Ministry of Trade, Industry and Energy

MOTIE Holds the First Council to Support Export Investment in 2014

- Company A : ㅇ Ships are classified as foreign ships once they pass the export customs. Workers must report to the authorities every time they go onboard to finish jobs. ⇒ Difficult to react swiftly to emergencies, and can cause delayed delivery   - Company B : ㅇ Insurance policy of Ksure (mid/long term export insurance, financial insurance on overseas business, etc.) is not approved as official collateral for domestic banks (unlike global banks) when loans for overseas PJT are needed ⇒ Companies under stress due to additional interest rate (0.7~1.5%) - Company C : ㅇ Agencies that provide export support rarely share information on trade statistics (local autonomous bodies, trade associations, KOTRA, etc.) ⇒Makes it difficult for relevant agencies to implement support policies catering to each company   - Company D : ㅇ Sight protective spectacles and contact lens are classified as items for medical purposes and are banned from being sold in online shopping malls ⇒ Overseas consumers can purchase them in global online shopping malls, but cannot in domestic online malls         Actually, the issues considered to be a “thorn in the side” of these companies that were raised at the 2nd meeting to promote trade investment (last July) were recently completely resolved. For instance, in the past, companies that exported services such as software had to issue confirmation of export/import and export result certificate from relevant associations (Korea International Trade Association, Korea Shipowners’ Association, etc.) and foreign exchange banks, respectively, in order to receive trade financing. But the law (Regulations governing international trade) was revised last September, enabling one-stop issuance of the certificates as of March 1st. In addition, the meeting also discussed detailed measures to achieve “Creation of new growth engine for export,” the implementation direction of which was proposed at the 2014 MOTIE report on Feb. 24th. Facilitation measures such as dev date2014-03-05

Export and Import Trends in February 2014

More specifically, exports of wireless communication devices increased thanks to growing demand in emerging markets, exports of semiconductors increased thanks to strong memory prices, and exports of IT devices and automobiles increased thanks to the product competitiveness and improved brand recognition enjoyed by Korean companies. On the other hand, exports of petroleum products and LCD devices were down due to the continued decline in the price of panels related to instability in supply and demand, as well as exports of ships due to delays in delivery. - Export growth by item (%): wireless communication devices 34.5, semiconductors 14.5, automotive products 9.1, steel 0.4, general machinery -2.4, petrochemicals -6.8, ships -7.0, LCD -11.1, petroleum products -15.4 By nation, exports to the EU (expansion of exports of wireless communication devices and consumer electronics), the ASEAN countries (growing exports of ships), and China (strong sales in capital goods such as general machinery) all increased. However, the sharp drop in ship exports resulted in a temporary decrease of exports to the US and Latin America. In addition, the weak Yen continues to drive down exports to Japan. In terms of the F5 nations, exports to Turkey and Brazil picked up, while exports to South Africa and Indonesia suffered. - Export growth by nation (%): ASEAN 15.1, EU 10.6, China 3.8, US -6.7, Latin America - 11.9, Turkey 29.3, Brazil 24.5, India 1.4, Indonesia -34.9, South Africa -69.1 date2014-03-04

