Ministry of Trade, Industry and Energy

Trade Minister Cheong visits Washington D.C. and N.Y. to enhance Korea-U.S. trade cooperation

Korea’s Minister for Trade Inkyo Cheong is visiting Washington D.C. and New York City from September 10–12 to meet with various key figures of the Biden administration, U.S. Department of Commerce (DOC), think tanks, and political and financial circles. The objective of this visit leading up to the U.S. presidential elections is to discuss measures for maintaining the solid Korea-U.S. trade, economic, and industrial cooperation going forward. The trade chief plans to request continued interest and support towards Korean businesses to minimize uncertainties for those currently exporting to and investing in the U.S. market. During his visit, Trade Minister Cheong will also attend major events such as the Korea-U.S. Economic Security Conference (September 10), Investors Roundtable (September 11), and the Korea-U.S. Economic Cooperation Seminar (September 12) to gather opinions from experts and business leaders to establish a network favorable to Korea across political, financial, and academic circles. The trade minister expressed anticipation that the outreach will help build the foundation for further advancing the Korea-U.S. economic and trade cooperation, stating that regardless of the volatility and uncertainties arising for the time being from coming elections, the two countries’ firmly rooted bilateral ties will remain strong.   date2024-09-10

Korea and Mongolia launch 3rd official negotiating round for bilateral EPA

Korea’s Director General for FTA Negotiations Peob-min Ryu is leading the government delegation in the third round of official negotiations for the Korea-Mongolia Economic Partnership Agreement (EPA) through September 10–13 in Ulaanbaatar, Mongolia. The Mongolian delegation is headed by State Secretary for the Ministry of Economy and Development Batkhuu Idesh. In this third negotiating round, the two delegations are activating a total of 17 working groups, aiming to move the negotiations forward in areas including goods, rules of origin, services, investment, digital, finance, government procurement, and intellectual property. They also seek to delve into more detailed discussions on their respective goods and areas of interest regarding the opening of markets. Moreover, in areas recently seeing active bilateral exchanges like minerals and environment, both sides plan to establish grounds for cooperation in their bilateral EPA to strengthen coordination in supply chain stabilization and climate change response. Highlighting that Mongolia is a resource-rich, promising new market and an important economic partner for Korea’s export channel diversification and supply chain stabilization, Director General Ryu said the ministry will strive to ensure the Korea-Mongolia EPA serves not only as a means for expanding bilateral trade in the traditional sense of Free Trade Agreements (FTAs), but also as an institutional foundation that broadens and enriches the two countries’ economic cooperation across a wide range of areas going forward.   date2024-09-10

Korea and EU step up negotiations for bilateral Digital Trade Agreement

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today the launching of the fifth official negotiating round for the Korea-EU Digital Trade Agreement (DTA) through September 10–12 in Brussels, Belgium, led by both sides’ government delegations. The need to upgrade the Korea-EU digital trade rules was raised as the existing Korea-EU Free Trade Agreement (FTA) fails to sufficiently address changes in the trade landscape with regard to digital trade expansion and other issues in data and cybersecurity. With the shared vision for establishing a high-level digital trade agreement based on the Korea-EU Digital Trade Principles (signed in November 2022), the two sides have held four negotiating rounds since their joint declaration to commence bilateral digital trade negotiations last October. Through this fifth official negotiating round, the Korean and EU delegations will continue discussions on digital trade facilitation and other relevant areas such as corporate and consumer trust, and seek measures to move the negotiations forward. The Korea-EU DTA is anticipated to bolster Korea’s digital trade network with the EU, thereby nurturing a reliable, open, and fair digital trade environment for both sides’ businesses and consumers, while also invigorating bilateral digital trade.   date2024-09-10

MOTIE to back joint R&D projects between homegrown companies and world-leading institutions

