Ministry of Trade, Industry and Energy

Korea and U.S. to expand clean energy cooperation

The U.S.-ROK Clean Energy Forum was held at the Marriott Marquis Hotel in Washington, D.C., on June 25 as a part of both nations' dedication to accelerating the clean energy transition, expanding clean electricity deployment and building clean energy economies, which the two leaders agreed upon in April last year. About 80 participants from the two governments, industry, academia, and research attended the forum.   The thematic sessions covered advanced battery technology development and demonstration, energy storage systems (ESS) to expand clean electricity; clean energy investment and financing; electricity power grid innovation for a reliable, resilient, stable, and affordable system; and commercialization and deployment of clean hydrogen technologies, including mobility, supply chain, and certification. These discussions among government officials and experts from industry, academia, and laboratories illuminated the vast opportunities and challenges for bilateral cooperation in each of these areas, painting a promising picture for the future of clean energy.   In his congratulatory address, Minister Dukgeun Ahn reiterated the importance of the forum, stating that "We have a valuable opportunity to unlock further potential for Korea and the United States to engage in mutual efforts towards a clean energy future while the Korean private sector has responded to the attractive IRA incentives by investing in the United States." He also proposed to "regularize the U.S.-ROK Clean Energy Forum and continue the energy policy dialogue at the Ministerial level. By strengthening our energy cooperation, I am confident that we can achieve energy security and address the climate crisis facing our world together."   date2024-06-27

Korea and Japan discuss measures for implementing summit outcomes on margins of Washington trilateral

Trade, Industry and Energy Minister Dukgeun Ahn met Japanese Minister of Economy, Trade, and Industry Saito Ken on June 26 in Washington D.C. on the margins of the Korea-U.S.-Japan trilateral industry ministers’ meeting and discussed measures for implementation of agreed outcomes of the Korea-Japan summit held this May.   The delegations of both sides welcomed the launching of the recent inaugural Hydrogen Cooperation Dialogue in Seoul and agreed on installing the Clean Hydrogen and Ammonia Supply Chain Development Working Group and on nurturing public-private cooperation through the “Korea-Japan Hydrogen and Ammonia Supply Chain and Utilization Cooperation Platform (tentative)” and other means.   The two sides also agreed to consult with experts for a more detailed cooperation on the Carbon Free Energy (CFE) Initiative and highly assessed the Korea-Japan Global Green Cooperation Working Group held this May and decided to bolster joint response.   The Korean and Japanese delegations agreed to continue their supply chain discussions across major industries while also making concerted efforts to stabilize the global supply chain for critical minerals. Lastly, they discussed measures for cooperation in key multilateral initiatives like the Indo-Pacific Economic Framework for Prosperity (IPEF) and the World Trade Organization (WTO), as well as the Korea-Japan-China and Korea-U.S.-Japan multilateral consultations. date2024-06-27

U.S.-based advanced industry & energy firms pledge $0.6 bln investments in Korea

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 26 that three U.S companies (ON Semiconductor, Corning, Pacifico Energy) submitted declarations of investment in Korea totaling USD 0.6 billion (KRW 850 billion) on the occasion of Minister Dukgeun Ahn’s visit to Washington D.C for the inaugural Korea-U.S.-Japan trilateral industrial ministers' meeting.   ON Semiconductor is a leading power semiconductor company that completed the expansion of its silicon carbide (SiC) fabrication plant in Bucheon last October, with plans to further expand production facilities through this investment. SiC is a high voltage- and high temperature-durable next-generation material in which ON Semiconductor holds expertise. The company has been making large-scale investments in Korea since 2022 after choosing the Bucheon plant as its SiC power semiconductor manufacturing hub.   Corning is a global firm in advanced materials like specialty glass, ceramics, and fiber-optic cable for displays and mobile devices. Having invested over an estimated $9.3 billion (₩13 trillion) in Korea over the past five decades, Corning plans to invest in upgrading its Corning Precision Materials facility located in Asan, South Chungcheong Province, for next-generation processing technology applications.   Based in California, Pacifico Energy currently operates solar and wind power projects in the U.S., Japan, and Vietnam, and is aiming to build a large-scale 3.2GW offshore wind power complex in South Jeolla Province of Korea. The first U.S. energy firm to enter Korea’s offshore wind power market, Pacifico Energy’s investment success is anticipated to become the symbol of Korea-U.S. clean energy cooperation.   Minister Ahn stated that full measure will be given to make sure the investments help strengthen the two countries’ advanced industrial supply chain cooperation and energy security. date2024-06-27

