Ministry of Trade, Industry and Energy

‘Yellow Alert’ Saves Enough Energy to Power 1 Million Homes

The Ministry of Knowledge Economy’s “yellow alert,” an emergency energy conservation measure taken in response to high oil prices this past winter, is estimated to have saved more than 9 million kilowatt hours per day—nough energy to power more than a million homes. A review to assess the effectiveness of the emergency measure found that Korea had saved 96.2 million kilowatt hours per day between March 8 and April 17, as compared with the previous one-month period when less strict measures were in place. This figure was adjusted to 9 million kilowatt hours per day when the warmer spring weather was taken into account. The chart below shows Korea’s four alert levels, which correspond to the price of Dubai crude oil and determine what measures are required to conserve energy. Between February 8 and March 7, Korea was on “blue alert,” the lowest level on the scale. At the blue level, central heating is turned off for two hour-long periods per day during peak hours; indoor temperatures must be set no higher than 18 degrees Celsius; and employees must observe a weekly “no-driving day.” These restrictions apply to all the nation’s public agencies: central and local government agencies, government-affiliated organizations and public enterprises. But after oil prices remained above $100 per barrel for five straight days in February, the Ministry issued a “yellow alert” and imposed additional restrictions on energy use. At the yellow level, outdoor decorative lighting must be turned off in facilities managed by public organizations (such as towers, bridges and fountains). Private organizations must turn off their outdoor decorative lighting between 10 p.m. and 6 a.m. In Seoul and the surrounding area, weekly no-driving days increased the use of public transit about 5.8 percent in March as compared with February. Nationwide, average daily gasoline sales fell from 28.5 million barrels in the first two months of 2011 to 25.1 million barrels between March 1 and April 10, a decline of about 12.1 percent. To encourage the public to participate in the national efforts to conserve energy, MKE is taking the following steps:             * Released by the Energy Cooperation Division   date2011-05-12

Vice Minister for Trade and Energy Travels to Latin America to Forge Stronger Economic Partnerships

Vice Minister for Trade and Energy Park Young June traveled to Latin America last week to strengthen Korea’s ties with Mexico, Colombia, Venezuela and Peru. The Korean delegation included representatives of public organizations and private businesses. The 10-day trip was a chance to review the progress of many joint projects and to discuss additional areas for cooperation. In Mexico, the first destination on the Vice Minister’s itinerary, an energy meeting resulted in two memorandums of understanding—notably, one concerned rare metals. These are 35 elements in the periodic table. They are needed to manufacture products as diverse as wind turbines, car batteries and video cameras. Vice Minister Park also met with Mexican General Coordinator of Mining Maria Jimena Valverde Valdes. The two officials discussed mutually beneficial partnerships to make both sides more competitive in the global mineral market. When Vice Minister Park met with his Mexican counterpart, Vice Minister of Energy Mario Gabriel Budebo, discussions focused on the development of oil and gas fields, nuclear energy, energy conservation, public infrastructure and alternative fuel technologies. In particular, Vice Minister Park proposed a training program for nuclear experts that will be tailored to suit Mexico’s needs.   * Released by the Mineral Resources Division date2011-05-09

Trade Figures for April

The Ministry of Knowledge Economy has released its trade figures for the month of April. The trade balance posted a $5.82 billion surplus, up from $2.78 billion in March. Exports rose 26.6 percent year on year, reaching an all-time high of $49.77 billion. Growth remained positive for most of Korea’s key export items, with outbound shipments of petroleum products jumping 79.8 percent. The average value of exports per day climbed 29.3 percent to record $2.12 billion.     Exports to key trading partners increased for the first 20 days of April. Notably, outbound shipments of petroleum products to Japan shot up 207.8 percent, while exports of petrochemicals to the United States surged 59.3 percent. Exports of ships to the European Union and China were down. China and the United States accounted for 23.7 percent and 10.6 percent of all exports, respectively.     Meanwhile, imports rose 23.7 percent to record $43.95 billion. The average value of imports per day went up 26.4 percent from a year ago to reach $1.87 billion. Higher energy prices drove up inbound shipments of raw materials, which posted a 25.2 percent increase. While imports of capital goods gained 8.1 percent, the corresponding figure for consumer goods was 47.4 percent.     * Released by the Export and Import Division date2011-05-03

