Ministry of Trade, Industry and Energy

Trade Minister meets major ASEAN thinktank (ERIA) president

Minister for Trade Inkyo Cheong met Tetsuya Watanabe, President of the Economic Research Institute for ASEAN and East Asia (ERIA), on August 26 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul and discussed economic issues in trade, investment, supply chains, and clean economy covered during the Korea-ASEAN Summit 2023 and agreed to continue efforts on widening cooperation for the successful management of the Korea-ASEAN Trade and Economic Thinktank Dialogue to be launched next year. date2024-08-27

Korea’s Amended Act on foreign investment aiming to attract FDI while upholding national security

The Ministry of Trade, Industry and Energy (MOTIE) announced today that the enforcement of the amended Foreign Investment Promotion Act (the “Amended Act”) begins August 27. The Amended Act is anticipated to help raise stock return predictability for foreigners investing in Korea, while also regulating foreign investments that pose risks of endangering national security. The outline of the Amended Act is as follows: First, the amendment allows administrative agencies to initiate deliberations ex officio, without the requirement of a foreign investor’s voluntary reporting, should there exist concerns of national security risk. However, to raise stock return predictability, deliberations will not be required for foreign investments that have already gone through voluntary screening. Second, foreign investments in Korean firms with National High-Tech Strategic Technologies will be subject to national security screening to prevent Korea’s advanced industrial competitiveness from being hindered by illegal foreign investment. Third, the Amended Act provides grounds to ease foreign investors’ double burden by allowing the omission of screening for a foreign investor that has gone through similar deliberation procedures under other acts (Act on Prevention of Divulgence and Protection of Industrial Technology, National High-Tech Strategic Industry Act). Fourth, the maximum deliberation period for the Expert Committee on National Security Deliberation for reviewing national security risks of foreign investments is to be extended from the previous 30 days to 90 days, and the Foreign Investment Committee’s maximum deliberation period will be reduced from the previous 90 days to 45 days. Fifth, should a foreign investor make an inquiry prior to submitting a foreign investment declaration on whether the investment is subject to national security deliberation, administrative agencies are to respond to the inquiry within a 30-day period. The Korean government will continue to improve and modify the national security deliberation system with an aim to secure foreign investments contributing to Korea’s advanced industrial super gaps, while minimizing concerns of foreign investments endangering national security.   date2024-08-26

Korea-Hokuriku (Japan) Economic Exchange resumes after 6-year hiatus

Director General for International Trade Relations Kim Jong-chul attended the 20th Korea-Hokuriku (Japan) Economic Exchange (“Exchange”) today in Gangneung, held for the first time in six years since the previous event in 2018.  Co-hosted by Korea’s Ministry of Trade, Industry and Energy (MOTIE) and Japan’s Ministry of Economy, Trade and Industry (METI) and co-organized by the Korea-Japan Economic Association (KJE) and the Hokuriku Economic Federation, the Exchange was launched in 2000 to bolster interregional economic cooperation and is convened alternately by the two countries on an annual basis.  This year saw the Exchange resume after a six-year hiatus as the two countries’ private sector cooperation picked up with the convening of the Korea-Japan Business Roundtable and other major business meetings following the Korea-Japan Summit in March 2023. The attendance comprised roughly 100 persons from the local government bodies and companies of Korea’s four east coast provinces and cities (Gangwon-do, Gyeongsangbuk-do, Daegu Metropolitan City, and Ulsan Metropolitan City) and 40 persons from those of Japan’s three Hokuriku prefectures (Toyama, Ishikawa, and Fukui). The Hokuriku region takes up only 2.5 percent of the Japanese economy, but its advanced pharmaceuticals and heavy industries, including automotive, construction equipment, electrical and electronics engineering, make it a promising partner for Korea in future new industries. Prospects for cooperation in logistics and supply chains are increasing as well, with the Tokyo-bound Shinkansen extension opening across the region every March owing to Hokuriku’s advanced maritime transport capacity and its role as a trade hub of the East Sea Rim Area. During this year’s Exchange, the two sides focused their discussions on government policies for stimulating local economies, sharing companies and institutions’ exchange outcomes, and cooperation in logistics and tourism. They also discussed issues regarding the two countries’ key industries, supply chains, and future new industries, such as textiles, chemicals, medical equipment, nursing, port logistics, and local tourism, followed by exchanges between businesses and local government authorities. MOTIE plans to deepen cooperation with Japan’s major local government bodies and give strong support to the business cooperation between the two countries’ firms through the upcoming Korea-Kyushu economic cooperation meeting and the Pan-Yellow Sea Rim Economy and Technology Exchange slated for November 2024 in Ōita Prefecture, Japan. Meanwhile, the ministry aims to continue cooperation with METI by utilizing both high- and working-level channels over a wide range of areas, including industries, supply chains, decarbonization, new energy, and multilateral trade.   date2024-08-26

