Ministry of Trade, Industry and Energy

Minister Ahn chairs petrochemicals industry meeting

On July 19 (Friday), the Ministry of Trade, Industry and Energy held a meeting with the presidents of major petrochemical companies. Chaired by Minister Ahn, the meeting had attendees discuss ways to overcome the crisis currently faced by the petrochemical industry.  date2024-07-22

Korea and Czech Republic discuss stronger cooperation following announcement of preferred bidder for new Czech reactor project

Trade, Industry and Energy Minister Dukgeun Ahn held talks with Czech Republic Ambassador to Korea Ivan Jančárek on July 22 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul and expressed appreciation over the Czech government’s selection of Korea Hydro & Nuclear Power (KHNP) as the preferred bidder to build new nuclear reactors in the Czech Republic and requested that the two countries closely cooperate for a successful project execution. KHNP was announced as the preferred bidder of the Czech Republic’s reactor project on July 17, which will be Korea's first nuclear power plant project since the state-run energy corporation won the United Arab Emirates (UAE)’ Barakah Nuclear Power Plant in 2009. The largest investment in Czech history, this new reactor project is expected to serve as a springboard for Korea’s entrance into nuclear power plant markets across Europe. During talks with Ambassador Jančárek, Minister Ahn stated that the Czech government’s fair bid process and rational evaluation have once again highlighted the prowess of Korea’s nuclear industry worldwide, “reaffirming the two countries’ 34 years of trust-building since the establishment of diplomatic ties.” He suggested that Korea and the Czech Republic aim to establish a singular nuclear ecosystem in line with President Yoon Suk Yeol’s vision for the joint construction of nuclear reactors, asking for concerted efforts to foster a cooperative system that incorporates collaboration in all areas, including talent nurturing, technology development, joint entry into third countries, and small modular reactors (SMRs).  Minister Ahn underscored that the Czech Republic is a key economic partner to Korea, noting how bilateral trade has continued to expand (USD 4.4 billion in 2023) since their relations were elevated to a strategic partnership in 2015. In view of next year marking the two countries’ 35th anniversary of the establishment of diplomatic relations, he expressed anticipation towards the Korea-Czech Republic partnership advancing to a whole new level through a deeper and more extensive economic cooperation in not only nuclear reactors, but also in advanced industries, technology, and transport infrastructure. The minister remarked that efforts will be made for a comprehensive and across-the-board economic cooperation with the Czech Republic based on this nuclear power plant project, as well as for maintaining an intergovernmental communication channel for negotiating project issues with regard to inking the contract. At the meeting, active support for the two countries’ economic cooperation was pledged by representatives of Korea’s six major economic groups, including the Korea Chamber of Commerce and Industry (KCCI), Federation of Korean Industries (KFI), Korea International Trade Association (KITA), Korea Federation of SMEs (KBIZ), Federation of Middle Market Enterprises of Korea (FOMEK), and Korea Enterprises Federation (KEF).   date2024-07-22

