Ministry of Trade, Industry and Energy

Korea's automobile exports advance 10.3% in April

The Ministry of Trade, Industry and Energy (MOTIE) announced on May 8 that Korea’s automobile exports for April climbed 10.3 percent year-on-year to a monthly high of USD 6.8 billion, breaking the previous record set in November 2023 at $6.5 billion.   The accumulated export value through January to April this year rose 4.7 percent year-on-year to $24.3 billion, likewise an all-time high for the period. The expansion is attributable to high demand for eco-friendly vehicles and growing U.S.-bound exports of sport utility vehicles (SUVs).   As for eco-friendly vehicles, their major destinations like the U.S. and Europe showed increased demand for hybrid electric vehicles (HEVs) in April, achieving a record-breaking $2.3 billion (up 11.6 percent year-on-year) in export value.   April’s automobile production amounted to 394,457 units (up 3.5 percent year-on-year), the highest in 13 months since reaching 410,000 unit thresholds in March 2023, thanks to the added number of working days (+1) compared to last April.   Domestic sales declined 5.5 percent to 141,110 units. Meanwhile, HEV sales leaped 35 percent year-on-year to 39,576 units as domestic preference for HEVs also strengthened. date2024-05-09

World's largest liquefied hydrogen plant starts operation in Incheon

Trade, Industry and Energy Minister Dukgeun Ahn attended the Incheon Liquefied Hydrogen Plant completion ceremony on May 8 in Seo-gu, Incheon.   The world’s largest in scale, the Incheon Liquefied Hydrogen Plant is a KRW 700 billion won project by SK E&S for producing 30,000 metric tons of liquid hydrogen per annum at maximum capacity, which is equivalent to the amount for charging 5,000 hydrogen buses. Centering around the completed plant, SK E&S plans to build a total of 40 liquid hydrogen charging stations nationwide by 2026 to create a liquid hydrogen distribution network, beginning with 20 stations this year.   Taking up only 1/800th the volume of hydrogen gas, liquified hydrogen heightens transport efficiency 10-fold and is anticipated to catalyze the diffusion of hydrogen-powered mobility, such as hydrogen cars and buses. As hydrogen reaches an ultrapure level of around 99.9999 percent during liquefaction, it can also be used in advanced industries that require large amounts of ultrapure hydrogen, including semiconductors and defense.   The Korean government has been providing swift support for related licensing through a regulatory sandbox for special exemption of demonstrations, and will continue to further the nurturing of the hydrogen liquefaction ecosystem by supporting the securing of relevant key technologies, R&D of related materials, parts, and equipment, as well as the development of safety standards across the entire liquid hydrogen life cycle.   date2024-05-09

MOTIE launches AI Industrial Policy Committee, laying out roadmap for AI era

Trade, Industry and Energy Minister Dukgeun Ahn attended the ceremony on May 8 inaugurating the “AI Industrial Policy Committee,” launched to take on industrial policies for the artificial intelligence (AI) era. Attending the event were National Academy of Engineering of Korea (NAEK) President Kim Kinam and other AI experts in business, academia, and related institutions.   Based on the forecast that AI will serve as a gamechanger across industries, MOTIE launched the Committee with aim to generate meaningful forecast for industrial shifts and sort out policy tasks for AI-based industrial innovation. Over the next six months, the Committee will focus on establishing the new industrial policies for the AI era through joint efforts of 200 industrial, academia, and research experts. The Committee’s private-led working group will be composed of four parts, namely AI technology development forecast, future industry changes, standards, and policy proposals.   In parallel, the Committee will be establishing strategies for six major areas (autonomous manufacturing, design, R&D, energy, retail, AI chips) on a monthly basis, led by MOTIE. New legal frameworks for AI’s industrial utilization will be designed as well.   On the heels of the inauguration ceremony, MOTIE announced the “AI Autonomous Manufacturing Strategy 1.0” as part of the first task project of the six major areas. Under the strategy, this year alone will see over KRW 100 billion poured into the following: diffusion of AI autonomous manufacturing; securing AI autonomous manufacturing capacity; and the nurturing of a relevant ecosystem. Through these measures, MOTIE is targeting to achieve, by 2030 a 30 percent growth in AI autonomous manufacturing diffusion (9 percent at present) and a 20 percent jump in manufacturing productivity.   First, MOTIE will push forward 200 anchor projects on AI autonomous manufacturing with aim to upgrade the degree of digital transition across manufacturing sites. Accordingly, MOTIE will be supporting the establishment of software, robots, and systems after a thorough assessment of AI application prospects and effectiveness based on a detailed process analysis. This year, 10 priority projects will be selected through local authorities’ open call for 10 billion won in funding.   MOTIE will also be establishing an AI autonomous manufacturing testbed for robotics and software that companies can utilize in establishing their own AI autonomous manufacturing systems. To note, 200 billion won will go towards nurturing a national robot testbed project (2024–2028).   Second, over one trillion won will be secured in private investment to be spread over a five-year period for obtaining core technologies and capacity required for AI autonomous manufacturing, mainly concentrating on the process automation of key manufacturing sectors like machinery, robots, shipbuilding, secondary batteries, and semiconductors, as well as on virtual manufacturing and flexible production, such as digital twins.   In addition, active support will go towards nurturing an AI autonomous manufacturing-friendly industrial ecosystem, 13,000 professional talents, and over 250 firms specializing in AI autonomous manufacturing solutions. A public-private “AI Autonomous Manufacturing Alliance” will be launched in the first half of this year through participation of ministries, research institutions, associations, companies and relevant groups for sharing and utilization of industrial data and the improvement of relevant laws and systems. date2024-05-08

