Ministry of Trade, Industry and Energy

Korea's exports grow 3.1% in March

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 1 that Korea’s export value for March 2024 increased 3.1 percent year-on-year to USD 56.6 billion. Imports decreased 12.3 percent to $52.3 billion and the trade balance stood at a surplus of $4.3 billion.   March monthly exports recorded growth for the sixth consecutive month despite the lower number of working days (-1.5), and the daily average export value likewise soared 9.9 percent to $2.5 billion when factoring in the number of working days.   Seven out of 15 of Korea’s major export items advanced in March. To note, all four of core IT devices, namely semiconductors, displays, computers, and wireless communication devices, recorded growth, a first in 24 months and boosted overall exports at the helm.   Semiconductors, Korea’s leading export item, leaped 35.7 percent in exports and reached $11.7 billion, an all-time high since the $12.3 billion recorded in June 2022, and gained for the fifth consecutive month.   Exports of displays (up 16.2 percent) and computers (up 24.5 percent) increased for the eighth and third consecutive month, respectively, and those of wireless communication devices (up 5.5 percent) snapped the downward streak in three months.   Ship exports surged 102.1 percent and advanced for the eighth consecutive month. Bio health exports (up 10.0 percent) grew for the fifth consecutive month, and petroleum products (up 3.1 percent) turned to an expansion in one month.   Meanwhile, the exports of automobiles (down 5.0 percent) and general machinery (down 10.0 percent) were directly impacted by the lower number of working days.   By region, Korea’s exports increased to three out of nine major destinations in March.   Exports to China (up 0.4 percent) recorded growth, with the daily average export value (app. $470 million), considering the number of working days, rose (up 7.1 percent) for the fourth consecutive month since December 2023.   Exports to the U.S. posted double-digit growth (up 11.6 percent to $10.9 billion) and improved for the eighth consecutive month and broke the March monthly export record as they did for those of January and February this year as well.   Exports to Latin America (up 14.4 percent) extended their positive performance for the third consecutive month.   In addition, exports to Vietnam (up 4.4 percent) and Hong Kong (up 67.8 percent) maintained growth for the third and fifth consecutive month, respectively, on the backs of strong demand for semiconductors and IT devices, increasing for the third and fifth consecutive month.   Meanwhile, Korea’s March imports declined 12.3 percent to $52.3 billion, and import of energy sources decreased 24.4 percent, as demand for crude oil (down 12.8 percent), gas (down 37.4 percent), and coal (down 40.5 percent) contracted.   Korea’s trade balance for March stood at a surplus of $4.3 billion, gaining for the 10th consecutive month.   * Short version date2024-04-01

Trade Minister chairs meeting on export promotion measures

Minister for Trade Inkyo Cheong held a meeting on March 29 at the Korea Chamber of Commerce and Industry (KCCI) to review export conditions per region and discuss export promotion measures.   Korea’s exports have posted growth for the last five consecutive months, adding up to USD 107.2 billion through January and February in accumulation (up 11.2 percent year-on-year).   The trade chief gave a positive forecast for exports this year across major markets, saying that exports are likely to show growth and the trade balance a surplus in March despite the lack of working days (-1.5), maintaining that for export to continue on the upward trajectory and lead Korea’s economic growth, there must be efforts in the market to keep building competitiveness and diversify into newly emerging markets. He mentioned that the Government will work together with embassies and Korea Trade-Investment Promotion Agency (KOTRA)’s trade centers for effective management of trade issues.   To this end, the trade minister said that several measures will be pushed to support exporting companies’ overseas new market penetration, such as launching a new special export insurance, strengthening export financing support for local corporate entities, and making further progress in Free Trade Agreements (FTAs) and Economic Partnership Agreements (EPAs). date2024-03-29