Trade Minister Cheong discusses economic cooperation with head of major ASEAN think tank

Minister for Trade Inkyo Cheong met Tetsuya Watanabe, President of the Economic Research Institute for ASEAN and East Asia (ERIA), today at the Korea Chamber of Commerce and Industry (KCCI) in Seoul and discussed comprehensive measures for economic cooperation. The two sides reviewed economic issues in trade, investment, supply chains, and clean economy covered during the Korea-ASEAN Summit 2023 and agreed to continue efforts on widening cooperation for the successful management of the Korea-ASEAN Trade and Economic Think Tank Dialogue in preparation to be launched next year. A major ASEAN think tank alongside the Korea Institute for International Economic Policy (KIEP), ERIA was established on the occasion of the East Asia Summit in 2007 as an independent research institute and operates a research network spanning 16 countries. Expressing appreciation for ERIA’s across-the-board contribution to expanding the Korea-ASEAN cooperation in terms of economy, society, and culture, Trade Minister Cheong noted that ASEAN has become Korea’s second largest trade partner and direct investment destination. He proposed that they continue joint efforts as ASEAN’s leading think tanks to seek detailed cooperative measures for furthering Korea-ASEAN ties. President Watanabe agreed, saying that the Korea-ASEAN Solidarity Initiative (KASI), which Korea announced last year, has come to be a new milestone and catalyst in the Korea-ASEAN cooperation and articulated hope for uncovering more joint economic projects that incorporate Korea’s strengths while addressing ASEAN’s industrial demands. Meanwhile, Trade Minister Cheong introduced the ministry’s plan to launch the Korea-ASEAN Trade and Economic Think Tank Dialogue, a platform for engaging think tank experts of Korea and ASEAN countries in discussions on policies for ASEAN’s economic development and requested strong support and participation from ERIA in view of its rich experience in ASEAN economic research.  President Watanabe conveyed appreciation towards Korea’s efforts for spurring ASEAN’s economic development and assured that ERIA will also give full measure to successfully launching the aforementioned Korea-ASEAN thinktank dialogue.   Lastly, the trade minister asked for ERIA’s interest and support with regard to Korea’s hosting the Asia-Pacific Economic Cooperation (APEC) Summit 2025.   date2024-08-26

MOTIE to take the initiative over digital, AI, and supply chain cooperation in APEC

The Ministry of Trade, Industry and Energy (MOTIE) gained members’ active support to its proposed projects in the area of supply-chain cooperation and digital and AI in the APEC on the margin of the 3rd Committee on Trade and Investment Meeting (CTI3) and its sub-fora, which were held on August 16–26 in Lima. At these meetings, Korea obtained final approval on the project on establishing sustainable supply chains. In addition, Korea got consensus from the members to the concept note for holding a policy dialogue on digital economy and AI at the Digital Economy and Steering Group (DESG), which is expected to be notified in late August. With these projects, MOTIE will seek cooperation such as sharing best practices for sustainable supply chains across the APEC region, and create tangible outcomes with regard to establishing an AI cooperative system by taking lead of the digital order and establishing digital trade rules. MOTIE stated that “These projects have laid the foundation for harmonizing Korea’s trade interests with the APEC Putrajaya Vision 2040, where APEC members aim to enhance cooperation in the areas of trade and investment, innovation and digital economy, and inclusive and sustainable growth, and leading practical cooperation on key trade agendas including environment, supply chain cooperation, and digital trade.”   date2024-08-26

Trade Minister meets Gabon's Minister of Industry

Minister for Trade Inkyo Cheong met François Mbongo Rafemo Bourdette, the Minister of Industry for the Gabonese Republic, on August 23 in Seoul and exchanged views on bilateral trade, investment, and industrial cooperation. date2024-08-23