The Ministry of Trade, Industry and Energy (MOTIE) announced today that beginning in the latter half of this year, Korean firms will be launching joint projects with the world’s leading institutions to jumpstart the development of future new growth engines. Roughly KRW 684 billion will be poured into 140 projects through 2024–2028. Through an open call for mid-to-large sized (up to ₩10 billion), mid-to-long term (up to 5 years) joint R&D projects, MOTIE selected 44 projects among the 247 submitted with aim to develop industrial technologies in six advanced areas—bio, semiconductors, robot, battery, future mobility, and displays. A number of prestigious universities and R&D institutions will be taking part, such as the Massachusetts Institute of Technology (MIT), Harvard Medical School, the University of Cambridge, Stanford University, and the Argonne National Laboratory. Meanwhile, 69 firms and 34 institutions will participate from Korea, including Dongjin Semichem, HanAll Biopharma, and the Asan Medical Center. Selected projects involve foundational technologies that are projected to create a spillover effect for the future economy, such as a new mRNA drug for the age reversal of eyesight and hearing (MIT, HanAll Biopharma), a new drug for minimizing the tolerance and toxicity of anti-cancer drugs (Harvard Medical School, Handok), hydrogen engines harnessing foundational technology developed by the world’s top engine maker (AVL, HD Hyundai Heavy Industries), a high-precision robot system for cerebrovascular surgeries (Johns Hopkins University, LN Robotics), next-generation dry electrode manufacturing (Fraunhofer-Gesellschaft, NANOINTECH), and atomic-level, next-generation patterning materials and processes for ultrafine semiconductor manufacturing (Stanford University, Dongjin Semichem). Moreover, the participation of renowned scholars like MIT Professor Moungi Bawendi, winner of the 2023 Nobel Prize in Chemistry, and UCSB Professor Shuji Nakamura, winner of the 2014 Nobel Prize in Physics, is expected to broaden Korean companies’ scope of vision on global technology trends, while accelerating the output of quality outcomes. MOTIE plans to actively support the global open innovation of Korean companies so that they can claim future new markets based on the synergy between their commercialization competitiveness and overseas foundational technologies.   date2024-09-09

Korea’s largest coal mine closes, opens doors to the next energy era

Trade, Industry and Energy Minister Dukgeun Ahn attended the ceremony on September 6 marking the closure of the Jangseong Coal Mine in Taebaek City, Gangwon province. He expressed appreciation to the coal mine workers and said that the ministry will seek measures to help identify alternative industries for the region in step with the transition to a carbon-free era. Korea’s largest coal mine to date, the Jangseong Coal Mine produced roughly 94 million metric tons of coal over the past 88 years, contributing to the stable supply of coal briquettes and the growth of the local economy. In recognition of the hard work and dedication, Minister Ahn presented governmental commendations to five of the Jangseong Coal Mine workers and shared the Government’s plan to increase the supply capacity of carbon-free energy sources, establish energy security, and create new energy industries. As an alternative to coal mining, Taebaek City is currently in the process of nurturing a cluster for future resources by 2029 across the Jangseong Coal Mine site, including clean methanol production facilities and a critical minerals industrial complex. The minister ensured that the Government will back the region’s efforts to uncover an alternative industry for vitalizing the local economy. date2024-09-06

Korea AI and System IC Innovation Center takes off in San Hose

The Ministry of Trade, Industry and Energy (MOTIE) announced on September 5 the launching of the Korea AI and System IC Innovation Center (K-ASIC) in San Hose, California, which will serve as a hub for supporting Korea’s system semiconductor companies’ entry into the U.S. market.  Held to promote Korea’s system chip firms and their products, the opening ceremony was attended by representatives of MOTIE, Korea Evaluation Institute of Industrial Technology (KEIT), Korea Semiconductor Industry Association (KSIA), K-ASIC tenant businesses, U.S. chip companies, Stanford University, and relevant industry insiders of both countries. Participants discussed measures for stronger Korea-U.S. semiconductor industrial cooperation. As the U.S. takes up 70 percent of the world’s system chip market, local penetration is essential for Korea’s fabless companies, IP firms, and design houses to grow into global businesses. Accordingly, the ministry has established K-ASIC in San Hose, home to major chip companies, and announced plans to provide comprehensive assistance to domestic firms for U.S. market entry through K-ASIC with respect to technology development, verification, certification consulting, promotion, and networking. Moreover, the ministry intends to continue private sector cooperation through K-ASIC as an extension of joint efforts with the U.S. for next-generation semiconductor collaboration that have continued since President Yoon Suk Yeol’s state visit in April 2023. A MOTIE official stated that AI semiconductor technology is the gamechanger that will further enhance Korea’s chip dominance and expressed hopes for K-ASIC to give birth to a world-leading company. To this end, the ministry aims to establish a base for raising the competitiveness of homegrown companies through funding, talent training, and production infrastructure support, including the development of a system chip verification support center. On occasion of the launching of K-ASIC, MOTIE will hold a conference with chip companies operating in the local U.S. market on September 6 (local time) and discuss measures for stronger support for U.S. market entry.   date2024-09-06

