Ministry of Trade, Industry and Energy

Minister Meets with Leading Foreign Entrepreneurs

Pointing to a significant increase in foreign direct investment (FDI) to Korea in 2010, Minister of Knowledge Economy Choi Joong-Kyung expressed great enthusiasm about prospects for Korea’s business environment during a recent meeting with representatives of key foreign-invested businesses. Korea’s FDI inflow last year amounted to $13 billion, which marked a ten-year high. Minister Choi pointed specifically to Korea’s much-expected progress on bilateral trade partnerships with major trading partners, which will give significant improvements to its investment environment. He also encouraged foreign investors to take full advantage of the country’s strengths in information technology and new growth engine industries. With a three-year plan for facilitating FDI inflows in the works, the Minister urged foreign investors to seize opportunities to benefit from the proactive efforts of the Korean government to provide an ideal business climate as well as favorable living environment. According to the Minister, investors from major partner countries should consider partnerships with local businesses to make the most of Korea’s strong economic growth. He emphasized that such partnerships could greatly boost the performance of both foreign-invested and local firms by tapping into each other’s comparative strengths.   * Released by the Foreign Investment Policy Division   date2011-02-23

Retail Sales Figures for January 2011

The Ministry of Knowledge Economy has released retail sales figures for the month of January. The nation’s three major department store chains and its three major discount chains recorded a year-on-year increase in sales. Sales at the nation’s three major department store chains rose 24 percent compared with the same period the previous year. Sales were up across a wide spectrum of categories: general goods (18.9 percent), women’s suits (10.6 percent), women’s casual wear (14.8 percent), men’s clothing (15.9 percent), children’s goods and sporting items (16.8 percent), household goods (15.2 percent) and luxury goods (31.8 percent). Notably, spending on food surged 69.1 percent, largely due to the Lunar New Year holiday. The three major discount chains recorded a 21.4 percent increase in sales. Spending in all categories went up. Food, apparel, household goods, sporting items and general goods climbed 30.6 percent, 17.6 percent, 17.9 percent, 4.2 percent and 15.7 percent, respectively, with the notable exception of household appliances and cultural goods (down 2 percent).   * Released by the Distribution and Logistics Division   date2011-02-22

Korea Pursues Green Partnership with Canada

Representatives of Natural Resources Canada visited Seoul recently to discuss green technology with MKE officials, and the two sides concluded a memorandum of understanding. Areas of cooperation specified in the agreement include carbon capture and storage, renewable energy, smart grids, combined heat and power generation, and eco-friendly motor vehicles. Korean experts will work with their Canadian counterparts to engage in exchange programs, conduct joint research, and pursue demonstration projects involving these technologies. Details of the plan will be determined by the end of 2011. In a seminar that followed the signing ceremony, representatives of energy agencies in both countries shared policy information regarding the development of carbon capture and storage (CCS) technology and discussed ways to cooperate in this promising field. CCS and clean coal are two areas in which Canada has advanced technologies, so cooperative endeavors involving these technologies are expected to make particularly quick progress. * Released by the Energy Technology Division   date2011-02-16

Vice Minister Praises High-Performing Foreign Investors

Vice Minister for Industry and Technology Ahn Hyunho recently addressed representatives of the 10 foreign-invested businesses in Korea with the best investment performances of 2010. Vice Minister Ahn praised the companies’ contributions to Korea’s economy, particularly in terms of job creation, and called for their continued support. The Vice Minister noted that 2010 was a good year for foreign direct investment in Korea, with inflows reaching their highest level in nearly a decade. (For further information, please see the press release dated January 5.) In 2011, however, prospects are more uncertain for the world economy and global investment activities. Vice Minister Ahn pointed to Korea’s advantages—specifically, to its strong signs of recovery from the recession and its progress on bilateral trade partnerships with key partners—to show that the country is still a wise investment choice. He promised that Korea would remain attentive to the concerns of foreign investors and would continue to strive for an ideal business environment. To make the most of Korea’s strong economic growth, the Vice Minister encouraged foreign-invested businesses to seek partnerships with local businesses and to increase investment in Korea’s new growth engine industries. He also encouraged them to share their experiences with potential investors at investment promotion seminars.   * Released by the Investment Promotion Division     date2011-02-11

