Ministry of Trade, Industry and Energy

Trade Minister discusses economic cooperation with Vietnam’s think tank president

Minister for Trade Inkyo Cheong met with Phan Chí Hiếu, President of the Vietnam Academy of Social Sciences (VASS), on June 11 in Seoul to discuss measures for Korea-Vietnam economic cooperation in trade, investment, critical minerals supply chain, and carbon neutrality, and agreed to continue their policy exchanges for the two countries’ forward-looking cooperative ties. VASS is Vietnam’s leading think tank established under the Prime Minister, overseeing 35 research institutes.   Trade Minister Cheong held VASS in high regard in terms of its contribution to strengthening the bilateral strategic communication in academic, political, economic, social, and cultural exchanges. He suggested that the two countries seek detailed cooperation measures through both intergovernmental and policy institutional communication for reaching the USD 150 billion bilateral trade volume target by 2030 declared in 2022.   Noting the elevation of Korea-Vietnam relations to a comprehensive strategic partnership in 2022 in commemoration of their 30th anniversary of the establishment of diplomatic ties, the VASS president said that he looked forward to opening doors to a new era of closer cooperation over the next 30 years, and that VASS will help deepen the two countries’ cooperative ties.   Lastly, Trade Minister Cheong expressed hope of expanding their trade and economic network across the entire ASEAN region and asked for strong support towards Korea’s Chairmanship of the Asia Pacific Economic Cooperation (APEC) Summit 2025. date2024-06-11

Korea and Chile hold critical minerals business roundtable

Trade, Industry and Energy Vice Minister Namho Choe met with Chile’s Mining Minister Aurora Williams on June 11 in Seoul to discuss cooperation in critical minerals like lithium and copper and held a Korea-Chile critical minerals business roundtable on the sidelines to facilitate information sharing for Korean firms seeking to enter the Chilean market.   The Korea-Chile roundtable is a follow-up to the Korea-Chile Resource Cooperation Committee meeting held this May to strengthen private sectors’ cooperation in critical minerals. The Committee meeting was held after a 12-year hiatus to activate intergovernmental discussions on lithium salt flat development procedures, tailings recycling, and lithium extraction technology cooperation.   Participating in the roundtable were Korean companies interested in energy transition and eco-friendly projects, including EcoPro Innovation, SK enmove, Korea Zinc, LS MnM, LX International, POSCO Holdings, and Hyundai Motor. They discussed key issues and made suggestions and requests to the Chilean government, which introduced its critical minerals policies and investment procedures.   Vice Minister Choe remarked that the bilateral business roundtable, held on the heels of the Resource Committee meeting, has helped bolster the two countries’ critical minerals supply chain cooperation a step further and asked for continued effort of their governments on tailings recycling and lithium extraction technology, and of companies concerning Chile’s supply chain diversification of lithium, copper, and other critical minerals. date2024-06-11

Korea and Malaysia to kickstart CCS cooperation

Director General for Energy Policy Choi Yeon-woo met Malaysia’s Deputy Secretary General for the Ministry of Economy Luqman Ahmad on June 10 in Seoul to discuss carbon capture and storage (CCS) cooperation between the two countries.   The meeting between the Korean and Malaysian CCS policy officials was arranged on the occasion of their participation in the Shepherd CCS Summit, organized by Samsung E&A.   Addressing the importance of CCS in achieving the nationally determined contributions (NDCs), Director General Choi requested the Malaysian Economy Ministry’s active support and interest towards establishing the public-private joint Shepherd CCS Project as a global anchor project.   Both sides agreed on the need for a bilateral agreement on cross-border transport and storage of CO2 between the two countries and decided to further intergovernmental discussions while factoring in the two countries’ institutional conditions, as well as related international rules and agreements.   During the presentation session, Korea and Malaysia’s government officials called attention to CCS policies to the participating representatives of the two countries' industries, academia, and research institutes. MOTIE introduced Korea’s CCS industry nurturing policy and highlighted plans for securing key technology and talents, nurturing specialization companies, creating markets early on by securing domestic and overseas storage sites, and fostering a sustainable ecosystem. date2024-06-10