Experts gather to discuss trade policy directions amid global paradigm shifts

Minister for Trade Inkyo Cheong attended the 18th Trade Advisory Committee Meeting on May 8 at Lotte Hotel Seoul to discuss future trade policy directions in view of recent changes in the global trade landscape.   The Trade Advisory Committee is a civil advisory body run by the Ministry of Trade, Industry and Energy (MOTIE) in accordance with the Act on procedures for concluding and implementing commercial treaties. Composed of 27 experts across the academic, industrial, and research spheres of various relevant areas, the Committee elected a new Chairperson and appointed new members during this meeting. The Committee is to be combined with another related committee dealing with domestic trade measures to form the Trade Policy Advisory Committee.   Attendees reviewed past trade policy outcomes and engaged in discussions on detailed policy tasks and proposals for Korea to play a key role in global trade while responding to trade environment shifts, such as this “super election year” and the rise in protectionism.   Trade Minister Cheong highlighted that MOTIE plans to “stabilize the supply chain and expand Korea’s export portfolio through upgrading and diversifying the trade network amid global paradigm shifts.” date2024-05-08

Government to strengthen support for reshoring companies in advanced industries

The Korean government plans to raise overall support for reshoring companies by lowering eligibility requisites and standards, while increasing incentives for reshoring firms in advanced industries.   Trade, Industry and Energy Minister Dukgeun Ahn held a meeting with 10 reshored companies on May 7 to discuss support measures, where he announced the ministry’s “Reshoring Company Support Strategy 2.0” and gathered companies’ opinions.   In view of the recent supply chain realignments and rising global protectionism, the Ministry of Trade, Industry and Energy (MOTIE) established support strategies based on opinions provided from relevant industries, experts, and ministries to address the increasing need for stimulating advanced industries’ reshoring.   The strategy aims to lower the eligibility bar to provide wider support. For one, reshoring firms in the retail industry will be eligible for government support and investing reshored capital in Korea will be recognized as a type of reshoring investment.   National strategic technologies, advanced strategic technologies, future mobility parts and products are to be added to the list of business sectors exempted of foreign subsidiary restructuring requisites. Companies subsidized with above restructuring exemptions are to be limited in making overseas investments for a minimum of only one year, instead of the current two.   This year, MOTIE significantly enlarged the reshoring company subsidy budget, up from last year’s KRW 57 billion to 100 billion won. MOTIE also plans to raise the subsidy cap for reshoring investment in national and advanced strategic technologies.   Seven more occupation types are to be added besides the one type currently eligible for the E-7 visa for reshoring companies. Businesses moving into the national high-tech strategic industry and MPE (materials, parts, equipment) specialization complexes will receive preferential support as well.   In 2023, the number of Korean reshoring companies reached 22, with more than 20 firms reshoring every year since 2020. Reshoring companies’ investment plan entered the 1 trillion won thresholds for the second consecutive year in 2023. date2024-05-07

Joint press release on the successful accession of the Republic of Korea to the Digital Economy Partnership Agreement

