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Korea and Japan step up joint efforts for promoting clean hydrogen utilization
Director General for Hydrogen Economy Policy Park Chan-ki at the Ministry of Trade, Industry and Energy (MOTIE) and Hiroo Inoue, Director General for Energy Efficiency and Renewable Energy Department at Japan’s Economy, Trade and Industry Ministry (METI), held the Korea-Japan Director General-Level Hydrogen Cooperation Meeting on February 15 in Japan. The two countries had agreed on the need for joint efforts regarding carbon reduction and clean energy cooperation during the Korea-Japan summit talks at Stanford University on the margins of the Asia-Pacific Economic Cooperation (APEC) Summit 2023, and this director general-level meeting was held as a follow-up discussion on clean hydrogen cooperation. The two hydrogen and energy leaders reaffirmed the importance of clean hydrogen in achieving the nationally determined contributions (NDCs) for cutting greenhouse gas emissions and held the view that the two countries’ collaboration as consumers and importers of clean hydrogen offers substantial potential in light of their similar industrial structure and energy consumption dynamics. Based on their shared interest, the two sides agreed to continue cooperative efforts in various areas, including the development of global hydrogen supply chains and new fields of hydrogen utilization, related standards, specifications, and policies. They also agreed to launch a director general-level “Korea-Japan Hydrogen Cooperation Dialogue” for the regular exchange of views and close cooperation on the global diffusion of hydrogen economy and clean hydrogen market leadership. date2024-02-16
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Korea rolls out financial support package to better cater to companies
Trade, Industry and Energy Minister Dukgeun Ahn attended a conference on February 15 in Seoul to discuss measures for providing catered financial support to businesses. Financial Services Commission (FSC) Chairman Kim Joo-hyun stated that the support measures are focused on backing companies making bold and innovative investments in advanced industries, middle-market companies. and SMEs and struggling companies facing high interest rates. The measures were established through numerous conferences and consultations with relevant ministries, policy financing institutions and city banks. First, KRW 26 trillion worth of strategic financial support is to go towards companies in advanced industries, Korea’s future growth engine sectors. The Ministry of Economy and Finance (MOEF) and Suhyup Bank will aim to smoothly operate the “Supply Chain Stabilization Fund” created for supporting companies in need of funding for import channel diversification, alternative technology development and securing overseas resources. Korea Development Bank (KDB) will offer low-interest (down 1.2 percentage points) funds amounting to 15 trillion won for companies pursuing business in five core areas, including semiconductors, secondary batteries and bio. Second, 15 trillion won worth of intensive support has been prepared for middle-market companies that were comparatively overlooked in past policy funding. Middle-market companies are low in number (5,600, only 1.5 percent of total number of companies) but take up a considerable chunk of the national economy, occupying 16.1 percent and 12.9 percent of Korea’s total sales and employment, respectively. Accordingly, a number of funding measures have been devised to strengthen their competitiveness, which can translate into a more resilient value chain for the economy and drive innovative growth. With banks’ investment, a five trillion won funding exclusively for middle-market enterprises will be launched, which is anticipated to mitigate middle-market firms’ burden in many ways through equity investments and other means to inject the funds needed for new project participation and business expansion. Not only that, but five major Korean banks and KDB are rolling out a six trillion won low-interest loan program for middle-market companies entering new businesses. Moreover, a 1.8 trillion won worth of new corporate bonds will be issued to facilitate various funding channels and a 2.3 trillion won “stepping stone” fund program through the collaboration of banks and guarantee institutions. Third, swift recovery programs will be offered for companies and entrepreneurs struggling with high interest rates and related management challenges. For SMEs experiencing deteriorating sales, five major banks and the Industrial Bank of Korea (IBK) will jointly provide a special five trillion won program by slashing interest rates. IBK will further provide a forbearance program for companies struggling with interest rates by allowing interest repayment after their management conditions improve in the future. To reinforce the overall industrial dynamics, entrepreneurs with failed business experiences in the past will receive support for recovery in order. FSC Chairman Kim stated that these measures are a result of joint public-private efforts and added that MOEF, MOTIE, and the SMEs and Startups Ministry (MSS) have actively helped out and banks have also extended support of 20 trillion won. In explaining the measures, he said that the industry-specific data in Korea Credit Information Services will be segmented in the future to better cater to companies so that private banks can handle corporate financing more readily. Minister Ahn said that these corporate financial support measures will facilitate financial support for advanced industries’ competitiveness building, SM date2024-02-15