First and largest Korea-Africa summit seals 47 agreements and MOUs

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 5 that through the Korea-Africa Summit 2024, a total of 47 agreements and memorandum of understanding (MOUs) were sealed in various areas like energy, minerals, manufacturing, and infrastructure. Moreover, 12 countries participated in the ministerial talks held with aim to expand economic cooperation.   On the second day of the Summit on June 5, approximately 400 persons, composed of both sides’ entrepreneurs, experts, and key government figures, were present at the Korea-Africa Business Summit 2024. Hosted by MOTIE and co-organized by six related institutions, the Business Summit spurred discussions on industrialization, trade, investment, food, resource security, decarbonization, and climate change, drawing the blueprint for the shared growth of Korea and Africa in the future.   MOTIE sealed 12 MOUs with 11 African countries for intergovernmental economic cooperation in trade, investment, and minerals. First, with Tanzania, MOTIE jointly declared the launching of negotiations for the bilateral Economic Partnership Agreement (EPA). MOTIE also agreed to start pushing negotiations for an EPA with Morrocco, commencing discussions on a trade agreement that would cover supply chains, digital, and clean economy. With eight African countries, including Ghana, Malawi, Côte d'Ivoire, and Zimbabwe, the ministry signed the Trade and Investment Promotion Framework (TIPF) for establishing a tailored economic cooperation platform void of bound tariffs.   Also, with Tanzania and Madagascar, MOTIE entered bilateral MOUs on critical minerals cooperation for stronger supply chain partnership with African countries. To note, the Korea-Madagascar Critical Minerals Cooperation MOU signing ceremony (June 4) was held in the presence of Madagascar’s President Andry Rajoelina, who expressed anticipation towards the bilateral minerals partnership.   As for the private sector, a total of 35 agreements and MOUs were inked between the two sides’ private parties, through which Korea Electric Power Corporation (KEPCO), Korea Trade-Investment Promotion Agency (KOTRA), K-SURE, and Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) will be stepping up their cooperation with African countries in areas like small modular reactors (SMRs), energy storage systems (ESS), trade and investment, new renewables, and critical minerals.   Hyosung sealed a $30 million transformer supply contract with Eletricidade de Moçambique at the Korea-Africa Business Partnership and Wise Bridge entered an agreement with Ethiopian and Kenyan companies on a joint venture for establishing a home appliances parts assembly line. OHYOUNG signed a contract deal for exporting dyes ($10 million) and E Green Global (EGG) signed one on smart farming.   Furthermore, Korea International Trade Association (KITA) and the African Continental Free Trade Area (AfCFTA) Secretariat agreed on establishing a Korea-Africa Economic Cooperation Commission for the continued development of Korea-Africa economic cooperation.   Trade, Industry and Energy Minister Dukgeun Ahn and Minister for Trade Inkyo Cheong both held numerous talks with African counterparts on the sidelines of the Korea-Africa Summit 2024 to discuss measures for wider cooperation in trade, investment, resources, supply chains, and digital.   At the beginning of this year, MOTIE launched a public-private joint support group consisting of major economic groups, institutes, and companies to prepare for a successful summit. The ministry plans to keep providing support so that the economic cooperation measures and agreements discussed during the Summit produce tangible outcomes and that the two sides can envision a forward-looking partnership. date2024-06-07

Trade Minister attends IPEF ministerial meeting in Singapore

Minister for Trade Inkyo Cheong attended the Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial Meeting and Clean Economy Investor Forum through June 5–6 in Singapore, where 14 IPEF partners – Australia, Brunei, Fiji, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the U.S., and Vietnam – gathered to implement the Supply Chain Resilience (Pillar II), Clean Economy (Pillar III), and the Fair Economy (Pillar IV) Agreements and to uncover and facilitate joint projects in detail.   Ministers of partner countries signed the concluded Clean Economy Agreement and Fair Economy Agreement and agreed to promptly hold the inaugural Supply Chain Council meeting and push joint efforts in accordance with the Supply Chain Agreement that has come into effect.   On the margins of the meeting, Korea’s trade chief held bilateral talks with a number of counterparts, including U.S. Secretary of Commerce Gina Raimondo, on clean economy programs like clean electricity and small modular reactor (SMR) projects; Singapore’s Minister for Trade and Industry Minister Gan Kim Yong on measures for strengthening Korea-Singapore supply chain cooperation; and with Coordinating Minister for Economic Affairs of Indonesia Airlangga Hartarto, with whom he signed the memorandum of understanding (MOU) on implementing Article 6 of the Paris Agreement and on supporting companies’ global projects on carbon reduction and supply chain cooperation.   Over 300 persons participated in the Clean Economy Investor Forum, including the Asia-Pacific region’s governments and representatives of 103 investment firms, including the National Pension Service (NPS), Korea Post, Hana Financial Investment, Kohlberg Kravis Roberts (KKR), BlackRock, and Macquarie Group. The Forum also ran a briefing on a total of 72 clean infrastructure projects valued at USD 23 billion and 10 Korean startups like PMGROW and 60Hertz engaged in the Indo Pacific Climate Tech 100, a program connecting top climate tech startups to global investors through in-person meetings and presentations.   Trade Minister Cheong remarked that “This Forum proves that IPEF is up and running and that the region’s companies will tangibly benefit from the initiative,” and added that the Korean government will give full measure to accelerating Korean firms’ project bid winning and local market entry by building on this momentum. date2024-06-07

