Ministry of Trade, Industry and Energy

Korea and EU negotiate upgrading bilateral digital trade rules

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that its Office of the Minister for Trade and the European Commission are entering the seventh official negotiating round for a bilateral Digital Trade Agreement (DTA) from December 16–17 in Seoul. On the margins of the bilateral Free Trade Agreement (FTA) Trade Committee meeting in October 2023, the two sides launched the Korea-EU DTA negotiations based on the shared understanding for the need to upgrade e-commerce rules under the Korea-EU FTA in order to adequately respond to the evolving trade landscape amid the digital trade expansion and emergence of new digital trade issues such as data and cybersecurity. Following a series of six negotiating rounds with the aim of establishing high-level digital trade norms, this seventh round seeks to move the previous negotiations forward in an effort to narrow differences. The Korea-EU DTA is expected to help lay down a stable digital trade cooperation base for both sides through invigorating the trade of digital products and services by cutting transaction costs and catalyzing the digitization of the entire trade process, while also facilitating Korean businesses’ data collection and utilization activities with the guarantee of free data transfer.   date2024-12-16

KATS Holds 58th technical regulation committee meeting

The Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea held the 58th Technical Regulation Committee (“Committee”) meeting today in Seoul for discussions on the proposed plan to review the effectiveness of conformity assessment for the upcoming Phase 3 (2025–2027). To ease burden on businesses, KATS has been evaluating the impact of newly introduced or tightened technical regulations on firms since 2013 in accordance with the Framework Act on Administrative Regulation. Since 2019, it has also been reviewing the need for the continued existence of legal certification systems once every three years in accordance with the Framework Act on National Standards. KATS runs the Committee under these objectives comprising private technical regulations experts. In compliance with the Framework Act on National Standards, KATS reviewed 250 certification systems from 2019–2022 and in 2024, the Bureau of Regulatory Innovation and Reform under the Office for Government Coordination reviewed 257 certification systems. Today’s discussions covered measures for private experts and stakeholders to review systems requiring numerous certifications and impose a heavy burden on businesses and citizens, with an aim to overhaul certification systems that are lacking in terms of effectiveness and tend to impede corporate innovation. Attendees also discussed plans with regard to reinforcing the Committee’s mandatory public-private joint review process to curb the further creation of new certifications and modify related rules to allow businesspersons to participate in the Committee to better incorporate onsite opinions. Socially controversial technical regulations and certification system revision measures may be obligated to undergo a Committee review. KATS plans to table the abovementioned proposal to review the effectiveness of conformity assessment for the upcoming Phase 3 (2025–2027) and other key agendas to the Committee. date2024-12-13

Fabless companies win recognition for contribution to advancing Korea’s fabless industry

Director General for High Technology Industry Yoon Sung-hyuk at the Ministry of Trade, Industry and Energy (MOTIE) attended the 2024 Fabless Day ceremony on December 11 in Seoul, hosted by the Korea Fabless Industry Association, where contributors to the fabless industry development were presented with government awards. Now in its second year, the ceremony was held with the participation of 100 representatives of major Korean fabless and semiconductor design house companies like Nextchip, Telechips, ABOV Semiconductor, and GAONCHIPS, as well as related institutions such as the Ministry of SMEs and Startups (MSS), Seongnam City, and the SeongNam Industry Promotion Agency (SNIP). During the ceremony, nine government awards were given to fabless companies recognized for their contribution to innovating and developing the domestic fabless ecosystem, including the Korean fabless company Nemesis, which was awarded the Trade, Industry and Energy Minister’s Commendation.   date2024-12-12

Korea launches 28th New Technology Commercialization Promotion Competition

The Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea launched the New Technology Commercialization Promotion Competition (“Competition”) on December 11 in Seoul to encourage new technology development and catalyze the expansion of sales channels and investment support. At the Competition, government awards were presented to 47 persons and institutions of merit for their contribution to developing and commercializing new and innovative technologies in addition to expanding sales channels. Moreover, a total of 35 new technology and new product certificates were awarded for the second half of this year. This year’s Silver Tower Order of Industrial Service Merit went to JNG CEO Park Jong-woo for the groundbreaking contribution to improving the air conditioning and heating efficiency of geothermal heat pump systems through air-conveying power reduction technology. The Industrial Service Medal went to Park Chang-joo, a department head at DL E&C for contributing to enhancing fire safety and the firefighting industry by developing the two-way intake and exhaust control system. On the margins of the Competition, three memorandums of understanding (MOUs) were signed among certified firms, venture capital firms, and a technology evaluation institute to accelerate the initial follow-up investment outcomes of the agreement signed last year to promote investment for new product- and technology-certified firms.   date2024-12-12

Ttrade experts discuss strategic measures in response to incoming U.S. administration’s trade policies

