Ministry of Trade, Industry and Energy

Korea and Georgia hold intersessional negotiations for bilateral EPA

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 15 that the Korean and Georgian delegations are meeting through April 15-17 in Seoul to engage in intersessional negotiations for the two countries’ bilateral Economic Partnership Agreement (EPA).   Korea’s Director General for FTA Negotiations Peob-min Ryu and Georgia’s Economy and Sustainable Development Deputy Minister Genadi Arveladze are heading their respective delegations.   The intersessional negotiations follow the first official negotiating round convened this February in Georgia, where the two sides held extensive discussions and reached consensus across a number of areas.   During this intersessional meeting, the Korean delegation will be concentrating on discussing the details in areas like goods, services, digital, and cooperation. date2024-04-15

Korea's ICT exports grow 19.4% in March

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 15 that Korea’s export and import of information and communications technology (ICT) goods for March reached USD 18.8 billion (up 19.4 percent year-on-year) and $11.7 billion (down 1.2 percent), respectively, with the trade balance standing at an estimated surplus of $7.1 billion.   ICT exports recorded double-digit growth for the third consecutive month, boosted by strong exports of most major items like semiconductors, displays, mobile phones, and computers/peripherals. Semiconductor exports in particular achieved $11.7 billion, an all-time monthly high for this year.   By item, the export value of semiconductors (up 33.9 percent), displays (up 13.0 percent), computers/peripherals (up 20.3 percent), mobile phones (up 6.6 percent) and other major items showed an overall increase.   By destination, ICT exports to China and Hong Kong (up 32.5 percent), Vietnam (up 6.7 percent), the U.S. (up 22.8 percent), and EU (up 10.5 percent) expanded, whereas those to Japan (down 25.0 percent) declined.   March ICT imports inched down 1.2 percent year-on-year as the import of computers/peripherals and secondary batteries shrank. date2024-04-15

MOTIE holds emergency meeting to monitor domestic impact from Middle East situation

Trade, Industry and Energy Vice Minister Namho Choe held an emergency meeting on April 14 concerning Iran’s aerial attack on Israel on April 13 (local time) to assess the potential impact on domestic industries, export, energy prices, and supply chains with relevant authorities.   According to the assessment carried out by MOTIE and related institutions, the impact on Korea’s domestic industries is limited thus far, but the Government plans to closely follow and respond to future situation development.   At present, the supply of crude oil and LNG has not been disrupted, and oil and LNG carriers either navigating or loading near the Middle East regions are confirmed to be normally operating. Loading for exports and imports is also proceeding without setback. As for items other than crude oil and gas, there are no further identified critical items with high dependence on Middle East sourcing. Moreover, it is assessed that supply chain impact will be limited, as sourcing for bromine and other petrochemical items with relatively higher reliance on the Middle East can seek replacement with domestic production and alternative import channels.   Still, the Korean government plans to gear up for situation management through close monitoring on international oil prices and the impact on Korea’s economy by installing a comprehensive situation room headed by Vice Minister Choe to activate an emergency response team per each area, including oil, gas, trade, and supply chain, to communicate and monitor the situation on a daily basis with related countries and institutions.   Vice Minister Choe remarked that “The Government plans to closely monitor and examine the situation development with related institutions and industries,” and assured that efforts will be made to minimize impact on the Korean economy. date2024-04-15

IPEF Supply Chain Agreement to take effect April 17 in Korea

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 12 that the Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement will come into effect on April 17 in Korea.   Korea submitted its ratification documents on March 18, 2024, and the Agreement will enter into force after a 30-day period, on Wednesday, April 17. For the U.S., Japan, Singapore, Fiji, and India, the Supply Chain Agreement has taken effect as of February 24 this year; Korea will be the sixth country to ratify the said agreement.   As the first multilateral international agreement on supply chains, the IPEF Supply Chain Agreement is anticipated to contribute to establishing a more stable intraregional supply chain. During times of non-crisis, the 14 partner countries will cooperate to increase investment, enhance logistics, and push joint R&D projects for building supply chain resiliency. During crises, partner countries will be running a “Crisis Response Network” by which they can carry out joint response measures. date2024-04-12

Korea's automobile exports hit all-time high of $17.5 bln for Q1 in 2024

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 11 that Korea’s automobile exports hit all-time highs of USD 17.5 billion (up 2.7 percent year-on-year) for the first quarter of 2024 (January-March in acc.). The monthly export value reached $6.2 billion in March, making a quick rebound since the setback to $5.2 billion in February.   The key takeaway for March exports and domestic sales is the steep rise of hybrid vehicles (PHEVs excluded), advancing 37 percent to a record-breaking $0.9 billion. With the domestic market also selling 40,000 units (up 24 percent) in March, strong domestic and overseas demand for hybrid cars is expected to serve as a stable source of workload for the parts industry.   Automobile production in March amounted to 365,497 units (down 10.8 percent), surpassing last year’s monthly average (app. 354,000 units) and recording the highest among the first three months of this year. The year-on-year downtick in production is attributable to the lower number of working days (-1.5) and a major automaker’s production line renovation for future mobility transition.   Domestic sales in March added up to 146,019 units (down 12.0 percent). Meanwhile, hybrid cars (up 24 percent) and EVs (up 16 percent) posted double-digit growth, boosting the sales of eco-friendly vehicles 18.6 percent to 61,435 units, surpassing the previous all-time monthly high of approximately 58,000 units set in November 2023. date2024-04-11

