Ministry of Trade, Industry and Energy

Six global institutions selected for Global Industry and Technology Cooperation Center project

Trade, Industry and Energy Minister Dukgeun Ahn held the Global Open Innovation Strategy Conference on April 5 at Josun Palace and announced the preferred bidders for the Global Industry and Technology Cooperation Center project.   The Global Industry and Technology Cooperation Centers are to be a platform for international joint R&D projects, partner matching, and technology collaboration, for which 30 universities and research institutes around the world applied. Paper and presentation evaluation rounds narrowed the applicants down to six overseas institutions, namely Massachusetts Institute of Technology (MIT), Yale University, Purdue University, Johns Hopkins University, Fraunhofer, and Georgia Institute of Technology.   The Ministry of Trade, Industry and Energy plans to launch around 45 joint global R&D projects this year with aim to secure 100 next-generation foundational technologies by 2028. date2024-04-05

MOTIE to support innovative SMEs with KRW 16.6 tln technology financing by 2028

Trade, Industry and Energy Minister Dukgeun Ahn attended the Technology Financing Investment Promotion Strategy Meeting on April 4 at Lotte Hotel Seoul and announced private-led technology financing promotion measures on providing KRW 16.6 trillion to SMEs and middle-market firms with innovative technologies over the next five years (2024-2028). A total of 3.4 trillion won is to be funded in 2024 alone.   First of all, a 2.4 trillion won public-private corporate venture capital (CVC) fund will be formed in 2024 for investment in innovative startups, whereas large corporations will be supported in their business, marketing, and innovative infrastructure establishment to expedite open innovation.   Second, the industrial technology innovation fund in 2024 will pour 400 billion won into defense, AI-based autonomous manufacturing, carbon-free energy, and other advanced industries, while also strengthening support for regions and middle-market companies short of private venture investment. As for the unprecedented 36 billion won high-tech civil-military cooperative fund, defense companies attending the meeting vowed support for nurturing innovative defense firms via means of additional investment, company scouting, and commercialization assistance.   Third, MOTIE will create a 540 billion won low-interest R&D loan to assist companies’ technology commercialization and join hands with the SMEs and Startups Ministry (MSS) to initiate a special exemption guarantee that offers fees reduced by 0.5 percentage points to mitigate burden on companies. Furthermore, a 170 billion R&D fund will be supplied in 2024 in line with venture capital investment.   On the margins of the meeting, the 13 banks that will be executing the newly launched R&D loan participated in the ceremony for the industrial technology innovation fund memorandum of understanding (MOU). In addition to POSCO Capital, SGC Partners and Ascendo Ventures were also selected to jointly manage the CVC fund, and the three companies entered an MOU on this account.   Also attending the event was Ely Razin, Chief Strategic Investments Officer at Israeli investment platform OurCrowd, who expressed commitment to injecting over 40 billion won worth of foreign capital into Korea’s technology innovation fund. OurCrowd was selected as one of the technology innovation fund managers in 2023. date2024-04-05

Nuclear energy firms to benefit from KRW 100 bln loan fund in 2024

Trade, Industry and Energy Vice Minister Namho Choe chaired a conference with nuclear energy companies and memorandum of understanding (MOU) ceremony on executing special financial assistance for the domestic nuclear energy ecosystem on April 4 at Korea Atomic Industrial Forum (KAIF).   Part of a follow-up to the 14th Public Forum held this February, the event was hosted in the attendance of the representatives of six major banks participating in this year's KRW 100 billion nuclear ecosystem financial assistance project, as well as those from KAIF and Korea Energy Technology Evaluation and Planning (KETEP).   First, the Ministry of Trade, Industry and Energy (MOTIE) entered an MOU with banks and relevant institutions for the special financial assistance towards nuclear energy firms and agreed to cooperate on developing the program for tackling the industry’s financial challenges, information sharing, and the management and operation of business projects. Based on the consensus that fast liquidity is of utmost importance in lowering SMEs’ funding difficulties, each institution has been making swift headway in project notification, selection of project applicants, and loan appraisals. Over 34 billion won was executed in loans by the end of March, adding up to 50 billion won in April, with a total of 100 billion won to be funded within this year.   At the conference with the beneficiary companies, Vice Minister Choe listened to the nuclear energy industry representatives’ suggestions and opinions. Nuclear energy companies’ leaders spoke on how the increased work orders and financial assistance are vitalizing the industry atmosphere and suggested that the Government give continued interest and support towards SMEs and middle-market companies in the nuclear energy industry in terms of investment, R&D innovation, and export competitiveness.   Vice Minister Choe said that the Government will fully support the nuclear industry’s rebound as well as its future global performance and asked for industry players’ active participation in new investment, technological enhancement, and other means to qualitatively advance the industry. date2024-04-05