MOTIE Hold Meeting on Recent Export Conditions by Business Sectors

The Ministry of Trade, Industry and Energy (Minister: Yoon Sang-jick) held a meeting on „Import/Export trend review for different business sectors,‟ hosted by Vice Minister for Industry and Technology Kim Jae-hong. The meeting was held at the Korea Trade Insurance Corporation (K-Sure) (Conference hall on the 11th floor) on February 18th, 2014. Twenty officials from 11 organizations representing different business sectors and export-related organizations participated in the meeting. * Organizations representing different business sectors: the Korea Offshore & Shipbuilding Association, the Korea Semiconductor Industry Association, the Korea Association of Machinery Industries, the Korea Display Industry Association, the Korea Automobile Manufacturers Association, the Korea Electronics Association, the Korea Petrochemical Industry Association, the Korea Federation of Textile Industries, the Korea Petroleum Association, the Korea Iron & Steel Association, the Korea Auto Industries Coop. Association * Export related organizations: K-Sure and Kotra It is expected that exports of most of Korea‟s major export items this year will show growth thanks to the economic recovery of advanced nations like the US and European countries. * Economic growth prospect for 2014 (IMF, %): Global 3.7, US 2.8, EU 1.0, China 7.5, Japan 1.7 * 2014 prospect: (Export) USD 595.5 billion, 6.4% ↑, (Trade balance) USD 33.5 billion surplus Not only exports to advanced nations but also indirect exports through China (IT devices), Vietnam (Wireless communication devices), and Indonesia (Textile) will grow this year. However, our exports can be affected if the crisis in emerging markets caused by the US tapering* is reflected in the real economy. In addition, the strong Won/weak Yen and expanding protectionism pose threats to our exports. To ensure that exports continue to serve as an engine for our economic growth given the harsh external conditions, the meeting reviewed recent trends of 13 major export items that represent around 80 percent of our exports, and also paid attention to the difficulties of the field. Vice Minister Kim Jae-hong stressed, “We had a smooth start in exports this year, with average daily exports in January rising 8.9 percent year on year. However, as the external conditions are still unstable with the financial crisis in emerging markets and the weak Yen, affected organizations and businesses should strive to expand exports by SMEs and high potential enterprises.” Deputy Director Song Jeong-hoon, Export & Import Division (☎ 044-203-4042) date2014-02-19

Korea’s 2014 ICT Product Exports Begin with Stable Figures

date2014-02-11

Export and Import Trends in January 2014

○ 2011 - Lunar New Year Holidays : Feb 2 (Wed) to 4 (Fri) - January Export Growth (%) : 44.7 ○ 2012 - Lunar New Year Holidays : Jan 22 (Sun) to 24 (Tue) - January Export Growth (%) : -7.3 ○ 2013 - Lunar New Year Holidays : Feb 9 (Sat) to 11 (Mon) - January Export Growth (%) : 10.9 ○ 2014 - Lunar New Year Holidays : Jan 30 (Thurs) to Feb 1 (Sat) - January Export Growth (%) : -0.2       In terms of detailed export trends, exports to EU countries increased significantly consistent with their economic recovery, while exports to Asian countries and China also increased thanks to the solid sales of IT products. However, exports to Japan continued to decrease commensurate to the weak Yen and exports to Latin American countries. - Export growth by Nation (%): EU 24.7, ASEAN 9.9, China 0.8, USA -2.0, Latin America - 13.6, Japan -19.8 - Growth of exports to Japan (%): 2013 2Q -13.6 → 3Q -10.2 → 4Q -8.9 → January 2014 - 19.8 By item, exports of IT products increased thanks to strong sales of semiconductor products (continuing strong memory chip prices) and wireless communication devices (expanded market dominance), while exports in the automotive industry (decrease in operating days), LCD industry (decrease in panel prices), petroleum products (decrease in unit prices of export products) and shipbuilding industry (delays in delivery) decreased. In terms of detailed import trends, imports of gas increased due to an increase in demand for fuels used for power generation and heating, and imports of steel and petroleum products also increased, while the total amount of imports decreased due to reduced imports of crude oil as a result of a drop in the import volume. - Import growth in 5 major items (5): Steel 20.7, petroleum products 20.7, gas 17.8, coal 7.0, crude oil -4.4 - Import Growth by Use (January 1 to 20, % compared to the same period in the previous year): Raw materials 6.2, Capital goods 2.8, Consumer goods 0.5 - Crude Oil Import Price and Volume date2014-02-04

