Ministry of Trade, Industry and Energy

Korea to build on momentum as rising trade power

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea held the 61st Trade Day today at COEX in Seoul with the participation of over 1,000 attendees composed of government and related institutions’ representatives and recipients of various awards for their contribution to advancing Korea’s trade achievements. Despite high interest rates, high prices, the Russia-Ukraine war, and various other global uncertainties, Korea’s exports snapped the losing streak in October 2023 to overcome related challenges comparatively earlier than other major exporting countries. Carrying the momentum forward, Korea’s exports as of November posted growth for the 14th consecutive month this year and maintained a trade surplus for the 18th consecutive month, logging the highest export growth rate among top exporting nations around the world. Korea’s accumulated exports through this January–November jumped 8.3 percent year-on-year to USD 622.2 billion and the trade balance stood at a surplus of $45.2 billion. Overall, exports contributed to 99 percent of Korea’s economic growth. Semiconductors, the nation’s leading export item, surpassed last year’s annual exports with January–September exports alone and this year’s target is $140 billion. Automobile exports are anticipated to renew annual highs for the second year in a row and ship exports surged 24 percent this year from the tailwind provided by demand for high value-added ships.  By region, exports to Korea’s three major destinations—China, U.S., ASEAN—and emerging markets like Latin America, Middle East, India, and other Global South countries kept up their growth pace, helping to diversify Korea’s export structure. As of this year’s third quarter, the number of exporting SMEs in Korea continually increased to reach an unprecedented 87,000 and e-commerce driven by in-person shopping trends are broadening Korea’s export base with an all-time high export value of $1 billion. On the backs of the global popularity of Hallyu, cosmetic products recorded $9.3 billion in export value as of November, already outperforming their previous highs of $9.2 billion set in 2021, and Korean ramyeon also entered the historic $1 billion export threshold. “K-beauty” and “K-food” products are rising as leading consumer goods, while biosimilars and contract manufacturing organization (CMO) outsourcing are showing potential as the next growth engines.  Moreover, Korea’s defense, plant, and nuclear energy industries have firmly established themselves as fresh drivers of export growth, thanks to the annual average of $15 billion in defense exports, the $7.3 billion Saudi Fadhili gas plant expansion project win, and selection as preferred bidder for the KRW 24 trillion Czech new reactor project. This year marks the 61st anniversary of commemorating Korea’s first $100 million in exports in 1964. At the 61st Trade Day, 597 persons of merit and 1,545 companies were awarded for their contribution to Korea’s trade accomplishments. The following are the key takeaways of this year’s awards trends.  First, Korea’s major export items are going strong regardless of trade conditions. The Gold Tower Orders of Industrial Service Merit went to five companies, including a semiconductor company exporting high bandwidth memory (HBM) chips to a global big tech company based on its accurate prediction of the AI semiconductor market. Another winner is an automaker that helped to dramatically increase U.S.-bound exports by developing an electric vehicle (EV)-specialized model upon securing its local U.S. production base. Second, the K-battery industry has kept up its solid global competitiveness. One of the Bronze Tower Order of Industrial Service Merit winners is a battery exporter that fared well amid th date2024-12-05

Korean gov’t awards 597 persons of merit on 61st Trade Day

The Korean government is launching the 61st Trade Day on December 5 at COEX in Seoul to award persons of merit for contributing to Korea’s trade achievements. This year, a total of 597 persons of merit are to receive government awards, including 33 orders of merit, 31 medals of honor, and 533 commendations. Approximately 89 percent of the awardees work at either SMEs or middle-market companies. The five winners of this year’s Gold Tower Orders of Industrial Service Merit are in businesses specializing in special bolts, semiconductors, automobiles, logistics, and car parts.  The Export Tower Award was first awarded in 1973 to a company for achieving the then-historic USD 100 million in exports. Receiving the prize this year are a total of 1,545 companies, composed of 20 large-sized companies, 92 middle-market companies, and 1,433 SMEs.  The $25 Billion Export Tower Award goes to Kia this year, followed by 55 companies receiving the $100 Million Export Tower Award and 313 more receiving the $1 Million Export Tower Award. Award winners are selected based on the accumulated export value through July 2023–June 2024.   date2024-12-04

