Ministry of Trade, Industry and Energy

FDI pledges to Korea reach historic high in 2024

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that foreign direct investment (FDI) pledged to Korea in 2024 reached a total of USD 34.6 billion (up 5.7 percent year-on-year), surpassing the previous high of 2023. FDI arrivals added up to $14.8 billion (down 24.2 percent). By industry, FDIs pledged to the manufacturing sector hit an all-time high of $14.5 billion (up 21.6 percent). Investments showed notable increases in areas like electrical and electronics (up 29.4 percent to $5.3 billion), machinery and precision medical devices (up 174.0 percent to $2.4 billion), and pharmaceuticals (up 113.2 percent to $0.7 billion). FDIs pledged to the service sector rose 0.3 percent to $17.8 billion. FDIs pledged from Japan (up 375.6 percent to $6.1 billion) and China (up 266.1 percent to $5.8 billion) climbed steeply, whereas those from the U.S. and the EU shrank to $5.2 billion (down 14.6 percent) and $5.1 billion (down 18.1 percent), respectively. The U.S. and EU’s reduced FDI pledges can be attributed to the high base effect of the previous year as well as investors’ wait-and-see stance in light of political factors arising from the regions’ leadership changes. In 2024, greenfield investments pledged to Korea jumped 13.5 percent to a historic high of $26.7 billion, while M&A investment pledges declined 14.5 percent to $7.9 billion.   date2025-01-07

Minister Ahn visits U.S. to promote bilateral cooperation

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea is visiting the U.S. through January 6–10 to meet with lawmakers and key figures of the U.S. federal and state government to discuss measures for stronger bilateral industrial, trade, and energy cooperation. He will also be paying respects to deceased former U.S. President Jimmy Carter. From January 6–7, Minister Ahn is first making a trip to the state of Georgia, home to numerous Korean automobile, battery, and semiconductor businesses, where he plans to meet Georgia Governor Brian Kemp to ask for active support and interest towards Korean companies investing in the state. Following the meeting, the minister will be heading to SK On’s Georgia plant for a conference with Korean businesses operating in the region to discuss investment issues as well as schemes at the state level for enhancing Korea-U.S. industrial cooperation. Through January 8–10, the minister will meet lawmakers in Washington D.C. to request the U.S. Congress’ support and interest for Korean firms’ stable investment and business activities in the U.S. Furthermore, he will be exchanging views with U.S. industry and think tank representatives on ways to deepen bilateral cooperation in high-tech areas. Regarding former U.S. President Jimmy Carter, Minister Ahn noted his significant contribution to stabilizing and solidifying Korea-U.S. relations. The minister further assessed that his visit serves as an opportunity to secure a stable business environment for Korean companies operating in the U.S., while also advancing bilateral industrial, trade, and energy cooperation under the new U.S. administration.   date2025-01-06

Largest integrated Korean pavilion to showcase at CES 2025

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea and the Korea Trade-Investment Promotion Agency (KOTRA) announced that government-wide collaboration is underway in setting up the largest integrated Korean pavilion in history at the Consumer Electrics Show (CES) 2025 slated for January 7–10 in Las Vegas, U.S. Under this year’s theme of “Connect. Solve. Discover. DIVE IN.” CES 2025 will be showcasing the latest AI technologies, products, and services of major global companies, including over 900 Korean firms like Samsung, LG, Hyundai, and SK. It is anticipated that CES 2025 will focus on the commercialization of AI technology, development of healthcare industries, social issues, and sustainability.  Based on consultations with relevant ministries and government bodies, MOTIE will establish an integrated Korean pavilion with a unified design and brand logo for 445 Korean companies and 36 institutions under an aim to boost marketing and exports. Prior to the CES 2025 opening ceremony, the ministry will host a seminar on January 6 featuring representatives of the Consumer Technology Association (CTA), host of CES, and U.S. investment bank and financial services company Morgan Stanley for discussions on U.S. consumer electrics market forecasts and investment attraction measures. On the day of the opening ceremony on January 7, KOTRA and the Industrial Bank of Korea (IBK) will enter a memorandum of understanding (MOU) to support the further discovery of innovative Korean businesses, overseas market entry, and investment attraction. The “K-Innovation Pitching Challenge” held the following day will offer Korean firms the opportunity to take part in a business pitch challenge and networking session with global companies like Walmart and IBM to enhance export outcomes. After the closing of exhibitions on January 23, MOTIE plans to launch a CES Innovations Awards Winners Forum where the award-winning companies and export assistance institutes can engage in the sharing of best practices, support measures, product demonstrations, and online export consultations. Notably, 129 of this year’s 292 first-round CES Innovations Awards winners are Korean companies, once again claiming the highest number among participating countries for the second year running.   date2025-01-02

