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Experts lay down vision for international standards leadership of Korea's homegrown technologies
Trade, Industry and Energy Minister Dukgeun Ahn chaired a conference on February 7 in Seoul with international standards experts to discuss measures for expanding the leadership of homegrown technologies in the domain of international standards. Conference attendees included International Organization for Standardization (ISO) President Sung Hwan Cho among a number of other leaders initiating the standards strategy development and legislation of international standards in organizations like the International Electrotechnical Commission (IEC). Standards experts voiced in unison the importance of securing competitive advantage in international standards as not only an essential part of overseas market entry but also a means for gaining hegemony in advanced technologies and outpacing rival countries in the intensifying race for international standards dominance. In this regard, a wide range of opinions were presented on ways to expand the development of draft international standards in collaboration with R&D, training next-generation international standards experts, and strengthening partnerships with leading countries in international standards. Minister Ahn stated that “the ministry will establish the advanced industries’ standards strategy within the first half of this year to bolster the leadership of homegrown technologies in international standards and related organizations.” date2024-02-08
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Korea to spur economic vitality with 110 tln won private investment in 2024
Trade, Industry and Energy Minister Dukgeun Ahn chaired the first Industrial Investment Strategy Meeting on February 7 with representatives of Korea’s 10 major manufacturing companies and economic groups to discuss investment plans and business support measures for 2024. The top 10 manufacturing companies’ major facility investment plans for 2024 amount to KRW 110 trillion, up 10 percent from last year’s 100 trillion won. Amid persistent high interest rates and supply chain anxieties, the Korean government intends to provide strong support to companies for smooth investment facilitation. Top 20 key investment projects will be selected, to which Trade, Industry and Energy Ministry (MOTIE)’s director-level officials will be assigned to monitor the investment project situation on a monthly basis until issues are resolved. The Government will also support the fostering of favorable investment conditions for firms through a number of measures. First, the Government will extend the deadline for investment tax credit regarding national strategic technologies and for temporary investment tax credits. Second, for advanced industries, three major regulatory innovations will be pushed: easing of existing regulations through the National High-Tech Strategic Industry Committee; high-tech industry impact evaluation for preliminary assessment of new regulations; and the development of high-tech industry regulation indices for assessing the regulation level on an annual basis. Third, local governments are to establish a win-win belt for sharing investment returns to prevent large-scale manufacturing facility investments from being delayed by local governments’ belated licensing. Lastly, the Government will push three major projects for the making of investments in concert with the private sector’s investment plans: infrastructure investment for establishing the power and water infrastructure; supply chain self-reliance investment for supporting the development of domestic MPEs (materials, parts, equipment) in line with production facility investment; and preemptive securing of manpower investment for time-appropriate activation of production lines. Attendees also discussed “New Industrial Policy 2.0”, which lays out the Government’s new policy directions. Over the last two years, the Government has pushed “New Industrial Policy 1.0” to construct the industrial innovation basis for the 20-plus law enactments for sector- and function-specific industrial strategies, advanced industries, digital transition and talent training, such as the initiation of the industrial transformation and strategy for nurturing Korea into a semiconductor powerhouse. Now the time has arrived for Korea to build on the past policy tasks and seek future industrial strategy directions through New Industrial Policy 2.0. New Industrial Policy 2.0 is speed- and goal-oriented, designed to secure super gaps in advanced industries, achieve industrial transformation across core sectors and upgrade Korea’s export portfolio, while simultaneously setting the convergence of AI and industries as the nation’s future priority task and aiming to create industry policies for this AI era. Minister Ahn stated that “investment is a core element for recovering economic vitality,” and asked that companies make bold investment commitments, as MOTIE will likewise be making across-the-board effort to stimulate corporate investment this year. date2024-02-07
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Korea launches public-private support group for upcoming first summit with Africa