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Companies at the forefront of nurturing Korea's CCUS industry
The Ministry of Trade, Industry and Energy (MOTIE) held a conference on February 15 in Seoul to facilitate communication with companies, local governments and other institutions to explain the Carbon Dioxide Capture, Utilization and Storage Act (CCUS Act), promulgated on February 6, and shared the future direction and plans regarding its subordinate legislation that concern detailed support measures, which are of intense interest for companies. Companies and local governments in turn offered various opinions on their expectations of the legislation and need for government support. At the conference, Korea Western Power Co. proposed the need for streamlining the licensing procedures required for installation and operation of carbon capture facilities and Korea Gas Corporation (KOGAS) reported that there exist various grounds to support demonstration project execution and special exemptions under the CCUS law and requested a higher level of receptivity in subordinate legislation. SK E&S proposed the need for government-led active support for international cooperation for cross-border CCS as well as bold incentives for the swift development of the infant industry. Chungcheongbuk-do representatives stated that the subordinate legislation should specify specific support measures for integrated complexes. MOTIE officials responded that a wide range of opinions offered by companies and institutions are to be amply considered and incorporated into the subordinate legislation and emphasized that communication channels like public hearings will be continued in view of the high level of interest shown by companies through this conference. date2024-02-15
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Korea's ICT exports advance 25.1% in January
The Ministry of Trade, Industry and Energy (MOTIE) announced on February 15 that Korea's exports and imports of information and communications technology (ICT) goods for January recorded USD 16.4 billion (up 25.1 percent year-on-year) and $11.9 billion (down 3.2 percent), respectively. The trade balance stood at a surplus of $4.5 billion. January ICT export growth was powered by semiconductors, as they posted double-digit growth for the third consecutive month and led ICT exports at the helm, which recorded double-digit growth for the first time in 20 months since May 2022. Memory chips’ fixed price rose for the fourth consecutive month, driving the entire semiconductor exports rebound. Displays (up 2.6 percent to $1.5 billion) advanced in exports for the sixth consecutive month as high value-added items like panels for TVs and laptops met increasing demand. Exports of mobile phones (down 20.1 percent to $1.1 billion) dropped, owing to the high base effect from the spike of last year’s finished product exports and as major global firms’ demand for parts declined. Computers and peripherals (up 33.6 percent to $0.8 billion) returned to an expansion for the first time in 19 months as demand for solid-state drives (SSDs) hiked 57.5 percent. Communications equipment (up 27.6 percent to $0.2 billion) enjoyed growing demand in regions like Vietnam and the U.S. By region, exports to China and Hong Kong (up 43.1 percent to $7.5 billion), Vietnam (up 11.6 percent to $2.5 billion), the U.S. (up 4.9 percent to $1.8 billion), EU (up 1.9 percent to $0.9 billion) and Japan (up 1.5 percent to $0.3 billion) showed growth. Korea’s ICT imports for January shrank as those of major devices like mobile phones (down 28.7 percent to $0.8 billion) and computers and peripherals (down 10.5 percent to $1.5 billion) contracted. date2024-02-15
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MOTIE holds pan-ministerial meeting to take stock of Middle East economic diplomacy outcomes
Deputy Minister for Trade Yang Byeong-nae chaired the sixth Korea-Middle East Economic Cooperation Public-Private Joint Committee Support Working Group meeting on February 14 at K-SURE in Seoul to assess the economic diplomacy outcomes and to support Korean companies’ advances in the Middle Eastern market. Meeting attendees consisted of representatives of related institutions, ministries and companies, including K-SURE, Korea Chamber of Commerce and Industry (KCCI), Federation of Korean Industries (FKI) and Korea International Trade Association (KITA). Attendees agreed that outcomes are growing increasingly tangible based on memorandums of understanding (MOUs), contract deals and plant project bid orders sealed to date. Companies also voiced opinions and requests concerning business challenges and related issues. The first part of the meeting focused on introducing various institutions’ business support programs, such as K-SURE’s trade financing package supporting each stage of the bid order process and Korea Trade-Investment Promotion Agency (KOTRA)’s marketing support program. Next, companies gave briefings on their follow-up outcomes to MOUs and agreements with their Middle Eastern partners. Company A shared that it entered a power equipment and materials supply contract worth KRW 63.8 billion with a Saudi firm and an 82.2 billion won supply contract with Saudi Electricity Company (SEC). Company B informed that a concept design for a biopharmaceutical plant is underway for a formal contract. Company C has applied for a permit for exporting defense supplies to the United Arab Emirates (UAE) and Company D is selling overseas travel packages to the Middle Eastern market following a formal contract with a UAE firm in July last year. Company E was offered a 70 billion won facilities investment project proposal for a joint sewing factory and managed to strike a $0.9 million export deal, while Company F reported that it completed the first stage of smart farm pilot installation in January this year for the Qatari royal palace. Moreover, companies requested for government support in their business efforts for greater outcomes in the Middle East, such as financial support for accumulating overseas demonstration experiences, tax benefits, provision of professional manpower and legal information, prompt issuance of export permits, as well as customs benefits under the Free Trade Agreement (FTA). MOTIE and relevant ministries intend to seek practical support measures through the public-private joint committee and working group. Deputy Trade Minister Yang stated that the MOUs signed by Korean companies are leading to contract deals and additional follow-up results, adding that full measure will be given to responding to suggestions and challenges voiced during the meeting through an extensive inspection on the implementation process. date2024-02-15
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IEA Ministerial Communique, the first to recognize the role of nuclear energy to address the climate crisis and improve energy security
International Energy Agency(IEA) Ministerial Communique, the first to recognize the role of nuclear energy to address the climate crisis and improve energy security - Vice Minister Namho Choe met with IEA Executive Director Dr. Fatih Birol at the 2024 IEA Ministerial - IEA and Korea agree to launch a joint study on carbon-free energy On February 14th, Vice Minister Namho Choe from the Ministry of Trade, Industry and Energy (MOTIE) attended the IEA Ministerial in celebration of the IEA’s 50th anniversary. During this Ministerial meeting, IEA Member States reaffirmed their dedication to deploying clean energy and ensuring energy security. Member States adopted the IEA Ministerial Communiqué, which is the first-ever multilateral agreement that recognizes the crucial role of nuclear power as a clean source to reduce dependence on fossil fuels. Additionally, the Communiqué emphasizes the need to accelerate the deployment of various carbon-free energy technologies tailored to national circumstances and choices. This achievement is significant for many countries, including Korea, which is dedicated to achieving carbon neutrality. Moreover, governments, industries, academies, and experts participating in the IEA Ministerial engaged in a substantive discussion on accelerating global transitions. Korea presented its dedication to contributing to the global clean energy transition in light of its excellent commercialized carbon-free energy technologies and manufacturing-skilled industries. Vice Minister Namho Choe met with IEA Executive Director Dr. Fatih Birol at the margins of 2024 IEA Ministerial and expressed their commitment to continued cooperation for a sustainable energy future. The IEA and Korea have agreed to intensify collaboration through a joint study on carbon-free energy utilization conditions in major countries this year. “To achieve net-zero emissions by 2050, the world needs to rapidly improve energy efficiency and accelerate the deployment of carbon-free technologies, including renewables, hydrogen, ammonia, CCUS and nuclear power in those countries that choose to use it. Against this backdrop, I hope the joint study we are doing with Korea on carbon-free energy will be a useful input to guide countries towards their energy and climate goals.” Dr. Fatih Birol said. “I look forward to further deepening our partnership with Korea following the extremely productive exchange we had today.” “Korean companies possess a competitive edge in the manufacturing technology of various clean energy fields, including batteries, semiconductors, nuclear power, renewable energy, and hydrogen. It is the unwavering commitment of Korea to contribute to establishing global energy security and accelerating the transition towards clean energy”, Vice Minister Choe stated, “I would like to express my appreciation for Dr. Birol’s leadership in guiding our responses through the energy crisis and for his dedication to ensuring that the IEA plays a key role in sustaining the global transition towards clean energy.” date2024-02-15
