Ministry of Trade, Industry and Energy

April Car Industry Trend

Also, despite the decline in the Won/USD exchange rate, exports increased by 14% - 299, 268 cars – thanks to the recovery of major markets, such as the US and China. * Won/USD Exchange Rate Trend (Won): 1,064.5(End of March) → 1,041.5(4/9) → 1,035.0(4/28) →1,030.6 (4/29) ○ 2014 April - Production : 433,799 - Domestic sales : 147,765 - Domestic : 131,053 - Import : 16,712 - Export : 299,268 - (Amount) ○ Month-on-month - Production : 1.9 - Domestic sales : 6.9 - Domestic : 7.0 - Import : 6.2 - Export : 4.9 - (Amount) : 4.7 ○ Year-on-year (month) - Production : 12.3 - Domestic sales : 11.2 - Domestic : 10.2 - Import : 25.5 - Export : 14.0 - (Amount) : 18.9       ○ 2014 Jan-April - Production : 1,588,652 - Domestic sales : 529,803 - Domestic : 468,657 - Import : 61,146 - Export : 1,086,772 - (Amount) : 174.3 ○ Year-on-year (quarter) - Production : 5.9 - Domestic sales : 8.0 - Domestic : 5.9 - Import : 26.6 - Export : 4.2 - (Amount) : 8.9         Prompted by the new car effect and the increase of the average export price, the export amount for completed cars (as of MTI741, preliminary) reached 4.83 billion USD, the largest figure in the history of Korea’s automobile industry. Car parts (as of MTI742, preliminary) recorded 2.34 billion USD in exports thanks to the expansion of overseas production by the domestic automakers and an increase of the supply by overseas automakers. This figure is the second-largest figure for the monthly parts export amount. The number of complete cars produced by Korean automakers abroad was recorded as 1,018,332 cars for the first quarter of 2013 and as 1,088,902 cars for the first quarter of this year. date2014-05-16

South Korea’s Information and Communications Technology (ICT) Industry Records Highest Monthly Exports and Trade Balance in April

South Korea’s exports of information and communications technology (ICT) products rose 4.5 percent in April from a year earlier, recording USD 14.76 billion. Despite external challenges including low consumption by emerging economies and low exchange rates, shipments to major trade partners such as China (including Hong Kong), the US and Japan have grown. By region, China (including Hong Kong) was USD 7.36 billion, up 5.5%; the US was USD 1.73 billion, up 12.9% and Japan was USD 0.57 billion, up 32.1%. By products, semiconductors was USD 4.84 billion, up 12.4%; mobile phones was USD 2.45 billion, up 11.8%; D-TV was USD 0.65 billion, up 14.7%. Most notably, system memory*, which has seen a low export trend since the second half of last year, showed export growth for the first time in 2014. * Export growth rate (%): December 2013, up 6.7 → January 2014, up 18.6 → February 2014, up 13.7 → March 2014, up 6.0 → April 2014, up 4.5 Prompted by the recent ICT export growth, monthly exports for April and accumulated exports for April recorded historic highs of USD 14.76 billion and USD 55.91 billion, respectively. Imports of semiconductors (USD 2.96 billion, up 0.7%), PCs and peripherals (USD 0.82 billion, up 8.7%) and display panels (USD 0.47 billion, up 2.4%) increased, while imports from Japan (USD 0.92 billion, down 15.4%) the US (0.65 billion, down 5.0%) and the Middle East (USD 0.04 billion, down 14.9%) declined. - Imports of parts for connectivity (PCB, etc., USD 0.41 billion, down 9.0%) and D-TV (USD 0.03 billion, down 0.1%) declined. - Imports from China (including Hong Kong, USD 2.53 billion, up 9.1%), ASEAN (USD 1.16 billion, up 13.2%) and EU (USD 0.52 billion, up 1.7%) grew date2014-05-14

The Results of the Korea-New Zealand FTA Intersessional Meeting

Both parties exchanged their opinions through in the sections such as goods, investment, rule of origin, cooperation, and general provisions. The goods did not see much progress in the negotiation as the two countries failed to narrow the gaps of the degrees of protecting agricultural goods and maintaining balanced interests between both countries, while other areas including rule of origin and general provisions were progressed to a certain degree. The parties plan to have the next round of negotiation in New Zealand in early June in order to discuss the major issues. In the next round, the Korean government will endeavor to achieve balanced interests between Korea and New Zealand. date2014-05-09

