Ministry of Trade, Industry and Energy

Korea and Germany hold 1st KR-DE Industrie 4.0 & Dataspace Forum

Industries and Enterprises Deputy Minister Oh Seung-cheol at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea attended the 1st KR-DE Industrie 4.0 & Dataspace Forum today in Seoul, held with the participation of roughly 100 persons of both countries’ government bodies, academia, industries, and research institutions including Germany’s Federal Ministry for Economic Affairs and Climate Action. Forum participants exchanged information on industry data platform policies and discussed measures for sharing and diffusing standards for platform synchronization. On the margins of the Forum, Korea Industrial Complex Corporation (KICOX) and Germany’s Labs Network Industrie 4.0 signed a memorandum of understanding (MOU) for industrial complex data sharing and data standards development support. date2024-10-16

Trade Minister attends 2nd Plant EPC Policy Forum

Minister for Trade Inkyo Cheong attended the second Plant EPC Policy Forum on October 14 in Seoul held to seek forward-looking strategies for Korea’s engineering, procurement, and construction (EPC) industry and discuss ways to achieve this year’s USD 33 billion overseas plant bid target. In his congratulatory message, Trade Minister Cheong stated that winning overseas plant bid projects is a key means of export recovery, expressing hopes that the Government’s recent push for stronger cooperation with the Global South translates into diverse business opportunities across Korea’s plant sectors. The event was attended by roughly 100 persons comprising EPC related government, institutions, and companies’ representatives. date2024-10-14

Korea’s ICT exports climb 24% in September

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that the export and import of Korea’s information and communications technology (ICT) goods for September 2024 logged USD 22.4 billion and $12.5 billion, respectively, and the trade balance stood at a surplus of $9.9 billion. ICT exports for the month of September (up 24.0 percent year-on-year) came in second highest following those of March 2022, maintaining an upward climb for the 11th consecutive month.  Semiconductor exports hit unprecedented highs and led overall ICT exports, advancing 36.3 percent year-on-year to $13.6 billion. Memory chips (up 60.7 percent to $8.7 billion) and system chips (up 5.2 percent to $4.4 billion) both increased. Exports of finished mobile phones (up 0.5 percent to $0.3 billion) and parts (up 31.2 percent to $1.4 billion) rose simultaneously, maintaining the double-digit growth since March 2024. Computers and peripherals (up 104.8 percent to $1.6 billion) are enjoying robust demand as solid-state drives (SSDs) (up 168.8 percent to $1.2 billion) surpassed the $1 billion monthly export value for the second consecutive month. By region, ICT exports to China (including Hong Kong) climbed 22.6 percent to $9.2 billion, achieving growth for the 11th consecutive month on the backs of demand for major items like semiconductors and mobile phones. Exports to Vietnam (up 8.7 percent to $3.4 billion) expanded for the 14th consecutive month thanks to growth across key items. Exports to the U.S. (up 39.9 percent to $3.0 billion) grew for the 11th consecutive month as semiconductors (up 88.0 percent to $1.2 billion) and computers and peripherals (up 250.6 percent to $0.7 billion) hiked sharply, boosted by demand for servers and datacenters. EU-bound ICT exports (up 11.3 percent to $1.1 billion) sustained growth for the seventh consecutive month with mobile phones (up 361.2 percent to $0.2 billion) and computers and peripherals (up 116.6 percent to $0.2 billion) displaying strong growth. To Japan (up 2.3 percent to $0.4 billion), exports of semiconductors and computers and peripherals increased.   date2024-10-14

Korea and Germany launch 1st Industrie 4.0 & Dataspace Forum

Industries and Enterprises Deputy Minister Oh Seung-cheol at the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea attended the first Korea-Germany Industrie 4.0 & Dataspace Forum (“Forum”) today in Seoul, held with the participation of roughly 100 persons of both countries’ government bodies, academia, industries, and research institutions including Germany’s Federal Ministry for Economic Affairs and Climate Action. The Forum was held as a follow-up measure to the Korea-Germany ministerial talks (June 2023) and the third Korean-German Industry Working Group meeting (September 2024) for bilateral industry data sharing and platform cooperation. It also served as an inaugural event for facilitating detailed discussions among the entities of the private sector cooperative system established this April in accordance with the joint statement issued by the Korea Institute for Advancement of Technology (KIAT) and Germany’s Plattform Industrie 4.0 on creating an industry data ecosystem. The Forum’s launch signals the initial stride of cooperation between Germany’s industry data platform (e.g., Catena-X, Manufacturing-X) and that of Korea’s, which is to be developed in proportion to Korea’s industrial situation. Both countries’ Forum participants exchanged information on industry data platform policies and discussed measures for sharing and diffusing standards for platform synchronization. On the margins of the Forum, Korea Industrial Complex Corporation (KICOX) and Germany’s Labs Network Industrie 4.0 signed a memorandum of understanding (MOU) for industrial complex data sharing and data standards development support. Deputy Minister Oh stated that the Korea-Germany industry data platform cooperative system will act as a foundation in accelerating the industrial artificial intelligence (AI) transformation and that the two countries plan to broaden the scope of bilateral cooperation through joint research on industry data standards and mutual recognition.   date2024-10-14