Korea’s annual exports reach new highs in 2024

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced on January 1, 2025, that Korea’s annual exports for the year of 2024 amounted to an all-time high USD 683.8 billion, surpassing the previous high of $683.6 billion set in 2022. Daily average exports reached $2.53 billion (up 8.2 percent year-on-year), outperforming the $2.51 billion of 2022. According to World Trade Organization (WTO) statistics, Korea’s global ranking for accumulated exports through January–September 2024 jumped two places to sixth (8th in 2023), posting the steepest export growth rate (9.6 percent) among the world’s top 10 exporting countries. Korea’s imports for 2024 shrank 1.6 percent year-on-year to $632.0 billion amid reduced energy imports. The trade balance stood at a surplus of $51.8 billion (+$62.1 billion year-on-year), the nation’s largest since the record of $69.7 billion surplus in 2018. In 2024, eight out of 15 key export items enjoyed growth. Semiconductors soared 43.9 percent to $141.9 billion, maintaining their upward trajectory for the 14th consecutive month since November 2023 and renewing the record high ($129.2 billion, 2022) in just two years. Notably, despite price falls of general-purpose memory chips in Q4 2024, high value-added items like DDR5s and HBMs led the overall growth and chip exports continued their upward climb throughout the year. All IT items including semiconductors, wireless communication devices, displays, and computers advanced in exports as well, a first in three years since 2021. Exports of automobiles were retained at $70.8 billion (down 0.1 percent) due to partial production setbacks caused by strikes across major automakers and car parts producers, but still managed to enter the $70 billion thresholds for the second consecutive year. Ship exports logged double-digit growth (up 18 percent to $25.6 billion) as high value-added vessels like LNG carriers and large container ships ordered in 2021 were delivered. For petrochemicals, despite unit export price drops from oil price falls in H2 2024, exports rose 5.0 percent on the backs of increased shipments. Bio-health exports hiked 13.1 percent to $15.1 billion in 2024, the growth centering on biosimilars and other pharmaceuticals. With the growing popularity of K-food and K-beauty products worldwide, the export of both agriculture, fishery, and livestock products (up 7.6 percent to $11.7 billion) and cosmetic products (up 20.6 percent to $10.2 billion) entered the $10 billion thresholds for the first time. In 2024, exports to seven out of nine major destinations expanded. To China, semiconductors, petrochemicals, and wireless communication devices showed robust performance, boosting the overall exports 6.6 percent to $133.0 billion. China-bound exports showed growth all throughout the year, with only February and November as exceptions. U.S.-bound exports set historic highs for the seventh consecutive year at $127.8 billion (up 10.5 percent). Automobiles and general machinery drove overall exports, and semiconductors also logged triple-digit growth based on U.S. big tech firms’ wider investments in datacenters. To ASEAN, exports hit $114.0 billion (up 4.5 percent) thanks to the strong growth of semiconductors and petroleum products as well as the double-digit growth of IT items like computers and wireless communication devices. Among all nine major destinations, exports to Latin America ($29.0 billion) recorded the highest growth rate of 17.8 percent. Exports to India (up 4.2 percent to $18.7 billion) came in at an all-time second high and those to the Middle East (up 4.8 percent to $19.7 billion) achieved growth for the fourth consecutive year. Exports to Japan increased 2.0 percent to $29.6 billion. As for the month of December 2024, exports and imports improved 6.6 percent and 3.3 percent to $61.4 billion and $54.9 billi date2025-01-02