IT Trade Figures for January

The Ministry of Knowledge Economy has released its IT trade figures for January. The national trade balance in the information technology sector totaled $5.85 billion.   Amid fiercer competition in the global IT market, IT exports gained 16.3 percentyear on year to record $12.83 billion, displaying double-digit growth for the 15th consecutive month. Growth remained positive for most key export items, with outbound shipments of semiconductors rising 23.9 percent. Although exports of display panels grew at a slower rate, shipments to emerging markets expanded. Outbound shipments of smartphones shot up 407 percent, bolstering exports of mobile phones in general (up 12 percent). Notably, outbound shipments of solar cells jumped 47.5 percent. Solar cells displayed particularly impressive growth in 2010 (297 percent), creating high expectations for its future role in Korea’s export market.     With the exception of the European Union, exports to primary trading partners China, the United States and Japan increased. Exports of semiconductors to China climbed 25.2 percent, while outbound shipments of mobile phones to the United States gained 28.9 percent. Notably, exports of mobile phones to Japan shot up 524 percent.     IT imports rose 29.5 percent compared with the same period in 2010 to record $6.98 billion. Inbound shipments of mobile phones and electronic components gained 91.1 percent and 24.7 percent, respectively. Tablet and Netbook computers were the main factors behind increased imports of computers and related devices (up 31.3 percent).   * Released by the Electronics and IT Policy Division date2011-02-09

Trade Figures for January

The Ministry of Knowledge Economy has released its trade figures for January. The nation’s trade balance is back in the black after three years in the red, recording $2.96 billion. Year on year, exports hit an all-time high in January. On the back of strong outbound shipments of semiconductors and ships, exports rose 46 percent compared with January 2010 to reach $44.89 billion. The average value of all exports per day climbed 42.9 percent to $1.95 billion. Most of the major export items showed a notable increase; in particular, ship exports displayed three-digit growth. Exports to most of Korea’s key trading partners increased during the first 20 days of January, with outbound shipments to Latin America jumping 137.7 percent. Exports of ships to China and Latin America went up dramatically, posting respective increases of 872.1 percent and 1,324.9 percent. Outbound shipments of steel to the United States (70.7 percent) and the European Union (63.9 percent) also surged.   Meanwhile, imports shot up 32.9 percent to $41.93 billion. The average value of all imports per day increased 30.1 percent to $1.82 billion. Inbound shipments of raw materials went up 29.1 percent, while imports of capital goods and consumer goods rose 25.6 percent and 68 percent, respectively. Imports from major trading partners increased.     * Released by the Export and Import Division date2011-02-01

Retail Sales Figures for December 2010

The Ministry of Knowledge Economy has released its year-on-year retail sales data for the month of December. The nation’s three major department stores posted an 11.6 percent increase in sales, while the three major discount chains posted a 2.9 percent increase. An intense cold spell chilled the country in December, leading to brisk sales of apparel and heating devices at all three major department stores. Additionally, the gift-giving season at the end of the year contributed to higher sales of general goods and luxury goods. Sales were up in all categories: children’s goods and sporting items (17.5 percent), general goods (9.9 percent), women’s suits (9.5 percent), women’s casual wear (12.7 percent), men’s clothing (8.1 percent), household goods (15.3 percent), luxury goods (20.8 percent) and food (9.2 percent). With the start of the winter sports season, spending on sports items increased 7.1 percent. Spending on apparel (6.0 percent), household goods (1.9 percent), food (5.7 percent) and general goods (6.3 percent) also increased. Notably, sales of household appliances and cultural goods dropped 12.3 percent. Sales at the three major department stores increased 9.5 percent for all of 2010 compared with 2009. For the three major discount chains, the corresponding figure was 4.9 percent.     * Released by the Distribution and Logistics Division     date2011-01-25

Government Leading Efforts to Save Energy

A prolonged cold spell has Korea in its grip, and demand for electricity reached an all-time high last week. As the nation’s energy needs are expected to remain high throughout the winter season, the government has rolled up its sleeves and called for nationwide efforts to conserve energy. Public agencies are at the forefront of these efforts. The government looks at oil prices and reserve electricity to measure the disparity between supply and demand. On a scale from 1 to 4, level 4 indicates a severe energy shortage. Korea is currently at level 1. Government guidelines for level 1 prohibit the use of central heating for two hour-long periods per day during peak hours, and mandate that indoor temperatures be set no higher than 18 degrees Celsius. These guidelines apply to all the nation’s public agencies: government agencies, local governments, government-affiliated organizations and public enterprises. Officials working at these organizations are not allowed to use individual heaters during working hours, but instead are advised to wear long johns. If demand escalates, more stringent measures will be put in place. Level 2: Decorative lighting will be turned off. Level 3: Elevators will not stop at floors 1 though 5. Employees will be allowed to drive to work only every other day. Indoor lighting will be limited. Level 4: Employees will not be allowed to drive to work. Public facilities will close earlier than usual. The government will conduct unannounced inspections to monitor compliance and will publicize its findings. date2011-01-19