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Korea engages in MSP meeting to further global collaboration in critical minerals supply chain
The Ministry of Trade, Industry and Energy (MOTIE) announced on March 4 that Korea’s Foreign Affairs Vice Minister Kang Insun and MOTIE's Resources Industry Policy Director General Yoo Beop-min attended the Minerals Security Partnership (MSP) Chief Delegates Meeting, chaired by the Under Secretary of State for Economic Growth, Energy, and the Environment Jose Fernandez, on March 3 in Toronto, Canada, and discussed measures for diversifying the critical minerals supply chain for lithium, graphite, nickel and rare earth elements with 14 other MSP partners, composed of 13 countries and the EU. MSP partners launched the MSP Forum for the sustainable diversification of the critical minerals supply chain and provided the occasion for non-MSP partners to engage in the MSP, through which MSP partners aim to gather joint efforts to push forward effective policies. Partners also welcomed Estonia’s joining the MSP partnership. Moreover, MSP partners agreed to expand policy support for pilot projects selected for global supply chain diversification and clean energy transition. Held on the margins of the Prospectors & Developers Association of Canada (PDAC) Convention 2024, the MSP Chief Delegate Meeting saw the exchange of views on measures for sustainable minerals development cooperation among both MSP partners and non-MSP, resource-rich Latin American partners. On the margins of the MSP Chief Delegates Meeting, Foreign Affairs Vice Minister Kang will be hosting an in-depth meeting on March 4 in Toronto on graphite supply chain issues with MSP partners’ governments, minerals experts, major global graphite business project participating firms and industry personnel to discuss measures for strengthening and stabilizing the global supply chain of graphite, a key material for producing battery anodes. Meanwhile, Industry Policy Director General Yoo plans to hold bilateral talks with Japan’s Economy, Trade and Industry Ministry (METI) Director General Sadamichu Yuki, Natural Resources Canada’s Director General Debora Yu and Invest in Canda CEO Laura Broten on March 4 in Toronto to discuss bilateral cooperation measures in critical minerals. date2024-03-04
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Trade Minister furthers bilateral economic cooperation with trade leaders on margins of WTO's MC13
Minister for Trade Inkyo Cheong met with the trade ministers of 14 countries on the margins of the 13th World Trade Organization (WTO) Ministerial Conference (MC13), held through February 26-29 in Abu Dhabi in the United Arab Emirates (UAE), for discussions to facilitate MC13 outcomes and strengthen commitment towards restoring the WTO-led multilateral trade system, while holding bilateral talks on measures to deepen cooperation in critical minerals, advanced industries and clean energy areas through trade initiatives like the Free Trade Agreement (FTA) and the Trade and Investment Promotion Framework (TIPF). In talks with the U.S. Trade Representative Katherine Tai, Trade Minister Cheong highlighted the fact that bilateral relations between Korea and the U.S. are advancing towards an alliance on advanced industries and supply chains and requested the U.S.’ continued cooperation with regard to the Inflation Reduction Act (IRA). The trade chief also met with China’s Commerce Minister Wang Wentao to discuss the two countries’ cooperation in industrial and supply chains, as well as follow-up Korea-China FTA negotiations on service and investment. They also agreed to closely cooperate on incorporating the Investment Facilitation for Development (IFD) Agreement into the WTO system. With Hosaka Shin, Japan’s Vice Minister of International Affairs at the Ministry of Economy, Trade and Industry (METI), Trade Minister Cheong discussed measures for cooperation in hydrogen and other energy areas, multilateral trade and bilateral supply chain cooperation in advanced industries. The Korean trade leader also met with Canada’s Minister of Export Promotion, International Trade and Economic Development Mary Ng, Australia’s Trade and Tourism Minister Don Farrell and Singapore’s Trade and Industry Minister Gan Kim Yong to discuss critical minerals, advanced industries, carbon-free and clean energy cooperation measures as key industrial, energy and trade partners, and asked for support in resolving Korean companies’ investment issues in local business operation and other challenges. Moreover, with Uzbekistan’s Deputy Prime Minister for Investments and Foreign Economic Relations and Minister of Investments and Foreign Trade Jamshid Khodjaev, Trade Minister Cheong affirmed continued support for Uzbekistan’s accession to the WTO. The trade minister also attended the Coalition of Trade Ministers on Climate on the margins of the WTO’s MC13 and highlighted the importance of global efforts for climate change response and the free trade in goods, services, and technologies for mitigating climate change. In the WTO Ottawa Group Trade Ministers' meeting, he conveyed Korea’s expectations towards agenda items and outcomes related to strengthening the deliberative function of the WTO and other reform measures. Meanwhile, Korea sealed TIPF agreements with Bulgaria and Oman, respectively, establishing the base for bilateral trade and investment expansion as well as economic, technology and people-to-people exchanges with Europe and the Middle East. date2024-03-04
