Ministry of Trade, Industry and Energy

Solar power distribution blueprint built around Korea's industrial complexes

Trade, Industry and Energy Vice Minister Namho Choe chaired the Renewable Energy Policy Meeting on July 3 and announced the ministry’s measures for invigorating solar power generation across industrial complexes as part of implementing the previously announced strategy for expanding renewable energy distribution and bolstering supply chains.   As the demand for carbon-free energy sources is on the rise, the Korean government is pushing for an orderly distribution of renewable energy sources in addition to nuclear power. In realizing the distribution of 6GW per annum in accordance with the 11th Basic Plan on Electricity Supply and Demand, some of the existing challenges include power system stabilization and local residents’ receptivity issues. In view of these challenges, the Ministry of Trade, Industry and Energy (MOTIE) is eyeing the industrial complexes as candidate sites, as they are low in residential population and undergo planned development. Industrial complexes are also highly concentrated with companies and consume large quantities of power.   In this vein, MOTIE has established measures for invigorating the distribution of 6GW solar power installed across industrial complexes by 2030. The plan is to provide tailored support spanning the entire process of securing site location, licensing, and facility operation. Project and investment briefings will be held to draw the participation of tenant businesses. Business models are to be determined in detail through consultations. In the licensing stage, real-time information sharing will be available, and the overall licensing process will be shortened. At the management stage, the goal is to secure stability through organized maintenance.   The Government will also strengthen the role of the public sector for an orderly distribution of solar power. A committee consisting of members from the Government, local authorities, and related institutions will steer public demonstration projects and site location. This year, demonstration projects amounting to an aggregate 240MW will be launched across industrial clusters in Cheonan, Daebul, Ulsan, and Pohang. Committee members will seek measures to include the joint participation of plant owners and workers.   Vice Minister Choe remarked that “Korea’s industrial clusters are the optimal sites for orderly solar power distribution,” adding that the ministry will aim to carry out a cost-effective distribution centering on state-led projects. date2024-07-04

Lotte Biologics' biopharma plant breaks ground in Songdo

Trade, Industry and Energy Vice Minister Kang Kyungsung attended the groundbreaking ceremony of Lotte Biologics’ biopharmaceuticals manufacturing plant on July 3 in Incheon, with the participation of Lotte Group Chairman Shin Dong-bin, major domestic and overseas pharmaceutical companies, and government officials, including Prime Minister Han Duck-soo, whose congratulatory message was shared via video.   In view of the announcement by Ministry of Trade, Industry and Energy (MOTIE) on June 27 on the designation of five strategic high-tech bio industrial complexes, Lotte Biologics is investing KRW 4.6 trillion for the establishment of a large-scale biopharma production plant in Songdo, Incheon.   With the goal of ranking among the global top 10 biopharma contract development and manufacturing organizations (CDMO), Lotte Group launched Lotte Biologics in June 2022. With the acquisition of an overseas biopharma manufacturing plant (BMS) in 2023, it officially entered the CDMO market within one year of launch. Starting this year, it plans to build up its global biopharma manufacturing competitiveness through a ₩4.6 trillion investment in the establishment of three biopharma plants with a total manufacturing volume of 360,000L by 2030.   The completion and operation of the plants are anticipated to create an economic effect of ₩7.6 trillion and 37,000 related jobs, according to the company’s estimation. Moreover, Lotte Group will actively support the provision of tenant space for biotech venture capital firms entering the site and nurture professional talent through industry-academia joint programs.   With Korea’s biopharma exports achieving 8.8 percent year-on-year growth to USD 7.4 billion in H1 2024, MOTIE aims to continue supporting the bio sectors become future economic growth engines through the expansion of the national strategic high-tech bio industrial complexes. date2024-07-04

Korea and Indonesia to accelerate bilateral economic cooperation

Minister for Trade Inkyo Cheong visited Jakarta, Indonesia (July 2–4) amid anticipation of stronger Korea-Indonesia cooperation across a wide range of industries, including future mobility and clean energy.   Trade Minister Cheong first attended the ceremony celebrating the mass production of Indonesian battery-embedded electric vehicles (EV), hosted by Hyundai Motor, in the presence of Indonesia’s President Joko Widodo and other government key figures. The trade chief gave a congratulatory message, stating that he looks forward to seeing “made-in-Indonesia” EVs cruising throughout ASEAN and the global market and expressing hopes for the two countries’ economic cooperation to expand in all directions on the occasion of the EV collaboration.   Then he met with Indonesia’s Investment Minister Bahlil Lahadalia to discuss bilateral economic cooperation measures, asking for support and interest towards locally operating Korean companies’ projects currently being pushed forward in various areas like EVs and petrochemicals. The two sides agreed to closely cooperate in carbon capture and storage (CCS), solar power, carbon neutrality, and other clean energy areas.   The trade minister also attended the ceremony for the inking of memorandums of understanding (MOUs) on electric two-wheelers and for smart e-mobility cooperation, organized by Korea Smart E-Mobility Association (KEMA).   He visited the Economic Research Institute for ASEAN and East Asia (ERIA) as well for a meeting with experts on measures for enhancing cooperation in East Asia and the Pacific region and held a conference with locally operating Korean firms and institutions to gather opinions and discuss local business issues. date2024-07-03