Ministry of Trade, Industry & Energy (MOTIE) to Hold the Fifth Clean Energy Ministerial

The discussions will focus on identifying smart policies, programs, and innovative strategies to increase energy efficiency, enhance clean energy supply, and expand energy access. It is expected that new commitments to advance those goals from governments and from the year-round work that has taken place through some of the 13 CEM initiatives will also be announced at the end of the two days. “The Clean Energy Ministerial is a meeting where the world’s 23 leading countries in new energy technologies discuss concrete action, not just debating about expanding the supply of clean energy and improving energy efficiency,” Minister Yoon Sang-jick said before the meeting. “Every year, we review the performance of each initiative, form partnerships among participating members and focus on implementing actual substantive results. Since Korea’s appointment as Secretariat of the International Smart Grid Action Network in 2011, we have played a leading role in systems development and supply expansion and will share the results of our activities at CEM5,” the minister said. CEM5 will bring together ministers from 23 participating governments and 3 international organizations. The 23 participating countries are Australia, Brazil, Canada, China, Denmark, the European Commission, Finland, France, Germany, India, Indonesia, Italy, Japan, Korea, Mexico, Norway, Russia, South Africa, Spain, Sweden, the UAE, England, and the US. Other organizations taking part are the International Energy Agency (IEA), the International Partnership for Energy Efficiency Cooperation (IPEEC), and the International Renewable Energy Agency (IREA). This year’s CEM is the fifth to be held since US Secretary of Energy Steven Chu first announced at the United Nations Framework Convention on Climate Change (UNFCCC) conference of parties in Copenhagen in December 2009 that he would host the 1st Clean Energy Ministerial to bring together ministers responsible for clean energy technology from the world’s major economies. The CEM is the only regular meeting of energy ministers discuss and access progress and guide work under clean energy initiatives. * CEM host nations: 1st (US), 2nd (UAE), 3rd (UK), 4th (India), 5th (Korea), 6th (Mexico) * Smart grid: Next-generation power grid that enables energy conservation, new &amp; renewable energy supply and electric vehicle operation by combining IT with existing power grids for two-way exchange of real-time, power-related information between providers and users MOTIE is a government ministry in charge of policy related to commerce, trade, industry, resources, and energy. The ministry has a 1st Vice Minister who is responsible for industry and technology and a 2nd Vice Minister in charge of trade and energy. Their offices oversee the Office of Planning and Coordination, the Office of International Trade and Investment, the Office of Industrial Policy, the Office of Industrial Foundation, the Office of FTA Negotiations and the Office of Energy and Resources. Minister Yoon Sang-jick was formerly the 1st Vice Minister of the Ministry of Knowledge Economy and has been leading MOTIE since 2013. Source: MOTIE Homepage: http://www.motie.go.kr • Media Contact Information: Mi Jeong HAN (FCA, PR Agency) <a target="_blank" class="pdf" href="http://english.motie.go.kr/wp-content/uploads/2014/10/Ministry-of-Trade-Industry-Energy-MOTIE-to-Hold-th date2014-05-08

Korea Holds the Resources Cooperation Committee Meetings with Australia and Papua New Guinea

More notably, the two countries initiated cooperation for the energy and resources sectors of two countries, based on Korea’s excellence in the area of manufacturing, by entering into an MOU for GTL FPSO (the floating liquid fuel manufacturing process using natural gases) and an MOU for cooperation in the utilization of mining byproducts. * Signing of MOUs: An MOU between the Korea Institute of Geoscience and Mineral Resources and SMI (Sustainable Minerals Institute) of the University of Queensland (for research on mining byproducts and its application); and an MOU between KIST and CSIRO (for research on GTL FPSO) * GTL FPSO (Gas to Liquid Floating Production Storage and Offloading): The process through which GTL is manufactured using natural gases on the FPSO Vice Minister Han (the head of the Korean delegation) said, “Australia is an important partner to Korea in terms of supporting our energy security and a stable supply of mineral resources, as it is Korea’s largest mineral resources supplier and the largest destination for Korea’s overseas mineral resources investments. We will expand the areas of cooperation to be covered by the FTA by developing new areas in which we can work together that capitalize on Korea’s manufacturing excellence.” After visiting Australia, the Korean delegation will visit Papua New Guinea, which is emerging as a supplier of natural gases and minerals such as copper, gold and silver, and will hold the third Korea-Papua New Guinea Resources Cooperation Committee meeting to discuss measures for cooperation between the two countries. * Agendas of the Korea-Papua New Guinea Resources Cooperation Committee meeting: Cooperation for development of gases, LNG, energy and resources and prevention of mine reclamation * Signing of an MOU: between Mine Reclamation Corporation and Mineral Resources Authority of Papua New Guinea (cooperation for prevention of mine reclamation) In addition, the first Korea-Papua New Guinea Trade and Investment Forum will be held and the business opportunities of Korean enterprises in the promising infrastructure and plant construction sectors of Papua New Guinea will be reviewed. At the meeting with the Prime Minister of Papua New Guinea, Vice Minister Han will express Korea’s intent to maintain close cooperation with Papua New Guinea in the energy, resource and plant construction sectors. <a target="_blank" class="pdf" href="http://english.motie.go.kr/wp-content/uploads/2014/10/Korea-Holds-the-Resources-Cooperation-Committee- date2014-05-07

