Ministry of Trade, Industry and Energy

MOTIE holds pan-ministerial meeting to take stock of Middle East economic diplomacy outcomes

Deputy Minister for Trade Yang Byeong-nae chaired the sixth Korea-Middle East Economic Cooperation Public-Private Joint Committee Support Working Group meeting on February 14 at K-SURE in Seoul to assess the economic diplomacy outcomes and to support Korean companies’ advances in the Middle Eastern market.   Meeting attendees consisted of representatives of related institutions, ministries and companies, including K-SURE, Korea Chamber of Commerce and Industry (KCCI), Federation of Korean Industries (FKI) and Korea International Trade Association (KITA). Attendees agreed that outcomes are growing increasingly tangible based on memorandums of understanding (MOUs), contract deals and plant project bid orders sealed to date. Companies also voiced opinions and requests concerning business challenges and related issues.   The first part of the meeting focused on introducing various institutions’ business support programs, such as K-SURE’s trade financing package supporting each stage of the bid order process and Korea Trade-Investment Promotion Agency (KOTRA)’s marketing support program.   Next, companies gave briefings on their follow-up outcomes to MOUs and agreements with their Middle Eastern partners. Company A shared that it entered a power equipment and materials supply contract worth KRW 63.8 billion with a Saudi firm and an 82.2 billion won supply contract with Saudi Electricity Company (SEC). Company B informed that a concept design for a biopharmaceutical plant is underway for a formal contract. Company C has applied for a permit for exporting defense supplies to the United Arab Emirates (UAE) and Company D is selling overseas travel packages to the Middle Eastern market following a formal contract with a UAE firm in July last year. Company E was offered a 70 billion won facilities investment project proposal for a joint sewing factory and managed to strike a $0.9 million export deal, while Company F reported that it completed the first stage of smart farm pilot installation in January this year for the Qatari royal palace.   Moreover, companies requested for government support in their business efforts for greater outcomes in the Middle East, such as financial support for accumulating overseas demonstration experiences, tax benefits, provision of professional manpower and legal information, prompt issuance of export permits, as well as customs benefits under the Free Trade Agreement (FTA). MOTIE and relevant ministries intend to seek practical support measures through the public-private joint committee and working group.   Deputy Trade Minister Yang stated that the MOUs signed by Korean companies are leading to contract deals and additional follow-up results, adding that full measure will be given to responding to suggestions and challenges voiced during the meeting through an extensive inspection on the implementation process. date2024-02-15

IEA Ministerial Communique, the first to recognize the role of nuclear energy to address the climate crisis and improve energy security

International Energy Agency(IEA) Ministerial Communique, the first to recognize the role of nuclear energy to address the climate crisis and improve energy security   - Vice Minister Namho Choe met with IEA Executive Director Dr. Fatih Birol at the 2024 IEA Ministerial - IEA and Korea agree to launch a joint study on carbon-free energy   On February 14th, Vice Minister Namho Choe from the Ministry of Trade, Industry and Energy (MOTIE) attended the IEA Ministerial in celebration of the IEA’s 50th anniversary. During this Ministerial meeting, IEA Member States reaffirmed their dedication to deploying clean energy and ensuring energy security. Member States adopted the IEA Ministerial Communiqué, which is the first-ever multilateral agreement that recognizes the crucial role of nuclear power as a clean source to reduce dependence on fossil fuels. Additionally, the Communiqué emphasizes the need to accelerate the deployment of various carbon-free energy technologies tailored to national circumstances and choices. This achievement is significant for many countries, including Korea, which is dedicated to achieving carbon neutrality.   Moreover, governments, industries, academies, and experts participating in the IEA Ministerial engaged in a substantive discussion on accelerating global transitions. Korea presented its dedication to contributing to the global clean energy transition in light of its excellent commercialized carbon-free energy technologies and manufacturing-skilled industries.   Vice Minister Namho Choe met with IEA Executive Director Dr. Fatih Birol at the margins of 2024 IEA Ministerial and expressed their commitment to continued cooperation for a sustainable energy future.   The IEA and Korea have agreed to intensify collaboration through a joint study on carbon-free energy utilization conditions in major countries this year. “To achieve net-zero emissions by 2050, the world needs to rapidly improve energy efficiency and accelerate the deployment of carbon-free technologies, including renewables, hydrogen, ammonia, CCUS and nuclear power in those countries that choose to use it. Against this backdrop, I hope the joint study we are doing with Korea on carbon-free energy will be a useful input to guide countries towards their energy and climate goals.” Dr. Fatih Birol said. “I look forward to further deepening our partnership with Korea following the extremely productive exchange we had today.”   “Korean companies possess a competitive edge in the manufacturing technology of various clean energy fields, including batteries, semiconductors, nuclear power, renewable energy, and hydrogen. It is the unwavering commitment of Korea to contribute to establishing global energy security and accelerating the transition towards clean energy”, Vice Minister Choe stated, “I would like to express my appreciation for Dr. Birol’s leadership in guiding our responses through the energy crisis and for his dedication to ensuring that the IEA plays a key role in sustaining the global transition towards clean energy.”   date2024-02-15