Korean government to make last spurt backing chip exports & investment for 2024

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea visited SK hynix Cheongju Campus today where he took stock of the export and investment environment and held a conference with relevant companies.  The Cheongju campus was initially SK hynix’s NAND flash production base, but with the recent introduction of through-silicon via (TSV) technology equipment, it is set to transform into a site for producing high-bandwidth memory (HBM) which will play a key role in the AI era. Once SK Hynix completes the Cheongju M15X fab in November as scheduled, the fab will serve as the production base for HBM DRAMs as well. At today’s conference, attendees shared their forecast for next year’s semiconductor industry trends and exports and exchanged views on the Yongin Semiconductor Cluster project, MPE (materials, parts, equipment) R&D support, and chip manpower training. The Korea Semiconductor Industry Association (KSIA) projected that despite difficult conditions, this year’s chip exports will surpass USD 140 billion, higher than the record of $129.2 billion reached in 2022. Attendees further expressed special interest and support towards Trinity Fab, a testbed for securing anchor MPE technologies for advanced semiconductors. The Ministry of Trade, Industry and Energy (MOTIE) stated that with the Yongin Semiconductor Cluster’s power and water supply agreement being signed in November and enforcement plans for Korea’s national industrial complexes having obtained approval three months earlier than expected, all related procedures are making good progress. Minister Ahn underscored that in spite of the domestic political situation and other internal and external uncertainties, the Government will maintain its unwavering support for the semiconductor industry.   date2024-12-30

Trade Minister chairs 58th Industrial Technology Protection Committee meeting

Minister for Trade Inkyo Cheong of the Republic of Korea chaired the 58th Industrial Technology Protection Committee (“Committee”) meeting today in Seoul for deliberation and resolution on six agenda items, including the fifth Comprehensive Plan on Prevention of Divulgence and Protection of Industrial Technology and the proposed export permit on national high-tech strategic technologies and national core technologies, as well as measures for usage of cloud service for national core technologies. First, the Committee established and passed the fifth Comprehensive Plan on Prevention of Divulgence and Protection of Industrial Technology in view of the growing importance of technology protection amid the intensifying global race for technological hegemony and development of advanced technologies. With aim to enhance management of technologies for protection and technology-holding institutions, the Committee decided that technologies with a high need for protection are to be newly designated as national core technologies. These include promising technologies highly connected with national security and the national economy such as those for designing and manufacturing multilayer ceramic capacitors (MLCC) and synthetic aperture radars (SAR). Meanwhile, national core technologies will be included in the scope of industrial technologies for protection under the Act on Special Measures for Strengthening the Competitiveness of Materials, Components, and Equipment Industries. Institutions holding national core technologies will also be closely managed. Companies projected to hold national core technologies will be swiftly distinguished through the technology holder confirmation and registration system, while the transfer of national core technologies will be systematically monitored. Second, areas under the current evaluation system deemed inadequate will be modified to proactively respond to the ever diversifying and evolving means of technology leakage. An expert committee for industrial technology protection will oversee the evaluation on M&A areas and modified rules will allow the Korean trade, industry and energy minister to issue ex officio orders for suspension, prohibition, and restitution with regard to unauthorized or undeclared exports. As Korean companies’ exports of national core technologies are on the rise, modifications on the export deliberation system will be made to a limited extent to avoid aggravating burden on exporters. For the export of core technologies with low risk of technology leakage, the process will either be partially streamlined or exporters will be granted exemption from deliberation procedures. Moreover, to shorten the period of export deliberation, the technical evaluation period will be capped to 45 days with allowance for a one-time extension of another 45 days. Third, the existing laws for punishment on technology leakage will be strengthened while legal grounds will be laid down for punishment on acts of introducing, brokering, and attracting technology leakage in order to eliminate all blind spots. Fourth, efforts will be made to bolster the security level of relatively more vulnerable universities and SMEs through catered support like the development of security infrastructure and security consulting services. In addition, relevant ministries will join hands to establish a more substantial protection system for better national R&D management and stronger protection of startups. As most technology leakages manifest through human resources, effort will go toward enhancing the management and support of key talents. Key talents in charge of national core technologies will be distinguished using big data analysis and information will be swiftly shared with relevant institutions in the case of technology leakage emergency. The Committee also discussed measures on the usage of cloud service for national core technologies to resolve i date2024-12-27