Korea-Paraguay Trade and Investment Promotion Framework (TIPF)

Minister for Trade Inkyo Cheong met Paraguayan Minister of Industry and Commerce Javier Gimenez on August 23 in Seoul, where they signed the Korea-Paraguay Trade and Investment Promotion Framework (TIPF) agreement and discussed measures for industrial and energy cooperation as well as for progressing forward the Korea-MERCOSUR Trade Agreement (TA). They also decided to further discussions on future cooperation agendas through the Trade and Investment Cooperation Committee under TIPF. date2024-08-23

Korea and Gabon discuss trade and industrial cooperation

Minister for Trade Inkyo Cheong met François Mbongo Rafemo Bourdette, the Minister of Industry for the Gabonese Republic, on August 23 in Seoul and exchanged views on bilateral trade, investment, and industrial cooperation. With the highest per capita income in Central Africa, Gabon is a member of the Organization of the Petroleum Exporting Countries (OPEC) and is rich in resources like crude oil and manganese. Korea and Gabon have maintained mutually beneficial cooperative ties for over 60 years since the establishment of diplomatic relations in 1962.  Trade Minister Cheong remarked that Korea is Gabon’s third largest export market, while Gabon is Korea’s second leading African crude oil supplier and contributor to stabilizing Korea’s energy supply. To further economic cooperation going forward, he suggested that the two sides sign the Trade and Investment Promotion Framework (TIPF) agreement, for which talks are ongoing. Expressing interest in how Korea achieved rapid development through invigorating foreign direct investment (FDI) and fostering industrial complexes, Minister François Mbongo Rafemo Bourdette proposed that the two countries seal a memorandum of understanding (MOU) on industrial cooperation for nurturing an industrial cluster in Port-Gentil, Gabon’s second largest city.  The trade chief responded that Korea’s economic development and competitive manufacturing industry are founded on industrial complexes and Korean Free Economic Zones (KFEZs), suggesting that they share industrial complex policies and management knowhow to further their bilateral industrial cooperation.   date2024-08-23

Korea and Paraguay launch first intergovernmental cooperation channel for trade, industry and energy

Korean Minister for Trade Inkyo Cheong met Paraguayan Minister of Industry and Commerce Javier Gimenez on August 23 in Seoul, where they signed the Korea-Paraguay Trade and Investment Promotion Framework (TIPF) MOU. Alongside Argentina, Brazil and Uruguay, Paraguay is a full member of the MERCOSUR common market, the world’s fifth largest economic bloc. Paraguay is renowned for its agreeable business climate that offers affordable wages, lower tax rates and rules of origin advantages compared to other MERCOSUR countries, and enjoys a relatively higher economic growth rate than other South American nations.  Notably, Korean automobiles accounted for eight (roughly 40 percent) of Paraguay’s top twenty best-selling new cars in 2023. Moreover, a Korean automotive cable manufacturer operating in Paraguay achieved remarkable success by emerging as Paraguay’s largest local car parts manufacturer and exporter. Against this backdrop, it is anticipated that Korean businesses can look forward to expanding their presence in the Paraguayan market, which can serve as a springboard into manufacturing markets in MERCOSUR as well. During the Korea-Paraguay trade ministers’ meeting immediately following the TIPF MOU signing ceremony, the two ministers exchanged their views on measures for TIPF utilization, industrial and energy cooperation and advancing the Korea-MERCOSUR Trade Agreement (TA). They also decided to hold further discussions on details regarding future cooperation agendas through the Trade and Investment Cooperative Council (TICC) under the TIPF. Trade Minister Cheong stated that the cooperation channel established with Paraguay on this occasion is meaningful as the first bilateral foothold for kicking the two countries’ economic cooperation into high gear across the areas of trade, industry and energy. He also expressed his expectation that the TIPF will serve as the principal platform for identifying and pursuing tangible joint projects.   date2024-08-23

Trade Minister holds press briefing on Trade Policy Roadmap

Minister for Trade Inkyo Cheong held a press briefing on the Trade Policy Roadmap announced on August 22 incorporating the past two years’ trade policy outcome assessments and trade policy response to future trade landscape changes. date2024-08-22