The Ministry of Trade, Industry and Energy (MOTIE) announced on February 6 the launching of the Korea-Africa Economic Cooperation Public-Private Support Group (“Support Group”) by the Korea Chamber of Commerce and Industry (KCCI) on the occasion of the Korea-Africa Summit 2024 scheduled this June, with aim to achieve ground-breaking development in bilateral economic relations. Composed of representatives from more than 30 relevant organizations ranging from economic groups, trade and investment assisting institutions and major public companies and institutes of trade, industry and resources sectors, the Support Group will serve as a joint public-private platform for gaining outcomes between Korean and African firms and reviewing the major cooperation agendas with 54 African nations over the four months remaining until the June summit. Rich in critical minerals, Africa is a vast market of 1.4 billion with a GDP of over USD 3.4 trillion. Noting that cooperative ties between Korea and Africa have potentially far more to offer, MOTIE has been making effort since last year to establish a solid basis for trade cooperation like the Economic Partnership Agreement (EPA) and the Trade and Investment Promotion Framework (TIPF), building networks between trade and investment promotion institutes and furthering collaboration across the critical minerals supply chain. MOTIE plans to jump-start the sprint towards this year’s $700 billion export target with the upcoming Korea-Africa summit in view of these prospects. Chair of the first Support Group meeting, Deputy Minister for Trade Yang Byeong-nae asked that members strive to obtain far-reaching outcomes in developing the Korea-Africa economic cooperation through the first bilateral summit. date2024-02-06
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Korea and Australia discuss cooperation in critical minerals, natural gas and CCS
Trade, Industry and Energy Minister Dukgeun Ahn met with Madeleine King, Australia’s Minister for Resources and Minister for Northern Australia, on February 2 in Seoul to discuss bilateral cooperation measures in energy and resources areas, including critical minerals, carbon capture and storage (CCS) and natural gas, as well as issues faced by Korean companies in relation with Australia’s energy regulations. Both countries shared the need to diversify the supply chain and reduce reliance on other countries for critical minerals and agreed to make further effort to expand their scope of cooperation from upstream areas like exploration, development and production to downstream areas like refining, smelting and processing. Next, the two ministers agreed to promptly proceed with procedures necessary for the Korea-Australia CO2 transport agreement to smoothly implement the CCS investment project for transporting the CO2 captured in Korea for permanent storage in Australia’s depleted gas reservoirs. Minister Ahn conveyed the concerns expressed by Korean firms regarding the extension of the Australian Domestic Gas Security Mechanism (ADGSM) to 2030 and asked for clarification of the Australian safeguard mechanism standards of carbon emission reduction duties on greenhouse gas emissions-intensive facilities. date2024-02-05
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MOTIE to push regulatory innovation to nurture Korea into global hydrogen powerhouse
The Ministry of Trade, Industry and Energy (MOTIE) announced on February 8 during the Emergency Economy Ministerial Meeting the measures for hands-on regulatory innovation to nurture Korea into a global hydrogen powerhouse. In the recent rapid development of the global electrolysis market and Korea’s prowess in clean hydrogen, the Government is making effort to speedily respond to these changes by uncovering five key areas, including production, distribution and utilization, for regulatory improvement to be spearheaded by the public-private joint consultative group for hydrogen industry regulatory innovation. Regarding 49 project tasks for regulatory improvement uncovered through site inspections and business conferences, MOTIE plans to work together with relevant ministries for immediate improvement on 25; for 13 of the remaining, MOTIE will review and decide through demonstrations. It is anticipated that the regulatory innovation measures will not only help companies build global competitiveness in areas like electrolysis and liquid hydrogen but also contribute to the timely establishment of infrastructure for Korea’s clean hydrogen ecosystem scheduled for activation in 2027. Meanwhile, Korea Gas Safety Corporation and civil experts will be actively engaging throughout the entire innovation process to lay out safety standards and legal modifications that cater to the public’s awareness and understanding. Minister Dukgeun Ahn stated that “for accelerating the clean hydrogen economy and nurturing the hydrogen industry as a new sector, it is of the utmost importance to promptly lay down the safety standards,” and added that MOTIE will continue to uncover and tackle challenges that companies face on site. date2024-02-02
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Trade Minister discusses measures for WTO reform at Ottawa Group meeting
Minister for Trade Inkyo Cheong attended the Ottawa Group trade ministers’ videoconference on February 1, held to review the key agenda items of the upcoming World Trade Organization (WTO)'s 13th Ministerial Conference (MC13) and discuss measures to facilitate the WTO reform and other outcomes. At the Ottawa Group meeting, trade ministers discussed measures for gaining meaningful outcomes through MC13 based on the unofficial discussions for the full normalization of the dispute settlement system in 2024 and exchanged views on strengthening the deliberative function on global trade challenges like industrial policies, climate change and inclusiveness. They also discussed the outcomes of the investment facilitation for development and extension of the moratorium on imposing customs duties for electronic transmissions. Trade Minister Cheong emphasized the need for close collaboration within the Ottawa Group at MC13 in addressing the WTO’s dispute settlement system reform and stronger deliberative function. Moreover, he asked for the Ottawa Group’s cooperation concerning the investment facilitation for development and stressed the need to maintain the e-commerce moratorium. date2024-02-01