General trading companies called to spearhead the stabilization of supply chains

Minister for Trade Inkyo Cheong visited the head office of POSCO International in Incheon on February 14 and discussed measures for expanding Korea's exports and stabilizing the global supply chain by capitalizing on general trading companies’ overseas network and trading expertise.   General trading companies are currently expanding their role of spearheading exports, managing the supply chain and assisting exports of SMEs. Ever since the general trading company system was introduced in Korea in 1975, general trading companies have been expanding their sphere of activity beyond the traditionally manufacturing-based merchandising trade to areas like overseas resources development, large-scale infrastructure bid projects and supply chains in various areas like food and energy. With the emergence of new industries like EVs and batteries, they are notable contributors to the stable expansion of supply chains through the direct equity investment on graphite, nickel and such critical minerals. Not only that, based on their overseas network accumulated over extensive trading experience, trading companies’ role of helping prominent SMEs join the global supply chain is increasingly growing in importance.   The Korean government is boosting catered support with respect to the enhanced roles of general trading companies. First, the Government will support the import insurance on key supply chain items for stabilization of the supply chain. It plans to give increased loans for overseas resources development projects and has introduced tax credits for investors entering license-granting overseas mining projects. The Government also intends to bolster the utilization of trade networks on critical minerals like the Minerals Security Partnership (MSP), while also strengthening bilateral and multilateral collaboration with resource-rich countries, with plans to develop cooperative schemes using the early warning system for supply chain stabilization operated by the Korea Trade-Investment Promotion Agency (KOTRA) and other related institutions. Moreover, active support will be given towards SMEs’ and middle-market companies’ joint entry into overseas markets with general trading companies that are designated as specialized trading companies under the Foreign Trade Act.   Trade Minister Cheong stated that “in this age of economic security, close communication and cooperation between policy authorities and companies is key” and added that the role of general trading companies should be strengthened. He said that “if general trading companies spearheaded exports in the past, those today with information and financing power are called to spearhead the stabilization of supply chains in critical minerals, energy, materials, equipment and food,” highlighting that “the three laws on supply chain management will greatly assist companies once fully enforced.” date2024-02-14

