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Korea and Sweden discuss cooperation in advanced industries and digital economy
Director General for International Trade Policy Yoon Chang-hyun at the Ministry of Trade, Industry and Energy (MOTIE) met with Maria Rosander, Director General at Sweden’s Ministry of Climate and Enterprise and Secretariat for the European Union (EU) and International Affairs, on March 7 via teleconferencing to hold the second Korea-Sweden Industrial Cooperation Committee meeting to discuss policies in advanced industries like nuclear energy and bio, as well as regulatory reform and bilateral cooperation measures. The two sides discussed measures for cooperation in bio, nuclear energy, and digital economy, and Director General Yoon shared the system and management know-how of Korea’s regulatory sandbox. They also agreed to expand and develop the memorandum of understanding (MOU) for Korea-Sweden Industrial Cooperation, which expires this June, to one on the Korea-Sweden Trade and Investment Promotion Framework (TIPF), which will encompass not only industries but also new trade issues in investment, supply chain, digital and carbon-free energy. Furthermore, both sides highly assessed the Korea-Sweden Digital Economy and Trade Forum, now in its fourth year since launched in 2020, and decided that this year’s forum is to be held in Korea. Noting that Korea and Sweden both are manufacturing powerhouses that place emphasis on innovative technology and R&D, Director General Yoon stated that efforts will continue to create synergy between Sweden’s high value-added industries and Korea’s manufacturing competitiveness. date2024-03-07
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MOTIE rolls out Foreign Investment Stimulation Program 2024 to nurture global innovation hub
The Ministry of Trade, Industry and Energy (MOTIE) held the 114th Foreign Investment Committee meeting for deliberation and resolution on the basic directions and programs for stimulating foreign investment in 2024 and received a briefing in writing on the annual report on grievance settlements for improving the investment environment from the Foreign Investment Ombudsman. In the foreign investment stimulation program for 2024, MOTIE proposes stronger foreign direct investment (FDI) attraction measures for nurturing a global innovation hub. Detailed project tasks, including strategic FDI attraction, stronger foreign investor support and improvement of investment environment. Accordingly, MOTIE plans to select 100 key companies for pursuing either high-level communication or scaled-down, close-up efforts to attract foreign investment for strengthening the supply chain and securing advanced technologies. Moreover, to increase investment of key companies in advanced industries, MOTIE intends to sharply raise the budget for cash grants from KRW 50 billion in 2023 to 200 billion won in 2024, and launch an R&D project exclusively for foreign-invested companies to invigorate global firms’ R&D investment in Korea. Foreign Investment Ombudsman Kim Sung-jin reported a total of 406 cases of grievance settlements in 2023, including 18 cases of system improvement. The Foreign Investment Ombudsman system was introduced in 1999 to handle issues related to foreign-invested companies, and the number of grievance settlement cases in 2023 has increased 4.9 percent year-on-year. MOTIE plans to push forward the foreign investment stimulation program for 2024, while also fostering a more attractive investment environment for foreign-invested companies based on various efforts, including the Foreign Investment Ombudsman’s proactive handling of grievances. date2024-03-06
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Korea launches Middle East Future Partnership Delegation 2024
The “Middle East Future Partnership Delegation 2024”, formed by the Ministry of Trade, Industry and Energy (MOTIE), is visiting Dubai in the United Arab Emirates (UAE) from March 6-7 as part of the Korean government’s all-time high USD 700 billion export target project launched for 2024, for which trade delegations are to be sent to 10 promising markets for strategic market expansion. As opposed to the existing local government-led trade delegation and private-led economic delegation, this delegation will support Korean companies’ efforts to strike contract deals in conjunction with summit diplomacy, economic cooperation and local large-scale exhibitions concentrating on the selected promising markets and items in line with the central Government’s strategic policy direction based on the four major megatrends, namely supply chain alignment, carbon neutrality, digital and demographic changes. The Middle East is one of the selected promising markets with ongoing infrastructure investment in a variety of areas like petrochemicals, new renewables and road traffic in accordance with the recent push for industrial transformation. Korea’s exports to the Middle East took up approximately three percent in terms of proportion as of 2023, but exports to the region showed rapid growth (up 7.3 percent year-on-year) despite difficult global conditions. President Yoon Suk Yeol’s state visit to UAE and the Korea-UAE Comprehensive Economic Partnership Agreement (October) and Korea-GCC Free Trade Agreement (FTA) were all realized last year, spurring the “New Middle East Boom” and boosting the number of Korean companies hoping to enter the Middle Eastern market. The Middle East Future Partnership Delegation has incorporated a number of tech export businesses owning core technologies in future industries for technology collaboration with the Middle East. Twenty-two Korean tech companies specializing in traffic control systems, green