Ministry of Trade, Industry and Energy

Korea participates in 7th RCEP Joint Committee Meeting

Director General for Free Trade Agreement (FTA) Policy Ahn Chang-yong is attending the seventh Regional Comprehensive Economic Partnership (RCEP) Joint Committee meeting as Korea’s Chief Delegate through July 15–17 in the Lao People's Democratic Republic (PDR), this year’s ASEAN Chair.   Partner countries hold the RCEP Joint Committee on a quarterly basis to review and discuss various matters concerning the smooth implementation and management of the RCEP Agreement, as well as economic and technological cooperation issues. This year’s Joint Committee Co-Chairs are Indonesia and China, each representing ASEAN and non-ASEAN partner countries.   The seventh RCEP Joint Committee meeting will proceed with the participation of the 15 partner countries’ Chief Delegates and representatives of the ASEAN Secretariat and the Lao PDR’s Ministry of Industry and Commerce.   By the end of this year, partner countries attending this Joint Committee meeting aim to install a support unit in the form of a secretariat for implementing the RCEP, which entered into force in 2022. Other agenda items include RCEP accession procedures and the outcomes of the Joint Committee on RCEP Implementation.   Meanwhile, Director General Ahn plans to visit the Lao Ministry of Industry and Commerce on the occasion of his visit to discuss measures for economic cooperation and launching of joint seminars for RCEP promotion. date2024-07-15

Korea and China launch 1st bilateral Export Control Dialogue meeting in Beijing

Director General for Trade Controls Policy Choi Woo-hyuk co-chaired the initial Korea-China Export Control Dialogue meeting on July 11 in Beijing with counterpart Jiang Qianliang, Deputy Director General for the Bureau of Industry, Security, Import and Export Control (BISIEC) of the Ministry of Commerce of China.   The two sides exchanged views on export control issues based on the shared consensus formed during the bilateral talks held on the margins of the ninth trilateral Korea-China-Japan summit convened in May this year. Moreover, both sides agreed to keep close communication and make joint effort towards maintaining stable and smooth industrial and supply chains to nurture favorable conditions for the two countries’ trade development. date2024-07-11

MOTIE signs MOU on energy saving and carbon reduction with CNC and Samsung Electronics

The Ministry of Trade, Industry and Energy (MOTIE) entered into a memorandum of understanding (MOU) with the 2050 Presidential Commission on Carbon Neutrality and Green Growth (“CNC”) and Samsung Electronics on July 11 in Seoul to promote energy-saving practices and carbon reduction efforts by utilizing the artificial intelligence (AI) functionality and automated demand response (ADR) system of home appliance management applications (apps).   MOTIE’s Vice Minister Namho Choe took part in the MOU signing with CNC Co-Chairperson Kim Sang-hyup and Samsung Electronics Executive Vice President Park Chan-woo.   In accordance with this MOU, the three parties plan to launch a nationwide campaign to promote public awareness of energy saving and carbon reduction efforts through Samsung Electronics’ ADR-enabled home appliance management app. As part of the campaign, they will be working in tandem to provide the public with demand response (DR) schedule data, synchronize home appliance management apps, and support the public’s daily efforts to promote carbon neutrality and green growth.   Vice Minister Choe said, “Although we see strong public participation in energy saving, it is still considered necessary but inconvenient. In this regard, this energy saving campaign is a good measure to minimize the inconvenience to participants by synchronizing demand response signaling and smart appliance apps.” date2024-07-11