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Korea's exports advance 4.8% in February
The Ministry of Trade, Industry and Energy (MOTIE) announced on March 1 that Korea’s export value for February 2024 increased 4.8 percent year-on-year to USD 52.4 billion. Imports decreased 13.1 percent to $48.1 billion and the trade balance stood at a surplus of $4.3 billion. February monthly exports recorded growth for the fifth consecutive month, despite the seasonal factors and relatively lower number of working days due to the Seollal holidays having landed in January last year. Factoring in the number of working days, the average daily export value ($2.6 billion) for February climbed 12.5 percent year-on-year and 12.2 percent month-on-month. By item, six out of major 15 export items showed growth. Semiconductors skyrocketed 66.7 percent to $9.9 billion, achieving the steepest climb since October in 2017 (up 69.6 percent) and continuing on the growth pace for the fourth consecutive month. Displays (up 20.2 percent) and computers (up 18.4 percent) both posted double-digit growth and advanced for the seventh and second consecutive month, respectively. For wireless communication devices, smartphones gained 57.5 percent, but exports of parts dropped 31.9 percent, resulting in a 16.5 percent fall overall. Exports of general machinery (up 1.2 percent), ships (up 27.7 percent) and bio health (up 9.3 percent) improved for the 11th, seventh and fourth consecutive month, respectively. Automobile exports showed a temporary decline of 7.8 percent due to the Seollal holidays and some automakers’ production line maintenance work. By destination, exports to five out of nine major export destinations increased in February. Exports to China (down 2.4 percent) were affected by the Spring Festival holiday, but the daily average export grew 4.8 percent to approximately $0.5 billion. Korea’s trade balance with China snapped the downward streak for the first time in 17 months, recording a $0.2 billion surplus. Exports to the U.S. posted an all-time high for the month of February, reaching $9.8 billion (up 9.0 percent) and continued on the growth streak for the seventh consecutive month. Exports to Japan (up 1.0 percent) and ASEAN (up 1.4 percent) grew for the fifth consecutive month, while those to Latin America (up 25.1 percent) advanced for the second consecutive month. Korea's February imports declined 13.1 percent year-on-year to $48.1 billion. The import of crude oil (up 0.9 percent) inched up, but that of gas (down 48.6 percent) and coal (down 17.3 percent) dropped, contracting overall energy imports by 21.2 percent. The trade balance stood at a $4.3 billion surplus in February, continuing on the surplus pace for the ninth consecutive month. * Short version date2024-03-04
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Korea to make amendments concerning 31 national core technologies to incorporate changing technological landscape
Trade, Industry and Energy Minister Dukgeun Ahn chaired the 49th Industrial Technology Protection Committee (“Committee”) meeting on February 29 in Seoul and led the deliberation and resolution on proposed amendments concerning 31 national core technologies in semiconductors, automobiles, railway transport, steel, nuclear power plants and other sectors for incorporation of new technology designations, revocations, standards adjustment, and scope specification to reflect the shifts in the technological landscape. The amendment will be touching on 31 technologies across nine areas out of a total of 75 technologies over 13 areas. Details of the amendment will be notified during the first half of this year via administrative notice and other procedures. The Committee members discussed measures to improve deliberation and resolution standards for technology export and mergers and acquisitions (M&As). Members agreed on the need to clarify deliberation standards for export declaration and approval in order to prevent export delays caused by application of excessive deliberation criteria on technologies mandated for declaration and developed without government support. They also agreed to further