3 May 2024   JOINT PRESS RELEASE ON THE SUCCESSFUL ACCESSION OF THE REPUBLIC OF KOREA TO THE DIGITAL ECONOMY PARTNERSHIP AGREEMENT     1.        Chile, New Zealand and Singapore, the founders of the Digital Economy Partnership Agreement (DEPA) are delighted to welcome the Republic of Korea (ROK) as DEPA’s first new member.   Finalisation of the ROK’s Accession Process   2.        The ROK’s successful accession is an important milestone. It follows the announcement of the substantial conclusion of discussions on the ROK’s accession in June 2023 and the subsequent completion of the legal procedures in line with the DEPA accession process.   3.        The DEPA commits Parties to ambitious disciplines on digital trade to advance the growth of the digital economy. It also provides a platform for collaboration on projects of mutual interest. The accession of the ROK is testament to the Agreement’s open and inclusive nature. Expansion of the DEPA will add to the heft of the Agreement and provide greater opportunities for collaboration amongst Parties.   Comments from DEPA Parties   4.          Chile´s Undersecretary for International Economic Relations, Ms. Claudia Sanhueza said, “Chile welcomes today's announcement of the entry into force of the Digital Economy Partnership Agreement (DEPA) by the ROK. This is an important milestone for this agreement, as it is the first DEPA member to join through an accession process. We look forward to working with the ROK to enhance the potential of DEPA and to collaborate on projects of mutual interest in emerging areas that could impact digital trade".   5.          New Zealand Minister for Trade Mr. Todd McClay said, “New Zealand welcomes the ROK’s formal accession to the DEPA. The ROK has impressive experience in the digital economy and its accession demonstrates the DEPA’s value as a pathfinder agreement for economies with high ambition for digital trade. New Zealand looks forward to working more closely with the ROK on these issues.”   6.        Singapore’s Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations Grace Fu said, “Singapore warmly welcomes the ROK as the fourth Party to the DEPA. This is a key milestone for the DEPA. Through the DEPA, I look forward to deepening Singapore’s collaborations on the digital economy with the ROK. As Chair of the ROK’s Accession Working Group (AWG), Singapore would like to express our appreciation to the ROK for the close cooperation with DEPA Parties throughout its accession process. I hope we can build on this momentum to ensure that DEPA remains an open and inclusive Agreement to all economies that are able to meet its high standards.”   7.          The ROK’s Trade Minister Inkyo-Cheong said, “The ROK will make efforts for the expansion of DEPA while acting as a bridge between founding and new members as the first non-founding member country.” Trade Minister Cheong also added, “The ROK will lay the foundation for cooperation on the digital economy between members to ensure DEPA will serve as a platform to enhance economic partnership.”   Background   8.          Chile, New Zealand and Singapore signed the DEPA in June 2020. The ROK formally applied to join the DEPA in September 2021. The AWG to oversee its accession process was formed in October 2021, with Singapore as Chair.   Jointly issued by the Undersecretariat of International Ec date2024-05-03

Trade Minister discusses investment collaboration with global companies on margins of OECD MCM 2024

Minister for Trade Inkyo Cheong met with representatives of global companies on May 2 on the sidelines of attending the Organization for Economic Cooperation and Development (OECD) Ministerial Council Meeting (MCM) 2024 in Paris to discuss cooperation in areas like investment, future mobility, and aviation. He also met with Korean firms operating in the French market to discuss measures for promoting exports in conjunction with the Paris 2024 Olympics.   With a Dutch green bio company, Trade Minister Cheong discussed the company’s decision to establish a manufacturing plant in Korea and expressed his hopes for the investment to serve as an important milestone in Korea’s green bio industrial growth, viewing that local job creation and exports will substantially contribute to the Korean economy.   In Paris, the trade chief also met with a number of companies like NXP, Renault, Airbus, OPmobility, Thales, and Soitec to review investment progress and discuss measures for further cooperation. To NXP and Renault management, he asked, respectively, the prospects of an automobile semiconductor R&D center and electric vehicle (EV) production plant for investment collaboration in advanced industries.   Trade Minister Cheong also held a meeting with Korean businesses operating in Paris to discuss marketing strategies and export assistance to push in conjunction with the Paris 2024 Olympics. He then visited Fnac Darty, the largest French retailer of home appliances, and inspected the Korean home appliance companies’ local market presence in France. date2024-05-03

Government and refineries to join hands for stabilizing domestic oil prices

Amid rising geopolitical tensions in the Middle East, Trade, Industry and Energy Minister Dukgeun Ahn convened a meeting on May 3 with representatives of refineries, thrift gas station operators, and the Korea National Oil Corporation (KNOC) to discuss measures for stabilizing domestic oil prices.   Minister Ahn remarked that despite the April tailwind of reduced prices and increased exports, the general public is still experiencing financial difficulties. Refinery industry representatives shared the view that public livelihood is in difficulty and agreed to raise the petroleum product supply prices by a minimum, while minimizing price hikes. Thrift gas stations agreed to join in on efforts to lower the sale price of petroleum products to help mitigate the public’s financial burdens.   With aim to crack down on market actors attempting to make illicit gains by taking advantage of high oil prices, the Ministry of Trade, Industry and Energy (MOTIE) jointly launched the “Pan-Ministerial Petroleum Market Inspection Group” in October 2023 with the Ministry of Economy and Finance (MOEF), Ministry of Land, Infrastructure and Transport (MOLIT), Korea Fair Trade Commission (KFTC), National Tax Service (NTS) and other organizations.   The thrift gas stations run by KNOC currently sell oil priced at an average of KRW 40 per liter lower compared to other gas stations nationwide. An additional 40 gas stations are to be further designated as thrift gas stations around the capital area and major cities. date2024-05-03