Ministry of Trade, Industry and Energy

Korea's Defense Exports Task Force launched into high gear

Trade, Industry and Energy Vice Minister Kang Kyungsung led the Defense Exports Task Force in his meeting with Hanwha Aerospace CEO Son Jae-il on April 30 at the company’s Daejeon plant and discussed recent exports outcomes.   Launched as a follow-up measure to the Defense Industry Ecosystem Competitiveness Strategy announced on April 17, the Defense Exports Task Force is composed of representatives from the Ministry of Trade, Industry and Energy (MOTIE), Korea Defense Industry Trade Support Center (KODITS), K-SURE, and Korea Planning & Evaluation Institute of Industrial Technology (KEIT).   Hanwha Aerospace representatives shared their status quo on arms exports, including the executive contract with the Polish Armaments Agency on supplying an additional fleet of Chunmoo Multiple Rocket Launcher Systems (MRLS) amounting to USD 1.6 billion, and requested policy funding for export contract implementation, designation of advanced aircraft engine materials and parts as national high-tech strategic technology, and government assistance on R&D of arms systems for export.   Vice Minister Kang explained that as announced in April, MOTIE plans to strengthen support through the Defense Industry Ecosystem Competitiveness Strategy by securing advanced critical technologies in arms materials, parts, and equipment (KRW 400 billion investment in 2024), expanding the scope of trade insurance and policy funding (10 trillion won), and establishing a tailored defense exports strategy (June 2024). date2024-04-30

Korea's retail industry grows 10.9% in March

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 29 that Korea’s retail industry grew 10.9 percent year-on-year in March 2024, with offline and online sales advancing 6.0 percent and 15.7 percent, respectively.   MOTIE releases monthly retail sales figures based on surveys of 25 major retailers. Thirteen of them are brick-and-mortar retailers: three department store chains, three hypermarket chains, three convenience store chains, and four super supermarket (SSMs) operators. The remaining 12 are online retailers.   Offline sales rose across all major items on the backs of higher number of working days (+2) and increased sales of food, living/household goods, and foreign designer labels. Online sales saw enlarged demand for spring outings, performance reservations, and food deliveries alongside steady sales of convenience foods and e-coupons.   The number of purchases increased 0.5 percent overall, rising for department stores, hypermarkets, and SSMs, thanks to the added number of working days (+2), but decreased for convenience stores (down 0.2 percent), a first in 25 months.   Hypermarket sales increased 6.2 percent, attributable to the growth of food product sales (up 10.7 percent). Non-food items declined, including sports (down 7.9 percent), miscellaneous goods (down 3.7 percent), clothing (down 3.6 percent), and home appliances/culture (down 2.4 percent).   Department store sales increased 8.9 percent overall, as women’s suits showed a 1.2 percent downtick, but household goods (up 15.3 percent), foreign designer labels (up 13.9 percent), and miscellaneous goods (up 5.4 percent) advanced.   Convenience (up 3.0 percent) stores saw all items grow in sales, led by daily necessities (up 7.7 percent) and miscellaneous goods (up 9.3 percent), followed by strong demand for cost-effective food products like beverages and processed food products (up 4.1 percent) and instant food products (up 1.7 percent).   SSM operators gained 5.1 percent overall as most items enjoyed growth, including agricultural, livestock, and fishery products (up 9.6 percent), processed food products (up 3.9 percent), and fresh/prepared food products (up 1.8 percent).   In terms of sales per store, hypermarkets (up 7.9 percent), department stores (up 8.9 percent), and SSM operators (up 1.1 percent) gained, whereas those of convenience stores dipped (down 0.9 percent).   Online sales decreased in fashion/clothing (down 13.0 percent) and sports (down 3.7 percent), while books/stationery (up 24.1 percent), food products (up 28.9 percent), and service/other (up 37.5 percent) climbed sharply. date2024-04-30