Power grid industry to rise as Korea’s next energy export growth engine

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today the launching of a public-private K-Grid Export Alliance (“Alliance”) and its strategy for penetrating global grid markets. Amid major countries’ efforts to achieve carbon neutrality and the rising power demand fueled by AI and such high-tech industries, the demand for old grid replacement and new grid establishment is expected to sharply increase in the future. Grid establishment projects are long-term projects (app. 10 years) entailing large-scale investments and maintenance work, leading to anticipation of economic spillovers for Korean companies by means of joint entries accompanying nuclear reactor exports. The Alliance was formed under the aim to promote exports across the entire electrical power industry value chain spanning power generation, transmission, distribution, and ancillary services under a national brand dubbed as “Team Korea,” combining the strengths of public power companies, EPC (engineering, procurement, construction) specialized firms, and grid businesses. As buyers and developers of materials and equipment, public power companies and large corporations will play the central role of the Alliance, while EPC companies are to focus on utilizing homegrown materials. Meanwhile, Korea Electrotechnology Research Institute (KERI), Korea Trade Insurance Corporation (K-SURE), and Korea Trade-Investment Promotion Agency (KOTRA) are to concentrate on assisting in areas like test certification, financing, and overseas marketing. Major law firms will be supporting Korean companies respond to legal issues in the process of overseas market entry. At the 32nd Energy Commission meeting following the ceremony, MOTIE proposed 13 project tasks in line with the K-grid global penetration strategy. MOTIE Minister Dukgeun Ahn stated that the ministry will make the utmost effort to support the industry reach USD 15 billion in grid exports and occupy over five percent of the global market by 2030.   date2024-12-03

Korea to roll out AI-based “Tech-GPT,” connecting technologies, talents, and businesses worldwide

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea jointly held the “Tech-GPT Project Agreement Ceremony” today in Seoul with the Korea Institute for Advancement of Technology (KIAT), Korea Electronics Association (KEA), and the Korea Institute of Industrial Technology (KITECH). The agreement ceremony marks the beginning of the Tech-GPT platform project (2024–2028). This generative AI-driven platform will enable users to tap into technologies, businesses, and talents around the world. The project is a follow-up to the strategy on attracting and utilizing overseas high-tech talents for global open innovation, announced during the third talent nurturing strategy meeting chaired by Korea’s prime minister this September. To be established through public-private collaboration, the Tech-GPT will be given an input of data on 110 million patents registered in the U.S., China, Germany, Japan, and the EU in addition to 220 million papers recently published in Korea and overseas in order to provide chatbot search engine services on technology information starting in the second half of next year. In 2026, services will expand to cover real-time business and talent information searches. In 2027, through collaboration with major global platforms, Tech-GPT will be able to support users’ networking with global companies and talents. To invigorate the technological development and commercialization ecosystem centering on the Tech-GPT, a Tech-GPT Store will also be operated to connect users with specialized global companies’ paid services for more in-depth assistance in areas like technology transfer, supply chain analysis, and financial assistance for commercialization. Approximately 100 representatives of related businesses and organizations came to attend today’s ceremony, where a memorandum of understanding (MOU) was entered by 10 companies and institutions for cooperation on promoting the Tech-GPT and nurturing the global open innovation ecosystem.   date2024-12-03

Korea and China hold 2nd supply chain hotline meeting

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea and the Ministry of Commerce (MOFCOM) of China held the second supply chain hotline meeting on November 28 in Yancheng City of Jiangsu Province, China, as a follow-up to the Korea-China summit talks held in May. Through the hotline meeting, the two sides introduced their supply chain policies and agreed to continue joint efforts for stabilizing the supply chain with an aim to nurture a more predictable investment environment. During the ensuing fifth working-level meeting on the Korea-China industrial cooperation complex, the two sides took stock of the operation situation at the industrial complexes located in Saemangeum, Yantai, Yancheng, and Huizhou. On the same day, MOTIE, MOFCOM, the Korea Trade-Investment Promotion Agency (KOTRA), and the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) co-hosted the forum on Korea and China’s joint market entry into third countries with the participation of 100 entrepreneurs and related persons of both countries to share information on investment environments of third countries and best practices of bilateral cooperation, followed by a business networking session.  The next day, the Yancheng Economic and Technology Development Zone Committee and the Saemangeum Development Corporation signed a memorandum of understanding (MOU) for cooperation to expand the two countries’ industrial complex exchanges going forward.   date2024-12-03

KPX announces results of clean hydrogen power competitive bidding

The Korea Power Exchange (KPX) under the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today the competitive bidding results of the world’s first clean hydrogen power generation bidding market. Following KPX’s bid announcement on May 24, six power plants (five companies) participated in the bid with a net 6,172 GWh. Based on the resolution of the hydrogen power generation bidding market committee and the bid proposal evaluation by the evaluation committee composed of external experts, a power plant with a bid of 750GWh/year was selected as the final successful bidder. The bid winner plans to produce electricity using clean fuel that fulfills Korea’s clean hydrogen certification standard requiring that greenhouse gas emissions be 4㎏CO2eq or less per 1kg of hydrogen.  Commercial operation will begin in 2028 ensuing the preparation time for infrastructure establishment and power plant renovation. Electrical power can be auctioned for up to 15 years starting from the commercial operation date.   date2024-12-02