MOTIE to power Korea's economic growth through investment and export drive

Trade, Industry and Energy Minister Dukgeun Ahn attended the 178th CEO Breakfast Meeting at Korea International Trade Association (KITA) on March 29 and vowed that the Ministry of Trade, Industry and Enery (MOTIE) will take full charge of export and investment to lead Korea’s economic growth this year.   During his lecture, he noted last year’s global trade volume decline amid high interest rates, the Russia-Ukraine war, and other geopolitical and geoeconomic crises, stating that even in these difficult conditions, Korea’s exports managed to snap the losing streak in October and contributed to the country’s relatively high economic growth, and forecast that the strong performance of major items like semiconductors, information and communications devices, and ships is expected to continue on an upward trajectory throughout the second quarter as well.   Moreover, he highlighted the need for increased investment in Korea’s top 10 manufacturing sectors to freshly vitalize the economy to build on the export growth momentum, articulating the following three goals: all-time high export target of USD 700 billion, facility investment of KRW 110 for the top 10 manufacturing sectors, and the foreign investment target of $35 billion.   The minister added that in order to achieve these goals, MOTIE plans to push the following five measures: designation of 20 major export items to create a new export drive; penetrating the Global South and other new markets; providing exporting firms with an unprecedented 360 trillion won in trade financing and 1 trillion won in overseas marketing support; activating the regulatory sandbox to improve the investment environment of new industries; and revising outdated regulations.   date2024-03-29

Looking back on 20 years of FTAs to seek future trade strategy with global experts

The Ministry of Trade, Industry and Energy (MOTIE) celebrated, on March 28 at the Westin Josun Seoul, Korea’s upcoming 20th anniversary of the country’s first Free Trade Agreement (FTA), the Korea-Chile FTA, which entered into force on April 1, 2004. The event was held under the theme of “Korea’s Strategy in the Global Trade Landscape” to look back on the 20 years of FTAs and discuss future directions.   Attending the ceremony were ambassador groups to Korea of Korea’s 37 FTA partner countries, as well as representatives of related institutions and exporting companies, including the Korea International Trade Association (KITA), Korea Trade-Investment Promotion Agency (KOTRA), and the Korea Agro-Fisheries & Food Trade Corporation (aT).   In his commemorative address, Minister for Trade Inkyo Cheong underscored that “Cooperation based on the spirit of free trade and solidarity is key to responding to the present global trade challenges, and we must recover the rules-based international order.” Noting that the trade network Korea has established through FTAs amount to 85 percent of the total global GDP, he assessed that this trade network is an important policy means for responding to external uncertainties and risks.   Experts from around the world gathered on this occasion to discuss the future direction of Korea in view of the changing global trade landscape, including International Institute for Management Development (IMD) Professor Richard Baldwin, Japan’s Research Institute of Economy, Trade and Industry (RIETI) Chairman Shujiro Urata, and Korea Institute for International Economic Policy (KIEP) President Lee Si-wook.   KITA, KOTRA, and aT presented success cases of FTA utilization and outcomes gained over the last two decades, and 20 companies and institutions were awarded the MOTIE Minister’s commendation for their contribution to expanding exports and market presence overseas. date2024-03-29

Korea's industrial complexes to be enriched with cultural life for appeal to younger workforce

Trade, Industry and Energy Minister Dukgeun Ahn and Culture, Sports and Tourism Minister Yu In-chon visited the Changwon Industrial Complex on March 28 to meet with tenant business representatives, young workers, and cultural artists and seek ways to integrate cultural life into the industrial complex.   The talks were also attended by Land, Infrastructure and Transport Ministry officials, governor of South Gyeongsang Province and the mayor of Changwon City.   The talks were held as part of a follow-up measure to the order instructed by President Yoon through the 14th public forum on enriching the industrial complexes with cultural life and making them more appealing to youth.   Industrial complexes have led Korea’s industrialization and economic growth at the helm over the last six decades. However, their lack of cultural lifestyle infrastructure is growing more prominent as they age and younger workers are inclined to avoid applying for jobs in these complexes, while companies also face manpower shortages. For example, the Changwon Industrial Complex enjoyed an all-time high of KRW 60 trillion in production value last year, but employment remained at 1,813 new recruits.   Accordingly, the Government is designing several measures to blend cultural life into industrial complexes, such as expanding cultural life infrastructure, increasing support for cultural life programs, promoting cooperation between relevant ministries and local authorities from the planning stages of industrial complex development to foster cultural life facilities, and assisting cultural life related tenant businesses’ entry into industrial complexes.   Minister Ahn remarked that the Government will increase pan-ministerial efforts to incorporate cultural life into industrial complexes. date2024-03-29