Korea’s manufacturing sectors to undergo AI transformation

The Ministry of Trade, Industry and Energy (MOTIE) held the AI Autonomous Manufacturing Alliance launching ceremony on July 22 with the participation of 250 industry, academia, and research institutions’ representatives under the initiative of enhancing the productivity, safety, and eco-friendliness of manufacturing sectors through the introduction of AI. It is anticipated that 200 anchor projects will kick into high gear, backed by public-private investment of more than KRW 2.5 trillion. A total of 153 companies and institutions across 12 different industry sectors are participating in the AI Autonomous Manufacturing Alliance. The aggregate sales value of the participating companies amounts to nearly 40 percent of Korea’s entire manufacturing sales combined, indicating the high degree of participation by major manufacturers. Composed of 12 working groups per sector, each working group consists of middle-market companies and SMEs that make up the supply chain’s backbone along with the sector’s representative anchor company. By number, large corporations, middle-market companies, and SMEs each take up 21 percent, 23 percent, and 56 percent of the total, respectively.   Specialized R&D institutions like Korea Institute of Industrial Technology (KITECH) and Korea Electronics Technology Institute (KETI) will also be closely assisting the administration of the Alliance’s overall activities. Beginning with over 10 AI autonomous anchor projects this year, the Alliance is set to uncover and execute 200 projects by 2028. In particular, the demand survey for this year’s projects completed last month showed that 213 participants entered the competition for 10 projects, indicating a high level of interest among companies, local authorities, and research institutions despite the short length of preparation time. The demand survey confirms that manufacturers regard AI autonomous manufacturing as a future strategy for survival with respect to product upgrading, responding to the working age population decline, and enhancing production efficiency.  Having affirmed the industrial sectors’ strong willingness for participation, MOTIE is considering the prospects of increasing the number of this year’s projects from the initial 10 to 20. Public-private investment in AI autonomous manufacturing for the 20 projects is estimated to surpass ₩2.5 trillion and this year’s project lineup will be finalized in September 2024 after experts’ evaluation process. Moreover, the Alliance plans to develop and diffuse a standard model based on the technology and data accumulated through the anchor project. Whereas the anchor project aims for the orderly and vertical diffusion of large corporations to tier one, tier two, tier three, and tier four vendor SMEs and middle-market firms within the value chain, the standard model aims for a horizontal diffusion beyond the value chain. The plan is to establish and distribute a standard model across more than 100 business sites by 2028. At the launching ceremony, strategies for the sectoral diffusion of AI autonomous manufacturing were presented by companies representing each sector, including Hyundai Motor, LG Electronics, DN Solutions, POSCO, EcoPro, GS Caltex, KAI, and HD Korea Shipbuilding and Offshore Engineering. Their common goal lies in diffusing the utilization of AI across the entire value chain and achieving groundbreaking improvements in productivity and quality. Real-time facility and process monitoring, coupled with AI-based data analysis, will enable the establishment of a production system capable of optimizing the work schedule and allocation of resources. This will help reduce energy consumption and carbon emissions. Moreover, AI-driven automatic detection of product defects and equipment failure prediction can substantially boost the production quality. For anchor projects, the Government will date2024-07-22

Meeting held to discuss ways to enhance petrochemical competitiveness amid global oversupply

On July 19 (Friday), the Ministry of Trade, Industry and Energy held a meeting with the presidents of major petrochemical companies. Chaired by Minister Ahn, the meeting had attendees discuss ways to overcome the crisis currently faced by the petrochemical industry. Since launching the public-private “Consultative Body on Competitiveness Building of the Petrochemical Industry” in April, the ministry has been steadfastly collecting opinions of the petrochemical industry through meetings on specific topics and on-site conferences. * Attendees: LG Chem, Lotte Chemical, SK geo centric, Korea Petrochemical Industry, Yeochun NCC, HD Hyundai Chemical, GS Caltex The participants at the meeting shared the understanding that the petrochemical industry was hit by a historical oversupply last year, and it would not be easy to recover from its impact in the short term given the aggressive expansion by China and the risk of further expansion from the Middle East as the oil peak becomes more of a reality. The presidents recommended actively creating government incentives for business restructuring, because the high interest and uncertainties in the peterochemical industry are hindering investment decisions despite the need for rapid restructuring. In addition, the attendees discussed ways to step up cooperation among resident companies in industrial complexes to reduce costs, expanding policy-driven financial support, and creating an early market for eco-friendly products. MOTIE plans to actively consult with the relevant ministries on the suggestions made by the companies and continue to formulate measures to strengthen the competitiveness of the petrochemical industry. Minister Ahn said, “The government will provide full support to help the Korean petrochemical industry leverage its global-level competitiveness to overcome the current crisis and rise once again.” He also urged the participant businesses to “give their best to prepare against disasters and keep their sites safe, as the recent heavy rain may affect on-site safety.” KITECH and CFI aim to bolster cooperation based on this MOU and plan to ink the MRA on the sidelines of the UN Climate Change Conference (UNFCCC COP 29) coming this November. date2024-07-19

