Ministry of Trade, Industry and Energy

Korea’s largest coal mine closes, opens doors to the next energy era

Trade, Industry and Energy Minister Dukgeun Ahn attended the ceremony on September 6 marking the closure of the Jangseong Coal Mine in Taebaek City, Gangwon province. He expressed appreciation to the coal mine workers and said that the ministry will seek measures to help identify alternative industries for the region in step with the transition to a carbon-free era. Korea’s largest coal mine to date, the Jangseong Coal Mine produced roughly 94 million metric tons of coal over the past 88 years, contributing to the stable supply of coal briquettes and the growth of the local economy. In recognition of the hard work and dedication, Minister Ahn presented governmental commendations to five of the Jangseong Coal Mine workers and shared the Government’s plan to increase the supply capacity of carbon-free energy sources, establish energy security, and create new energy industries. As an alternative to coal mining, Taebaek City is currently in the process of nurturing a cluster for future resources by 2029 across the Jangseong Coal Mine site, including clean methanol production facilities and a critical minerals industrial complex. The minister ensured that the Government will back the region’s efforts to uncover an alternative industry for vitalizing the local economy. date2024-09-06

Korea AI and System IC Innovation Center takes off in San Hose

The Ministry of Trade, Industry and Energy (MOTIE) announced on September 5 the launching of the Korea AI and System IC Innovation Center (K-ASIC) in San Hose, California, which will serve as a hub for supporting Korea’s system semiconductor companies’ entry into the U.S. market.  Held to promote Korea’s system chip firms and their products, the opening ceremony was attended by representatives of MOTIE, Korea Evaluation Institute of Industrial Technology (KEIT), Korea Semiconductor Industry Association (KSIA), K-ASIC tenant businesses, U.S. chip companies, Stanford University, and relevant industry insiders of both countries. Participants discussed measures for stronger Korea-U.S. semiconductor industrial cooperation. As the U.S. takes up 70 percent of the world’s system chip market, local penetration is essential for Korea’s fabless companies, IP firms, and design houses to grow into global businesses. Accordingly, the ministry has established K-ASIC in San Hose, home to major chip companies, and announced plans to provide comprehensive assistance to domestic firms for U.S. market entry through K-ASIC with respect to technology development, verification, certification consulting, promotion, and networking. Moreover, the ministry intends to continue private sector cooperation through K-ASIC as an extension of joint efforts with the U.S. for next-generation semiconductor collaboration that have continued since President Yoon Suk Yeol’s state visit in April 2023. A MOTIE official stated that AI semiconductor technology is the gamechanger that will further enhance Korea’s chip dominance and expressed hopes for K-ASIC to give birth to a world-leading company. To this end, the ministry aims to establish a base for raising the competitiveness of homegrown companies through funding, talent training, and production infrastructure support, including the development of a system chip verification support center. On occasion of the launching of K-ASIC, MOTIE will hold a conference with chip companies operating in the local U.S. market on September 6 (local time) and discuss measures for stronger support for U.S. market entry.   date2024-09-06

Korean government sharpens EV battery safety and fire response management

The Korean government announced the electric vehicle (EV) fire safety management measures today at the Ministerial Meeting on Current State Affairs chaired by Prime Minister Han Duck-soo. As the Incheon apartment parking lot EV fire in August fueled nationwide concerns over EV charger safety, the Government has come up with measures to relieve public anxiety and promote EV safety. To this end, related ministries established detailed measures based on consultations with automobile industry insiders, National Assembly discussions, and a high-level meeting of government and ruling party officials (August 25). Through the established measures, the Government aims to strengthen the entire safety management process. First, the EV battery certification system previously scheduled to begin next February will move up to October this year in the form of a pilot project. The extent of information disclosure will include key information, such as the battery maker and manufacturing technology. The list of criteria for battery inspections is to sharply lengthen and the Korea Transportation Safety Authority (TS) will swiftly expand the battery testing infrastructure. The battery data tracing system is to launch as planned in February 2025. Beginning next year, automakers not insured against product liability losses will not be eligible for EV subsidies, and the Government is considering mandating companies to buy product liability insurance. As for charge point operators (CPOs), the proposed bill on CPOs’ no-fault insurance mandate is under review.  For battery safety, the Government will work on improving the EV battery management system (BMS) functions. Hyundai, Kia and other major automakers have plans to provide free-of-charge installation of BMS for older models lacking the system. For cars already equipped with the safety system, companies plan to offer free-of-charge performance upgrades. Moreover, the Government will establish BMS standards for battery danger levels by the end of the year. Starting in the first half of 2025, firefighting authorities will be alerted of battery danger warnings of cars whose owners have agreed to information provision. The Government also aims to enhance fire prevention with fail-safe smart EV chargers that enable operators to control charging sessions, proposing to increase their distribution from this year’s 20,000 to 71,000 units in 2025. Slow-speed battery chargers are to be replaced with smart chargers taking account their lifespan and nearby firefighting facility. Based on many experts’ opinion that prompt sprinkler activation is most effective in preventing the spread of fire, the Government plans to minimize areas vulnerable to safety management through improving and expanding the provision of related equipment. All new buildings’ underground parking lots will require the installation of a wet pipe sprinkler system for fire emergencies, but the installation of pre-action sprinklers will be allowed for buildings with high risk of freezing and bursting pipes. In addition, related authorities will strengthen punishment on unauthorized disabling of sprinklers and other firefighting equipment. In light of the public sentiment toward recent EV fire accidents, the mandatory installation of charging points (2 percent) scheduled for implementation beginning in January has been granted a one-year grace period with the cooperation of local government bodies. Laws will be amended by the first half of 2025 to require the use of fire-resistant materials in building the walls, ceilings, and columns of underground parking lots for better fire prevention. To enhance fire response capacity, all 240 fire stations in the country by next year will be supplied with an increased number of EV firefighting equipment. Through public-private collaboration, the Government plans to develop small-sized, unmanned firefighting vehicles for easier access into date2024-09-06