SMR Alliance to push for incorporation into formal association in 2025

Trade, Industry and Energy Vice Minister Namho Choe attended the first General Assembly of the SMR Alliance marking its one-year anniversary on July 3 at the Plaza Hotel Seoul, where he shared the strategy for global SMR leadership.   MOTIE’s policy directions on building global SMR leadership includes the following key strategies: supporting the construction and operation of Korea’s unique i-SMRs; accelerating SMR-based private businesses; establishment of foundries; and maintenance of infrastructure. The ministry plans to nurture a KRW 80 billion policy funding necessary for the construction and management of the ongoing development of the first-of-a-kind SMR (i-SMR), establishment of a private-led corporation, backing related demonstration projects, and for investment in SMRs and nuclear power industries. It is anticipated that the expansion of SMRs will lead to more opportunities for private sector creativity in areas of project development and marketing across Korea’s nuclear power industry.   Meanwhile, the SMR Alliance’s 44 member companies announced the plan of incorporating the Alliance into a formal association with aim to better support its SMR project developments. As the 11th Basic Plan on Electricity Supply and Demand takes SMRs into consideration and conditions for commercialization have improved, member companies declared the vision to launch preparations this year to convert the SMR Alliance into a form of an association by H1 2025, which would enable the private sector to take the reins while serving as a communication channel with the Government authorities and lawmakers. date2024-07-03

MOTIE and MSIT launch Nano Korea 2024

The Ministry of Trade, Industry and Energy (MOTIE) and the Ministry of Science and ICT (MSIT) are hosting the 22nd International Nano Tech Symposium and Exhibition (“Nano Korea 2024”) for three days starting July 3 at KINTEX in Ilsan.   One of the three largest global nanotechnology events, Nano Korea acts as a venue for exchanges and collaboration between nano convergence companies and researchers.   Samsung and LG are among this year’s 356 companies exhibiting various nanotechnology products at 661 booths, showcasing the transparent display demonstrated at CES 2024 among other technologies applied across various advanced industries. Visitors can check out promising future items like special eco-friendly materials and graphene-based nano materials. Buyer and supplier companies can also engage in one-on-one business matching.   Experts from 28 different countries are gathering at Nano Korea 2024 to give professional lectures on 16 areas, including materials for extreme conditions, energy, and bio. At the opening ceremony, contributors to the development of the nanotechnology industry and R&D innovations are awarded Prime Minister’s Awards and Minister’s Awards from MOTIE and MSIT.   Those wanting to participate in Nano Korea 2024 can either pre-register or register onsite (https://nanokorea.or.kr). date2024-07-03

MOTIE announces K-Shipbuilding Super Gap Vision 2040

Trade, Industry and Energy Vice Minister Kang Kyungsung attended the second K-Shipbuilding Super Gap Tech Alliance on July 2 at Panasia, an eco-friendly ship materials and equipment producer, where he announced the K-Shipbuilding Super Gap Vision 2040.   Over the past six months, the Chief Technology Officers (CTOs) of Korea’s three major shipyards have worked in tandem with roughly 100 experts in related academia, industries, and research institutions, to establish the public-private joint roadmap for shipbuilding industry’s technological development, namely the K-Shipbuilding Super Gap Vision (“the roadmap”).   The Ministry of Trade, Industry and Energy (MOTIE) selected 100 core technologies (351 subtechnologies) considered essential for Korea’s shipbuilding industry to secure and develop in green, digital, and smart areas.   First, for eco-friendly, the roadmap aims to develop eco-friendly fuel propulsion, materials and equipment for green innovation, and offshore hydrogen and ammonia plant technologies with the goal of completing the zero-carbon emission shipyard technology portfolio by 2040. Moreover, focus will go towards securing foundational technologies for LNG carrier cargo, large-sized electric propulsion ships, and offshore demonstrations.   Second, for digital, MOTIE aims to secure automation across all stages from design to production to shipyard management with the goal of reaching 50 percent process automation by 2040. Priority is on developing technologies for automating high-risk, high-difficulty tasks like welding and vessel painting automation, as well as cooperative robot technologies. In the mid-to-long term, the ministry plans to secure 24-hour automated ship block construction technology and push for the establishment of a testbed.   Lastly, MOTIE will secure smart technologies necessary for the commercialization of fully autonomous vessels, including those related to sensors, materials and equipment, and integrated management systems. Simultaneously, efforts will be made to secure safety technology for preparation against emergencies and technologies enabling human-robot collaboration in place of crew services.   In these three areas (green, digital, smart), MOTIE proposed 10 flagship projects for developing super gap technologies. Prospective projects include ammonia propulsion ships, liquid hydrogen carriers, carbon capture and storage (CCS) systems, self-navigation platforms, and autonomous manufacturing processes, which will receive support for innovative technology development, demonstration for securing track record, and standardization, so as to intensively nurture the shipbuilding industry as the next growth engine. To this end, a public-private joint team will invest a minimum of approximately USD 1.4 billion (2 tln won) over the next decade for accomplishing the 10 projects.   The Korean government and the three major domestic shipyards shared the understanding that it is imperative to resolve site issues to improve productivity, entering a memorandum of understanding (MOU) for developing several site response technologies in the following areas: collaborative robotic welding; virtual reality (VR) education system for welding and painting; artificial intelligence (AI) chatbot for foreign manpower site support; and shipyard-contractor joint production platform development. date2024-07-02