Korea and Africa boost business partnerships on margins of bilateral summit

The Ministry of Trade, Industry and Energy (MOTIE) co-hosted the Korea-Africa Business Partnership 2024 with the Ministry of SMEs and Startups (MSS) and the Public Procurement Service (PPS) on the margins of the Korea-Africa Summit 2024 on June 4 at InterContinental Seoul COEX, co-organized by Korea Trade-Investment Promotion Agency (KOTRA) and Korea SMEs and Startups Agency (KOSMES).   A total of 17 African countries and their 55 companies in areas of trade, energy, plant, and critical minerals participated in the Business Partnership and held 508 business meetings with 194 Korean firms, generating an estimated USD 0.1 billion worth of potential business deals. Further outcomes are anticipated in terms of export diversification, project win competitiveness, and stronger supply chain cooperation.   A Korean food product exporter and retailer “A” managed to ink a $1 million export contract with a South African company “M” after a one-on-one meeting at the Business Partnership. Another Korean firm “W” entered a joint venture memorandum of understanding (MOU) for establishment of local manufacturing facilities in the East African home appliances market with Kenyan company “D” and Ethiopian company “B.” “W” will be the first Korean company to seal a manufacturing facility joint venture in Kenya and Ethiopia should the MOU translate into actual investment.   Korea-Africa Business Partnership 2024 was the first and largest singular business consultation event held in Korea with exclusive focus on Africa, reaffirming the two sides’ mutual commitment for expanding economic cooperation. MOTIE, along with five other ministries and related institutions, plan to continue with follow-up support through KOTRA’s head office and regional headquarters in Africa so that the business consultations can lead to concrete export deals and bid project wins. date2024-06-04

Commendations awarded to 14 industry contributors on 17th Nonferrous Metals Day

Industry Policy Deputy Minister Lee Seung-ryeol attended the 17th Nonferrous Metals Day on June 3 at Grand Intercontinental Seoul Parnas, along with 80 industry representatives and awarded government commendations to the top 14 contributors to Korea’s nonferrous metals industry development.   Im Won-sik of Poongsan Corp. was awarded the Presidential Commendation for boosting Korea’s export of semiconductor metal wafer materials. So Soon-hwan of Seoul Metal Corporation and Lee Sang-ho of Ulsan Aluminum were each presented the Prime Minister’s Commendation for promoting exports of aluminum conductor steel reinforced (ACSR) cables and localization of previously import-dependent aluminum can materials, respectively.   In his congratulatory message, Deputy Minister Lee commended the nonferrous metals companies' representatives for strengthening the industry’s global competitiveness and asked for their active response and communication with regard to the Government’s plans to support the low carbon transition through carbon neutrality R&D and establishment of a stable supply chain for rare metals and critical nonferrous metals. date2024-06-04

Government to build corporate growth ladder for supporting SMEs' scale-up to middle-market tier

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 3 that the Korean government announced measures for “building the corporate growth ladder” during the cabinet ministers' meeting for economic matters with focus on supporting SMEs’ transitional growth to middle-market tier.   First, the Government will increase support for middle-market companies that just graduated from SME status. These companies will be able to receive “SME incentive” tax credit for up to five instead of the current three years after growing out of SME tier. SMEs listed on KOSPI or KOSDAQ will be granted an additional two-year grace period, receiving a seven-year period in total for SME incentive eligibility. For companies that are past the grace period and have entered the middle-market tier, high rates of R&D and investment tax credit will be provided to induce corporate growth.   Moreover, the Government will roll out the “Growth Ladder Jump Up Program (tentative)” and select 100 promising SMEs to provide support over a three-year period. A public-private network pool consisting of experts with corporate work experience and venture capital knowhow will formulate catered strategies and conduct exclusive director matchings for company-tailored scale-ups. Firms will have access to various growth service vouchers and receive preferential treatment with regard to existing government assistance programs for promoting export and R&D.   Third, the Government aims to resolve SMEs’ growth obstacles and aid entry into new markets and businesses. SMEs that had previously been leveraging policy funding will be connected to low interest loans exclusively for middle-market companies. A primary collateralized bond obligation (P-CBO) of KRW 600 billion and guarantee of 500 billion won will be supplied to promising SMEs. A 50 billion won joint investment fund composed of a fund of funds (FOF) and corporate venture capital (CVC) will be launched under the “Tech Investor Program for Scale-up (TIPS)” in 2024 to strengthen support for private investment securing firms’ R&D.   From 2025 on, an M&A center will be established at Korea Technology Finance Corporation (Kibo) to provide joint support with the Industrial Bank of Korea (IBK)’s M&A platform to companies aiming for new business entry. To scale-up companies posting qualified levels of investment and growth, the Government will mull the granting of family-owned business inheritance tax exemption incentives.   Lastly, infrastructure for public information utilization will be reinforced by releasing Kibo’s SME technical evaluation data and the financial data analytics owned by Korea Credit Information Services (KCIS) to offer access to private banks. By 2025, an integrated platform will be established to facilitate firms’ better understanding and easier use of policy funding. date2024-06-04