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Korea's exports advance 18% in January
The Ministry of Trade, Industry and Energy (MOTIE) announced on February 1 that Korea’s export value for January 2024 increased 18.0 percent year-on-year to USD 54.7 billion. Imports decreased 7.8 percent to $54.4 billion and the trade balance stood at a surplus of $0.3 billion. January monthly exports recorded $54.7 billion (up 18.0 percent), growing for the fourth consecutive month and achieving the first double-digit growth since the 21.4 percent jump made in May 2022. Factoring in the number of working days, the average daily export value for January climbed 5.7 percent to $2.3 billion and monthly shipments gained 14.7 percent, increasing for the fifth consecutive month. By item, 13 out of 15 major export items increased in exports, recording the highest number of items posting growth since May 2022 when 14 items achieved growth. To note, semiconductors soared 56.2 percent, the biggest climb made in 73 months and advancing for the third consecutive month. Automotive exports (up 24.8 percent) reached an all-time high for January monthly export value at $6.2 billion, growing for the 19th consecutive month. General machinery (up 14.5 percent) and home appliances (up 14.2 percent) grew for the 10th and eighth consecutive month, respectively, while displays (up 2.1 percent) and ships (up 76.0 percent) both increased for the sixth consecutive month. Petrochemicals (up 4.0 percent) and bio health (up 3.6 percent) improved for the third consecutive month. Meanwhile, computers (up 37.2 percent) snapped the losing streak that persisted for 18 months since June 2022, and steel (up 2.0 percent), petroleum products (up 11.8 percent), automotive parts (up 10.8 percent) and textiles (up 8.5 percent) all broke their downward streaks as well. By destination, eight of the nine major markets saw growth in January. Notably, China and the U.S. surpassed the $10 billion thresholds for the sixth and fifth consecutive month, respectively. Exports to China (up 16.1 percent) snapped the losing streak for the first time in 20 months with $10.7 billion. Exports to the U.S. (up 26.9 percent) continued the growth pace for the sixth consecutive month, hitting an all-time high for January monthly value at $10.2 billion. Meanwhile, exports to India (up 5.6 percent) also amounted to a record-breaking $1.5 billion, and exports to ASEAN (up 5.8 percent) and Japan (up 10.6 percent) both increased for the fourth consecutive month. Exports to the EU (up 5.2 percent), Latin America (up 28.2 percent) and the Middle East (up 13.9 percent) showed growth as well. Korea's January imports declined 7.8 percent year-on-year to $54.4 billion. The import of crude oil (up 6.0 percent) increased, but that of gas (down 41.9 percent) and coal (down 8.2 percent) dropped, shrinking overall energy imports by 16.3 percent. Non-energy imports contracted 4.7 percent. The trade balance stood at a $0.3 billion surplus for January, continuing on the surplus pace for the eighth consecutive month since June 2023. It is noted that every January usually records a steep deficit, but this year’s trade balance improved by $13 billion year-on-year, boosted by strong exports. * Short version date2024-02-01
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MOTIE holds FEZ Future Strategy Forum
The Ministry of Trade, Industry and Energy (MOTIE) held the Free Economic Zone (FEZ) Future Strategy Forum on January 31 at the Hotel Koreana in Seoul, where experts and personnel gathered to discuss Korea’s blueprint for FEZs’ future direction and growth. The first FEZ to take root in Korea, the Incheon FEZ has developed into the nation’s major special economic zone over the last two decades, thanks to the various efforts of the Government, local government bodies and other experts, spawning eight more FEZs to date. During the presentation session sharing the outcomes of each FEZ, the Ulsan FEZ shared success cases of having sealed the memorandum of understanding (MOU) on a public land reserve project with the Korea Land & Housing Corporation (LH) in March, 2023, which can contribute to the timely supply of industrial land and reducing financial burden from rising land prices. Likewise, other FEZs also shared their experiences of having successfully attracted investment and corporate support among other cases of proactive work achievements. In the following discussion session, experts presented their policy proposals and panel discussions were held on future project tasks for the third FEZ basic plan, foreign investment facilitation measures and schemes for nurturing an innovative ecosystem. Kim Hong-joo, Head of the Free Economic Zone Planning Office, stated in the opening message that “amid unstable internal and external conditions, FEZs are called to offer new visions and strategies,” and added that “for the FEZs to grow into global, cutting-edge business hubs in step with local development, the Government and the FEZs will work together as one team to give full policy support for attracting investment and corporate support.” date2024-02-01