hydrogen, robots, internet of things (IoT) and digital solutions are participating in the delegation. From the Middle East, major investment groups like the Kanoo Group and client companies of key infrastructure projects, including the Roads & Transport Authority and Dubai Electricity and Water Authority (DEWA), will be engaging in consultations for export and investment deals over the two-day period. Recently, major countries in the Middle East have made announcements for mega-scale infrastructure project plans, including Saudi Arabia’s NEOM, UAE’s Al Ajban Solar PV and Kuwait’s South Saad Al-Abdullah Smart City project, signaling their focus on IoT, clean energy and future technology cooperation. The delegation visit is anticipated to create new synergies between Korean companies with manufacturing and R&D competitiveness and Middle Eastern business leaders serving as chief mediators for the Middle East and Africa. MOTIE’s Minister Dukgeun Ahn stated that Korea’s exports have posted growth for the fifth consecutive month in February despite the Seollal holidays and increased the prospects of hitting this year’s $700 billion export target, highlighting that “The Middle East Future Partnership Delegation will catalyze the economic cooperation outcomes from the recent summit diplomacy, Korea-UAE CEPA and the Korea-GCC FTA to solidify the rising momentum for export growth.” He added that “Starting with the Middle East, the Government plans to send delegations to 10 promising markets to preemptively uncover and enlarge export opportunities in line with new market trends.” date2024-03-06
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Korea and India to expand comprehensive economic cooperation
Trade, Industry and Energy Minister Dukgeun Ahn met with India's External Affairs Minister Subrahmanyam Jaishankar on March 5 at Lotte Hotel Seoul to discuss measures for expanding comprehensive economic cooperation between the two countries, including collaboration in trade, investment, technology exchange, supply chain, energy and new industries. The two ministers exchanged views in-depth on ways for the two countries to jointly engage in the India-Middle East-Europe Economic Corridor (IMEC) and other regional networks, which can be seen as part of the Trade, Industry and Energy Ministry (MOTIE)'s strategy announced last month on pan-ministerial export expansion for 2024 by building multilevel networks with countries in the Global South on a wide regional basis. In this respect, Minister Ahn stated that the two countries need a strategic dialogue channel for discussing new industries and other economic cooperative issues on a regular basis, and that they swiftly launch the Korea-India Industrial Cooperation Committee as proposed by Korea to India’s Ministry of Commerce and Industry as a follow-up to last year's bilateral summit so as to deepen forward-looking economic cooperative ties. MOTIE plans to make progress on negotiations for upgrading the Korea-India Comprehensive Economic Partnership Agreement (CEPA) to gain tangible outcomes within this year, while also continuing to nurture an environment for Korean companies' stable local investment through local institutions like “Korea Plus in India”. date2024-03-06
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Korea and U.S. discuss chip cooperation
Deputy Minister for Trade Yang Byeong-nae held talks with John Neuffer, President and CEO of the Semiconductor Industry Association (SIA), on March 5 on the occasion of the latter’s visit to Korea. As the representative and voice of the U.S.’ semiconductor industry, SIA has been engaging in public-private cooperation in semiconductor industry sectors with MOTIE through both bilateral and multilateral consultation channels like the Government/Authorities Meeting on Semiconductors (GAMS) and the Korea-U.S. Supply Chain and Commercial Dialogue (SCCD). Samsung, SK Hynix and a number of Korean companies are members of SIA. Deputy Trade Minister Yang and President Neuffer discussed measures for advancing trade cooperation in semiconductors and supply chains between Korea and the U.S., as well as major policies like the U.S.’ CHIPS Act. The deputy trade chief assessed that the two countries have been closely cooperating in the semiconductor area through the Korea-U.S. summit and the trilateral Korea-U.S.-Japan summit held last year, on which they also discussed measures for expanding public-private joint cooperation on the sidelines of the first trilateral Korea-U.S.-Japan industry ministers’ meeting slated for this year. Amid the positive prospects for AI chips and the overall semiconductor in 2024, Deputy Trade Minister Yang proposed that the two countries enhance their semiconductor industries’ global competitiveness by stepping up public-private cooperation to effectively respond to trade environment uncertainties, especially in view of the record number of elections to be held around the world this year. date2024-03-05
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Korea discusses measures to bolster critical minerals cooperation with MSP partners
