Ministry of Trade, Industry and Energy

Korea’s retail industry grows 10.5% in H1 2024

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 30 that Korea’s retail industry grew 10.5 percent year-on-year in the first half (H1) of 2024, with offline and online sales advancing 3.4 percent and 17.5 percent, respectively. During H1, offline retail sales steadily expanded across close-proximity convenience stores (up 5.2 percent) and super supermarket (SSM) operators (up 5.6 percent). Sales at hypermarkets (up 0.7 percent) and department stores (up 3.1 percent) likewise increased.  Online retail sales for H1 soared on the backs of various discount promotions and wider range of deliverable items, coupled with the routinization of online purchases for travel, performances, and food products. MOTIE releases monthly retail sales figures based on surveys of 25 major retailers. Thirteen of them are brick-and-mortar retailers: three department store chains, three hypermarket chains, three convenience store chains, and four super supermarket (SSMs) operators. The remaining 12 are online retailers. For the month of June, Korea’s retail industry jumped 11.1 percent year-on-year, with offline and online sales climbing 3.7 percent and 18.4 percent, respectively. The growth is attributed to a higher number of holidays during the month (+2), stronger demand for eating in and buying in smaller quantities within one’s neighborhood. Factors driving online sales include demand for seasonal home appliances and instant/processed food products. By offline retail channel, hypermarket sales rose 2.1 percent in June as sales of food products (up 4.3 percent) and clothing (up 5.2 percent) improved, while those of home appliances/culture (down 3.3 percent) and sports (down 11.9 percent) dropped. Department store sales surged 5 percent overall as foreign designer labels (up 2.3 percent) and household goods (up 14.9 percent) increased, while women’s suits (down 2.6 percent) and men’s clothing (down 0.9 percent) shrank. Convenience stores (up 3.8 percent) enjoyed sales growth across all items, led by beverages/processed food products (up 5.7 percent), instant food products (up 1.7 percent), and tobacco/other (up 2.0 percent). SSM operators showed an uptick of 2.0 percent overall in spite of the fall of nonfood categories (down 3.8 percent), as sales of agriculture, fishery, and livestock products (up 3.3 percent) and processed food products (up 2.1 percent) increased. Online sales spiked 18.4 percent overall, led by strong demand for air conditioners and other seasonal home appliances/electronic devices (up 10.4 percent) amid the early heat wave. Sales of services/other (up 67.5 percent) drove online sales as well, thanks to the continued growth of food products (up 20.1 percent) amid high inflation and high demand for home-cooked meals, fueled by free delivery and e-coupon discounts. Meanwhile, fashion/clothing (down 10.4 percent) and sports (down 8.7 percent) experienced slower sales.   date2024-07-30

Korea and Saudi Arabia to make joint efforts for Korea-GCC FTA’s swift entry into force

Trade, Industry and Energy Minister Dukgeun Ahn met Saudi Arabia’s Minister of Commerce Majid bin Abdullah Al-Kassabi on July 30 in Seoul to discuss measures for trade and investment expansion, follow-up to the two countries’ economic summit diplomacy, and for the Korea-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA)’s swift entry into force. Minister Ahn expressed high regard for the summit diplomacy exchanges held over the last two years (Saudi Arabian Crown Prince and Prime Minister Mohammed bin Salman’s visit to Korea in November 2022, followed by President Yoon Suk Yeol’s state visit to Saudi Arabia in October 2023) with respect to bolstering bilateral ties and underscored that the conclusion of the Korea-GCC FTA last year has further solidified the two countries’ institutional economic cooperation. The minister asked Saudi Arabia's support as a member of the GCC for expediting the legal scrubbing process on both sides, as domestic procedures for the FTA’s entry into force can commence only upon the finalization of the FTA Agreement. MOTIE plans to complete the Agreement in September, then consult with GCC countries with aim to make as much progress as possible with the formal signing and necessary domestic procedures. Meanwhile, Minister for Trade Inkyo Cheong attended the Korea-Saudi Business Forum launched on the same day, co-hosted by Korea’s Ministry of Trade, Industry and Energy (MOTIE) and the Saudi Ministry of Commerce and co-organized by both countries’ Chambers of Commerce at the Westin Josun Seoul. From Saudi Arabia, an economic delegation of 80 members participated in the event, including Minister of Commerce Majid bin Abdullah Al-Kassabi among other high-level government officials and business figures. From Korea, roughly 170 representatives from 100 companies attended, including those of Kolon Group and Hyundai Motor Group. Also participating in the Forum are Aljomaih Energy & Water Company (AEC), Abdulaziz Saud Abunayyan Trading, and Al Yamama, which are Saudi companies known to have created economic summit diplomacy outcomes, leading to anticipation that further progress will be made with regard to the timely implementation of contracts and memorandums of understanding (MOUs) signed during the meetings in Seoul (November 2022) and Riyadh (October 2023), as well as the uncovering of additional joint projects. Moreover, with the Korea-GCC FTA poised to open up services markets across Korea and the Middle East, Saudi companies specializing in healthcare, entertainment, food, and other relevant sectors displayed interest by seeking new business opportunities with Korean firms at the Forum.    In his welcome address, Trade Minister Cheong stated that the two countries’ cooperation has, in step with the Saudi Vision 2030, expanded to key industries like automobiles and shipbuilding, and highlighted that the Korea-GCC FTA is expected to not only diversify trade in goods like medical devices, cosmetics, and food products, but also spur services market exchanges in industries like film and healthcare as well.   date2024-07-30