Vice Minister discusses measures to counter challenges for petrochemicals industry

Trade, Industry and Energy Vice Minister Kang Kyungsung chaired a meeting on April 3 with petrochemicals industry leaders to discuss countermeasures to the current crises caused by declining profitability from global oversupply, high oil prices, among several international factors.   At the meeting, the Ministry of Trade, Industry and Energy (MOTIE) gathered opinions and suggestions from industry leaders on issues on export and investment conditions. Attendees agreed that the current petrochemicals industry is up against a multi-crisis, and that businesses must dramatically shift their structures’ focus from general-purpose products to high value-added, eco-friendly, and fine chemicals items.   Noting that the petrochemicals industry is closely intertwined with semiconductors and secondary batteries and other major industries, Vice Minister Kang asked that the Government and industry players join hands to overcome the present challenge, for which the ministry will consult with tax authorities on further extending the exemption from customs duties on naphthalene, and also provide stronger support for the Shaheen Project and other large-scale projects through launching a task force for supporting their on-time completion. date2024-04-04

Government to nurture MPE specialization complexes into key bases for supply chain and super gap

Trade, Industry and Energy Minister Dukgeun Ahn attended the interministerial meeting on April 3, chaired by the Economy and Finance Minister, at the Government Complex Seoul for the deliberation and resolution on major agenda items concerning the materials, parts, and equipment (MPE) specialization complexes. The meeting was attended by representatives of relevant ministries and institutions, including the Ministry of Science and ICT (MSIT), Ministry of Environment (ME), Ministry of SMEs and Startups (MSS), Ministry of Employment and Labor (MOEL), National Intelligence Service, Financial Services Commission, and the Office for Government Policy Coordination. First, attendees carried out the deliberation and resolution process on measures for catered support towards MPE specialization complexes. For the Chungbuk Bio Specialization Complex, the Korean government plans to provide R&D support for joint technology development of bio MPE buyer and supplier companies, and give support for analysis of accredited tests on global standards, such as those by the U.S. Food and Drug Administration (FDA) and the EU’s European Medicines Agency (EMA). As for the Daegu Motor Specialization Complex, the Government will establish a rare earth elements permanent magnet circular production system for electric vehicles (EVs) and a motor performance certification support center. Inside the Gwangju Autonomous Vehicle Specialization Complex, an integrated recognition, control, and communications control system for self-driving cars will be developed, along with equipment for international certification utilizing a driving simulator. The Busan Power Semiconductor Specialization Complex will see the construction of an eight-inch silicon carbide (SiC) power semiconductor manufacturing and packaging center, while pushing the development of 1,700V high-voltage device technology. The Anseong Semiconductor Equipment Specialization Complex will focus on developing chemical mechanical polishing (CMP) equipment for semiconductor planarization. The Government will also provide tailored support for talent training and regulatory improvement for each complex. The Anseong Complex will have a semiconductor equipment demonstration center built inside its Polytech University, and the Daegu Complex will have a mobility-focused university established. The Gwangju Complex will push for designating an autonomous driving test operation zone, while the Osong Complex will provide licensing consultation from the R&D stage and onwards through a joint support group run by tenant businesses and regulatory institutions. Over a period of five years, the Government intends to pour a total of 506.7 billion won into R&D for MPE specialization complexes to back the 6.7 trillion corporate investment. Attendees decided to increase the number of MPE core strategic technologies to 200 from the previous 150 by a further designation of 40 technologies and creation of three areas (aerospace, defense, hydrogen) in addition to the existing seven areas, including semiconductors, displays, and bio. Moreover, they increased the number of bio MPE technologies to 19 through an additional designation of technologies on active pharmaceutical ingredients (API), functional material, and process machinery for high-speed, mass production in tandem with MSIT and Defense Acquisition Program Administration (DAPA). Attendees carried out the deliberation and resolution of cooperation- and mutual growth-based joint projects for MPE firms, into which approximately 100 billion won is to be funded over the next five years. Global joint projects were approved this year for the first time between overseas buyers and Korean MPE firms; one on communications and security system chip cooperation with a German company, and another on cooperation with a U.S. firm on biodegradable synthetic fibers. date2024-04-04