Korea-Latin America Business Forum seeks opportunities for forward-looking cooperation

The Ministry of Trade, Industry and Energy (MOTIE) held the 28th Korea-Latin America Business Forum (“Forum”) today in Seoul through joint organization with the Korea-Latin America & Caribbean Association (KCLAC), Korea Institute for International Economic Policy (KIEP), Korea International Trade Association (KITA), and the International Contractors Association of Korea (ICAK), and with the participation of representatives from 17 Latin American countries’ diplomatic missions in Korea as well as related governments, institutions, and companies. Launched in 1997, the Forum convenes on an annual basis and is the largest Latin America-related event hosted in Korea. This year, Forum attendees took stock of Latin America’s business environment in the context of possible shifts following the inauguration of the new U.S. administration in January 2025. The Korean government has been making continued effort to expand Korea’s economic cooperation network with Latin America by entering Free Trade Agreements (FTAs) with a total of eight Latin American countries, beginning with the Korea-Chile FTA which came into effect in 2004. Over the last 20 years, Korea-Latin America trade has more than quadrupled, with Korea’s direct investment in Latin America exploding 16-fold.  Moreover, as Peru and Brazil were hosts of this year’s Asia-Pacific Economic Cooperation (APEC) and G20 summits, respectively, further invigorating high-level exchanges between Korea and Latin America on those occasions. At today’s Forum, Korea’s Deputy Minister for Trade Park Jong-won gave a welcome address, highlighting the importance of supply chain collaboration and forward-looking cooperation between Korea and Latin America in view of various changes anticipated across the global trade and economic landscape. The Korean government plans to actively carry out joint efforts with Latin American countries on the margins of APEC 2025 to be hosted in Gyeongju next year.   date2024-12-02

Korea’s exports grow for the 14th consecutive month

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced on December 1 that Korea’s exports for the month of November increased 1.4 percent year-on-year to USD 56.4 billion. Imports declined 2.4 percent to $50.7 billion and the trade balance stood at a surplus of $5.6 billion. Exports increased for the 14th consecutive month, with the daily average export value increasing 3.6 percent year-on-year to $2.4 billion, turning to growth after the downtick in October. In November, five out of 15 major items improved in exports. Semiconductors (up 30.8 percent to $12.5 billion) hit all-time highs for the month, renewing monthly highs for the fourth consecutive month and posting growth for the 13th consecutive month. This year, accumulated chip exports through January–November climbed 45.4 percent to record highs at $127.4 billion.  Automobile exports dropped 13.6 percent to $5.6 billion as car parts industry strikes and delays in wage and collective bargaining agreement (CBA) negotiations led to setbacks in parts supply for automakers. Adverse weather conditions in the last week of November further slowed down the loading of automobiles for shipment to overseas markets. Bio-health exports reached historic highs for November (up 19.6 percent to $1.4 billion), expanding for the fifth consecutive month. Computer exports soared 122.3 percent to $1.4 billion, advancing for the 11th consecutive month. Steel exports increased 1.3 percent to $2.7 billion, growing for the second consecutive month. Ship exports turned to an expansion with $2.5 billion (up 70.8 percent). By region, exports to five out of nine major destinations increased. Exports to China (down 0.6 percent to $11.3 billion) surpassed $11 billion for the fifth month straight. U.S.-bound exports (down 5.1 percent to $10.4 billion) entered the $10 billion thresholds for the third consecutive month. To ASEAN, exports grew 0.4 percent to $9.8 billion on the backs of strong demand for semiconductors. To the EU, exports for November recorded all-time highs at $5.4 billion (up 0.9 percent) as ships, wireless communication devices, and bio-health exports enjoyed robust demand. Exports to the Middle East (up 17.4 percent to $1.6 billion) showed an upward trajectory and those to Latin America (up 20.3 percent to $2.3 billion) and CIS countries (up 9.6 percent to $1.0 billion) increased for the second and fifth consecutive month, respectively. Energy imports decreased 10.8 percent to $10.7 billion despite increased imports of gas (up 6.3 percent) as the import value of crude oil (down 16.8 percent) dipped in step with oil prices. Nonenergy imports remained relatively flat at $40 billion (up 0.1 percent). The trade balance gained for the 18th consecutive month and the accumulated trade surplus through January–November amounted to $45.2 billion (up $60 billion year-on-year), the highest since 2018.   date2024-12-02