Korea and ASEAN discuss cooperation at Indo-Pacific Policy Forum

Minister for Trade Inkyo Cheong held the Indo-Pacific Policy Forum (“Forum”) today in Seoul and facilitated discussions on economic cooperation with ASEAN, Korea’s major economic partner and core region of the Global South. Meanwhile, forecasted outcomes of the Korea-ASEAN Economic Ministers’ Meeting slated for September 21–22 in Vientiane, Laos, were also reviewed, including upgrading the Korea-ASEAN Free Trade Agreement (FTA) and the Korea-ASEAN trade and economic policy cooperation. As part of follow-up measures to the Trade Policy Roadmap announced in August, the Forum was attended by a number of ASEAN experts including those from the Korea University ASEAN Center (KUAC) and the Korea Institute for International Economic Policy (KIEP). They exchanged views on issues concerning Korea’s measures for responding to the realignment of the ASEAN supply chain as per the U.S.-China competition, as well as Vietnam’s legislation of key industrial laws and their implications. In his opening message, Trade Minister Cheong stated that ASEAN, based on its world’s third largest population and fifth largest economy, is expanding its position as the new growth engine for global manufacturing and strategic counterweight in global politics and diplomacy. He shared plans to utilize the Korea-ASEAN FTA, Regional Comprehensive Economic Partnership (RCEP) and such multilevel networks to increase joint efforts on new trade issues like digital transition and climate change, in addition to existing areas of cooperation like trade and investment.   date2024-09-06

Korea and Czech Republic discuss ways to strengthen comprehensive cooperation in nuclear, trade, industry, and energy

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn met Tomáš Pojar, the Czech National Security Adviser and special envoy of Czech Prime Minister Petr Fiala, on September 5 in Seoul to express appreciation over the selection of Korea Hydro and Nuclear Power (KHNP) as the preferred bidder for the new Czech reactor project and discuss measures for diversifying cooperation in not only nuclear power but also in trade, investment, industries, and energy. Addressing the two countries’ progress in consultations for establishing a cooperative system spanning all areas of nuclear energy including talent training and technology development, Minister Ahn conveyed anticipation towards creating a singular nuclear ecosystem together under the vision of Korea-Czech Republic joint project execution. During detailed discussions on economic cooperation in trade, investment, industries, and energy, he affirmed the importance of continuously enlarging their intergovernmental cooperation for establishing the base for all-out industrial cooperation. In this view, he stated that he looks forward to a stronger intergovernmental cooperation channel and concrete discussions between their private sectors to accelerate bilateral trade and investment as well as technology exchange. Lastly, Minister Ahn shared his expectations of seeing Korea and the Czech Republic build on the momentum spurred by this nuclear project for a wider scope of multi-level and multi-faceted cooperation in trade, investment, advanced industries, and energy. He highlighted the need for the two countries’ governments to take the initiative in laying down the institutional framework for expanding their comprehensive and forward-looking cooperation.   date2024-09-06

