Ministry of Trade, Industry and Energy

Korea and Vietnam sign FTA

The Ministry of Trade, Industry and Energy (MOTIE) announced on May 6 that Korea and Vietnam officially signed FTA after a total of 9 sessions of official talks after the promotion of FTA was agreed at the summit held in 2009.     The Korea-Vietnam FTA is expected to help increase the exports of Korean small and medium-sized material and parts manufacturers, particularly in the areas of textile, home appliances, cosmetics and auto parts thanks to the removal of tariffs on these items.     As for Vietnam, it will be able to attract more foreign investments and promote economy.     At the FTA signing ceremony, Minister of Trade, Industry and Energy Yoon Sang Jik said, "The Korea-Vietnam FTA will make Korean companies invest more in Vietnam, and their investments will help Vietnam's economy grow while also increasing the volume of trade between the two countries. This will be an exemplary case of mutually beneficial FTA for both parties."     * Short version date2015-05-06

Electricity Sales and Retail Sales Trends in March 2015

  □ In March, the volume of South Korea's electricity sales for industrial use decreased from a year earlier despite an increase of a day operated. It is because of fall in steel and textile. The total volume of electricity sales also increased from the previous year due to the rise in heating load and the days operated.   □ Regarding sales by major retailers reported in March, the sales of hypermarkets, department stores, and super supermarkets decreased, because of fewer days operated and drop in clothing sales.   ㅇIn the first quarter of 2015, the sales of hypermarkets, department stores, and super supermarkets decreased, while the sales of convenience stores increased.   date2015-04-30

Automobile Industry Trends for March 2015

  □ The volume of South Korean automobile production and exports decreased by 2.6 percent, while domestic sales increased by 8.8%. This was attributed to recession in overseas markets such as Russia and strong sales of sedans and SUVs in the domestic market.   □ : Production decreased by 2.6 percent from a year earlier to 414,352 units, despite a rise in production for the domestic market. This fall was mainly attributable to reduced production volume due to demand contraction in emerging markets.   □ : Domestic sales decreased by 4.6 percent from a year earlier to 128,103 units. This was attributable to new car models such as Sonata and Tivoli and high demand in multi-purpose vehicles.   - Sales of imported cars increased by 41.3 percent from a year earlier to 23,220 units.   □ : Exports decreased by 2.6 percent from a year earlier to 277,874 units. This was mainly attributable to demand contraction in emerging markets such as Russia, Middle East, and Central America, and intensified competition with Japanese motor companies due to Yen depreciation.   date2015-04-30

Apartment residents to save money on power bills by replacing fluorescent lamps with LED lamps

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 30 that apartment residents can now save on power bills by replacing fluorescent lamps with LED lights in the form of installment payments, where the money saved on the power bill will be deducted from the amount charged on their credit card for the purchase of LED lamps.     So far a total of 21 apartment complexes use this program to replace the fluorescent lamps with LED lamps in the underground parking lots. The number is likely to increase to over 70 before the second half of this year is over.     If underground parking lot lights are replaced with LED lamps at an apartment complex with around 500 households, the residents can save up to 7.36 million won ($6,615) in power bills each year. Since it costs around 20 million won to have the LED lamps installed, it will take about 2 years and 7 months to break even.     Some of the advantages of this program are that it's easy to fund the project, no collateral is needed and an apartment management company can carry out the contract and provide after sales services.     For example, residents of "Seocho The Sharp" apartment have agreed to replace all the fluorescent lamps with LED lamps for their underground parking lots in January this year. Satisfied with the results, they have recently decided to replace all the hallway lights with LED lamps.     MOTIE plans to further promote this program so that gas stations, convenience stores and factories can also save on their power bills by using LED lamps.     * Short version date2015-04-30

South Korea’s FDI Trends in the 1Q of 2015

      □ Foreign direct investmentFDI) to South Korea in the first quarter of 2015 decreased from a year earlier. The declared amount fell 29.8 percent to USD 3.55 billion and the received amount fell 16.4 percent to USD 3.15 billion from a year earlier. In spite of the YoY downturn, the numbers still exceeded the average number of first quarters for the past five years, which are USD 2.87 billion declared and USD 2.01 billion received.   □ - There are a number of positive factors such as the implementation of the Korea-China FTA, which will lead to increased demand in investing on businesses outbound to China, massive potential investments resulting from M&As that are soon to take place, and additional integrated resorts being planned.   - South Korea plans to achieve $ 20 billion in FDI for the first time in 2015. To this end, the country will make diversified efforts starting in May. They will include visits to China to host “CHINA WEEK” event which will attract potential investors to South Korea and result in investments through one-on-one consultation meetings between SMEs and overseas investors. Also, a joint task force, designed to exchange potential investors list and to seek new investments demands through customized attraction activities, will be sent to the Middle East. Lastly, measures to enhance the overall investment environment for overseas investors will be established in May.   date2015-04-29

Korea and Chile agree to jointly develop technologies for copper mining

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 23 that Korea and Chile agreed to jointly develop technologies that can be used for copper mining.     Representatives of the Korea Institute of Geoscience and Mineral Resources who are currently touring four South American countries with Korean President Park Geun-hye signed an MOU on joint development of application technologies for low grade copper ores with CODELCO on April 22 at the Sheraton Hotel Santiago, Chil date2015-04-23

MOTIE holds 2015 Display Touch Technology Idea Contest to create new markets using touch screen technology

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 20 that it is hosting the "2015 Display Touch Technology Idea Contest" with Korea Display Industry Association in order to create new markets using touch screen technology, where ideas are accepted for two different areas: creative convergence and applied product.     Ideas for creative convergence can encompass the areas of IT, fashion, furniture, construction and transportation where display technology can be used, while practical product ideas must be something that can be used by relevant businesses for short or long-term commercialization of products as well as other commercial ideas.     Applications are accepted from April 27 to June 26, 2015.     It will be a team competition where the grand prize winner will receive 5 million won ($ 4,500) and the MOTIE Award, while the second and third place winners will receive 2 million won and the Korea Display Industry Association Award and 1 million won and the Korea Display Industry Association Award, respectively.     * Short version date2015-04-20

Electricity and Major Retailers Sales Trends in February 2015, and Business Service Index (BSI) for 2Q

  □ In February, the volume of South Korea's electricity sales for industrial use increased from a year earlier. This was primarily attributable to an increase in the volume of electricity used and a rise in contract demand. The total volume of electricity sales also increased from the previous year due mainly to the rise in heating load.   □ Regarding sales by major retailers reported in February, the sales of hypermarkets, department stores, convenience stores, and super supermarkets increased, behind the Lunar New Year's holiday. ㅇBy product, the sales of food items grew substantially from a year earlier at all retailers, due to the Lunar New Year's holiday.   □ ㅇ Companies performed poorly at the beginning of 2015, with the Business Survey Index (BSI) on business conditions standing at 85 in the first quarter of the year.   date2015-03-30