Ministry of Trade, Industry and Energy

MKE Releases Car Sales Figures for March

MKE Releases Car Sales Figures for March The Ministry of Knowledge Economy has released its car sales figures for Vehicle production and exports reached record heights despite the earthquake in Japan. The crisis seems to have had minimal impact on Korean automakers, which had adequate stockpiles of Japanese components. Sales of both domestic and imported cars saw a third consecutive month of positive growth. Korea produced 395,899 vehicles, a 3.6 percent increase from 2010, on the back of robus date2011-04-14

Parts and Materials Industry Trade Figures for First Quarter

The Ministry of Knowledge Economy has released its parts and materials industry trade figures for the first three months of 2011. The trade balance for that sector posted a $20 billion surplus—ore than twice as much as the corresponding figure for all industries combined. Amid external factors such as political instability in Libya and the recent earthquake in Japan, exports in the parts and materials industry posted an 18.3 percent increase to record $61 billion. In particular, exports of basic metals and general machinery parts showed a marked increase. This strong showing is partly attributable to the global economic recovery. Notably, outbound shipments to China reached the highest quarterly level, totaling $21.2 billion; however, with increased exports to other trading partners China accounted for 34.7 percent of all exports, down from 35.9 percent in the fourth quarter of 2010. Shipments both to and from Japan have increased, suggesting the earthquake has had minimal effects on bilateral trade in the short term.   * Released by the Components and Materials Policy Division date2011-04-13

Foreign Investment Figures for First Quarter

Foreign direct investment (FDI) pledges amounted to $2.01 billion, representing a year-on-year decline of 30.1 percent in the first quarter of the year. Despite external factors such as political instability in the Middle East and North Africa and a devastating earthquake in Japan, the inflow of foreign capital into Korea has continued its upward swing on the back of the recovery of the global economy, a positive outlook for domestic growth, and an improved business environment.     Inward capital flows from the United States displayed a marked expansion, having jumped 1,068 percent to $467 million. Notably, FDI from the United States in the manufacturing sector surged 3,333 percent. The recent earthquake did not seem to hinder investment from Japan, which posted a 40.1 percent year-on-year increase. Investment from the European Union, however, dropped 48.5 percent to $434 million. Foreign capital from China went up 103.1 percent to $65 million, partly due to the launch of the “China Desk.”     For the first three months of 2011, both the manufacturing and service sectors saw foreign investment rise. FDI in the manufacturing sector climbed 20.3 percent to $787 million, while capital flows into the service sector gained 45.7 percent to record $1.19 billion. Greenfield investments stood at $1.49 billion, an increase of 48.7 percent, and FDI through mergers and acquisitions dropped 5.1 percent to $506 million.   * Released by the Foreign Investment Policy Division   date2011-04-11

IT Trade Figures for March

The Ministry of Knowledge Economy has released its IT trade figures for March. Despite uncertainties stemming from political turmoil in Libya and the recent earthquake in Japan, IT exports gained 6.2 percent to record $13.5 billion. This upward trend has remained in place for 18 consecutive months. For the first three months of 2011, IT exports totaled $37.5 billon, the highest quarterly level on record. (The previous record was $33.4 billion for the first quarter of 2010.) The national trade balance in the information technology sector stood at $6.28 billion.   Most of Korea’s key export items displayed positive growth. With shipments to China and Japan growing 10.6 percent and 10.8 percent, respectively, exports of semiconductors gained 10.9 percent to record $4.48 billion. An upswing in smartphone exports pushed outbound shipments of all mobile phones up 6 percent to $2.17 billion. Exports of smartphones shot up 248.7 percent from a year ago. Amid concerns over a slowdown in the global economy, exports of televisions went up 11.4 percent to $720 million. Outbound shipments of LED, 3D and smart televisions surged 504 percent, 1,151 percent and 1,851 percent, respectively. Meanwhile, display panel exports fell 4.8 percent to $2.7 billion, partly due to a continued decline in prices of display panels for LCD televisions. Outbound shipments of solid state drives surged 36 percent to $36 million.     Exports to major trading partners increased, but shipments to the United States and the European Union were exceptions to this trend. Notably, despite the earthquake, exports to Japan posted double-digit growth, with outbound shipments of mobile phones jumping 67 percent.     IT imports rose 11.9 percent compared with the same period the previous year to record $7.22 billion. With inbound shipments of semiconductors rising 8.2 percent, imports of electronic components gained 6.1 percent to reach $3.93 billion. Notably, inbound shipments of mobile phones surged 69.5 percent to $600 million.     * Released by the Electronics and IT Policy Division   date2011-04-07