2013 Foreign Direct Investment (FDI) Trends

The Foreign Direct Investment (FDI) trend in Korea shows a positive growth compared to the trends of the last five years. The FDIs fell slightly in 2013 from a year earlier due to a decrease in investments from Japan following the weaker Yen and other factors. The amount of FDI on a report basis was 14.55 billion USD, down by 10.7% from 16.29 billion USD compared to the same period in the previous year, but up 9.9% compared to the 5-year average, which is 13.24 billion USD. The amount of FDI on an arrival basis was 9.68 billion USD, down by 9.4% from 10.69 billion USD compared to the same period last year, but up 27.9% compared to the 5-year average of 7.57 billion USD. FDI trends by sector on a report basis are as follows: - (By nation) Investments from the USA (3.53 billion USD, down 4.1%) and Japan (2.69 billion USD, down 40.8%) decreased, while investments from European countries (4.8 billion USD, up 76.9%) increased. - (By industry) Investments in the service sector (9.85 billion USD, up 2.6%) increased, while those in manufacturing sector (4.65 billion USD, down 23.8%) decreased. - (By type) Mergers and acquisitions (4.98 billion USD, up 32.8%) increased, while greenfield investments (9.57 billion USD, down 23.7%) decreased. Deputy Director Wi Seung-bok, Foreign Investment Promotion Division(☎ 044-203-4082) date2014-01-29

2013 (December & Full-Year) Trends and 2014 Outlook for Exports and Imports

Export & Import Trends in December 2013 Total exports were USD 48.1 billion in December, showing year-on-year growth of 7.1%, while imports were USD 44.4 billion with year-on-year growth of 3.0%. The trade surplus was USD 3.7 billion. Exports grew significantly year-on-year in December, fueled by the global economic recovery and the higher number of working days (1.5 days). Imports as well as exports are growing, and a trade surplus has been recorded for 23 consecutive months. * Export growth rate by region (%): US 13.2%, China 8.4%, EU 2.0%, Japan -11.6% and ASEAN -11.9% * Export growth rate by item (%): Ships 50.3%, semiconductors 20.0%, cars 13.2%, petrochemical 7.5%, general machinery 3.1%, steel -0.1%, mobile devices -3.1%, LCD -16.9% and petroleum products -21.0% Of five major import items, petroleum products and steel imports grew, while crude oil and gas imports decreased. Looking at imports by use category, imports of raw materials, capital goods and consumption goods all grew. * Import growth rate of five items (%): Petroleum products 21.7%, steel 16.5%, coal 3.4%, gas -7.7% and crude oil -10.1% * Import growth rate by use (As of December 1 to 20, 2012, compared to the same period of the previous year, %): Raw materials 11.7%, capital goods 8.4% and consumption goods 8.6%. Korea recorded a trade surplus of USD 44.2 billion in 2013, thanks to exports of USD 559.7 billion that showed year-on-year growth of 2.2% and imports of USD 515.5 billion that showed a year-on-year decrease of 0.8%. <2013 Export & Import Results (Estimated based on customs data)> (Unit: USD 0.1 billion, %) 2012 ○ 1H - Export (Rate of Increase/ Decrease) : 2,750(0.5) - Import (Rate of Increase/ Decrease) : 2,641(2.3) - Trade Balance : 109 ○ 2H - Export (Rate of Increase/ Decrease) : 2,729 (-3.1) - Import (Rate of Increase/ Decrease) : 2,555 (-4.0) - Trade Balance : 174 ○ Annual - Export (Rate of Increase/ Decrease) : 5,479 (-1.3) - Import (Rate of Increase/ Decrease) : 5,196 (-0.9) - Trade Balance : 283     2013 ○ 1H - Export (Rate of Increase/ Decrease) : 2,765(0.6) - Import (Rate of Increase/ Decrease) : 2,565 (-2.9) - Trade Balance : 200 ○ 2H - Export (Rate of Increase/ Decrease) : 2,832(3.8) - Import (Rate of Increase/ Decrease) : 2,591(1.4) - Trade Balance : 241 ○ Annual - Export (Rate of Increase/ Decrease) : 5,597(2.2) - Import (Rate of Increase/ Decrease) : 5,155 (-0.8) - Trade Balance : 442           Exports to China have been robust, while exports to the US and the EU have been improved thanks to the economic recovery. However, Exports to ASEAN countries including Indonesia are decreasing. <Five Export Items and Their Percentages in 2013> (Unit: USD 1 million, %) ○ 2012 Amount and Percentage of Exports - Petroleum date2014-01-14

