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Korea's accumulated Jan-Feb automobile exports grow 7.5% YoY
The Ministry of Trade, Industry and Energy (MOTIE) announced on March 19 that the accumulated January-February exports of automobiles in 2024 reached USD 11.4 billion, up 7.5 percent year-on-year. The export unit price is also on an upward trajectory lately, around $1,000 higher than that recorded early last year. February automobile exports recorded a monthly decline of 7.8 percent year-on-year at $5.2 billion, attributable to the relatively lower number of shipping days and the high base effect from last year’s steep climb, in addition to automakers’ production line maintenance work for future mobility transition. This year’s accumulated number of automobiles produced from January-February grew 0.7 percent year-on-year to 658,923 units, with February’s monthly production volume alone surpassing 300,000 units despite the lower number of working days owing to the Seollal holidays. Meanwhile, domestic car sales from January-February shrank 11.9 percent year-on-year to 232,217 units, but it is anticipated that sales will pick up pace once more as electric vehicle (EV) subsidies are issued and the plants in Asan and Ulsan resume operation. date2024-03-19
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Public and private sectors join hands for global standards leadership in hydrogen and fuel cells
Korean Agency for Technology and Standards (KATS) President Jin Jong-wook under the Ministry of Trade, Industry and Energy (MOTIE) held a business conference on March 19 at a hydrogen fuel tank manufacturing site to strengthen international standards in hydrogen and fuel cells in line with reaching the national policy targets for sustainable carbon neutrality. KATS representatives attending the conference shared the current progress and policy directions in hydrogen and fuel cell standards development and gathered opinions and suggestions from firms participating in related projects. Companies suggested that, in view of the technology and market of hydrogen and fuel cells still being in their early stages of development, firms be given support through standards development of Korean technologies in future key areas like hydrogen mobility, liquid hydrogen storage and transport, which can serve as a springboard for export to global markets. KATS President Jin remarked that “based on today’s discussions, KATS will newly install and operate the ‘International Standards Forum on Hydrogen Technology’ for supporting companies’ participation and Korea’s leadership in international standards development.” date2024-03-19
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Korea and UK to hold 2nd official negotiating round on upgrading bilateral FTA
Director General for FTA Negotiations Chang Sung-gil at the Ministry of Trade, Industry and Energy (MOTIE) is heading the Korean delegation in the second official round of negotiations for upgrading the Korea-UK Free Trade Agreement (FTA) to be held through March 19-22 in London. The UK delegation will be led by Adam Fenn, Chief Negotiator at the UK's Department for Business and Trade. With the Korea-UK FTA signed in 2019 and having come into force in 2021 on the heels of Brexit, the two countries declared the launch of negotiations for the upgrade of the bilateral FTA upon the occasion of President Yoon Suk Yeol’s state visit to the UK last November, and the first negotiating round was held this January in Seoul. In this second negotiating round, the Korean government aims to strengthen comprehensive and cooperative trade relations and discuss the introduction of new trade rules through negotiations on service, digital, SMEs and Good Regulatory Practices (GRP). Korea anticipates that the upgrade of the bilateral FTA will contribute to expanding exports and investment through reinforcing advanced trade solidarity with the UK, one of Korea’s core friendly nations, while also stabilizing the supply chain and enhancing cooperation in areas like gender and clean energy. date2024-03-19
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Korea discusses technical regulation issues with export destination countries at WTO TBT Committee
The Ministry of Trade, Industry and Energy (MOTIE) announced on March 17 that the Korean Agency for Technology and Standards (KATS) President Jin Jong-wook and Food and Drug Safety Minister Yu-Kyoung Oh attended this year’s first World Trade Organization (WTO) Technical Barriers to Trade (TBT) Committee meeting through March 12-15 to discuss issues on technical regulations with Korea’s major export destination countries. At the TBT Committee meeting, the Korean delegation raised specific trade concerns (STCs) over 10 technical regulations imposed by a number of countries and the EU on some of Korea’s major export items, including batteries, automobiles, cosmetic products, medical devices, and fluorinated greenhouse gases (F-GHGs), which are used as refrigerants for air conditioners. Meanwhile, regarding the per- and polyfluoroalkyl substances (PFAS) regulations, Korea intends to hold bilateral talks with related countries for cooperation on addressing domestic industries’ concerns and resolving issues arising from the global increase of TBTs. date2024-03-18