Korea’s future talent for advanced technology to take part in Korea-U.S. youth exchange initiative

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 29 its plans for the second-round selection of students for a Korea-U.S. youth exchange support program. The program is part of implementing the “KorUS Educational Exchange Initiative for Youth in STEM” in accordance with the bilateral summit outcomes reached in April 2023.  The “KorUS Educational Exchange Initiative for Youth in STEM” is a USD 30 million grant initiative (2024–2027) launched to support the large-scale exchange between 2,023 Korean students and 2,023 U.S. students in commemoration of last year marking the two countries’ 70th anniversary of the establishment of diplomatic relations. For eligible Korean students majoring in natural sciences and engineering, the program will provide them the opportunity to study at U.S. universities and experience the U.S.’ high-tech industries and advanced technologies via field trips and webinars. MOTIE selected 222 Korean students in the first half of this year for the program’s first-round scholarship and will select another 118 eligible students in the second half for the second-round scholarship for next year’s spring semester exchange. Further information is available at universities’ offices for international affairs and on Korea Institute for Advancement of Technology (KIAT)’s website (www.kiat.or.kr).   date2024-07-29

Public and private sectors to jointly launch Industrial Supply Chain Carbon Data Platform

The Ministry of Trade, Industry and Energy (MOTIE) launched the Industrial Supply Chain Carbon Neutrality Alliance on July 25 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul with the participation of 11 major industry sectors’ associations and announced the “Industrial Supply Chain Carbon Neutrality Strategy.”  Amid increased demand from the EU and other regions on calculation and mitigation of product-specific carbon emissions generated across the supply chain, concerns are being raised that lack of timely response will deteriorate competitiveness and incur export setbacks. Accordingly, MOTIE established the Industrial Supply Chain Carbon Neutrality Strategy as below to promote public-private efforts through the Industrial Supply Chain Carbon Neutrality Alliance. First, MOTIE will establish a “Korean Industrial Supply Chain Carbon Data Platform” for carbon data exchanges among businesses participating in the supply chain. Unlike the cloud’s data storage mechanism, this platform will adopt the data space method and serve as only a data passageway, while ensuring private businesses’ data sovereignty to heighten companies’ voluntary participation and utilization. The platform will initially be established around five industries with relatively greater need for carbon regulatory response (batteries, automobiles, home appliances, steel/aluminum, and textiles), which will later extend to cover all industries and industrial data. Second, the calculation and mitigation of carbon emissions will be realigned to provide integrated support to companies linking the export supply chain, instead of the previous method of distributing siloed support to individual companies. Efforts will go toward supporting collaboration with industrial complexes and local authorities, expanding the scope of mutual international recognition of carbon footprint verification outcomes, and streamlining projects based on cross-ministerial joint budget systems. Third, the ministry will use the FTA and Trade Support Center as a one-stop service for assisting companies with consulting and information provision. For the abovementioned five critical industries, MOTIE will launch a “Carbon Trade Regulatory Response Committee” for more effective regulatory response and information sharing. In implementing these initiatives, the Government, economic groups, related institutions, associations, and companies aim to leverage the Industrial Supply Chain Carbon Neutrality Alliance and its working groups to maintain close communication and consolidate domestic efforts.   date2024-07-25

Korea’s Nuclear Exports Strategy Committee consolidates follow-up efforts to Czech PJT, building further export momentum

