both countries keep up with the emergence of new technologies in this sector.  date2025-01-09

Korea and Pakistan to launch negotiations for bilateral EPA

The negotiations for an Economic Partnership Agreement (EPA) with Pakistan, South Asia's second-largest market, officially commenced, marking the start of efforts in 2025 to further expand Korea's export base through strengthened trade networks. Minister for Trade Inkyo Cheong of the Republic of Korea and Pakistan’s Federal Minister of Commerce Jam Kamal Khan formally announced the initiation of the Korea-Pakistan EPA negotiations on the morning of January 9 in Seoul. Pakistan, the world’s fifth most populous country, boasts abundant labor resources (population of 250 million, 30% youth demographic) and natural resources (coal, natural gas, copper). Strategically located in South Asia, it serves as a key potential market with borders connecting to major Asian economies like China and India. Expanding trade and investment through the Korea-Pakistan EPA is expected to yield mutual benefits, securing an export growth market for Korea and contributing to Pakistan's stable economic development. Furthermore, as the Pakistani government actively promotes policies to foster its digital, IT, and automotive industries for economic growth, opportunities for collaboration in these sectors—where Korea excels—are anticipated to expand significantly. Trade Minister Cheong remarked, “Amid heightened uncertainties due to the rapid shifts in the trade environment following the inauguration of the new administration and the weakening of the multilateral trade system under the WTO, the importance of FTAs is growing even more significant.” He added, “Starting with Pakistan, we aim to broaden our trade networks this year, focusing on emerging markets in the Global South.” Following the commencement of negotiations for an EPA with Bangladesh in November last year, today’s launch of negotiations with Pakistan is expected to lay the groundwork for long-term partnerships with key South Asian nations that demonstrate significant growth potential.   date2025-01-09