Korea and Angola hold Business Forum

Minister for Trade Inkyo Cheong attended the Korea-Angola Business Forum, co-hosted by Korea’s Ministry of Trade, Industry and Energy (MOTIE) and the Angolan government, on April 29 in Seoul on the occasion of Angola’s President João Lourenço’s state visit, and held extensive bilateral discussions on cooperation in trade, investment, renewable energy, shipbuilding, and offshore plant projects.   The forum was attended by approximately 180 representatives of both countries’ governments, institutions, and companies, including the Sonangol Group and HD Hyundai Heavy Industries.   In his opening address, Trade Minister Cheong extended gratitude towards President Lourenço’s interest in pursuing economic cooperation with Korea and stated that the Korean government will likewise provide full support to expand bilateral cooperation in manufacturing, renewable energy, and other areas, based on the initial collaboration centering on energy, shipbuilding, and offshore plant.   Moreover, the trade promotion institutions of both countries, namely Korea Trade-Investment Promotion Agency (KOTRA) and Agency for Private Investment and Promotion of Exports of Angola (AIPEX), entered a memorandum of understanding (MOU) on establishing the basis for supporting the two countries’ business exchanges, including partner matchings and exchange of trade and investment information. Accordingly, KOTRA plans to set up a Korea promotion exhibition booth in the international symposium to be held in Luanda, Angola, in July as part of pushing forward projects for promoting bilateral trade. date2024-04-30

Korea and Oman to resume bilateral Economic Cooperation Committee after 8-year hiatus

Minister for Trade Inkyo Cheong met Chairman of the Oman Public Authority for Special Economic Zones and Free Zones (OPAZ) Ali Masoud Al Sunaidy on April 29 in Seoul to discuss the resumption of the two countries’ bilateral Economic Cooperation Committee.   The sixth Korea-Oman Economic Cooperation Committee meeting had originally been slated for 2019 in Muscat, Oman, but was put on pause by the pandemic outbreak.   The resumption discussion was proposed by Chairman Al Sunaidy, noting Oman’s push for industrial diversification and focused investment on new renewable energy areas. Trade Minister Cheong replied that he looks forward to discussing measures for deepening the two countries’ investment, joint project discovery, and other economic collaborations through the Economic Cooperation Committee in the near future. date2024-04-30

Minister attends WEF’s Special Meeting in Riyadh

Trade, Industry and Energy Minister Dukgeun Ahn attended the World Economic Forum (WEF)’s Special Meeting on Global Collaboration, Growth and Energy for Development on April 28 (local time) in Riyadh, Saudi Arabia, as the representative of the Korean government.   The Special Meeting on Global Collaboration, Growth and Energy for Development drew over 1,000 renowned figures to 90 sessions on global cooperation, inclusive growth, and energy to discuss various related global issues and seek solutions, touching on topics like the global economy, energy transition, and Middle East tensions.   Minister Ahn attended the panel discussion titled “What Homeland Economics Means for Trade” and the informal meeting of global economic leaders (IGWEL).   In the first session, the minister assessed the trade environment in terms of global geopolitical risks and protectionism trends and articulated measures for security and growth through the restoration of multilateralism and invigoration of trade and investment. He highlighted that Korea is prepared to share its experience of achieving growth through trade and opening up of markets in contributing to establishing a fairer and more inclusive global economic order.   In the informal gathering of world economic leaders, he exchanged views on pending global economic issues with chiefs of international organizations, CEOs, other country’s top-ranking figures in a more casual atmosphere.   On the margins of the meetings, Minister Ahn is also holding in-depth bilateral talks with counterparts of other countries to discuss measures for stronger economic collaboration with regard to energy, industries, and investment. date2024-04-29