Minister for Trade Inkyo Cheong of the Republic of Korea convened a conference on December 10 at the Korea Security Agency of Trade and Industry (KOSTI) in Seoul with trade and international relations experts. With the inauguration of the new U.S. administration a month away, the conference was held to share the Korean government’s progress in preparations and to facilitate in-depth discussions among trade experts and related leaders on strategic response measures. Trade Minister Cheong stated that, powered by large-scale investments, the two countries are highly interconnected in advanced technology and supply chain areas, based on which efforts will continue to maintain mutually beneficial cooperative relations and minimize negative impact on Korean businesses. Korea’s Ministry of Trade, Industry and Energy (MOTIE) plans to closely communicate with businesses while making whole-of-the-government efforts to prevent the recent domestic situation from affecting preparations with respect to the upcoming U.S. regime change.   date2024-12-11

Trade Minister Cheong Discusses Investment Cooperation with AMCHAM Korea to Address Changing Trade Landscape

Minister for Trade Inkyo Cheong of the Republic of Korea met the delegation from the American Chamber of Commerce in Korea (AMCHAM Korea) today in Seoul to discuss measures for promoting foreign investment, propelling Korea as Asia’s leading business hub, and strengthening Korea-U.S. trade cooperation. AMCHAM Korea Chairman and CEO James Kim noted U.S. companies’ strong interest in the Korean market, highlighting the need for Korea to undergo regulatory reforms in labor markets, tax administration, and the digital economy among other areas to take the opportunity amid the recent global supply chain realignment and economic fragmentation to develop into a major business hub in the Asia-Pacific. Trade Minister Cheong expressed appreciation towards AMCHAM Korea’s confidence in the Korean market as well as its contribution to creating quality jobs and boosting local economies, vowing that government policies will be carried out according to plan despite the recent domestic situation so that foreign-invested companies can freely focus on business activities. Starting with today’s talks, the Ministry of Trade, Industry and Energy (MOTIE) plans to maintain communication with other foreign Chambers of Commerce in Korea as well in order to boost foreign investment.   date2024-12-11

Minister Ahn Discusses Korea-U.S. Economic Cooperation with NGA Vice Chair Oklahoma Governor

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea held talks with U.S. National Governors Association (NGA) Vice Chair Oklahoma Governor Kevin Stitt today in Seoul, underscoring how the two countries have advanced to a key economic partnership and security alliance based on investment and technology cooperation. They also discussed the importance of a continued mutually beneficial Korea-U.S. cooperation going forward under the incoming U.S. administration. During the talks, Minister Ahn highlighted the need to enhance bilateral economic cooperation and to minimize business uncertainties for Korean firms engaging in close collaboration with U.S. companies through building trust and positive anticipation by maintaining the continuity of major U.S. policies throughout the change of administration. The two sides concurred on the importance of the Korea-U.S. cooperative relations in strengthening their respective industrial ecosystems and stabilizing the global supply chain, agreeing to make concerted efforts to establish constructive and stable Korea-U.S. ties. In addition, Minister Ahn suggested that the two sides seek concrete cooperation measures in view of the considerable potential for synergy from Korea’s aim to secure diverse energy sources to foster a stable energy ecosystem and Oklahoma’s abundance in resources like petroleum, gas, and renewable energy. He asked the NGA Vice Chair’s interest and support towards creating a consistent and stable investment and business environment to encourage Korean companies’ investment in the U.S.   date2024-12-11

Korea and China launch 6th FTA Joint Commission meeting

Minister for Trade Inkyo Cheong of the Republic of Korea and China International Trade Representative and Vice Minister of Commerce Wang Shouwen led their respective delegations for the sixth Korea-China Free Trade Agreement (FTA) Joint Commission (“Commission”) meeting today in Seoul. A follow-up to the Korea-China highest-level talks held this May in Seoul and the summit talks convened this November in Peru, today’s Commission meeting aims to assess the implementation progress of the Korea-China FTA that came into effect in December 2015.  During the meeting, the two sides agreed to accelerate negotiations on services and investment and foster a more predictable business environment. In view of the FTA’s substantial contribution to the two countries’ bilateral trade and investment over the last decade, both sides will keep utilizing the FTA as a major platform for enhancing their mutually beneficial economic cooperation going forward. Moreover, the joint research on Korea-China FTA implementation conducted by the Korea Institute for International Economic Policy (KIEP) and China’s University of International Economics and Trade in commemoration of the upcoming 10th anniversary of the bilateral FTA found that as of 2023, the two countries’ FTA utilization rate reaches 73.3 percent and 85.8 percent for exports and imports, respectively, and that their bilateral trade volume has increased on an average of 4.5 percent per year from 2015 to pre-COVID 2021. The two sides are planning to launch further sessions of the briefing on China’s export controls for Korean companies and the Korea-China supply chain hotline meeting next year to continue cooperation on stabilizing supply chains. date2024-12-09