Trade, Industry and Energy Vice Minister Namho Choe chaired the fifth Nuclear Exports Strategy Committee (“Committee”) meeting on July 25 in Seoul with the participation of Committee members composed of representatives from related ministries, companies, trade organizations, academia, and legal experts. The Committee assessed that the Czech Republic’s selection of Korea Hydro Nuclear Power (KHNP) as the preferred bidder for its new reactor project is a culmination of the Korean government’s nuclear industry normalization policy and strong “sales diplomacy” that gained the client country’s trust, combined with joint efforts of KHNP, contractors, academia and research institutions, ministries, and support organizations. Based on the recent outcome, the Committee reviewed the following project tasks for nurturing the nuclear energy sector into Korea’s anchor exporting industry. The Committee’s first aim is to fully back the follow-up measures regarding the new Czech reactor project to ensure the final contract is inked without setback by March 2025. Upon the preferred bidder announcement, Korea launched a task force (TF) on July 22 exclusively for project negotiations and held a kickoff meeting with the client company on July 24. With public and private sectors fully committed to creating mutually beneficial outcomes for both countries, authorities also opened a new bilateral hotline for close communication and negotiation support. Second, the Committee plans to make swift progress in consultations with promising export destinations to further expand Korea’s scope of nuclear exports, while also nurturing a favorable environment in the mid-to-long term through talent training and joint site investigations in emerging Asian and African countries that are currently mulling the prospects of nuclear new build projects. Moreover, upcoming international events to be hosted by Korea, such as the World Climate Industry EXPO (September 2024) and the Asia-Pacific Economic Cooperation (APEC) Summit (November 2025), will serve as great opportunities for promoting Korea’s nuclear power plants, in conjunction with international exhibitions, trade shows, and special delegations. Third, the Committee plans to back not only nuclear new builds but also power plant equipment exports. Within 20 months under the Yoon administration, Korea’s nuclear equipment export contracts surpassed KRW 4 trillion, six-fold the amount accumulated over the past five years. Building on this momentum, the Government is aiming to clinch additional large-scale project orders to reach this year’s ₩5 trillion nuclear equipment export target. Gaining traction from the Czech project win, stronger support will go towards backing middle-market companies and SMEs’ European market entry with plans for heavy marketing scheduled for the second half via the World Nuclear Symposium 2024 and Enlit Europe 2024. Fourth, the Committee will lay out a mid-to-long term nuclear export vision and reorganize the support system to establish a strong foundation for Korea’s nuclear industry to grow into a global powerhouse through the “Mid-to-Long Term Nuclear Industry Roadmap 2050,” which will be announced by the end of this year, along with legal procedures to assist the nuclear industry in tandem with the National Assembly during this second half. The support system will branch out via overseas missions, Korea Trade-Investment Promotion Agency (KOTRA)’s Global Business Platforms, and reinforced nuclear sales diplomacy. Added efforts will be made to build comprehensive cooperative relations with major partner countries in joint entry, supply chains, and small modular reactors (SMRs).   date2024-07-25

Korea and Canada hold working-level meeting as follow-up to 2+2 High-Level Dialogue on Economic Security

Director General for Trade Policy Chang Sung-gil at the Ministry of Trade, Industry and Energy (MOTIE) and Director-General for Bilateral Economic Affairs Kim Jin-dong at the Ministry of Foreign Affairs (MOFA) held a videoconference with Senior Director for Foreign Investment Review and Economic Security James Burns at Innovation, Science and Economic Development Canada and Director General for North-East Asia Joya Donnelly at Global Affairs Canada on July 24 to exchange views on measures to bolster cooperation in critical minerals, supply chains, and core and emerging technology areas as part of follow-up measures to the Korea-Canada 2+2 High-Level Dialogue on Economic Security launched on May 16, 2023. In light of increasing instability from supply chain disruptions caused by global value chain shifts and rising protectionism, both sides agreed on the importance of close cooperation for stronger supply chain resilience. With the implementation plan for the “Korea-Canada Memorandum of Understanding (MOU) on Cooperation in Critical Mineral Supply Chains, the Clean Energy Transition and Energy Security” established this April, the two sides decided to continue cooperation centered around the Minerals Security Partnership (chaired by Korea) for diversifying the global supply chain, while also furthering standards cooperation in core and emerging technology areas anticipated to spur changes in the global economic security paradigm. Taking note of the enhanced investment cooperation between the two countries’ companies, the Korean delegation requested Canada’s continued support for Korean firms’ smooth local business operations. Meanwhile, both sides reaffirmed the agreed outcomes from the Korea-Canada 2+2 High-Level Dialogue on Economic Security held in May last year and agreed to prepare for the next meeting by leveraging this bilateral working-level communication channel between their industry and foreign affairs authorities. They also plan to share policies regarding major economic security issues and actively exchange opinions to uncover joint projects that would enable more tangible cooperation. date2024-07-24