Export &amp; Import Trends for April 2014

* Monthly export growth rate (year-on-year, %): (January 2014) +0.2 → (February) 1.4 → (March) 5.1 → (April) 9.0 * The highest monthly exports: USD 50.48 billion recorded in October 2013 ① Rapid export growth to the US thanks to the economic recovery of the US, and robust exports to ASEAN countries ② Early customs clearance of export businesses due to the long holiday in early May (1st through 6th) ③ Base effect caused by poor export performance in April 2013 Deputy Director Song Jeong-hun, Export &amp; Import Division (044-203-4042) date2014-05-02

Sales Trends of Major Retailers for March 2014

The overall sales of major retailers grew in March 2014. The sales of supermarkets declined by 3.7% year-on-year, but grew by 23.5% month-on-month. - Compared to March 2013: Sales of the apparel and sports sectors declined due to the hot days following the last cold snap. - Sales showed a year-on-year decline of 3.3% in the 1st quarter, marking the eighth consecutive quarter of decline since the sales regulations were adopted in the 2nd quarter of 2012. - Compared to March 2013: Sales grew sharply, fueled by the base effect created by the low sales of the previous month. Sales of department stores declined by 1.1% year-on-year and grew by 16.6% month-on-month. - Compared to April 2013: Sales of the fashion sector dropped due to the lower temperature and less holidays compared to the previous year. Sales showed year-on-year growth of 1.1% in the 1st quarter. Sales in the fashion sector declined, while sales of foreign brands, home supplies, kids &amp; sports and foods sectors grew by 10.5%, 5%, 1.6% and 3.2%, respectively. - Compared to February 2014: Sales of all items grew, due to the low sales of the previous month and the increase in the number of operating days, including holidays (plus three days). Sales of convenience stores showed year-on-year growth of 6.5% and month-on-month growth of 18.8%. - Compared to April 2013: Sales of processed foods, including dairy products and ice cream products of PBs grew year-on-year. _ Compared to February 2014: Sales of beverages, processed foods and tobacco products grew sharply thanks to the increase in operating days. In keeping with this trend, sales of SSMs also showed a year-on-year decline of 2.1% and month-on-month growth of 21.0%. - Compared to March 2013: With the exception of meat products, which showed a slight sales growth, all sectors recorded a decline in sales, as a result of the drop in vegetable prices and the continued sales decline of fisheries goods. - Compared to February 2014: The sales of all items grew, which could partly be attributed to more operating days, including holidays. ※ This analysis is based on the ordinary sales of major retailers (three department stores, three supermarkets, four convenience stores and 4 SSMs) and aims to identify the consumption trends. This analysis may have discrepancies in the growth rates or the trends with data of Statistics Korea obtained through the complete enumeration of large retail businesses due to differences in scope and standards. ※ Major supermarkets (EMart, Lotte and Home plus), department stores (Hyundai, Lotte and Shinsegae), convenience stores (CU, GS25, 7-Eleven and BuyTheWay), and SSM (Lotte, GS Super, Home plus express and Everyday Retail) date2014-04-25

2nd Korea-China Trade Cooperation Meeting Held

- Korea Discussed Trade Issues and Measures to Facilitate Trade and Investments with China&rsquo;s Ministry of Commerce &ndash; The Ministry of Trade, Industry and Energy held the 2nd Korea-China Trade Cooperation Meeting with the Ministry of Commerce of China in Seoul on April 22, 2014. The general director-level meeting is held on a semi-annual basis, in accordance with the Korea-China MOU for Expansion of Economic and Trade Cooperation, which was signed by the Ministry of Trade, Industry date2014-04-23