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Ministers agree to expand clean economy cooperation at IPEF ministerial meeting
Trade, Industry and Energy Ministry's Deputy Minister for FTA Negotiations Roh Keon-ki attended the Indo-Pacific Economic Framework for Prosperity (IPEF) ministerial meeting on March 14 via videoconferencing. Ministers attending the meeting agreed to prepare for the entry into force and implementation of the Supply Chain, Clean Economy and Fair Economy Pillars’ Agreements concluded last year, while also pushing forward practical cooperation to enhance connectivity across the Indo-Pacific region through the IPEF Clean Economy Investor Forum and activation of Clean Economy cooperative programs, among other means. The ministerial meeting will kick off procedures for the Clean Economy and Fair Economy Agreements’ entry into force, including their disclosure and the collection of public opinion. Concluded last November, the Agreements contain measures for cooperation in energy transition, reduction of greenhouse gas emissions in industries and transportation sectors, early transition into the Clean Economy (e.g., carbon market), anti-corruption, and for strengthening the transparency and efficiency of tax administration. Participating countries plan to proceed with signing and other necessary procedures for the Clean Economy and Fair Economy Agreements’ swift entry into force. The Supply Chain Agreement and pertaining measures for cooperation to stabilize the regional supply chain have come into effect in some countries starting February 24, and Korea will proceed with domestic procedures, including government screening and Cabinet decision-making, for entry into force in April. Moreover, it is anticipated that this year will set cooperative activities into motion to maximize the outcomes per each IPEF Pillar. Slated for June in Singapore, the Investor Forum will be a venue for investor-project matching and other activities with the participation of governments, investment companies and Multilateral Development Banks (MDBs) for boosting investments in eco-friendly energy, ports, and clean economy infrastructure areas for the Indo-Pacific region. In addition, a detailed cooperation program for the early achievement of the Clean Economy Agreement targets is to be launched, such as those for invigorating the carbon market, clean electricity utilization, and sustainable aviation fuels (SAF), as well as for establishing the hydrogen market and supply chain, and retraining for just transitions and upskilling. Deputy Minister Roh stated that whereas 2023 was a year focusing on concluding the Agreements for IPEF Pillars, 2024 will be one focusing on their entry into force, preparing for implementation, and seeing actual investment and cooperation happen at the IPEF level. date2024-03-18
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Experts nod at CFE utilization being key to achieving carbon neutrality and industrial competitiveness
Trade, Industry and Energy Minister Dukgeun Ahn attended a seminar on March 15, sponsored by the Ministry of Trade, Industry and Energy (MOTIE) and jointly hosted by the Korea Chamber of Commerce and Industry (KCCI) and the Carbon Free (CF) Alliance, on enhancing the potential of carbon-free energy sources, where vigorous discussions took place on measures for the transition of electrical power and industrial processes into carbon-free processes in response to climate change. The seminar was attended by numerous key figures of academia, corporations, and research institutes, including the Co-Chairperson of the Presidential Commission on Carbon Neutrality and Green Growth Kim Sang-hyup and Korea Institute for Industrial Economics and Trade (KIET) President Ju Hyeon, for discussions on the latest, in-depth discourse on carbon neutrality and related industrial and energy issues. CF Alliance Chairman Hoesung Lee remarked in his opening address on Korea’s role of initiating the global climate crisis response measures, establishing new international rules and leading the technological diffusion of carbon-free energy utilization. Participants presented various ideas on related issues: expanding the supply of various carbon-free energy sources like renewables, nuclear energy and hydrogen; developing technologies and providing financial support for reducing the unit price of green hydrogen production; maintaining nuclear energy competitiveness through the development of small modular reactors (SMRs); and measures for