CVC Alliance to boost investment in innovative firms and spur global open innovation

The Ministry of Trade, Industry and Energy (MOTIE), Korea Institute for Advancement of Technology (KIAT), and member companies of the Corporate Venture Capital (CVC) Alliance held an annual general meeting on July 22 at COEX in Seoul to confirm this year’s management plans, including measures for boosting investment in innovative firms and activating a global open innovation program. Composed of 44 CVCs, the CVC Alliance was launched in July 2023 to stimulate domestic CVC and accelerate CVC firms’ cooperation. Unlike general vendor capitals (VCs), CVCs focus not only on financial investment, but also play the role of expediating open innovation by providing business opportunities to invested companies on joint product development and new market penetration with parent companies and subsidiaries under the aim of establishing strategic partnerships. In this view, MOTIE plans to create a KRW 13 trillion CVC fund by 2028, starting with a ₩2.4 trillion CVC fund this year. Moreover, it intends to provide up to ₩1.5 billion in commercialization R&D funding for CVC-invested companies’ rapid growth, alongside a comprehensive support package for attracting overseas funding and export market entry assistance via Korea International Trade Association (KITA) and Korea Trade-Investment Promotion Agency (KOTRA). To note, new additions to this year’s plans include CVCs and invested companies’ joint overseas investor relations (IR) activities to accelerate global open innovation, as well as a local business site visiting program for CVC investment screening officers to promote investment in companies based in non-capital regions. MOTIE also plans to streamline the Government’s R&D process by involving the participation of CVCs and VC experts in business value assessment.   date2024-07-22

Korea and Czech Republic discuss stronger cooperation following announcement of preferred bidder for new Czech reactor project

Trade, Industry and Energy Minister Dukgeun Ahn held talks with Czech Republic Ambassador to Korea Ivan Jančárek on July 22 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul and expressed appreciation over the Czech government’s selection of Korea Hydro & Nuclear Power (KHNP) as the preferred bidder to build new nuclear reactors in the Czech Republic and requested that the two countries closely cooperate for a successful project execution. KHNP was announced as the preferred bidder of the Czech Republic’s reactor project on July 17, which will be Korea's first nuclear power plant project since the state-run energy corporation won the United Arab Emirates (UAE)’ Barakah Nuclear Power Plant in 2009. The largest investment in Czech history, this new reactor project is expected to serve as a springboard for Korea’s entrance into nuclear power plant markets across Europe. During talks with Ambassador Jančárek, Minister Ahn stated that the Czech government’s fair bid process and rational evaluation have once again highlighted the prowess of Korea’s nuclear industry worldwide, “reaffirming the two countries’ 34 years of trust-building since the establishment of diplomatic ties.” He suggested that Korea and the Czech Republic aim to establish a singular nuclear ecosystem in line with President Yoon Suk Yeol’s vision for the joint construction of nuclear reactors, asking for concerted efforts to foster a cooperative system that incorporates collaboration in all areas, including talent nurturing, technology development, joint entry into third countries, and small modular reactors (SMRs).  Minister Ahn underscored that the Czech Republic is a key economic partner to Korea, noting how bilateral trade has continued to expand (USD 4.4 billion in 2023) since their relations were elevated to a strategic partnership in 2015. In view of next year marking the two countries’ 35th anniversary of the establishment of diplomatic relations, he expressed anticipation towards the Korea-Czech Republic partnership advancing to a whole new level through a deeper and more extensive economic cooperation in not only nuclear reactors, but also in advanced industries, technology, and transport infrastructure. The minister remarked that efforts will be made for a comprehensive and across-the-board economic cooperation with the Czech Republic based on this nuclear power plant project, as well as for maintaining an intergovernmental communication channel for negotiating project issues with regard to inking the contract. At the meeting, active support for the two countries’ economic cooperation was pledged by representatives of Korea’s six major economic groups, including the Korea Chamber of Commerce and Industry (KCCI), Federation of Korean Industries (KFI), Korea International Trade Association (KITA), Korea Federation of SMEs (KBIZ), Federation of Middle Market Enterprises of Korea (FOMEK), and Korea Enterprises Federation (KEF).   date2024-07-22