Ministry of Trade, Industry and Energy

Yongin Semiconductor Cluster infrastructure agreement ceremony

Minister for Trade, Industry and Energy Dukgeun Ahn attended the agreement ceremony on establishing the infrastructure for the Yongin Semiconductor Cluster today at the Korea Semiconductor Industry Association (KSIA), held with aim to facilitate the smooth construction of power and water infrastructure. The ceremony was attended by representatives of relevant ministries, companies and institutions, including Samsung Electronics, SK Hynix, Korea Electric Power Corporation (KEPCO), K-water, and Korea Land and Housing Corporation (LH). date2024-11-27

Minister attends interministerial meeting on strengthening industrial competitiveness

Minister for Trade, Industry and Energy Dukgeun Ahn attended the interministerial meeting held for strengthening industrial competitiveness today with the participation of ministers of related ministries. date2024-11-27

Korea to Support Semiconductor Industry via Public-Private Partnership

The Korean government announced plans to enhance support for the semiconductor ecosystem today during an interministerial meeting held for strengthening industrial competitiveness.  First, the Government will work with the National Assembly to significantly reduce the burden on companies for semiconductor cluster infrastructure. The Government has promised to take on a significant share of the responsibility for KRW 1.8 trillion required to build underground power transmission cables for the Yongin and Pyeongtaek Semiconductor Clusters, while increasing the limit on infrastructure support for complexes specialized in national high-tech industries. It will also boost the operation of programs to attract overseas talents in high-tech sectors and scale up incentives for high-performing instructors at Korea’s four science and technology institutes and increase specialized graduate schools to train experts in various high-tech industries. The Government will also increase tax benefits for investment in R&D facilities. It will work with the National Assembly to include R&D equipment and facilities in the scope of investment tax credit for national strategic technologies and increase the investment tax credit rate for semiconductor companies.  In 2015, the Government will provide policy financing worth more than ₩14 trillion across all semiconductor sectors including MPE (materials, parts, equipment) and fabless manufacturing, marking the beginning of full-fledged investment in semiconductor funds. It will also launch a program through which the Korea Development Bank will provide low-interest loans totaling ₩4.25 trillion in 2025 at lowest-level interest rates. In the same year, a new semiconductor ecosystem fund worth ₩120 billion will be created, with plans to scale it up to ₩420 billion later on.  Lastly, the Government will finalize the power and water supply plan for the Yongin Semiconductor Cluster, under which relevant organizations will enter into an agreement. For the Yongin National Industrial Complex, the Government formulated a plan to supply power worth 3GW (starting in 2030, Phase 1) and divide the supply costs, and reached a provisional agreement on additional power supply (starting in 2039, Phase 2). For the Yongin General Industrial Complex, the Government followed up on the power supply agreement on 3GW in 2021 (starting in 2027) by reaching a final agreement on the supply of additional power (starting in 2039, Phase 2) and cost sharing. Moving forward, the Government will continue to build the competitiveness of the country’s semiconductor industry by closely working with the National Assembly to enact the budget and law revisions for semiconductor industry support.   date2024-11-27

Public and Private Sectors Join Hands in Establishing World’s Largest Semiconductor Cluster

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced that relevant companies and institutions, including Samsung Electronics, SK Hynix, Korea Electric Power Corporation (KEPCO), K-water, and Korea Land and Housing Corporation (LH), attended the agreement ceremony on establishing the infrastructure for the Yongin Semiconductor Cluster today at the Korea Semiconductor Industry Association (KSIA) with an aim to facilitate the smooth construction of power and water infrastructure.  The agreement is in line with the detailed plans under the comprehensive semiconductor ecosystem support measures announced in June. The Government, public institutions, companies, and other related institutions will be stepping up efforts going forward to enable smooth production operations of the Yongin semiconductor cluster, which is scheduled for commercial operation in 2027. Private investment is also anticipated to gain traction as the Yongin cluster is expecting over KRW 600 trillion in investments. The Yongin High-Tech System Semiconductor National Industrial Complex (“National Industrial Complex”) and the Yongin Semiconductor Cluster General Industrial Complex (“General Industrial Complex”) require over 10 GW of electrical power supply by 2053, which is when all corporate investments will have arrived. Accordingly, the Government has been engaging in consultations with KEPCO and other companies through the task force (TF) formed in February to steer power supply measures and cost sharing. As for water supply, the two complexes will require around 1.33 million metric tons of water per day. To address the issue, the Government and related parties have been working together to secure stable and alternative sources. The integrated water supply project included in today’s agreement ensures 1.07 million tons of water per day, which is equivalent to the amount of water used by Incheon Metropolitan City’s 3 million citizens. The integrated water supply system saves roughly ₩330 billion compared to installing a double track tube for separate water supply facilities for each complex. The system also reinforces overall stability by providing better prevention of water shortage during emergencies. In October, the integrated water supply project was granted an exemption from prefeasibility studies. The ministry plans to swiftly proceed with follow-up measures to commence timely water supply beginning in 2031.   date2024-11-27