Resources Industry Policy Director General Yoo Beop-min at the Ministry of Trade, Industry and Energy (MOTIE) held high-level, bilateral meetings with Japanese and Canadian counterparts on March 4 in Toronto, Canada, on measures to strengthen cooperation in critical minerals on the margins of attending the Minerals Security Partnership (MSP) Chief Delegates Meeting. First, Director General Yoo held talks with Japan’s Economy, Trade and Industry Ministry (METI) Director General Sadamichu Yuki to discuss measures for bilateral cooperation in natural resources like critical minerals, oil and gas. Noting that both Korea and Japan rely mostly on import for energy and resources, the two sides agreed on the need for cooperation in order to establish a stable energy and resources supply chain between the two countries. The two director generals decided to utilize the MSP, International Energy Agency (IEA) and other various opportunities in the future for further consultation in resources cooperation, agreeing to positively consider the prospects of establishing a regular director general-level consultation channel. With Natural Resources Canada’s Director General Debora Yu, Director General Yoo discussed the launching of a critical minerals working level committee as part of a follow-up measure to the memorandum of understanding (MOU) entered between MOTIE and Natural Resources Canada on critical minerals supply chain cooperation, with plans to seek long-term and specific collaboration schemes through the working level committee. In his meeting with Invest in Canda CEO Laura Broten, Director General Yoo underscored Korean firms’ high level of interest in Canada in the area of critical minerals and resources and requested the Canadian government’s interest and support towards facilitating their investment in Canada. He suggested measures for gaining tangible private sector cooperation outcomes, such as holding a business roundtable for the two countries’ critical minerals companies. Director General Yoo also held a conference with locally operating Korean companies to gather suggestions on issues in propelling forward critical minerals projects in North America, introducing the Korean government’s business support policies and asked the Canadian government’s interest and support towards resolving issues voiced by Korean firms. He also stated that the Korean government will continue to provide support for companies in securing overseas resources through increased tax credits and loan programs. date2024-03-05
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Korea and Indonesia to push forward cooperation in future new industries
Deputy Minister for Trade Yang Byeong-nae visited Jakarta, Indonesia, from March 3-5 to hold high-level meetings with Indonesian counterparts and talks with locally operating Korean companies with aim to solidify the base for Korea-Indonesia bilateral economic cooperation. This comes as part of the two countries’ efforts to push forward the agenda items discussed during the Korea-Indonesia summit meeting in September, concerning EVs, batteries, critical minerals supply chain and “root (foundational)” technology talent nurturing, while also expanding cooperation in areas for facilitating carbon neutrality goals and future industries, such as nuclear energy and carbon capture and storage (CCS) in depleted oil and gas reservoirs. Deputy Trade Minister Yang first met with Jisman P. Hutajulu, Directorate General of Electricity at Indonesia’s Energy and Natural Resources Ministry, to discuss measures for expanding cooperation in EVs, critical minerals supply chain and clean energy. The two sides affirmed plans for launching the Korea-Indonesia E-Mobility Cooperation Center within the first half of this year and agreed to closely cooperate on building an EV and battery ecosystem. They also discussed measures for establishing a stable critical minerals supply chain for batteries, including investment in mines, refineries and smelteries. In his meeting with Andi Rizaldi, Head of the Standardization and Industrial Services Policy Agency (BSKJI) of Indonesia’s Ministry of Industry, the deputy trade chief discussed measures for resolving issues Korean companies face in entering the local market, such as talent training and import regulations. On this occasion, a memorandum of understanding (MOU) was entered for cooperation in foundational technology talent training between Indonesia’s PT Krakatau POSCO, Banten Petrochemical Industry Polytechnic and the Korea National Ppuri Industry Center as a follow-up to the Korea-Indonesia Industrial Cooperation MOU signed between the two countries’ industry ministries during the summit meeting held last September. This MOU is expected to help provide local Korean companies with quality industrial talent. Deputy Trade Minister Yang further asked for support in resolving issues regarding Indonesia’s import quota. The talks were followed by a conference with representatives of 10 locally operating Korean companies to gather opinions on issues related to entering and expanding the Indonesian and ASEAN markets, which are to be incorporated into agenda items for bilateral governmental cooperation channels like the annual Korea-Indonesia Economic Cooperation Committee and in removing obstacles to Korean firms’ export and investment. date2024-03-05
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Korea completes final step for DEPA membership
The Ministry of Trade, Industry and Energy (MOTIE) announced on March 4 that Korea has completed necessary domestic procedures for joining the Digital Economy Partnership Agreement (DEPA) and submitted the application on March 4 for the Agreement’s entry into force. Korea proceeded with domestic procedures necessary for application upon receiving the DEPA Joint Committee’s approval in September 2023, following six negotiating rounds for reaching the agreement in June 2023 on acceding to DEPA, the first country to become a non-founding member. It is anticipated that Korea can leverage DEPA as an opportunity to open more doors to overseas e-commerce and digital content markets, centering on ASEAN, Oceania and Latin America. In view of the lack of rules on e-commerce under the existing bilateral FTAs with New Zealand and Chile, Korea’s DEPA accession is expected to strengthen the country's digital trade network. date2024-03-04