achieving carbon neutrality without relying on certain technologies or scenarios. In accordance with the 28th Session of the Conference of Parties (COP28) to the UNFCCC agreements, participants overall agreed that a wide range of carbon-free energy sources should be proactively utilized and that their potential can be translated to actual power supply capacity for the more effective achievement of carbon neutrality and industrial competitiveness, considering Korea’s industrial structure tilted towards advanced industries and manufacturing. Minister Ahn remarked that “Carbon neutrality is not a choice for firms, but an essential task for survival and a national task directly linked to industrial competitiveness.” He said that efforts will be made to accelerate the establishment of implementation standards with major countries in supporting companies attain carbon neutrality through the global diffusion of the Carbon-Free Energy (CFE) Initiative. date2024-03-15
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Korea's ICT exports climb 29.1% in February
The Ministry of Trade, Industry and Energy (MOTIE) announced on March 14 that Korea's exports and imports of information and communications technology (ICT) goods for February recorded USD 16.5 billion (up 29.1 percent year-on-year) and $10.3 billion (down 6.7 percent), respectively. The trade balance stood at a surplus of approximately $6.3 billion. February ICT exports showed a definite rebound, recording double-digit growth for the second consecutive month on the backs of increased exports of major items like semiconductors, which posted double-digit growth for the fourth consecutive month. Exports of semiconductors (up 62.9 percent to $10.0 billion) were boosted by increased demand from the AI market expansion, resulting in increased exports of both memory (up 108.1 percent to $6.1 billion) and system chips (up 27.2 percent to $3.4 billion). Displays (up 18.7 percent to $1.6 billion) advanced in exports as demand for TVs, mobile phones and other IT devices recovered growth, raising exports of OLEDs and LCDs. Exports of mobile phones (down 21.3 percent to $0.8 billion) shrank despite robust demand for finished products owing to new model releases, as overseas companies’ demand for parts (down 36.9 percent to $0.5 billion) dropped. Increased demand for solid-state drives (SSDs) led the entire computers and peripherals (up 14.0 percent to $0.8 billion) exports, achieving growth for the second consecutive month. Communications equipment (down 6.7 percent to $0.2 billion) showed growth to some markets like Vietnam, but exports to China and India fell, reducing overall exports. By destination, ICT exports to China (including Hong Kong) rose (up 43.8 percent to $7.4 billion) for the fourth consecutive month, thanks to advances of major items like semiconductors and displays. Exports to Vietnam (up 24.3 percent to $2.6 billion) grew for the seventh consecutive month on the backs of semiconductors and displays and other major items. To the U.S. (up 13.5 percent to $1.9 billion), ICT exports expanded for the fourth consecutive month as semiconductors, computers and peripherals and other major items met increased demand. Exports to the EU (down 0.5 percent to $0.9 billion) fell despite the steep climb of semiconductors (up 33.8 percent to $0.2 billion) and mobile phones (up 102.1 percent to $0.1 billion), as those of secondary batteries plunged (down 54.7 percent to $0.1 billion). To Japan (down 4.3 percent to $0.3 billion), exports of secondary batteries and computers and peripherals increased, but the contraction of semiconductor exports shrank overall ICT exports. date2024-03-14
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MOTIE and U.S. DOC discuss healthcare industry cooperation
The Ministry of Trade, Industry and Energy (MOTIE) and the U.S. Department of Commerce (DOC) held the Korea-U.S. Supply Chain and Commercial Dialogue Healthcare Working Group meeting on March 14 via videoconferencing. Launched in 2022, the Korea-U.S. Supply Chain and Commercial Dialogue (SCCD) is a bilateral ministerial-level channel between MOTIE and the U.S. DOC consisting of four Working Groups (WGs): 1. Advanced Manufacturing and Supply Chain Resilience, 2. Dual-Use Export Controls, 3. Digital Economy, and 4. Healthcare and Healthcare Technology. The Healthcare WG meeting was held to seek measures for enhancing the two countries' mutual understanding and cooperation with regard to their healthcare industries. The two sides shared their respective healthcare industry issues and policies and discussed measures for expanding cooperation in the healthcare industry and related technologies. They also agreed to uncover opportunities for collaboration in joint private-sector R&D projects and to continue to actively utilize the SCCD Healthcare WG channel for advancing bilateral industrial cooperation. date2024-03-14