Minister Ahn visits Washington D.C. to discuss stronger Korea-U.S. cooperation in clean energy and advanced industries

Trade, Industry and Energy Minister Dukgeun Ahn is making his first visit to Washington D.C., U.S. (April 10-12) after taking office to meet with U.S. Department of Commerce (DOC) and Department of Energy (DOE) counterparts, Biden administration officials, U.S. Congress members, and major thinktank figures for extensive discussions on trade issues and measures for Korea-U.S. cooperation in industries and energy.   During the bilateral ministerial Supply Chain and Commercial Dialogue (SCCD) meeting and energy ministerial meeting held in April 2023 on the margins of President Yoon Suk Yeol’s state visit to the U.S., the two countries agreed to cooperate in clean energy and advanced industries, including semiconductors. Minister Ahn aims to further discussions on stronger cooperation in clean energy areas and advanced industries through this visit, while also touching on issues concerning the U.S. CHIPS Act subsidies and the Inflation Reduction Act (IRA) incentives.   Moreover, he will meet with representatives of Korean firms operating in the local U.S. market to cover investment issues and seek business support measures with Congress members. With key thinktank figures, he plans to exchange views on forward-looking measures for developing and deepening Korea-U.S. relations.   Minister Ahn remarked that “The Korea-U.S. alliance has grown closer than ever, advancing to one of economic security, advanced industries, and supply chains,” and that efforts will be made to bolster bilateral ties through continued cooperation with the U.S. DOC, DOE, and other divisions. date2024-04-11

Ministries and companies discuss pending chip issues at presidential office

Trade, Industry and Energy Minister Dukgeun Ahn attended a meeting chaired by President Yoon Suk Yeol on April 9 at the Office of the President in Yongsan, Seoul, held for discussions on global chip supply chain risk factors in view of the recent earthquake in Taiwan, and for President Yoon to first-handedly assess the measures for the swift establishment of semiconductor mega clusters.   Attending the meeting were representatives of relevant ministries and companies, including the Ministry of Economy and Finance (MOEF), Ministry of Science and ICT (MSIT), Ministry of Land, Infrastructure and Transport (MOLIT), Ministry of Environment (ME), Samsung Electronics, SK Hynix, SAPEON Korea, and Naver.   Attendees discussed measures for securing the semiconductor technology super gap in the global race on AI chips, and the future direction for Korea in pushing the AI chip initiative.   Regarding the Taiwan earthquake and global supply chain risk factors, the meeting concluded that impact on Korean companies is limited at present, but efforts will continue to be made to monitor the supply chain situation with related industries and associations to handle uncertainties.   Discussions also covered the following measures for a swift establishment of the semiconductor mega clusters.   First, the Government plans to back the establishment of infrastructure and accelerate corporate investment, raising the state funding rate from the previous 5-30 percent to 15-30 percent. For the Yongin System Semiconductor Cluster, in which Samsung Electronics plans to invest 360 trillion won by 2047, the site renovation period is to be substantially shortened by utilizing the preliminary consultation system for environmental impact evaluation and through prompt land compensation.    The Government will also push for stronger investment incentives by extending the national strategic technology investment tax credit incentive due to sunset at the end of this year, which currently grants a 25 percent maximum tax credit.   The second aim is to nurture professional talent and create a better working environment. This will entail a further designation of chip-focused specialization universities (10) and graduate schools (3), as well as the establishment of new cities and public housing around the semiconductor industrial clusters and laying of a “chip highway” connecting the clusters in Hwaseong, Yongin and Anseong. Plans also include rolling out a global talent package for attracting overseas talents into Korea by supporting their immigration and housing.   Third, support will go towards the early establishment of a mass-production demonstration testbed (Yongin Semiconductor Cluster mini fab) for facilitating cooperation between chip MPE (materials, parts, equipment) firms and chip manufacturers, and towards the production of ultra fine process prototypes. The chip performance testing and inspection service is to be initiated starting this year with the establishment of the inspection support center.   In this AI era, there still exists sustainability issues owing to performance and energy costs, and the outlook is that the future of AI competitiveness will center on AI chips and hardware innovation, as well as the organic collaboration among AI models.   In this regard, Korea will be launching the AI Chip Initiative based on the following nine technological innovations: next-generation general-purpose AI (AGI); lightweight and low-power AI; AI safety technology development; processing in memory (PIM); low-power K-AP; new device & advanced packaging; AI supercomputing; on-device AI; and next-generation open AI architecture software.   MOTIE and MSIT will be holding review sessions on a regular basis and share collaboration cases and outcomes with related institutions to minimize d date2024-04-09

Korea and U.S. to use eCERT for steel customs clearance

The Ministry of Trade, Industry and Energy (MOTIE) and the Korea Customs Service (KCS) announced that the U.S. is introducing the Electronic Certification System (eCERT) as a new filing system for quota-subject Korean steel. U.S. Customs and Border Protection (CBP) has notified the above on the Federal Register on April 5 (local time).   The eCERT is CBP's new electronic document system for managing quotas and customs, and is anticipated to prevent illegal transactions, save time in information handling, and increase stability.   The system will run in tandem with the Korea Iron and Steel Association (KOSA)’s export quota management system. CBP will compare and cross-check the export approval document submitted by KOSA with the import declaration form and reply back on whether or not to approve customs clearance.   According to the Federal Register notice, the grace period for the new filing system takes effect April 22, 2024, and CBP will automatically reject filings without correct eCERT information beginning May 20, 2024. date2024-04-08