More Koreans Embrace e-Learning

A recent survey by the Ministry of Knowledge Economy and the National IT Industry Promotion Agency showed that the government’s efforts to promote e-learning are already beginning to bear fruit. Since 2004, when the government first established a legal framework to nurture the e-learning sector, the field has grown at an average rate of nearly 10 percent. In 2010 it was worth 2.25 trillion won, a 7.4 percent year-on-year increase. The number of businesses operating in the e-learning sector posted a 13.2 percent increase to 1,549. In particular, many publishing companies are looking to e-learning as a lucrative opportunity and are putting more and more textbooks and reference books online. The number of employees in the e-learning sector rose 3.5 percent to record 23,468; however, 43.6 percent of all businesses surveyed cited a labor shortage as an obstacle to business activities in this area. This suggests training programs are needed. Of individual respondents aged 3 or older, 49 percent had taken advantage of e-learning programs in 2010. E-learners accounted for 74.4 percent of the primary and secondary students and 41.2 percent of respondents in their forties—this last figure was up 9.5 percentage points from 2009. Foreign language programs were the most popular, accounting for 38 percent of the total, and the Internet was the most popular method of delivery (72.2 percent) as opposed to broadcasting or mobile devices. Of the businesses in the survey with at least 300 employees, 62.8 percent had made use of e-learning for a year-on-year increase of 2.1 percentage points. Businesses used e-learning mainly to educate their employees about job duties (90.5 percent). Of those businesses that had adopted e-learning, 55.1 percent reported a cost savings. The number of educational institutions that use e-learning increased slightly to 81.4 percent. These now include 88.7 percent of primary schools and 79.7 percent of middle schools. Meanwhile, 77.6 percent of government and public agencies had adopted e-learning as of last year, including all Korea’s central government ministries. In March MKE announced a revised plan to promote the e-learning sector. The new plan aims to improve the business environment, advance the technology, nurture skilled personnel, encourage the wider adoption of e-learning, and open up overseas business opportunities.   * Released by the Service Industries Division date2011-04-06

Trade Figures for March

The Ministry of Knowledge Economy has released its trade figures for the month of March. The trade surplus totaled $3.1 billion, up from $2.46 billion in February. Despite unfavorable overseas conditions including the political turmoil in Libya and the earthquake in Japan, exports rose 30.3 percent year on year, reaching an all-time high of $48.6 billion. Exports for the first quarter, which ended in March, set a new record with $131.8 billion. (The previous record was $128.7 billion for the fourth quarter of 2010.) The average value of exports per day climbed 30.3 percent to record $2.03 billion. With outbound shipments of petroleum products and ships surging 87.8 percent and 70.1 percent, respectively, most of Korea’s key exports displayed double-digit growth. Exports to key trading partners increased for the first 20 days of March. Notably, exports to Oceania jumped 116 percent from 2010 levels. Outbound shipments of petroleum products to China and Japan shot up 72 percent and 154.6 percent, respectively, while exports of petrochemicals to the United States surged 139.1 percent. Exports of ships to the European Union and ASEAN countries were down. China accounted for 25.8 percent of all exports, making it Korea’s No. 1 export destination for the month. Meanwhile, imports gained 27.9 percent to record $45.5 billion. The average value of imports per day climbed 27.9 percent from a year ago to reach $1.9 billion. Higher energy prices drove up inbound shipments of raw materials, which posted a 31.7 percent increase. While imports of capital goods gained 5.4 percent, the corresponding figure for consumer goods was 31.3 percent.     * Released by the Export and Import Division   date2011-04-01

Korea Steps Up Energy Partnerships With Africa

Deputy Minister for Energy and Resources Kim Junggwan traveled to Angola and Ghana last week to reinforce Korea’s economic and energy ties with both countries. In January, government officials from the two African countries had visited Korea separately to discuss bilateral partnerships, and the Deputy Minister’s visit was a follow-up to those meetings. At a joint economic forum in Angola, Deputy Minister Kim praised the African country for its rapid economic development and its political stability. The forum gave Angolan delegates a chance to explain the infrastructure projects the country is planning; these include the development of oil fields and the establishment of a refinery. Angolans have rolled up their sleeves to modernize the country through the establishment of infrastructure; to complete this task, they will require technology and skilled personnel. The Deputy Minister emphasized that Korea is actively spearheading a number of training initiatives in order to share its advanced technology with developing countries. Such activities could form the basis for a close cooperative relationship between the two countries, he added. In Ghana the Korean delegates learned about the country’s national growth strategy, with particular focus on the establishment of social and energy infrastructure. Deputy Minister Kim met with Amarquaye Armar, Special Advisor to the President of Ghana on Energy Sector Reform, Restructuring and Privatization, to discuss possible joint projects involving the construction of a refinery and a gas pipeline in Ghana. The two sides also signed a memorandum of understanding on energy cooperation, a long-awaited move that followed several months of negotiations.   * Released by the Resources Development Policy Division   date2011-03-31

Minister Meets With Chinese Investors

Minister of Knowledge Economy Choi Joong-Kyung joined Chinese investors on March 22 to celebrate the launch of a “China Club.” With assistance from the Ministry of Knowledge Economy, this new club will help companies from both countries to share information and work together to address any obstacles to business activities. Pointing to China’s emergence as a major player in Korea’s foreign investment market, Minister Choi expressed enthusiasm about the exciting prospects for bilateral investment. Inbound FDI from China displayed an impressive year-on-year increase of 160 percent in 2010. With more Chinese businesses looking to invest in Korea, in May the Ministry of Knowledge Economy set up the “China Desk,” which is dedicated to offering potential Chinese investors up-to-date information and matching them with suitable projects. The China Desk will assist companies in building active business networks within the China Club. The China Desk currently has branches in Seoul and Shanghai; later this year the Ministry plans to set up new branches in Beijing and Guangzhou. An investment roadshow in June will address areas of special interest to Chinese investors such as renewable energy, regional development and cultural content. * Released by the Foreign Investment Promotion Division date2011-03-28