Korea, Russia Take Substantial Step Forward With MOU on Industrial Cooperation

Korea, Russia Take Substantial Step Forward With MOU on Industrial Cooperation Russian Minister of Industry and Trade Viktor Khristenko traveled to Seoul to meet with Minister of Knowledge Economy Choi Joong-Kyung and sign a memorandum of understanding that will cement the strategic partnership between the two nations. The MOU addresses three main areas: industrial technology, technology standards, and trade and investment. With the shared goal of attracting private investment in the commercial date2011-05-02

Delegates Seek Clean Energy Partnerships at U.S.-Korea Energy Consultations

Working-level delegates from Korea and the United States gathered in Seoul last week to discuss the transition to a cleaner economy at the fourth U.S.-Korea Energy Consultations. Representatives of U.S. research institutions traveled to Korea to explore clean energy solutions such as carbon capture and storage, electric car batteries and clean coal. Nuclear energy, gas hydrates and smart grids were also addressed. The Consultations built on progress made last year at the first Clean Energy Ministerial in Washington, D.C.   As a result of the Consultations, a number of joint projects are under consideration between Korea and the United States. The two countries have already taken an important step in the area of smart grids: The Ministry of Knowledge Economy is collaborating with the State of Illinois on a pilot project to dramatically reduce energy consumption in Chicago’s skyscrapers.   * Released by the Energy and Resources Policy Division date2011-04-28

Minister Addresses EU Investors Ahead of FTA Effectuation

Minister Addresses EU Investors Ahead of FTA Effectuation A luncheon meeting hosted by the European Union Chamber of Commerce in Korea (EUCCK) drew nearly 70 European business leaders on April 13. Minister of Knowledge Economy Choi Joong-Kyung delivered the keynote speech. With the Korea–EU FTA due to take effect in July, the strong ties between Korea and the European Union are about to grow even stronger, Minister Choi explained. Pointing to Korea’s progress on FTAs with major coun date2011-04-25

Clean Energy Ministerial Produces Action on Smart Grids

Minister of Knowledge Economy Choi Joong-Kyung traveled to Abu Dhabi to attend the second Clean Energy Ministerial earlier this month. Korea, Australia, Canada, France, Germany, Italy, Mexico and the United States signed an agreement that will strengthen the International Smart Grid Action Network (ISGAN). ISGAN is a mechanism for multilateral collaboration in which Korea has taken the lead. The network was launched at the first Clean Energy Ministerial in July 2010, and the new implementing agreement will ensure its operational efficiency and institutional stability. Through ISGAN, countries can actively share information about ongoing smart grid projects so as to ensure the interoperability of the technology. This will facilitate the wider adoption of renewable energy sources such as solar and wind power, which can be harnessed safely and effectively once the advanced power grids are in use. “Globally, many countries have their own smart grid projects in various stages,” Minister Choi said at the Ministerial. “Considering how complex the systems are, it is imperative that we share our knowledge and enhance cooperation.” The Clean Energy Ministerial involved government ministers from more than 20 countries, who gathered to review the progress of their efforts to disseminate clean energy and increase energy efficiency. ISGAN was one of 11 initiatives launched at last year’s meeting.   * Released by the Energy and Resources Policy Division   * For further information, please see the attached files. 1. Transcript of the Minister’s presentation 2. CEM 2011 Fact Sheet: International Smart Grid Action Network (Source: )   date2011-04-21

Retail Sales Figures for March 2011

The Ministry of Knowledge Economy has released its retail sales figures for the month of March. Sales at the nation’s three major discount chains and its three major department store chains posted positive growth. Greater spending on food, which accounted for 54.6 percent of all sales, drove up sales at the major discount chains 1.9 percent. Sales were down in some categories such as household appliances and cultural goods (-13 percent), general goods (-1.4 percent) and apparel (-0.5 percent); however, spending on food, sporting items and household goods climbed 5.8 percent, 5.3 percent and 1.4 percent, respectively. Sales at the nation’s three major department store chains displayed double-digit growth (13.1 percent), and spending was up across a wide spectrum of categories. General goods, women’s suits, women’s casual wear, men’s clothing, children’s goods and sporting items, household goods and food gained 12.4 percent, 4.5 percent, 7.5 percent, 7.6 percent, 15.7 percent, 16.2 percent and 12.0 percent, respectively. Notably, luxury goods posted a 27 percent increase in sales and accounted for 14.1 percent of all sales—up from only 13.1 percent in February. Spending on household goods increased, mainly as a result of promotions and discounts involving home appliances.   * Released by the Distribution and Logistics Division date2011-04-15