IT Trade Figures for August

2013 ○ August Exports - All industries : $46.37 billion (7.7%) - IT industry : $14.5 billion (11.4%) Imports - All industries : $41.45 billion (0.8%) - IT industry : $6.36 billion (2.6%) Trade balance - All industries : $4.92 billion - IT industry : $8.13 billion   ○ First Eight Months Exports - All industries : $368.77 billion (1.7%) - IT industry : $109.78 billion (10.8%) Imports - All industries : $341.37 billion (-1.7%) - IT industry : $52.33 billion (3.5%) Trade balance - All industries : $27.4 billion - IT industry : $57.46 billion     2012 ○ August Exports - All industries : $43.05 billion (-6.0%) - IT industry : $13.02 billion (0.0%) Imports - All industries : $41.12 billion (-9.4%) - IT industry : $6.2 billion (-12.7%) Trade balance - All industries : $1.93 billion - IT industry : $6.82 billion   ○ First Eight Months Exports - All industries : $362.69 billion (-1.5%) - IT industry : $99.04 billion (-4.2%) Imports - All industries : $347.19 billion (-0.2%) - IT industry : $50.55 billion (-7.1%) Trade balance - All industries : $15.49 billion - IT industry : $48.49 billion       Exports gained 11.4 percent year on year to $14.5 billion, sustaining an upward trend for the twelfth consecutive month. Most notably, exports of mobile phones, semiconductors and televisions grew more than 20 percent from the previous year. Brisk sales of smartphones and components boosted outbound shipments of mobile phones. Exports of semiconductors continued to see growth for the eleventh month in a row reaching a record value of $4.99 billion. Outbound shipments of televisions jumped 40.7 percent to $880 million on the back of robust sales of premium products such as smart TVs. Demand for ultra-high definition (UHD) TVs introduced in June also contributed to this gain. However, exports of display panels along with computers and related devices continued to show negative growth. ○ Value of Exports - Mobile Phones : $1.95 billion - Household Devices : $400 million - Semiconductors : $4.99 billion - Display Panels : $2.47 billion - Computers and Related Devices : $580 million - Televisions : $880 million ○ Year-on-Year Growth - Mobile Phones : 28.5% - Household Devices : 6.4% - Semiconductors : 22.0% - Display Panels : -12.7% - Computers and Related Devices : -17.7% - Televisions : 40.7%       ○ Value of Exports - China : $7.44 billion - Japan : $550 million - United States : $1.36 billion - European Union : $1.13 billion - ASEAN : $1.84 billion - Oceania : $70 million - Latin America : $900 million - Middle East : $300 million   ○ Year-on-Year Growth - China : 9.6% - Japan : -15.0% - United States : 32.0% - European Union : -3.1% - ASEAN : 28.4% - Oceania : -12.1% - Latin America : 21.8% - Middle East : -7.2%         Meanwhile, IT imports rose 2.6 percent from a year earlier to $6.36 billion. While demand for semiconductors, computers and related devices, printed circuit boards and mobile phones strengthened, imports of flat display panels decreased. Although imports from Japan, th date2013-09-12