EPC companies seek measures for Korea’s plant industry development at policy forum

Minister for Trade Inkyo Cheong attended the second Plant EPC Policy Forum (“Forum”) today in Seoul held to seek forward-looking strategies for Korea’s engineering, procurement, and construction (EPC) industry and discuss ways to achieve this year’s USD 33 billion overseas plant bid target. Forum attendees gave presentations on the Clean Hydrogen Production Standard (CHPS), financial assistance, and strategies with regard to the changing market ecosystem. Korea Power Exchange (KPX) introduced the clean hydrogen power bidding market launched this year in relation to hydrogen plants as a future growth engine and proposed business opportunities for each stage of the value chain from production to utilization, such as overseas project development, winning ammonia-powered container ship project bids, establishment of cargo handling and storage infrastructure, and domestic construction of hydrogen power plants. This was followed by the Export Credit Agency (ECA)’s presentation, which drew much interest from the EPC industry by providing an overview of the various overseas project funding programs run by relevant institutions like K-SURE and the Export-Import Bank of Korea (KEXIM).  In his congratulatory message, Trade Minister Cheong stated that winning overseas plant bid projects is a key means of export recovery, expressing hopes that the Government’s recent push for stronger cooperation with the Global South translates into diverse business opportunities across Korea’s plant sectors.   date2024-10-14

Korea and other GFSEC members discuss measures for stronger action against challenges from steel excess capacity

Deputy Minister for Industry Policy Lee Seung-ryeol attended the virtual meeting of the Global Forum on Steel Excess Capacity (GFSEC) on October 8, where the members adopted a joint ministerial statement on response against issues concerning the increase in steel excess capacity. This seventh meeting of the GFSEC was convened based on the members’ shared recognition of the need for stronger measures against the intensifying challenges arising from steel excess capacity. Global steel excess capacity increased to 0.55 billion metric tons in 2023 and is projected to reach 0.63 billion metric tons by 2026. In the joint statement, GFSEC members addressed various means to solve the problem, including closer monitoring and encouraging new membership.  Deputy Minister Lee stated that Korea acknowledges the graveness of the situation and has been taking steps to promote sustainable steel production and a fair trade order, vowing commitment in international endeavors to tackle the excess capacity issue through multifaceted cooperation.   date2024-10-10

Delivery ceremony of 1st homegrown engine for Korea’s self-propelled howitzers

The Ministry of Trade, Industry and Energy (MOTIE) and the Defense Acquisition Program Administration (DAPA) of the Republic of Korea held the delivery ceremony of the first homegrown engine for Korea’s self-propelled howitzers, the K9 Thunders, on September 27 at STX Engine’s Changwon plant. MOTIE Vice Minister Park underscored the importance of self-reliance in the production of vital defense materials and parts for Korea’s defense industry to keep up its pace amid the intensifying global exports race, vowing that the ministry will make further effort to secure critical technology for high value-added defense materials, parts, and equipment. The ceremony was attended by 60 persons including MOTIE Vice Minister Sungtaek Park, DAPA Minister Seok Jong-gun, STX Engine CEO Lee Sang-su, and Hanwha Aerospace Vice President Moon Ji-hoon. date2024-09-27

Korea’s first homegrown self-propelled howitzer engine ready for mass production, to enter global market in 2025

The Ministry of Trade, Industry and Energy (MOTIE) and the Defense Acquisition Program Administration (DAPA) of the Republic of Korea held the delivery ceremony of the first homegrown engine for Korea’s self-propelled howitzers, the K9 Thunders, today at STX Engine’s Changwon plant.  The ceremony was attended by 60 persons including MOTIE Vice Minister Sungtaek Park, DAPA Minister Seok Jong-gun, STX Engine CEO Lee Sang-su, and Hanwha Aerospace Vice President Moon Ji-hoon. In September 2020, MOTIE and DAPA entered into a memorandum of understanding (MOU) on technology cooperation for the localization of primary defense materials and parts and in following April, they launched the project for developing homegrown self-propelled howitzer engines. Within three years, they succeeded in the localization and mass production of approximately 500 key engine parts, resulting in a purely homegrown engine with enhanced performance and economic feasibility. The feat is anticipated to widen the path for the K9 Thunders’ global market entry. MOTIE Vice Minister Park underscored the importance of self-reliance in the production of vital defense materials and parts for Korea’s defense industry to keep up its pace amid the intensifying global exports race, vowing that the ministry will make further effort to secure critical technology for high value-added defense materials, parts, and equipment (“MPE”). DAPA Minister Seok remarked that the K9 Thunder has positioned itself as Korea’s high-end weapon, thanks to the localization of its engine via collaboration with MOTIE. He shared plans to bolster interministerial cooperation on the occasion of the achievement. MOTIE and DAPA aim to jointly develop next-generation prime technologies for hydrogen fuel cell systems and high-tech aircraft engines, while also working closely to secure 60 critical MPE technologies across five major advanced defense areas such as defense semiconductors.   date2024-09-27

