Ministry of Trade, Industry and Energy

Vice Minister holds emergency meeting to assess impact from Middle East situation

Trade, Industry and Energy Vice Minister Namho Choe held an emergency meeting on April 14 concerning Iran’s aerial attack on Israel on April 13 (local time) to assess the potential impact on domestic industries, export, energy prices, and supply chains with relevant institutions, including the Korea National Oil Corporation (KNOC), Korea Gas Corporation (KOGAS), Korea Trade-Investment Promotion Agency (KOTRA), and K-SURE. date2024-04-15

MOTIE holds emergency meeting to monitor domestic impact from Middle East situation

Trade, Industry and Energy Vice Minister Namho Choe held an emergency meeting on April 14 concerning Iran’s aerial attack on Israel on April 13 (local time) to assess the potential impact on domestic industries, export, energy prices, and supply chains with relevant authorities.   According to the assessment carried out by MOTIE and related institutions, the impact on Korea’s domestic industries is limited thus far, but the Government plans to closely follow and respond to future situation development.   At present, the supply of crude oil and LNG has not been disrupted, and oil and LNG carriers either navigating or loading near the Middle East regions are confirmed to be normally operating. Loading for exports and imports is also proceeding without setback. As for items other than crude oil and gas, there are no further identified critical items with high dependence on Middle East sourcing. Moreover, it is assessed that supply chain impact will be limited, as sourcing for bromine and other petrochemical items with relatively higher reliance on the Middle East can seek replacement with domestic production and alternative import channels.   Still, the Korean government plans to gear up for situation management through close monitoring on international oil prices and the impact on Korea’s economy by installing a comprehensive situation room headed by Vice Minister Choe to activate an emergency response team per each area, including oil, gas, trade, and supply chain, to communicate and monitor the situation on a daily basis with related countries and institutions.   Vice Minister Choe remarked that “The Government plans to closely monitor and examine the situation development with related institutions and industries,” and assured that efforts will be made to minimize impact on the Korean economy. date2024-04-15

Korea's automobile exports hit all-time high of $17.5 bln for Q1 in 2024

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 11 that Korea’s automobile exports hit all-time highs of USD 17.5 billion (up 2.7 percent year-on-year) for the first quarter of 2024 (January-March in acc.). The monthly export value reached $6.2 billion in March, making a quick rebound since the setback to $5.2 billion in February.   The key takeaway for March exports and domestic sales is the steep rise of hybrid vehicles (PHEVs excluded), advancing 37 percent to a record-breaking $0.9 billion. With the domestic market also selling 40,000 units (up 24 percent) in March, strong domestic and overseas demand for hybrid cars is expected to serve as a stable source of workload for the parts industry.   Automobile production in March amounted to 365,497 units (down 10.8 percent), surpassing last year’s monthly average (app. 354,000 units) and recording the highest among the first three months of this year. The year-on-year downtick in production is attributable to the lower number of working days (-1.5) and a major automaker’s production line renovation for future mobility transition.   Domestic sales in March added up to 146,019 units (down 12.0 percent). Meanwhile, hybrid cars (up 24 percent) and EVs (up 16 percent) posted double-digit growth, boosting the sales of eco-friendly vehicles 18.6 percent to 61,435 units, surpassing the previous all-time monthly high of approximately 58,000 units set in November 2023. date2024-04-11

Ministries and companies discuss pending chip issues at presidential office

Trade, Industry and Energy Minister Dukgeun Ahn attended a meeting chaired by President Yoon Suk Yeol on April 9 at the Office of the President in Yongsan, Seoul, held for discussions on global chip supply chain risk factors in view of the recent earthquake in Taiwan, and for President Yoon to first-handedly assess the measures for the swift establishment of semiconductor mega clusters.   Attending the meeting were representatives of relevant ministries and companies, including the Ministry of Economy and Finance (MOEF), Ministry of Science and ICT (MSIT), Ministry of Land, Infrastructure and Transport (MOLIT), Ministry of Environment (ME), Samsung Electronics, SK Hynix, SAPEON Korea, and Naver.   Attendees discussed measures for securing the semiconductor technology super gap in the global race on AI chips, and the future direction for Korea in pushing the AI chip initiative.   Regarding the Taiwan earthquake and global supply chain risk factors, the meeting concluded that impact on Korean companies is limited at present, but efforts will continue to be made to monitor the supply chain situation with related industries and associations to handle uncertainties.   Discussions also covered the following measures for a swift establishment of the semiconductor mega clusters.   First, the Government plans to back the establishment of infrastructure and accelerate corporate investment, raising the state funding rate from the previous 5-30 percent to 15-30 percent. For the Yongin System Semiconductor Cluster, in which Samsung Electronics plans to invest 360 trillion won by 2047, the site renovation period is to be substantially shortened by utilizing the preliminary consultation system for environmental impact evaluation and through prompt land compensation.    The Government will also push for stronger investment incentives by extending the national strategic technology investment tax credit incentive due to sunset at the end of this year, which currently grants a 25 percent maximum tax credit.   The second aim is to nurture professional talent and create a better working environment. This will entail a further designation of chip-focused specialization universities (10) and graduate schools (3), as well as the establishment of new cities and public housing around the semiconductor industrial clusters and laying of a “chip highway” connecting the clusters in Hwaseong, Yongin and Anseong. Plans also include rolling out a global talent package for attracting overseas talents into Korea by supporting their immigration and housing.   Third, support will go towards the early establishment of a mass-production demonstration testbed (Yongin Semiconductor Cluster mini fab) for facilitating cooperation between chip MPE (materials, parts, equipment) firms and chip manufacturers, and towards the production of ultra fine process prototypes. The chip performance testing and inspection service is to be initiated starting this year with the establishment of the inspection support center.   In this AI era, there still exists sustainability issues owing to performance and energy costs, and the outlook is that the future of AI competitiveness will center on AI chips and hardware innovation, as well as the organic collaboration among AI models.   In this regard, Korea will be launching the AI Chip Initiative based on the following nine technological innovations: next-generation general-purpose AI (AGI); lightweight and low-power AI; AI safety technology development; processing in memory (PIM); low-power K-AP; new device & advanced packaging; AI supercomputing; on-device AI; and next-generation open AI architecture software.   MOTIE and MSIT will be holding review sessions on a regular basis and share collaboration cases and outcomes with related institutions to minimize d date2024-04-09