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General trading companies called to spearhead the stabilization of supply chains
Minister for Trade Inkyo Cheong visited the head office of POSCO International in Incheon on February 14 and discussed measures for expanding Korea's exports and stabilizing the global supply chain by capitalizing on general trading companies’ overseas network and trading expertise. General trading companies are currently expanding their role of spearheading exports, managing the supply chain and assisting exports of SMEs. Ever since the general trading company system was introduced in Korea in 1975, general trading companies have been expanding their sphere of activity beyond the traditionally manufacturing-based merchandising trade to areas like overseas resources development, large-scale infrastructure bid projects and supply chains in various areas like food and energy. With the emergence of new industries like EVs and batteries, they are notable contributors to the stable expansion of supply chains through the direct equity investment on graphite, nickel and such critical minerals. Not only that, based on their overseas network accumulated over extensive trading experience, trading companies’ role of helping prominent SMEs join the global supply chain is increasingly growing in importance. The Korean government is boosting catered support with respect to the enhanced roles of general trading companies. First, the Government will support the import insurance on key supply chain items for stabilization of the supply chain. It plans to give increased loans for overseas resources development projects and has introduced tax credits for investors entering license-granting overseas mining projects. The Government also intends to bolster the utilization of trade networks on critical minerals like the Minerals Security Partnership (MSP), while also strengthening bilateral and multilateral collaboration with resource-rich countries, with plans to develop cooperative schemes using the early warning system for supply chain stabilization operated by the Korea Trade-Investment Promotion Agency (KOTRA) and other related institutions. Moreover, active support will be given towards SMEs’ and middle-market companies’ joint entry into overseas markets with general trading companies that are designated as specialized trading companies under the Foreign Trade Act. Trade Minister Cheong stated that “in this age of economic security, close communication and cooperation between policy authorities and companies is key” and added that the role of general trading companies should be strengthened. He said that “if general trading companies spearheaded exports in the past, those today with information and financing power are called to spearhead the stabilization of supply chains in critical minerals, energy, materials, equipment and food,” highlighting that “the three laws on supply chain management will greatly assist companies once fully enforced.” date2024-02-14
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Carbon Free Energy Initiative Roundtable Meeting in the IEA Ministerial Meeting
Joint Press Release February 13, 2024 Carbon Free Energy Initiative Roundtable Meeting in the IEA Ministerial Meeting Several countries and institutions including Canada, Japan, Kingdom of the Netherlands, Republic of Korea (ROK), United Kingdom, and International Energy Agency (IEA) attended the Carbon Free Energy Initiative Roundtable Meeting in Paris on February 13, held on the sidelines of the IEA Ministerial Meeting, hosted by the ROK. Namho CHOE, Vice Minister of Trade, Industry and Energy, ROK and Hoesung LEE, President of Carbon Free Alliance led the roundtable meeting. Recalling the decision made at the 28th Session of the Conference of Parties (COP28) to the UNFCCC to accelerate zero- and low-emission technologies, including renewables, nuclear, abatement and removal technologies such as carbon capture and utilization and storage (CCUS), particularly in hard-to-abate sectors, and low-carbon hydrogen production, the participants shared their views on possible cooperation on carbon free energy to achieve a global goal of carbon neutrality. The participants also recognized the Carbon Free Energy (CFE) Initiative which was proposed by the ROK on the margins of the United Nations General Assembly in September 2023. The Initiative highlighted the importance of utilizing various carbon free energy sources available, in light of different national circumstances. The participants also acknowledged the importance of active private sector engagement and underscored the imperative to drive demand-side cooperation between the public and private sectors. The ROK shared its idea of launching the CFE Initiative Global Working Group to establish a CFE Program which includes developing internationally recognized criteria for carbon-free energy and establishing a global certification scheme. The ROK also proposed participants to actively consider joining the global working group with a view to strengthening the cooperation among like-minded countries. The participants welcomed ROK’s engagement and looked forward to further discussion. date2024-02-14