Korea discusses bilateral EPAs with Pakistan, Bangladesh, Serbia, and Dominican Republic

Minister for Trade Inkyo Cheong held a conference on June 26 with the ambassadors to Korea of Pakistan, Bangladesh, Serbia, and the Dominican Republic to discuss measures for forging bilateral Economic Partnership Agreements (EPAs).   MOTIE is currently making effort to diversify supply chains and secure critical mineral resources through flexible and extensive cooperation via EPAs, with plans to further expand the trade network to cover a wider range of emerging markets following Georgia, Mongolia, Thailand, and Tanzania, countries with which Korea is presently engaging in negotiations for bilateral EPAs.   Trade Minister Cheong stated that Pakistan, Bangladesh, Serbia, and the Dominican Republic “hold prominent strategic value in terms of population, growth potential, and resources,” and added that Korea intends to enlarge the scope of economic cooperative ties with these countries in various areas through EPAs.   The four countries’ ambassadors to Korea agreed to actively cooperate in pushing for bilateral EPAs, sharing the view that the Agreements will serve as a firm institutional foundation for not only trade and investment growth but also for the fundamental development of their economic cooperative relations. date2024-06-26

International Light Convergence Expo 2024 launches at KINTEX, Ilsan

The Ministry of Trade, Industry and Energy (MOTIE) is holding the opening ceremony of the International Light Convergence Expo 2024 (June 26–28) at KINTEX in Ilsan on June 26.   Now in its 22nd year as Korea’s largest light convergence industry exhibition, International Light Convergence Expo 2024 is launched with the participation of 150 relevant companies and institutions.   The Expo will be running buyer consultation sessions to support new market entry, showcase Korea’s latest light convergence technologies, and facilitate discussions on business strategies through an industrial forum.   Based on LED and laser technology, light convergence creates technological and market value through convergence with other industries and serves as a key foundational technology for ushering in future and advanced industries’ new sectors.   The opening ceremony is attended by 60 persons, including lawmaker Kim Sung-won, MOTIE officials, and related companies and institutions’ representatives. Contributors to the light convergence sector are awarded government commendations for developing new technologies and achieving other advancements.   The Presidential Commendation Award goes to Optoelec for developing ultrasmall optical devices for semiconductor manufacturing and the Prime Minister’s Commendation to SCL for developing high-efficiency smart lighting technology. The MOTIE Minister’s Commendation is awarded to four researchers at KIEL Institute for their contribution to the light convergence industry’s technological development. date2024-06-26

Korea’s retail industry grows 8.8% in May

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 25 that Korea’s retail industry grew 8.8 percent year-on-year in May 2024, with offline and online sales advancing 0.9 percent and 16.5 percent, respectively.   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 super supermarket (SSMs) operators. The remaining 12 are online retailers.   Offline sales showed an uptick despite the sales decline across hypermarkets and department stores, as sales climbed at convenience stores and SSMs.   By offline retail channel, hypermarket sales dropped 3.1 percent as sales of most items decreased except for food products (up 2.9 percent), with home appliances/culture (down 19.1 percent), sports (down 14.2 percent), and miscellaneous goods (down 12.9 percent) shrinking.   Department store sales slid 0.1 percent despite the growth of food products (up 3.9 percent) and household goods (up 3.8 percent), as men’s clothing (down 9.3 percent), women’s suits (down 7.2 percent), and kids/sports (down 3.6 percent) dropped.   Convenience stores (up 4.1 percent) saw sales growth across all items, including miscellaneous goods (up 4.4 percent) and daily necessities (up 4.0 percent). Cost-effective food items like beverages/processed food products (up 5.1 percent), and instant food products (up 2.0 percent) also enjoyed robust demand.   SSM operators gained 4.8 percent despite the fall in non-food products like daily necessities (down 5.7 percent) and miscellaneous goods (down 0.4 percent), as increasing demand for home cooking boosted sales of agricultural, fishery, and livestock items (up 8.1 percent) and processed food products (up 5.3 percent).   Online sales soared 16.5 percent as various discount promotion events were launched amid the global e-commerce competition, driving sales of food products (up 26.1 percent), service/other (up 55.9 percent), and a majority of other items, with the exception of fashion/clothing (down 13.8 percent) and sports (down 4.3 percent). Demand for travel, performance, delivery services, and frozen food products expanded, leading to steep sales growth of cost-effective and bulk food items. date2024-06-25