Minister Ahn holds Global Open Innovation Strategy Conference

Trade, Industry and Energy Minister Dukgeun Ahn held the Global Open Innovation Strategy Conference on April 5 at Josun Palace and announced the preferred bidders for the Global Industrial Technology Cooperation Center project, as well as future plans.   The conference was attended by representatives of relevant institutions, including Korea Institute for Industrial Economics & Trade (KIET) and National Academy of Engineering of Korea (NAEK). date2024-04-05

Minister Ahn attends interministerial meeting on MPE competitiveness

Trade, Industry and Energy Minister Dukgeun Ahn attended the interministerial meeting on April 3, chaired by the Economy and Finance Minister, at the Government Complex Seoul for the deliberation and resolution on major agenda items concerning the materials, parts, and equipment (MPE) specialization complexes.   The meeting was attended by representatives of relevant ministries and institutions, including the Ministry of Science and ICT (MSIT) and the Korea International Trade Association (KITA).   date2024-04-05

Minister Ahn holds Technology Financing Investment Promotion Strategy Meeting

Trade, Industry and Energy Minister Dukgeun Ahn attended the Technology Financing Investment Promotion Strategy Meeting on April 4 at Lotte Hotel Seoul and announced private-led technology financing promotion measures on providing KRW 16.6 trillion to SMEs and middle-market firms with innovative technologies over the next five years (2024-2028).   On the margins of the meeting, the 13 banks that will be executing the newly launched R&D loan participated in the ceremony for the industrial technology innovation fund memorandum of understanding (MOU).   Attending the event were representatives of relevant firms, financial institutions, and ministries, including Korea Evaluation Institute of Industrial Technology (KEIT) and Korea Institute of Advancement for Technology (KIAT). date2024-04-05

Six global institutions selected for Global Industry and Technology Cooperation Center project

Trade, Industry and Energy Minister Dukgeun Ahn held the Global Open Innovation Strategy Conference on April 5 at Josun Palace and announced the preferred bidders for the Global Industry and Technology Cooperation Center project.   The Global Industry and Technology Cooperation Centers are to be a platform for international joint R&D projects, partner matching, and technology collaboration, for which 30 universities and research institutes around the world applied. Paper and presentation evaluation rounds narrowed the applicants down to six overseas institutions, namely Massachusetts Institute of Technology (MIT), Yale University, Purdue University, Johns Hopkins University, Fraunhofer, and Georgia Institute of Technology.   The Ministry of Trade, Industry and Energy plans to launch around 45 joint global R&D projects this year with aim to secure 100 next-generation foundational technologies by 2028. date2024-04-05

MOTIE to support innovative SMEs with KRW 16.6 tln technology financing by 2028

Trade, Industry and Energy Minister Dukgeun Ahn attended the Technology Financing Investment Promotion Strategy Meeting on April 4 at Lotte Hotel Seoul and announced private-led technology financing promotion measures on providing KRW 16.6 trillion to SMEs and middle-market firms with innovative technologies over the next five years (2024-2028). A total of 3.4 trillion won is to be funded in 2024 alone.   First of all, a 2.4 trillion won public-private corporate venture capital (CVC) fund will be formed in 2024 for investment in innovative startups, whereas large corporations will be supported in their business, marketing, and innovative infrastructure establishment to expedite open innovation.   Second, the industrial technology innovation fund in 2024 will pour 400 billion won into defense, AI-based autonomous manufacturing, carbon-free energy, and other advanced industries, while also strengthening support for regions and middle-market companies short of private venture investment. As for the unprecedented 36 billion won high-tech civil-military cooperative fund, defense companies attending the meeting vowed support for nurturing innovative defense firms via means of additional investment, company scouting, and commercialization assistance.   Third, MOTIE will create a 540 billion won low-interest R&D loan to assist companies’ technology commercialization and join hands with the SMEs and Startups Ministry (MSS) to initiate a special exemption guarantee that offers fees reduced by 0.5 percentage points to mitigate burden on companies. Furthermore, a 170 billion R&D fund will be supplied in 2024 in line with venture capital investment.   On the margins of the meeting, the 13 banks that will be executing the newly launched R&D loan participated in the ceremony for the industrial technology innovation fund memorandum of understanding (MOU). In addition to POSCO Capital, SGC Partners and Ascendo Ventures were also selected to jointly manage the CVC fund, and the three companies entered an MOU on this account.   Also attending the event was Ely Razin, Chief Strategic Investments Officer at Israeli investment platform OurCrowd, who expressed commitment to injecting over 40 billion won worth of foreign capital into Korea’s technology innovation fund. OurCrowd was selected as one of the technology innovation fund managers in 2023. date2024-04-05

Vice Minister chairs meeting with petrochemicals industry leaders

Trade, Industry and Energy Vice Minister Kang Kyungsung chaired a meeting on April 3 in Seoul with petrochemicals industry leaders to discuss present challenges in export and investment.   The meeting was attended by representatives of Kumho Petrochemical, SK Geocentric, LG Chem, and Lotte Chemical. date2024-04-04