MOTIE lays out initial blueprint for K-design and AI convergence

Trade, Industry and Energy Minister Dukgeun Ahn held the AI Design Conference on July 9 at LG Science Park in Seoul with design companies and experts and announced the AI Design Diffusion Strategy. Based on a shared understanding of the need to enhance across-the-board industrial competitiveness through design innovation, the AI Design Diffusion Strategy was established over a four-month process of discussions and opinion gathering. This process involved design working group committee members, relevant organizations, and AI and design companies. On May 8, the Ministry of Trade, Industry and Energy (MOTIE) launched the Committee on New Industrial Policies for the AI Era, aiming to establish strategies for six major areas. The AI Design Diffusion Strategy is MOTIE’s second in its series of AI utilization strategies. MOTIE’s execution of the AI Design Diffusion Strategy will center around four main initiatives: launching flagship projects; gaining competitive edge; creating new markets; and institutionalizing AI design systems and norms. By increasing the rate of design utilization to 60 percent (from the current 37 percent), the strategy aims to raise design firms’ AI adoption rate to 50 percent and nurture 10,000 AI designers and 500 innovative design firms. The ministry will first roll out the AI Design Flagship Project across seven major areas. Currently, the AI utilization rate is low (5.5 percent), with the initial market primarily built around global design solution companies. This year, the Korea Institute of Design Promotion (KIDP) will lead the development of AI services in three major areas: trend analysis, design similarity search, and smaller Large Language Model (sLLM). By 2025, MOTIE intends to identify demands in four key areas with high AI design synergy prospects (consumer goods design, optimal design of engineering components, automated design of manufacturing process, and automation of digital generative design) and support the development of 20 AI design models over three years. Secondly, aiming to secure AI design competitiveness (technology, company, data, and talent), the ministry will announce the AI design technology roadmap for the following five major areas by the end of this year and provide R&D assistance beginning in 2025: design concept, generative design, prototyping, design-production synchronization, and design knowledge and protection. For each of the country’s six major regions, a design creation lab and a company-catered support system will be established. The latter will focus on AI transition and nurturing AI design software companies. Moreover, MOTIE will seek measures for design funding and financial assistance. Furthermore, through collaboration with design promotion institutions and overseas entities, a K-design big data hub will be set up around four areas: design archive, K-heritage design, color, materials, finish (CMF), and human data. The Industrial Skills Council will lead the development and distribution of AI design education programs, open five design-AI convergence major tracks, and run an online education program, “Design Ground,” for teaching AI design trends and design tool utilization. Third, MOTIE will contribute to invigorating the AI design market by selecting and supporting 150 joint projects in market analysis, product design, design automation, and service prototype generation based on generative AI technology with a special focus on four major industrial sectors: manufacturing, nudge, engineering, and packaging. The ministry will also provide support for the establishment of a marketplace for user and supplier companies while extending comprehensive assistance to manufacturers via engineering big data platforms established at the Korea Institute of Industrial Technology (KITECH). Fourth, MOTIE will establish a design rules system that aligns with the AI era. In the second half of this year, i date2024-07-10

Korea and Thailand launch 1st official negotiating round for bilateral EPA

Deputy Minister for FTA Negotiations Roh Keon-ki is leading the Korean delegation in the first official round of negotiations for the Korea-Thailand Economic Partnership Agreement (EPA) through July 9–11 in Bangkok.   With Deputy Minister Roh as Chief Delegate, the Korean delegation is composed of representatives of relevant ministries, including the Ministry of Trade, Industry and Energy (MOTIE), Ministry of Economy and Finance (MOEF), Ministry of Agriculture, Food, and Rural Affairs (MAFRA), and the Ministry of Health and Welfare (MOHW). The Thai delegation is led by Chotima Iemsawasdikul, Director-General of the Department of Trade Negotiations of the Ministry of Commerce of Thailand. The two delegations are to engage in negotiations on goods, services, investment, digital, government procurement, and intellectual property.   Since jointly declaring the commencement of negotiations in March, Korea and Thailand have pushed forward with preliminary procedures for the official negotiating round, during which they aim to lay down the groundwork for accelerating future negotiations.   Deputy Minister Roh stated that while the two countries have already established trade agreements through the Korea-ASEAN Free Trade Agreement (FTA) and the Regional Comprehensive Economic Partnership (RCEP), the level of their trade and economic cooperation has room for improvement, highlighting that a bilateral EPA catered to both countries’ needs will serve as an institutional foundation for upgrading the Korea-Thailand economic cooperation. date2024-07-09

Vice Minister attends completion ceremony of POSCO International's Gwangyang LNG Terminal