Carbon Free Energy Initiative Roundtable Meeting in the IEA Ministerial Meeting

Joint Press Release February 13, 2024   Carbon Free Energy Initiative Roundtable Meeting in the IEA Ministerial Meeting   Several countries and institutions including Canada, Japan, Kingdom of the Netherlands, Republic of Korea (ROK), United Kingdom, and International Energy Agency (IEA) attended the Carbon Free Energy Initiative Roundtable Meeting in Paris on February 13, held on the sidelines of the IEA Ministerial Meeting, hosted by the ROK. Namho CHOE, Vice Minister of Trade, Industry and Energy, ROK and Hoesung LEE, President of Carbon Free Alliance led the roundtable meeting. Recalling the decision made at the 28th Session of the Conference of Parties (COP28) to the UNFCCC to accelerate zero- and low-emission technologies, including renewables, nuclear, abatement and removal technologies such as carbon capture and utilization and storage (CCUS), particularly in hard-to-abate sectors, and low-carbon hydrogen production, the participants shared their views on possible cooperation on carbon free energy to achieve a global goal of carbon neutrality. The participants also recognized the Carbon Free Energy (CFE) Initiative which was proposed by the ROK on the margins of the United Nations General Assembly in September 2023. The Initiative highlighted the importance of utilizing various carbon free energy sources available, in light of different national circumstances. The participants also acknowledged the importance of active private sector engagement and underscored the imperative to drive demand-side cooperation between the public and private sectors. The ROK shared its idea of launching the CFE Initiative Global Working Group to establish a CFE Program which includes developing internationally recognized criteria for carbon-free energy and establishing a global certification scheme. The ROK also proposed participants to actively consider joining the global working group with a view to strengthening the cooperation among like-minded countries. The participants welcomed ROK’s engagement and looked forward to further discussion. date2024-02-14

Experts lay down vision for international standards leadership of Korea's homegrown technologies

Trade, Industry and Energy Minister Dukgeun Ahn chaired a conference on February 7 in Seoul with international standards experts to discuss measures for expanding the leadership of homegrown technologies in the domain of international standards.   Conference attendees included International Organization for Standardization (ISO) President Sung Hwan Cho among a number of other leaders initiating the standards strategy development and legislation of international standards in organizations like the International Electrotechnical Commission (IEC).   Standards experts voiced in unison the importance of securing competitive advantage in international standards as not only an essential part of overseas market entry but also a means for gaining hegemony in advanced technologies and outpacing rival countries in the intensifying race for international standards dominance.   In this regard, a wide range of opinions were presented on ways to expand the development of draft international standards in collaboration with R&D, training next-generation international standards experts, and strengthening partnerships with leading countries in international standards.   Minister Ahn stated that “the ministry will establish the advanced industries’ standards strategy within the first half of this year to bolster the leadership of homegrown technologies in international standards and related organizations.” date2024-02-08

Korea to spur economic vitality with 110 tln won private investment in 2024

Trade, Industry and Energy Minister Dukgeun Ahn chaired the first Industrial Investment Strategy Meeting on February 7 with representatives of Korea’s 10 major manufacturing companies and economic groups to discuss investment plans and business support measures for 2024.   The top 10 manufacturing companies’ major facility investment plans for 2024 amount to KRW 110 trillion, up 10 percent from last year’s 100 trillion won. Amid persistent high interest rates and supply chain anxieties, the Korean government intends to provide strong support to companies for smooth investment facilitation. Top 20 key investment projects will be selected, to which Trade, Industry and Energy Ministry (MOTIE)’s director-level officials will be assigned to monitor the investment project situation on a monthly basis until issues are resolved.   The Government will also support the fostering of favorable investment conditions for firms through a number of measures. First, the Government will extend the deadline for investment tax credit regarding national strategic technologies and for temporary investment tax credits.   Second, for advanced industries, three major regulatory innovations will be pushed: easing of existing regulations through the National High-Tech Strategic Industry Committee; high-tech industry impact evaluation for preliminary assessment of new regulations; and the development of high-tech industry regulation indices for assessing the regulation level on an annual basis.   Third, local governments are to establish a win-win belt for sharing investment returns to prevent large-scale manufacturing facility investments from being delayed by local governments’ belated licensing.   Lastly, the Government will push three major projects for the making of investments in concert with the private sector’s investment plans: infrastructure investment for establishing the power and water infrastructure; supply chain self-reliance investment for supporting the development of domestic MPEs (materials, parts, equipment) in line with production facility investment; and preemptive securing of manpower investment for time-appropriate activation of production lines.   Attendees also discussed “New Industrial Policy 2.0”, which lays out the Government’s new policy directions. Over the last two years, the Government has pushed “New Industrial Policy 1.0” to construct the industrial innovation basis for the 20-plus law enactments for sector- and function-specific industrial strategies, advanced industries, digital transition and talent training, such as the initiation of the industrial transformation and strategy for nurturing Korea into a semiconductor powerhouse. Now the time has arrived for Korea to build on the past policy tasks and seek future industrial strategy directions through New Industrial Policy 2.0.   New Industrial Policy 2.0 is speed- and goal-oriented, designed to secure super gaps in advanced industries, achieve industrial transformation across core sectors and upgrade Korea’s export portfolio, while simultaneously setting the convergence of AI and industries as the nation’s future priority task and aiming to create industry policies for this AI era.   Minister Ahn stated that “investment is a core element for recovering economic vitality,” and asked that companies make bold investment commitments, as MOTIE will likewise be making across-the-board effort to stimulate corporate investment this year. date2024-02-07