specify deliberation standards to reduce ambiguity, and newly install a special criterion for M&As that pose risks of technology leak. In his opening address, Minister Ahn presented policy measures for the protection of industrial technology in 2024, including plans to introduce the blanket review system and other simplified review procedures not only to areas like semiconductors and biotechnology (2023), but also to shipbuilding, batteries, and automobiles starting this year. The Committee meeting held this day saw export approval granted to 15 national high-tech strategic technologies and national core technologies in the areas of semiconductors (3), displays (2), secondary batteries (6), automobiles (1), and biotechnology (3). date2024-02-29
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Korea declares 2024 as first year for initiating global diffusion of CFE Initiative
Trade, Industry and Energy Vice Minister Kang Kyungsung attended the Carbon Free (CF) Alliance general assembly and conference on February 28 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul, where the Ministry of Trade, Industry and Energy (MOTIE) and the CF Alliance declared this year as the first year of the Carbon Free (CF) Energy Initiative diffusion and that efforts will concentrate hereon on expanding the scope of the Initiative on a domestic and global scale. Launched in October 2023, the CF Alliance was proposed by President Yoon Suk Yeol during his speech at the United Nations General Assembly in September 2023 and is a private-led cooperative organization pushing the CFE Initiative, a global campaign to accelerate the achievement of carbon neutrality by promoting businesses’ and industries’ extensive utilization of various carbon-free energy sources according to each circumstance. The 20 member companies attending the event voiced in unison the need for a foundational base that makes it feasible for Korean industries to utilize various carbon-free sources in order to attain both carbon neutrality and industrial competitiveness. Member companies also stressed that it is important for the CFE Initiative to gain global support for international diffusion. Vice Minister Kang stated that “We are aiming at launching a global working group by the end of the first half in 2024 with the participation of major countries to establish internationally applicable CFE implementation standards,” and added that “we will make sure to actively take domestic companies’ needs into consideration in establishing the global implementation standards in areas like electrical power use and production, while also pushing for stronger cooperation with not only major countries’ government authorities but also global organizations like the International Energy Agency (IEA) and the Clean Energy Buyers Association (CEBA).” On the sidelines of the CF Alliance general assembly, Korea Data Center Energy Efficiency Association, Korea Institute of Industrial Technology (KITECH) and FITI Testing & Research Institute declared their decision to join the CF Alliance. Having just begun welcoming new domestic members, the CF Alliance plans to open doors to overseas companies and organizations in the second half of 2024. date2024-02-28
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Korea and U.S. discuss resuming bilateral exchanges and cooperation in trade remedies
Trade Commissioner Cheon Young-gil of the Korea Trade Commission under the Ministry of Trade, Industry and Energy (MOTIE) visited Washington D.C. from February 26-27 to meet with Amy Karpel, Commissioner for the U.S. International Trade Commission (USITC), and Ryan Majerus, Deputy Assistant Secretary for Policy and Negotiations at the U.S. Department of Commerce (DOC), to discuss measures for resuming exchanges and cooperation between Korean and U.S. trade remedy organizations, and to cover bilateral trade remedy issues. Trade Commissioner Cheon Young-gil suggested that the two sides resume the bilateral technical committee on trade remedies, which has been on pause since the COVID outbreak, in order to expand and develop the cooperation between the two countries’ trade remedy organizations. He also asked that the DOC actively consider the opinion submitted by the Korean government in July 2023 regarding the DOC’s proposed amendment (announced May 2023) on regulations regarding the enforcement of trade remedies through the administration of anti-dumping and countervailing duty laws, conveying Korea’s stance on major issues related to countervailing duties. Moreover, in view of the issues concerning the ongoing anti-dumping investigations on Korean aluminum extrusions, the trade commissioner requested a reconsideration of the investigation scope. Lastly, Trade Commissioner Cheon extended an invitation to the USITC and U.S. DOC to attend Trade Remedies Seoul Forum 2024, slated for July 2 in Seoul this year. First launched in 2001 and held on a yearly basis, Trade Remedies Seoul Forum is an international forum bringing together major countries’ related institutions for promoting exchanges and cooperation on trade remedies. date2024-02-28