Preemptive business realignments to accelerate New Industrial Policy 2.0

The Ministry of Trade, Industry and Energy (MOTIE) held the 41st deliberation committee meeting for business realignment on March 28 and granted approval to seven domestic companies that submitted plans to realign their business portfolio towards digital transition and carbon neutrality.   TOPIND, a Korean manufacturer of special vehicle parts and prototype vehicles, aims to start producing lightweight electric vehicle (EV) parts using carbon-fiber reinforced plastic materials. Another car parts manufacturer Samhyun plans to secure its future growth engine in smart actuators for EVs with a three-in-one motor, controller, and brake system. Woorikidsplus, a cosmetics startup, plans to move into the global market with eco-friendly, water-soluble packaging. The approved seven companies revealed plans to make over KRW 91.1 billion in investment and create 285 new job openings over the next five years.   MOTIE has announced that a support system for digital transition and carbon neutrality business realignment will be installed starting March 29, with the Corporate Vitality Improvement Special Act turning permanent and the special provisions of the Commercial Act and Fair Trade Act becoming applicable on all business realignments as of the second half of this year. date2024-03-29

Global auto parts production facility completed, bolstering Korea's future mobility supply chain

Deputy Minister for International Trade and Investment Choi Woo-seok attended the completion ceremony of Valeo Mobility Korea’s production facility for manufacturing self-driving vehicle parts on March 28 in the Daegu National Industrial Complex.   The French company Valeo has steadily invested in Korea for over 35 years since its first joint investment with a Korean company in 1988, and its accumulated investment in Korea amounts to USD 485 million. It currently runs a total of 11 business sites in Korea.   Upon making the $56 million investment decision in August 2022, the company launched the construction of the production facility in the Daegu National Industrial Complex for manufacturing future mobility core parts like sensors and image-recognition cameras of autonomous vehicles. The investment is anticipated to strengthen Valeo’s supply chain for future mobility transition and contribute to the local economy by generating an estimated 110 new job openings and KRW 200 billion in annual sales of future mobility.   Since taking office, Korea’s current administration has focused on nurturing the world’s top investment environment for domestic and overseas companies by increasing investment tax credit, strengthening incentives for advanced industry sectors, and taking deregulatory measures. As part of these efforts, the budget for foreign investment cash grants has spiked from the previous 50 billion won (2023) to 200 billion won (2024). date2024-03-28

MOTIE and Thermo Fisher Scientific discuss investment prospects for raw biomaterials facility in Korea

Minister for Trade Inkyo Cheong met Mark Smedley, a senior vice president of Thermo Fisher Scientific, on March 28 in Seoul to discuss the global pharma and biotech company’s prospects of investment in establishing a raw and subsidiary biomaterials production facility in Korea.   Trade Minister Cheong remarked that “Samsung, Lotte, Celltrion and other major domestic firms are aggressively expanding investment to bolster productivity in line with Korea’s aim to become a global pharmaceutical manufacturing powerhouse,” and added that “there is a reason why Merck, Sartorius, Cytiva, and other world-leading biomaterials companies have selected Korea as the final investment destination.”   Meanwhile, in addition to bio, the global pharma company revealed plans for cooperation with Korea’s battery and semiconductor firms to seek solutions to battery quality improvement. date2024-03-28