Korea's exports maintaining upward trajectory across major markets

Minister for Trade Inkyo Cheong held the fourth exports promotion meeting with officials in charge of major destinations on April 26 at K-SURE in Seoul to review export conditions per region and discuss tailored export strategies.   In the first quarter of 2024, exports to chief destinations like the U.S. (up 15.5 percent year-on-year), China (up 4.3 percent), ASEAN (up 1.8 percent), and Latin America (up 21.6 percent) increased, recording an 8.3 percent growth to USD 163.8 billion.   To the U.S., automobiles (up 24.2 percent), general machinery (up 50.8 percent), and semiconductors (up 188.3 percent) enjoyed strong growth throughout the first quarter, surpassing all-time highs for the period.   As for China, its information technology (IT) industry rebound led to heightened demand for semiconductors (up 36.3 percent) and displays (up 26.2 percent).   To ASEAN, semiconductors (up 16.5 percent), petrochemicals (up 13.8 percent), and wireless communication devices (up 11.9 percent) led the overall growth.   Exports to Latin America posted the highest growth among all major destinations on the backs of robust demand for general machinery (up 20.1 percent) and petroleum products (up 68.6 percent).   With exports to major destinations like U.S., China, and ASEAN keeping up the growth pace in April, Trade Minister Cheong articulated expectations of exports and trade surplus advancing for the seventh and 11th consecutive month, respectively. “Thorough efforts will be made in expanding the trade network for emerging markets and responding to trade risks from Middle East tensions so that the present upward trajectory can maintain until the year end,” he said. date2024-04-29

Korea, U.S., and Japan to deepen cooperation on export controls and technology protection

Korea, the U.S., and Japan held a joint Disruptive Technology Protection Network Summit on April 25 (ET) in Washington D.C., U.S.   The Korean delegation, composed of representatives of the Office of the President, MOTIE, Ministry of Justice (MOJ), Ministry of Foreign Affairs (MOFA), and Korea Customs Service (KCS), was joined by the U.S.’ Department of Justice (DOJ) and Department of Commerce (DOC), and Japan’s Ministry of Economy, Trade, and Industry (METI) and National Police Agency (NPA).   Part of a follow-up measure to the Spirit of Camp David adopted at the trilateral summit held August 2023, the Summit is anticipated to augment the three countries’ cooperation in technology protection, export control implementation and related information sharing, exchange of success cases, and disruptive technology protection.   The Summit was chaired by Assistant Attorney General Matt Olsen of the Justice Department’s National Security Division and Assistant Secretary for Export Enforcement Matt Axelrod of the Commerce Department, the co-leaders of the U.S.’ Disruptive Technology Strike Force.   During the trilateral talks, the three countries shared the view that violation of export controls undermines national security. Korea’s MOJ, U.S. DOC, and Japan’s NPA signed a letter of intent (LOI) on deepening information sharing for tech leak law enforcement, while MOTIE also signed a LOI with the U.S. DOC and Japan’s METI for cooperation on export control implementation. date2024-04-26

Government and academia leaders discuss Korean youth's stronger WTO internship participation

Minister for Trade Inkyo Cheong held a conference on April 25 with the presidents of nine domestic universities’ graduate schools of international studies and discussed measures for increasing internship opportunities for young Korean talent at the World Trade Organization (WTO).   At the conference, government officials and academic leaders discussed ways to enable Korean youth’s stronger participation in WTO internship programs, including recommending outstanding students taking master’s and doctoral courses, considering alternative credit incentives for the selected student, and providing government support for living and flight expenses.   Noting the relatively low number of Korean students with career experience as WTO employee or intern despite the country ranking sixth in terms of global trade as of 2022, President Yoon Suk Yeol requested that the WTO increase internship participation opportunities for Korean students during bilateral talks with WTO Director General Ngozi Okonjo-Iweala in May 2023.   Trade Minister Cheong said that WTO work experience for Korean youth is key to enlarging Korea’s role within WTO and in training proficient trade experts, adding that efforts will be made to help Korea’s young talent to accumulate practical work experience and competitiveness through WTO internship programs and gain broader opportunities of working at international organizations. date2024-04-26