Korea's corporate R&D investment grows 8.7% in 2023

The Ministry of Trade, Industry and Energy (MOTIE) and Korea Institute for Advancement of Technology (KIAT) announced on June 24 the top 1,000 Korean R&D investor companies of 2023.   The sales of 1,000 top R&D investor companies declined 2.8 percent year-on-year in 2023, but their R&D investment increased 8.7 percent to KRW 72.5 trillion, up ₩5.8 trillion compared to that of 2022. Accordingly, the ratio of R&D investment to sales advanced from 3.9 percent to 4.4 percent.   The top 10 and top 50 investor companies’ R&D investment add up to ₩45.5 trillion and ₩56.6 trillion, respectively, each taking up 62.7 percent and 78.1 percent of the total 1,000 companies’ R&D investment. Samsung Electronics, Hyundai Motor, SK Hynix, and LG Electronics are among the nine companies that invested over ₩1 trillion, with Samsung Electronics’ R&D investment (₩23.9 trillion) taking up 32.9 percent of the total R&D investment of the top 1,000 investor firms.   The top 1,000 list consists of 171 large corporations, 491 middle-market companies, and 338 SMEs, with the number of middle-market companies rising by 84 in comparison with that of 2014. The top 100 list includes 33 middle-market companies, indicating their increasingly central role in the innovation ecosystem.   The top 1,000 companies expanded their average annual R&D investment by at least 6.6 percent over the last 10 years and the number of Korean firms among the top 2,500 global R&D investor companies is 47 in total as of 2022, ranking ninth by country.   Director General for Industrial Technology Convergence Policy Lee Min-woo stated that growing corporate R&D investment is leading industrial technology innovation, but that Korea’s R&D investment levels are quite low compared to other global companies. He added that a government jumpstart investment is necessary in next-generation technology and innovative areas in view of private investment challenges. date2024-06-24

Connecting efforts for GHG mitigation, Global Net Zero Connection 2024 launches in Seoul

The Ministry of Trade, Industry and Energy (MOTIE) is hosting Global Net Zero Connection 2024 from June 24–25 in Seoul for discussing measures on reducing greenhouse gas (GHG) emissions with Cambodia, Bangladesh, Lao PDR, Kenya, Ghana, Sri Lanka, and Uzbekistan.   Launched to accelerate GHG mitigation efforts worldwide, Global Net Zero Connection 2024 will be running a policy forum, one-on-one business meetings, and intergovernmental bilateral talks with the participation of 60 domestic and overseas companies and the above seven countries’ government institutions.   In his opening address, Minister for Trade Inkyo Cheong emphasized the need for strengthening cooperation and uncovering joint projects in achieving the global goal of GHG mitigation and vowed support for partner countries’ efforts to establish relevant laws and nurture related capacity.   On the margins of the event, MOTIE will enter memorandums of understanding (MOUs) on GHG reduction cooperation with the Cambodian Ministry of Environment and Bangladeshi Ministry of Environment, Forest and Climate Change, following its MOUs with Vietnam and Indonesia sealed in June of 2023 and 2024, respectively. The MOUs focus on uncovering joint GHG reduction projects and developing procedures and standards for transferring mitigation outcomes.   At present, MOTIE is running four demonstration projects on international GHG mitigation and plans to support additional demonstration projects and feasibility study projects. date2024-06-24