Korea’s retail industry climbs 6.7% in October

The Ministry of Trade, Industry and Energy (MOTIE) announced today that Korea’s retail industry grew 6.7 percent year-on-year for the month of October 2024, with offline sales remaining flat (up 0.0 percent) and online sales advancing 13.9 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 dropped 3.4 percent despite the increase in food products (up 2.4 percent), as home appliances/culture (down 22.2 percent) fell. Department store sales slid 2.6 percent despite the growth in food products (up 2.5 percent) and foreign designer labels (up 2.5 percent), as autumn apparel purchases and the number of holidays (-1) decreased in comparison with last year. Convenience store sales increased 3.7 percent overall, with food products (up 4.0 percent) and nonfood products (up 3.4 percent) both expanding. SSM operators climbed 7.1 percent, driven by food products (up 8.3 percent) from high demand for eating in, while nonfood products (down 5.5 percent) continued to drop. Online retail sales leaped 13.9 percent on the backs of robust demand for travel packages and food deliveries, steadily raising service/other (up 66.5 percent), food products (up 24.8 percent), and living furniture (up 11.7 percent). Meanwhile, the decline in consumer sentiment and impact from overseas direct purchases (ODP) are slowing down sales of fashion/clothing (down 9.8 percent), sports (down 6.6 percent), and home appliances/electronics (down 12.7 percent).   date2024-11-26

Startups now rising as key partners for middle-market businesses in open innovation

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea held a forum today in Seoul to spur shared growth between middle-market companies and startups, with the participation of roughly 130 attendees from relevant companies and institutions. Launched in 2020 by MOTIE and convened on an annual basis, the forum aims to catalyze joint growth through combining middle-market companies’ business capacity and startups’ innovative technologies. This year, the forum consisted of a presentation session for sharing best practices of global companies, middle-market firms, and startups; an artificial intelligence (AI)-based development program demonstration; and startups’ promotion of their leading technologies. In introducing best practices, India’s Tata Consultancy Services and Korean startups like Byucksan, Techcross Water & Energy, and Daewon CTS shared their experience and knowhow on joint projects with startups. DLIT gave a demonstration of its AI-based solutions for handling overseas firms’ RFx, developed through collaboration with a startup. In addition, four startups—Hulampro, Metazone, Kaier, and GUPSA—showcased their respective technology solutions for human resources (HR) automation, VR- and AR-based ultra-immersive interactive experience, and project-based interdivisional collaboration assistance. In this year alone, MOTIE uncovered seven project models for collaboration between middle-market companies and startups, providing support in areas of technical verification and new business development training.   date2024-11-25

Korea and Germany to deepen standards cooperation

Jin Jong-wook, President of the Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea, gave an opening message at the Korea-Germany Standards Dialogue jointly launched by KATS and the German Institute for Standardization (DIN) and the German Commission for Electrical, Electronic & Information Technologies (DKE) of DIN and VDE today in Seoul, attended by roughly 100 standards experts of both countries. date2024-11-22

Korea and Germany Strengthen Standards Cooperation to Address Climate Crisis

Korean Agency for Technology and Standards (KATS), under the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea, collaborated with the German Institute for Standardization (DIN) and the German Commission for Electrical, Electronic & Information Technologies (DKE) to hold the Korea-Germany Standards Cooperation Forum (“Forum”) today in Seoul. The event brought together approximately 100 standards experts from both countries, marking a significant step in bilateral collaboration. The Forum began with the introduction of the two nations’ national standards strategies: Korean Government National Standardization Strategy for the High-tech Industry and Germany’s SMART Standards for the Future. This was followed by discussions on technical issues related to Sustainability and Digital Transformation, with active participation from standards experts on both sides. The program included panel discussions in seven technology areas—artificial intelligence (AI), smart manufacturing, battery technologies, hydrogen, climate change/carbon neutrality, smart standards and direct current power sources—to share technical standards trends, exchange policy directions, and explore opportunities for joint international standards projects. KATS also announced plans to strengthen bilateral standards activities with DIN and DKE in clean energy sectors, building on the agreement reached during the bilateral summit in July to enhance Korea-Germany collaboration in addressing the climate crisis and other global challenges. As part of this initiative, the two countries agreed to establish a working group of standards experts to achieve tangible outcomes, such as joint research and the development of international standard proposals in areas including hydrogen, battery technologies, and other clean energy fields.   date2024-11-22

Korea sets sail to lead global autonomous navigation market via public-private joint efforts

Deputy Minister for Industry Policy Lee Seung-ryeol of the Republic of Korea attended the sail away ceremony for the SHIFT-Auto, Samsung Heavy Industries (SHI)’s autonomous navigation demonstration vessel, today on Geoje Island. The SHIFT-Auto is a culmination of the regulatory sandbox passed during the third meeting of the Deliberative Committee on Regulatory Exceptions for Industrial Convergence (“Committee”) in July, confirmed by the Korean government prior to the effectuation of the Act on Promoting the Development and Commercialization of Autonomous Ships (January 3, 2025) and before related procedures are established so as to enable timely industry demonstrations. The SHIFT-Auto will be demonstrating various technologies such as collision-avoidance, optimum ship routing, and low earth orbit satellite communications-based remote control. Its goal is to complete the mission instructed from land without any crew intervention. Meanwhile, HD Hyundai Heavy Industries (HHI)’ 8,000 TEU containership also passed the Committee and started demonstrations this November, and Hanwha Ocean is set to launch its autonomous vessel demonstrations beginning next year. The demonstrations of the Korean autonomous ship system model, co-developed by the Ministry of Trade, Industry and Energy (MOTIE) and the Ministry of Oceans and Fisheries (MOF), also took off in September loaded atop the 1,800 TEU containership. MOTIE plans to continue supporting these autonomous navigation demonstration opportunities gained through the regulatory sandbox, while also aiming to seamlessly back the Act on Promoting the Development and Commercialization of Autonomous Ships coming into effect next January.   date2024-11-21

Korea Sale FESTA promotion at CU convenience store

Industries and Enterprises Deputy Minister Oh Seung-cheol visited a CU convenience store in Seoul on November 19 to check out the discount promotion as part of Korea Sale FESTA. date2024-11-20