Minister Ahn discusses global business hub vision with foreign-invested companies and KCCI

Trade, Industry and Energy Minister Dukgeun Ahn held a meeting on April 3 with the Korea Chamber of Commerce and Industry (KCCI) and foreign-invested companies to discuss strategies for attracting foreign investment, as part of the second industrial investment strategy meeting on the heels of the breakfast meeting for foreign-invested companies convened on February 14.   Minister Ahn led discussions on measures to expand foreign investment, followed by a “Get to Know Korea” event where attendees visited the Jinkwansa Temple for hands-on cultural experience of Korean traditional Buddhist temple trying Buddhist cuisine and viewing a part of the temple’s ritual called "suryukjae."   Minister Ahn highlighted that “We will stimulate active communication with KCCI and foreign-invested companies in view of our USD 35 billion foreign investment target,” and articulated the following measures for nurturing Korea into a more appealing and stable investment environment: draw global companies’ investment to create an industrial ecosystem with supply chain resiliency and advanced technological competitiveness; push regulatory reform in alignment with global standards; and establish a business-friendly support system that can impress customers.   Representatives of KCCI and foreign-invested companies attending the meeting expressed gratitude towards the Korean government’s attention to detail on providing the “Get to Know Korea” experience and suggested measures for increasing incentives like tax credit, expanding power and other infrastructure, and improving the certification and inspection system. date2024-04-04

Semiconductor equipment manufacturer becomes first beneficiary of Prime Loan Export Package

Trade, Industry and Energy Minister Dukgeun Ahn presented the guarantee certificate for the “Prime Loan Export Package” to Fusei Menix CEO Choi Byeong-cheol on April 3 at the Hana Bank Headquarters in Seoul, accompanied by Hana Bank President Lee Seung-lyul and K-SURE President Jang Young-jin.   The prime loan export package, serviced by Korea's five major banks and K-SURE, offers KRW 2.2 trillion in funding benefits for exporting SMEs and middle-market companies with doubled limit and lower interest (down 0.7 percentage points max), while exempting trade insurance premium and guarantee fees.   The country’s first beneficiary of the prime loan, Fusei Menix is a Korean semiconductor equipment manufacturer specializing in hydraulic presses for printed circuit boards (PCBs) and currently exports to 20 countries. The company recently faced difficulty increasing production output to meet soaring demand overseas, and the prime loan package has enabled the firm to secure the necessary funds for export.   Minister Dukgeun Ahn remarked that the “Prime loan export package is the beginning of our efforts to help exporting companies overcome financial issues through an all-time high 255 trillion won trade insurance.” date2024-04-04

Korea Smart Grid Expo 2024 showcases latest technologies in power industry

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 3 that the Korea Smart Grid Expo (KSGE) 2024, hosted by MOTIE and organized by Korea Smart Grid Association and COEX, is held through April 3-5 at COEX in Seoul, where visitors can check out the latest technologies and products in the smart grid and power industries.   With this year marking the Expo's 14th anniversary, KSGE 2024 showcases three special booths focusing on energy storage systems (ESSs), distributed energy, and EV charging infrastructure.   The Energy Storage Industry Exhibition presents not only the conventional lithium-ion battery storage system, but other various energy storage technologies like flow battery, heat- and compressed air ESS, and pumped storage power plants.   The Distributed Energy Industry Exhibition, in line with the Special Act on the Promotion of Distributed Energy to be enforced in June, presents a new business model that caters to regional characteristics, ranging from integrated power plants to microgrids.   The EV Charging Infrastructure Exhibition showcases ultra-high speed, portable chargers, and operation platforms for both domestic and overseas markets, designed by charger manufacturers and operators. date2024-04-03