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Korea's retail industry climbs 8.2% in January
The Ministry of Trade, Industry and Energy (MOTIE) announced on February 27 that Korea’s retail sales for January gained 8.2 percent year-on-year. Offline sales inched down 0.3 percent as the Seollal holiday effect paled in comparison for January, with the holiday landing in February and driving down hypermarkets’ sales by 9.2 percent and reducing overall sales. Online sales soared 16.8 percent, thanks to reservation promotions for newly released mobile phone models, heightened demand for travel package reservations and growing sales of convenience food products as a result of persisting inflation. By item, sales of kids/sports (down 0.3 percent) fell, while home appliances/culture (up 11.4 percent), home/living (up 11.1 percent) and services/other (up 15.8 percent) rose. 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 SSM operators. The remaining 12 are online retailers. By offline channel type, sales at hypermarket chains fell 9.2 percent, with sales declining across all items, including miscellaneous goods (down 21.3 percent), home/living (down 19.4 percent), sports (down 18.6 percent), clothing (down 13.8 percent) and food products (down 7.4 percent). Department store chains saw sales increase 0.7 percent overall, with clothing and fashion items showing declines, but household goods (up 16.4 percent) and foreign designer labels (up 6.6 percent) expanded. Convenience stores advanced 6.1 percent as close proximity, small purchase shopping and eat-in trends continued, driving sales of all items, including instant food products (up 12.8 percent) and beverages/processed food products (up 5.7 percent). SSM operators grew 7.1 percent in spite of declines in daily necessities (down 10.6 percent), miscellaneous goods (down 1.2 percent) and other non-food items, as sales of agriculture, fishery and livestock products (up 11.2 percent), fresh/prepared food products (up 9.9 percent) and processed food products (up 3.5 percent) advanced. Sales per store dropped sharply for hypermarkets (down 8.3 percent), while those for department stores (up 0.7 percent), convenience stores (up 1.5 percent) and SSM operators (up 4.2 percent) increased. Online retail sales (up 16.8 percent) shrank in fashion/clothing (down 4.7 percent), but low pricing promotions and reservation purchases of Seollal holiday travel packages and gifts raised overall online sales. To note, reservation promotions for newly released mobile phones delivered a strong boost for home appliances and electronics (up 13.2 percent). date2024-02-28
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Export control enforcement to tighten on common high priority items to prevent circumvention
The Ministry of Trade, Industry and Energy (MOTIE) announced on February 26 that it plans to tighten enforcement on items listed under catch-all controls in accordance with the amended 33rd Public Notice on Trade of Strategic Items (enforced February 24) for export control against Russia and Belarus. MOTIE is currently running an export control implementation working group with relevant institutes and ministries, including the Ministry of Foreign Affairs (MOFA), Korea Customs Service (KCS), Defense Acquisition Program Administration (DAPA), Korea Strategic Trade Institute (KOSTI) and the National Intelligence Service (NIS) for managing the implementation of export control against Russia and Belarus, uncovering companies that illicitly export catch-all items and imposing administrative or criminal punishment in accordance with the Foreign Trade Act. Through close cooperation with relevant authorities and allied nations, MOTIE and other ministries have uncovered companies that exported illegally to Russia or circumvented through third countries, and cases of punishment are increasing in number as of late. With the list of catch-all control items extended in accordance with the amendment, it is expected that attempts to bypass export controls or circumvent through third countries will increase, to which MOTIE plans to tighten enforcement through joint efforts with related institutions. To note, investigations and crackdowns will be concentrated on common high priority items, machine tools and other sensitive items as requested by cooperating countries in order to prevent circumvention. Moreover, efforts will also go towards promoting and providing guidance on the amendment with KCS and KOSTI to prevent unauthorized export due to businesses' lack of awareness. date2024-02-27