Korea and EU launch 4th negotiating round for Digital Trade Agreement

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 2 that the fourth official negotiating round for the Korea-EU Digital Trade Agreement is held through July 2–4 in Seoul with the participation of both governments’ delegations, composed of roughly 30 members.   With the consensus on establishing a high-level digital trade agreement grounded on the Korea-EU Digital Trade Principles signed in November 2022, the two sides have thus far held three negotiating rounds. In this fourth round, they aim to seek measures for narrowing down differences and make further progress.   It is anticipated that the Korea-EU Digital Trade Agreement will establish the trade order for the digital economy, lay down new digital trade rules for accelerating related innovations, and bolster the Korea-EU digital trade network. date2024-07-02

Korea's H1 2024 exports climb 9.1%

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 1 that Korea’s exports for June rose 5.1 percent year-on-year to USD 57.1 billion, while imports declined 7.5 percent to $49.1 billion and the trade balance stood at a surplus of $8.0 billion.   The month of June posted the second highest export value ($57.1 billion) of all time, achieving growth for the ninth consecutive month. The average daily export value, accounting for the number of working days, likewise hit a historic high of $2.7 billion (up 12.4 percent), the highest in 21 months.   By item, six out of 15 major items advanced, with all of IT items (semiconductors, displays, computers, wireless communication devices) showing growth for the fourth consecutive month and raising overall exports. Semiconductors hit an all-time high of $13.4 billion in particular (up 50.9 percent), soaring for the eighth consecutive month. Displays (up 26.1 percent to $1.8 billion), computers (up 58.8 percent to $1.2 billion), and wireless communication devices (up 3.9 percent to $1.1 billion) logged growth for the 11th, sixth, and fourth consecutive month, respectively.   Affected by the lower number of working days in June (-1.5), automobile exports remained flat at $6.2 billion (down 0.4 percent year-on-year). On the whole, however, they managed to enter the $6 billion thresholds every month this year with the exception of February when the Seollal holidays landed. In addition, petroleum products (up 8.4 percent to $3.6 billion) and petrochemicals (up 4.8 percent to $3.7 billion) showed an expansion for the fourth and third consecutive month, respectively.   By region, five out of nine major destinations saw growth in June. Exports to the U.S. posted $11.0 billion (up 14.7 percent), resetting the monthly record each month since November 2023 after snapping the downward streak in August last year. China-bound exports showed growth for the fourth consecutive month, reaching $10.7 billion (up 1.8 percent) and the daily average export value (up 8.9 percent to $0.5 billion) increased for the seventh consecutive month. India-bound exports reached record highs for June as well (up 8.5 percent to $1.6 billion). Exports to ASEAN grew for the third consecutive month (up 11.8 percent to $9.6 billion), while those to the Middle East snapped the losing streak in one month (up 2.1 percent to $1.7 billion).   June imports decreased 7.5 percent year-on-year to $49.1 billion. Energy imports inched up 0.4 percent to $10.0 billion despite the fall in the import of gas (down 2.5 percent) and coal (down 25.7 percent), as crude oil imports increased (up 8.2 percent).   The trade balance led a 13-month winning streak and recorded $8.0 billion in surplus, up $6.8 billion in comparison with June 2023 and logging the biggest surplus in 45 months.   As for the first half of 2024 (Jan–June), exports climbed 9.1 percent year-on-year to an accumulated $334.8 billion. Quarterly growth rates are also on an upward trajectory since Q4 2023 (up 5.7 percent), with exports of Q1 and Q2 of 2024 posting 8.1 percent and 10.0 percent growth, respectively. Imports of H1 2024 shrank 6.5 percent to $311.7 billion and the trade balance stood at a surplus of 23.1 billion, a record high since H1 2018.   By item, nine out of 15 major export items increased, with semiconductor exports marking a second highest record for the first half (up 52.2 percent to $65.7 billion), owing to rising memory prices and growing demand for server-related downstream industries. Automobiles enjoyed robust demand for hybrid electric vehicles (HEVs) (up 19.5 percent), amounting to $37 billion (up 3.8 percent), a historic high for a H1. The tailwind driving ship exports since 2023 continued to boost exports throughout this year’s first half (up 28.0 percent to $11.8 billion).   By destination, six out of nine major regions a date2024-07-01