Korea Trade Commission to launch Industrial Damage Response Centers

The Korea Trade Commission (Chairman: Lee Jaemin, KTC) of the Ministry of Trade, Industry and Energy (MOTIE) organized 22 Unfair Trade Practice and Industrial Damage Response Support Centers for industry associations and organizations to provide comprehensively support for Korean companies addressing damaged caused by unfair trade practices. The commission held a launch conference on July 19. On June 26, to encourage businesses to utilize the trade remedy systems, the KTC revised the relevant public notice to add industrial damage response to the functions of the existing Unfair Trade Practice Reporting Centers and renaming the centers to Unfair Trade Practice and Industrial Damage Response Support Centers (Support Centers) in order to strengthen companies' utilization of the trade remedy system. The launch conference was attended by KTC Chairman Jaemin Lee, Standing Member Younggil Chun, and Support Center representatives, who shared the main tasks and roles of the Support Center and the support to be provided by the KTC, and discussed the future activities of the Support Centers. Chairman Lee said, “With the launch of the Unfair Trade Practice and Industrial Damage Response Support Center, we will be able to comprehensively support Korean companies as they deal with industrial damage,” urging the support centers to actively introduce the trade remedy system to their member companies. He added, “We will continue to improve the relevant systems to provide quick and effective remedies against unfair trade practices such as dumping and intellectual property infringement.” date2024-07-19

Korea, China, and Japan step up international standards cooperation

Korea Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) hosted the 22nd Northeast Asia Standards Cooperation Forum (NEAS Forum) through July 15–17 in Seoul. A total of 127 government officials and private experts from Korea, China, and Japan participated in the event. Launched in 2002 and rotated among Korea, China, and Japan, the NEAS Forum serves as a trilateral public-private standards cooperation and exchange platform for the major standards institutions of the three countries. The Forum also facilitates the sharing of national standards strategies and exchanges among private-sector standards experts. Through these interactions, the experts of three countries were able to publish 29 international standards. In conjunction with the Forum, Korea’s KATS, Japan’s Ministry of Economy, Trade, and Industry (METI), and China’s State Administration for Market Regulation (SAMR) hold bilateral and trilateral director general-level meetings to discuss measures for enhancing standards cooperation among the three nations. During the 22nd NEAS Forum, the three countries engaged in in-depth discussions on 18 new joint projects, including one on metaverse healthcare service, and nine existing joint projects, including one on freight containers. They also agreed to consider launching a working group of experts from each country to oversee the new projects.  In relation to Korea’s technical white paper project on medium voltage direct currents (MVDC), which was selected by the International Electrotechnical Commission (IEC), Korea requested the participation of experts from China and Japan. Additionally, Korea sought support from the two countries for six international standards proposals, such as the service robot testing method, to submit to the International Organization for Standardization (ISO).   date2024-07-17

Korea’s automobile exports hit historic high of $37 bln for H1

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 16 that Korea’s automobile exports reached a record-breaking USD 37 billion (up 3.8 percent year-on-year) in the first half (H1) of 2024.  In spite of high inflation and shrinking disposable income, H1 automobile exports achieved the feat on the backs of robust North America-bound exports and increasing global demand for hybrid electric vehicles (EVs).  For the month of June, automobile exports amounted to $6.2 billion despite the lower number of working days (-1.5 year-on-year). With the exception of February when Seollal holidays landed this year, automobile exports have been entering the $6 billion thresholds each month since last November. By destination, H1 automobile exports to North America jumped 26 percent to $21.7 billion, driving overall exports. The decline in exports to Europe can be attributed to the recently slowing EV sales across Germany and Northern Europe. In June, exports to North America kept their lead and those to the Middle East turned to an expansion for the first time in eight months since last October, when the Israel-Hamas war broke out. The production volume for H1 approached 2.2 million units (down 2.4 percent year-on-year), maintaining over a monthly average of 350,000 units as major plants in Ulsan and Hwaseong operated at maximum capacity. Once Kia’s Gwangmyeong plant launches into full operation in July, exports are expected to gain greater momentum in H2. Domestic sales dropped 10.7 percent to 798,544 units in H1 2024, set back by a high base effect from last year. Meanwhile, eco-friendly vehicle sales logged an all-time high of approximately 300,000 units.   date2024-07-16