Vice Minister Namho Choe attended the completion ceremony of POSCO International’s Gwangyang LNG Terminal No. 1 on July 9, held in South Jeolla Province.   The KRW 1.05 trillion Gwangyang LNG Terminal project commenced in 2002 as the first private-led LNG terminal, housing six LNG tanks (930,000kl), 680 metric tons per hour gasification and transmission facilities, as well as port facilities capable of berthing a 180,000m3 LNG carrier.   In his congratulatory message, Vice Minister Choe mentioned plans to foster an environment for creating nationwide synergy through mutual cooperation and competition between the Korea Gas Corporation (KOGAS) and the private sector.   The Ministry of Trade, Industry and Energy (MOTIE) aims to launch a deliberative committee in the latter half of this year to support the objective and fair decision process regarding the use of pipelines and controlling the natural gas charge volume per terminal. date2024-07-09

FDI pledged to Korea in H1 2024 reaches $15.3 bln

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 5 that foreign direct investments (FDIs) pledged to Korea in the first half (H1) of 2024 reached USD 15.3 billion, the third highest in record. FDIs that actually arrived in Korea over the same period amounted to $6.9 billion.   As a result of the high base effect from last year’s FDI pledge outcomes from the state visits during H1 2023 ($3.1 billion), this year’s H1 pledges are down by 10.3 percent year-on-year, but still surpass 130 percent of the recent five-year average.   By industry, the manufacturing sector saw a pledged investment of $8.1 billion in the first half of the year, up 6.5 percent. Items that experienced growth were electrical/electronics (up 25.7 percent), machinery/equipment/precision medicine (up 102.6 percent), pharmaceuticals (up 70.6 percent), and other advanced industries and those related to MPE (materials, parts, equipment) sectors. Semiconductors (up 120.7 percent) and bio (up 207.5 percent) saw steep boosts in FDI in this half.   The service sector’s FDI pledges totaled $6.4 billion, down 24.3 percent and occupying 41.8 percent of total FDI. Its growth centered around information and communications (up 25.3 percent), R&D/specialization/science technology (up 10.8 percent), and other sectors with high degrees of economic growth contribution.   By region, FDI pledged from China and other regions, including Hong Kong, Singapore, Taiwan, and Malaysia, increased 25.7 percent to $3.9 billion; FDI pledged from Japan rose 18.9 percent to $2.9 billion; FDI commitments from the U.S. surged 17.0 percent to $2.6 billion; and FDI pledged by the EU climbed 12.8 percent to approximately $2.0 billion.   By type, M&A and greenfield investments pledged to Korea both dropped 13.7 percent and 9.1 percent, respectively, to $3.8 billion and $11.5 billion. date2024-07-05

Electric power equipment industry gearing up as Korea's new export growth engine

Trade, Industry and Energy Minister Dukgeun Ahn visited HD Hyundai Electric on July 4 in Gyeonggi Province to discuss export assistance measures for the electric power equipment and materials industry.   As vast amounts of electric power are needed in the recent expansion of artificial intelligence (AI) datacenters and the diffusion of carbon-free power sources like renewables and nuclear power, the electric power equipment and materials market has recently been enjoying its supercycle. The industry’s exports are likewise on the rise, competing with bio health and secondary batteries after surpassing home appliances and textiles in 2023. Should electric power equipment and materials attain this year’s export and bid targets of USD 16.2 billion and KRW 20 trillion, respectively, they will rank among Korea’s top 10 export items.   At HD Hyundai Electric, Minister Ahn toured the exhibition hall showcasing the world’s first direct current (DC) distribution facilities for 1 megawatt-class buildings. This was followed by the signing of the “K-grid Export Cooperation MOU” among Korea Electric Power Corporation (KEPCO), Korea Trade-Investment Promotion Agency (KOTRA), and K-SURE. Viewed as a leading export business model for energy sectors, the MOU is significant in that it brings public companies in electrical power and export assistance together for collaboration.   With aim to support power equipment and materials exports, the Government plans to supply the industry with a ₩2.7 trillion special preference trade insurance program this year. Moreover, for the North American, European, and ASEAN markets where power grid demands are forecast to surge, trade centers will be designated with emphasis on power materials and equipment. Overseas marketing support will be strengthened through increased matching opportunities with domestic and overseas clients via trade shows. In the latter half of this year, the Government will establish measures for expediating the export of power equipment and materials with plans for a stronger ecosystem, export committee, and increased R&D.   Minister Ahn stated that the public and private sectors will work in tandem to support not only “K-grid”, but also energy sectors like renewables, energy efficiency, and energy storage systems (ESS) to grow into pillar export industries. date2024-07-05