Trade Minister chairs foreign investment policy consultation meeting with local governments

Minister for Trade Inkyo Cheong of the Republic of Korea chaired the foreign investment policy consultation meeting today at the Korea Trade Insurance Corporation (K-SURE) in Seoul with 16 local governments’ foreign investment promotion officers. The meeting was held under an aim to foster organic cooperation between the central and local government bodies to carry forward Korea’s current foreign investment momentum, while also marshalling related organizations’ capabilities to overcome pressing challenges amid persisting geo-economic tensions and global trade uncertainties. At the meeting, attendees discussed foreign investment attraction policies for 2025, recent trade trends and key issues, and local governments’ policy directions and suggestions. Trade Minister Cheong noted that this year’s foreign direct investment (FDI) pledges to Korea surpassed an all-time high USD 33 billion despite internal and external uncertainties, highlighting that more foreign investment can be drawn to boost Korea’s national and local economies through combining the central government’s preemptive response capacity and local governments’ local-specific foreign investment promotion strategies. Local government representatives at the meeting agreed on the importance of effective trade countermeasures and foreign investment attraction, expressing commitment to making multifaceted efforts to overcome the domestic and external crises while working closely with the central government through information sharing and consultations on countermeasures. The key points discussed today will be incorporated into establishing the foreign investment policy directions for 2025 and the Government will be giving full measure to increase incentives, improve regulations, and build a business support system so that foreign investment flowing into Korea can go towards strengthening industrial competitiveness and stimulating local economies. The Ministry of Trade, Industry and Energy (MOTIE) plans to convene policy consultation meetings with local government bodies on foreign investment and trade issues on at least a semiannual basis to enhance communication between the central and local governments.   date2024-12-26

Korea’s retail industry rises 8.0% in November

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that Korea’s retail industry grew 8.0 percent year-on-year for the month of November 2024, with offline and online sales advancing 3.9 and 11.8 percent, respectively. MOTIE's monthly retail sales figures are based on surveys of 23 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 10 are online retailers. By offline retail channel, hypermarket sales increased 5.7 percent, with demand for home dining and kimchi-making driving sales of food products (up 10.2 percent), while home/living (down 2.1 percent) and non-food categories (down 3.7 percent) fell. Department store sales improved 1.4 percent on the backs of food products (up 3.8 percent) and foreign designer labels (up 7.8 percent), while fashion categories like miscellaneous goods (down 3.5 percent) and women’s suits (down 7.1 percent) continued to drop. Convenience store sales saw growth across both food (up 5.9 percent) and non-food products (up 4.1 percent), increasing 5.1 percent overall. SSM operators enjoyed sales growth of 6.8 percent centering on demand for food products (up 7.5 percent) thanks to the home dining trend and kimchi-making, but non-food products (down 0.6 percent) maintained their downward slope. Online retail sales surged 11.8 percent overall as food products (up 19.1 percent) and service/other (up 70.7 percent) achieved steady growth on the backs of robust demand for processed food products, convenience foods, food delivery services, travel packages, and e-coupons. Meanwhile, home appliances/electronics (down 9.9 percent), fashion/clothing (down 9.1 percent), and sports (down 10.7 percent) experienced declines due to impact from overseas direct purchases (ODP).   date2024-12-23