Korea plans to raise corporate AI deployment rate to 70% by 2030

The Ministry of Trade, Industry and Energy (MOTIE) announced today that Korea’s President Yoon Suk Yeol chaired the first National Artificial Intelligence (AI) Committee meeting in Seoul with the participation of academia and industry experts for discussions on Korea’s national AI strategy, measures for the diffusion of industrial AI transformation (AX), and private sector investment plans. Noting that AI in itself is of massive industrial value as an important foundational technology with prospects of creating enormous up- and downstream impact across all sectors, President Yoon highlighted that successful AI deployment over diverse industries will generate far-reaching economic effect. At the inaugural Committee meeting, MOTIE reported policy measures for the diffusion of AX, articulating plans to raise the level of corporate AI utilization rate (currently 31 percent) and the AI deployment rate at manufacturing sites (currently 5 percent) to 70 percent and 40 percent by 2030, respectively, through Korea’s three pillar industrial AX projects. They include the implementation of over 300 anchor projects for manufacturing and service industries by 2027 to provide concentrated R&D, finance, and consulting assistance toward projects involving the participation of buyer and supplier firms in AI solution, robot, and equipment, for which the first batch of 25 projects will be selected next month.  Under the industrial AX projects, the ministry further plans to announce measures in the near future for supporting the AI semiconductor ecosystem, while also pushing the establishment of an industrial data integration platform. First, a carbon data platform will be developed by 2027 with focus on the five most carbon-intensive sectors—steel and aluminum, battery, automobiles, home appliances, and textiles—on which risks are highest with regard to major countries’ carbon regulatory measures. The platform will then be extended to cover data on core sectors’ processes and supply chains as well. In addition to the three pillar projects, MOTIE will mull the prospects of nurturing an AI-specialized complex, training AX professional manpower through in-company graduate courses on AX, increasing tax incentives for key AX technology, and injecting a KRW 3.5 billion-plus policy funding into the AI field. Under the AI Industrial Policy Committee launched in May, MOTIE will be operating an AX Alliance for propelling anchor projects forward and a public-private industrial AX law forum to facilitate discussions on legal and institutional matters in an effort to boost the systematic drive for AX diffusion.  On reviewing the bills containing the aforesaid plans, President Yoon asked that all ministries actively cooperate as members of the National AI Committee to successfully accelerate the AI transition across Korea’s social and industrial landscape.   date2024-09-26

Korea’s retail industry grows 9.2% in August

The Ministry of Trade, Industry and Energy (MOTIE) announced today that Korea’s retail industry advanced 9.2 percent year-on-year for the month of August 2024, with offline and online sales increasing 5.0 percent and 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. Sales increased offline at department stores and hypermarkets as the heat wave (+10 days) and holidays both lengthened (+1) by number of days, in addition to the Chuseok holidays landing earlier by over a week this year compared to 2023. Convenience stores and SSM operators also rose in sales. By offline retail channel, hypermarket sales soared 5.9 percent overall, led by Chuseok gift purchases driving food product sales (up 9.9 percent). Meanwhile, non-food product categories (down 3.7 percent) mostly declined with the exception of clothing (up 4.5 percent). Department store sales hiked 4.4 percent, boosted by food product purchases (up 18.7 percent) soaring on the backs of Chuseok gift consumption. The heat wave and higher number of holidays (+1) drew more visitors to department stores, raising sales across all categories. Convenience store sales rose 4.5 percent overall, with beverages/processed food products (up 6.5 percent) growing from ice cream and beverage sales. Instant food products (up 1.8 percent), foreign tourists’ transit card, and tobacco sales all increased. SSM operators climbed 6.7 percent, with food products (up 7.5 percent) enjoying robust sales in conjunction with increased demand for homecooked meals and seasonal goods like agricultural, fishery, and livestock items (up 8.7 percent), fresh goods (up 6.8 percent), and processed food products (up 6.4 percent). Online retail sales surged 13.9 percent as the heat wave fueled demand for stamina health foods and food delivery, increasing sales of service/other (up 60.4 percent) and food products (up 19.8 percent). Demand for companion animal goods, cosmetic products (up 11.2 percent), and living furniture (up 10.8 percent) expanded, while fashion/clothing (down 17.8 percent) and sports (down 12.7 percent) continued to slow.   date2024-09-24