Korea launches public-private support group for upcoming first summit with Africa

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 6 the launching of the Korea-Africa Economic Cooperation Public-Private Support Group (“Support Group”) by the Korea Chamber of Commerce and Industry (KCCI) on the occasion of the Korea-Africa Summit 2024 scheduled this June, with aim to achieve ground-breaking development in bilateral economic relations.   Composed of representatives from more than 30 relevant organizations ranging from economic groups, trade and investment assisting institutions and major public companies and institutes of trade, industry and resources sectors, the Support Group will serve as a joint public-private platform for gaining outcomes between Korean and African firms and reviewing the major cooperation agendas with 54 African nations over the four months remaining until the June summit.   Rich in critical minerals, Africa is a vast market of 1.4 billion with a GDP of over USD 3.4 trillion. Noting that cooperative ties between Korea and Africa have potentially far more to offer, MOTIE has been making effort since last year to establish a solid basis for trade cooperation like the Economic Partnership Agreement (EPA) and the Trade and Investment Promotion Framework (TIPF), building networks between trade and investment promotion institutes and furthering collaboration across the critical minerals supply chain. MOTIE plans to jump-start the sprint towards this year’s $700 billion export target with the upcoming Korea-Africa summit in view of these prospects.   Chair of the first Support Group meeting, Deputy Minister for Trade Yang Byeong-nae asked that members strive to obtain far-reaching outcomes in developing the Korea-Africa economic cooperation through the first bilateral summit. date2024-02-06

Korea and Australia discuss cooperation in critical minerals, natural gas and CCS

Trade, Industry and Energy Minister Dukgeun Ahn met with Madeleine King, Australia’s Minister for Resources and Minister for Northern Australia, on February 2 in Seoul to discuss bilateral cooperation measures in energy and resources areas, including critical minerals, carbon capture and storage (CCS) and natural gas, as well as issues faced by Korean companies in relation with Australia’s energy regulations. Both countries shared the need to diversify the supply chain and reduce reliance on other countries for critical minerals and agreed to make further effort to expand their scope of cooperation from upstream areas like exploration, development and production to downstream areas like refining, smelting and processing. Next, the two ministers agreed to promptly proceed with procedures necessary for the Korea-Australia CO2 transport agreement to smoothly implement the CCS investment project for transporting the CO2 captured in Korea for permanent storage in Australia’s depleted gas reservoirs. Minister Ahn conveyed the concerns expressed by Korean firms regarding the extension of the Australian Domestic Gas Security Mechanism (ADGSM) to 2030 and asked for clarification of the Australian safeguard mechanism standards of carbon emission reduction duties on greenhouse gas emissions-intensive facilities. date2024-02-05