MOTIE holds conference with KCCI and foreign-invested companies

Minister for Trade Inkyo Cheong held a conference today at the Korea Chamber of Commerce and Industry (KCCI) with foreign-invested companies and KCCI personnel on measures to expand foreign direct investment (FDI) under the aim of nurturing Korea into a business and investment hub amid the vastly changing paradigm of the global trade order. Trade Minister Cheong noted how the Yoon administration is achieving fresh FDI highs each year since taking office, with this year’s advanced manufacturing sector enjoying an all-time high FDI for the first half (H1), displaying Korea’s potential as a supply chain hub. Introducing the Trade Policy Roadmap announced by the Government last month, the trade chief shared plans to drastically expand markets accessible to Korea-based firms and foster an attractive trade and investment environment suitable for the stable development of management strategies. Next, he introduced the Korea Trade-Investment Promotion Agency (KOTRA)’s Foreign Investment Ombudsman and Foreign Investor Support Office (FISO) services, as well as the amendment (January 2024) permitting the lease and sale of state and public property in Korea’s free economic zones (FEZs) to foreign-invested businesses.  Foreign-invested companies attending the conference expressed appreciation over the Korean government’s efforts to create a business-friendly environment and suggested incentives like tax credit, deregulation, and increased funding to promote freedom of management activities and expand investment. Based on suggestions from this conference, the Ministry of Trade, Industry and Energy (MOTIE) will continue efforts to improve the foreign investor environment. On the occasion of the Invest KOREA Summit slated for November, the ministry also plans to actively promote Korea’s investment environment and build up networking among foreign investors and Korea’s public-private entities with aim to broaden the base for foreign investment attraction.   date2024-09-05

Korea and Japan gear up joint efforts to catalyze carbon-free energy utilization

Korea’s Director General for Energy Policy Choi Yeon-woo at the Ministry of Trade, Industry and Energy (MOTIE) and Japan’s Director General for International Policy on Carbon Neutrality Kihara Shinichi at the Ministry of Economy, Trade and Industry (METI) jointly held the Korea-Japan Energy Policy Dialogue today on the sidelines of the World Climate Industry EXPO (WCE 2024) in Busan.  In view of Korea and Japan’s high dependence on energy import and similarities in the energy supply and consumption structure, the two sides acknowledged the need to bolster energy security and carbon neutrality response amid the recently unstable global energy market and supply chain crises, agreeing to closely cooperate on expanding clean energy, such as hydrogen, ammonia, and offshore wind power. They also discussed plans for launching a global working group to accelerate the utilization of carbon-free energy sources and shared views regarding the collaboration between Korea’s Carbon Free Energy (CFE) Initiative and Japan’s Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Electricity Initiative (ICEI), the two countries’ respective clean energy campaigns. In April this year, the two sides held bilateral trade and industry ministerial talks, where they agreed to cooperate through the CFE Initiative to achieve carbon neutrality. Furthermore, they reaffirmed their role as co-leads of the global working group to be launched on the margins of the Clean Energy Ministerial (CEM) slated for October 2024 in Brazil and decided to discuss related issues in detail. With aim to promote carbon-free energy sources for electricity (Scope 2) based on mutual collaboration between the CFE Initiative and ICEI, the two sides exchanged joint measures to this end, such as encouraging IPEF member countries’ participation in the initiative, creating a guidebook for clean electricity procurement companies, and hosting joint seminars. Lastly, the director generals concurred on the importance of utilizing diverse and realistic means to achieve carbon neutrality in recognition of countries’ varying energy situations and industrial conditions, agreeing to further discussions on cooperation measures for carbon neutrality.   date2024-09-05

Trade Minister Cheong and U.S. thinktank leader discuss Korea’s response measures to global uncertainties

Korea’s Minister for Trade Inkyo Cheong met with Woodrow Wilson International Center (“Wilson Center”) President and CEO Mark Green today and discussed response measures for Korea in the midst of intensifying geopolitical uncertainties and rising protectionism across the trade landscape in this super election year. The Wilson Center is a U.S.-based thinktank and a renowned source of various ideas in establishing U.S. foreign policies. It is considerably interested in U.S.’ cooperation with Korea and the Indo-Pacific region. The bilateral talks were convened on the margins of President Green’s visit to Korea to discuss cooperation with business leaders of Korea and Japan through a trilateral Korea-U.S.-Japan meeting. Trade Minister Cheong conveyed Korea’s interest in the coming presidential elections and ensuing U.S. foreign policy shifts, highlighting that their bilateral alliance is critical and requires close cooperation in areas of industry, economy, diplomacy and national security, irrespective of election outcomes. With regard to future policy recommendations, he requested that the Wilson Center consider Korean companies’ increased investments and trust in the U.S. government, while also taking account of the international relations of U.S. allies. They further discussed the possible impact from key trade issues, such as the U.S.’ additional tariff measures on Chinese-origin goods, the Russia-Ukraine war, and energy supply chain anxieties caused by Middle East tensions and exchanged views on Korea’s response measures.   date2024-09-05