Korea and Israel spur tech synergy at Innovation Day 2024

The Ministry of Trade, Industry and Energy (MOTIE) and the Israel Innovation Authority (IIA) co-hosted Korea-Israel Innovation Day 2024 (“Innovation Day”) on July 16 at the Seongnam Global Convergence Center. The largest technology collaboration event held between the two countries, this year’s Innovation Day drew the participation of a record high total of 30 Israeli universities and companies, including Israel Aerospace Industries (IAI), Foresight Automotive, and TriEye. From Korea, roughly 70 companies are taking part in the bilateral technology exchange, including Samsung Electronics and Hyundai Motor. To note, this year’s Innovation Day is also launching technical seminars and one-on-one business meetings in areas with high synergy potential, such as semiconductor and smart mobility. On the occasion of the event, promising projects will be uncovered and granted funding via the Korea-Israel Industrial R&D Foundation (KORIL-RDF). At last year’s Innovation Day, a smart aviation motor project led by IAI and Korean firm Contromax was selected for the two countries’ joint global R&D. Once the project is completed, Contromax will be supplying its smart motors to major domestic aircraft manufacturers. Since 2001, the Korean and Israeli governments have co-invested a total of USD 93 million in 206 commercialization-focused technology development projects. Every year, around seven joint R&D projects are selected for grant support. date2024-07-16

Korea’s ICT exports climb 28.2% in H1 2024

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 15 that Korea’s export of information and communications technology (ICT) goods for the first half (H1) of 2024 climbed 28.2 percent year-on-year to USD 108.9 billion, the second highest H1 record for ICT exports. Meanwhile, the import of ICT goods decreased 0.7 percent to $67.8 billion and the trade balance stood at a surplus of $41.1 billion.   Increased demand for semiconductors and the surge in their unit price were some of the drivers boosting the ICT industry, which posted double-digit growth for the past six consecutive months.   By item, exports of semiconductors (up 49.9 percent), displays (up 14.6 percent), and computers/peripherals (up 35.6 percent) advanced in H1, but those of mobile phones (down 2.8 percent) retreated.   By region, ICT exports to China (including Hong Kong) (up 37.3 percent), Vietnam (up 21.7 percent), the U.S. (up 19.2 percent), and EU (up 8.2 percent) expanded, while those to Japan (down 9.3 percent) shrank.   Despite the rising import of semiconductors and displays, the import of ICT goods in H1 2024 inched down year-on-year, partially owing to the reduced import of mobile phones.   For June, Korea’s export of ICT goods amounted to a record high of $21.1 billion for the month. Imports reached $10.9 billion, and the trade balance stood at a surplus of $10.2 billion.   By item, semiconductors (up 49.4 percent), displays (up 22.6 percent), mobile phones (up 8.0 percent), and computers/peripherals (up 48.9 percent) were among the majority of ICT goods that enjoyed growth. Thanks to unit price hikes and strong demand for downstream industries like servers and personal computers, semiconductor exports achieved new monthly highs ($13.4 billion) and led the overall ICT industry’s export growth rate over the 30 percent thresholds for three consecutive months.   By destination, ICT exports to China (including Hong Kong) (up 29.2 percent), Vietnam (up 36.8 percent), the U.S. (up 27.0 percent), and the EU (up 1.5 percent) increased, whereas those to Japan (down 8.6 percent) fell.   Korea’s monthly import of ICT goods for June dropped 5.1 percent year-on-year as the import of semiconductors and secondary batteries decreased. date2024-07-15

Trade-related technical regulations issued in H1 2024 reach 2,009

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 14 that the number of trade-related technical regulations issued by World Trade Organization (WTO) member countries during the second quarter (Q2) of 2024 amounted to 818, slightly lower than the 932 of Q2 2023. This adds up to a total of 2,009 technical regulations issued over the first half (H1) of this year, close to the 2,053 of H1 2023. In accordance with the Technical Barriers to Trade (TBT) Agreement, WTO member countries are required to report cases of technical regulatory establishments and revisions that are viewed to significantly impact trade. In Q2 2024, the U.S. issued the highest number of technical regulations (106), taking up 13 percent of total, followed by Egypt (62) and Brazil (55). By industry, food and drug (23 percent), agriculture, livestock and fishery products (18 percent), and ceramic chemistry (16 percent) are among the sectors that issued the highest number of technical regulations this quarter, followed by electrical and electronics (14 percent). Korea’s 15 top and emerging export destinations issued a total of 279 technical regulations, taking up 34 percent. They were led by the U.S. and China, pertaining to regulations concerning energy efficiency and electrical device safety requirements, respectively. date2024-07-15