Korean government sharpens EV battery safety and fire response management

The Korean government announced the electric vehicle (EV) fire safety management measures today at the Ministerial Meeting on Current State Affairs chaired by Prime Minister Han Duck-soo. As the Incheon apartment parking lot EV fire in August fueled nationwide concerns over EV charger safety, the Government has come up with measures to relieve public anxiety and promote EV safety. To this end, related ministries established detailed measures based on consultations with automobile industry insiders, National Assembly discussions, and a high-level meeting of government and ruling party officials (August 25). Through the established measures, the Government aims to strengthen the entire safety management process. First, the EV battery certification system previously scheduled to begin next February will move up to October this year in the form of a pilot project. The extent of information disclosure will include key information, such as the battery maker and manufacturing technology. The list of criteria for battery inspections is to sharply lengthen and the Korea Transportation Safety Authority (TS) will swiftly expand the battery testing infrastructure. The battery data tracing system is to launch as planned in February 2025. Beginning next year, automakers not insured against product liability losses will not be eligible for EV subsidies, and the Government is considering mandating companies to buy product liability insurance. As for charge point operators (CPOs), the proposed bill on CPOs’ no-fault insurance mandate is under review.  For battery safety, the Government will work on improving the EV battery management system (BMS) functions. Hyundai, Kia and other major automakers have plans to provide free-of-charge installation of BMS for older models lacking the system. For cars already equipped with the safety system, companies plan to offer free-of-charge performance upgrades. Moreover, the Government will establish BMS standards for battery danger levels by the end of the year. Starting in the first half of 2025, firefighting authorities will be alerted of battery danger warnings of cars whose owners have agreed to information provision. The Government also aims to enhance fire prevention with fail-safe smart EV chargers that enable operators to control charging sessions, proposing to increase their distribution from this year’s 20,000 to 71,000 units in 2025. Slow-speed battery chargers are to be replaced with smart chargers taking account their lifespan and nearby firefighting facility. Based on many experts’ opinion that prompt sprinkler activation is most effective in preventing the spread of fire, the Government plans to minimize areas vulnerable to safety management through improving and expanding the provision of related equipment. All new buildings’ underground parking lots will require the installation of a wet pipe sprinkler system for fire emergencies, but the installation of pre-action sprinklers will be allowed for buildings with high risk of freezing and bursting pipes. In addition, related authorities will strengthen punishment on unauthorized disabling of sprinklers and other firefighting equipment. In light of the public sentiment toward recent EV fire accidents, the mandatory installation of charging points (2 percent) scheduled for implementation beginning in January has been granted a one-year grace period with the cooperation of local government bodies. Laws will be amended by the first half of 2025 to require the use of fire-resistant materials in building the walls, ceilings, and columns of underground parking lots for better fire prevention. To enhance fire response capacity, all 240 fire stations in the country by next year will be supplied with an increased number of EV firefighting equipment. Through public-private collaboration, the Government plans to develop small-sized, unmanned firefighting vehicles for easier access into date2024-09-06

Korea and ASEAN discuss cooperation at Indo-Pacific Policy Forum

Minister for Trade Inkyo Cheong held the Indo-Pacific Policy Forum (“Forum”) today in Seoul and facilitated discussions on economic cooperation with ASEAN, Korea’s major economic partner and core region of the Global South. Meanwhile, forecasted outcomes of the Korea-ASEAN Economic Ministers’ Meeting slated for September 21–22 in Vientiane, Laos, were also reviewed, including upgrading the Korea-ASEAN Free Trade Agreement (FTA) and the Korea-ASEAN trade and economic policy cooperation. As part of follow-up measures to the Trade Policy Roadmap announced in August, the Forum was attended by a number of ASEAN experts including those from the Korea University ASEAN Center (KUAC) and the Korea Institute for International Economic Policy (KIEP). They exchanged views on issues concerning Korea’s measures for responding to the realignment of the ASEAN supply chain as per the U.S.-China competition, as well as Vietnam’s legislation of key industrial laws and their implications. In his opening message, Trade Minister Cheong stated that ASEAN, based on its world’s third largest population and fifth largest economy, is expanding its position as the new growth engine for global manufacturing and strategic counterweight in global politics and diplomacy. He shared plans to utilize the Korea-ASEAN FTA, Regional Comprehensive Economic Partnership (RCEP) and such multilevel networks to increase joint efforts on new trade issues like digital transition and climate change, in addition to existing areas of cooperation like trade and investment.   date2024-09-06