Trade Figures for August

The Ministry of Trade, Industry and Energy has released its trade figures for August. The nation posted a $4.92 billion trade surplus, marking the 19th straight month in the black as export growth continued to show signs of recovery. 2012 ○ August - Exports : $43.05 billion (-6.0%) - Imports : $41.12 billion (-9.4%) - Trade Balance : $1.93 billion &nbsp; 2013 ○ July - Exports : $45.84 billion (2.6%) - Imports : $43.3 billion (3.2%) - Trade Balance : $2.54 billion ○ August - Exports : $46.37 billion (7.7%) - Imports :$41.45 billion (0.8%) - Trade Balance : $4.92 billion &nbsp; ○ First eight months - Exports : $368.77 billion (1.7%) - Imports : $341.37 billion (-1.7%) - Trade Balance : $27.4 billion &nbsp; &nbsp; - Year-on-year growth rates shown in parentheses. - Figures for August are based on tentative customs clearance data. &nbsp; &nbsp; &nbsp; ○ Value - Ships : $3.54 billion - Wireless Communications Devices : $2.19 billion - General Machinery : $3.38 billion - Petrochemicals : $4.21 billion - Steel : $2.71 billion - Semiconductors : $5.0 billion - Automobiles : $3.63 billion - Petroleum Products : $4.57 billion - LCD Devices : $2.17 billion - Textiles : $1.21 billion - Household Appliances : $1.45 billion - Automobile Parts : $2.1 billion - Computers : $680 million &nbsp; ○ Growth Rate - Ships : 26.2% - Wireless Communications Devices : 25.9% - General Machinery : -5.9% - Petrochemicals : 12.1% - Steel : -5.9% - Semiconductors : 22.1% - Automobiles : 43.9% - Petroleum Products : -6.9% - LCD Devices : -12.9% - Textiles : -4.2% - Household Appliances : 26.0% - Automobile Parts : 8.3% - Computers : -8.7% &nbsp; &nbsp; - The above figures are based on customs clearance data for the first 20 days of August and as such are only tentative. &nbsp; &nbsp; Exports to Key Trading Partners for August ○ Growth Rate - China : 14.5% - United States : 12.6% - Japan : -13.2% - European Union : 0.9% - ASEAN : 17.8% - Middle East : -8.7% - Latin America : 33.5% - Oceania : 122.2% &nbsp; ○ Percentage of All Exports - China : 28.5% - United States : 9.7% - Japan : 6.0% - European Union : 8.0% - ASEAN : 14.7% - Middle East : 4.0% - Latin America : 6.6% - Oceania : 5.7% &nbsp; &nbsp; &nbsp; &nbsp; <p class=" date2013-09-03

IT Trade Figures for July

2013 ○ July Exports - All industries : $45.84 billion (2.6%) - IT industry : $14.07 billion (10.1%) Imports - All industries : $43.13 billion (2.7%) - IT industry : $6.75 billion (6.1%) Trade balance - All industries : $2.71 billion - IT industry : $7.32 billion &nbsp; ○ First Seven Months Exports - All industries : $322.49 billion (0.9%) - IT industry :$95.3 billion (10.8%) Imports - All industries : $299.75 billion (-2.1%) - IT industry : $45.95 billion (3.6%) Trade balance - All industries : $22.74 billion - IT industry : $49.35 billion &nbsp; &nbsp; &nbsp; 2012 ○ July Exports - All industries : $44.67 billion (-8.7%) - IT industry : $12.78 billion (-1.7%) Imports - All industries : $41.98 billion (-5.2%) - IT industry : $6.36 billion (-4.9%) Trade balance - All industries : $2.69 billion - IT industry : $6.42 billion &nbsp; ○ First Seven Months Exports - All industries : $319.64 billion (-0.9%) - IT industry : $86.03 billion (-4.8%) Imports - All industries : $306.08 billion (1.2%) - IT industry : $44.35 billion (-6.2%) Trade balance - All industries : $13.57 billion - IT industry : $41.67 billion &nbsp; - Figures for the year 2013 are tentative. - Year-on-year growth rates shown in parentheses. &nbsp; &nbsp; &nbsp; ○ Value of Exports - Mobile Phones : $1.88 billion - Household Devices : $390 million - Semiconductors : $4.8 billion - Display Panels : $2.36 billion - Computers and Related Devices : $640 million - Televisions : $690 million ○ Year-on-Year Growth - Mobile Phones : 31.2% - Household Devices : -3.8% - Semiconductors : 21.7% - Display Panels : -15.1% - Computers and Related Devices : -11.5% - Televisions : 19.8% &nbsp; &nbsp; &nbsp; &nbsp; Exports to the United States, the ASEAN region and China showed positive growth, while outbound shipments to Japan and the European Union were on a downward trend. Although strong demand for mobile phones boosted exports to the United States, Japan saw a decline due to a weak Japanese yen and sluggish sales of major IT products. ○ Value of Exports - China : $7.24 billion - Japan : $640 million - United States : $1.45 billion - European Union : $980 million - Oceania : $60 million - Latin America : $820 million - Middle East : $270 million &nbsp; ○ Year-on-Year Growth - China : 10.4% - Japan : -23.6% - United States : 37.3% - European Union : -2.5% - Oceania : -16.2% - Latin America : 6.0% - Middle East : -19.7% &nbsp; &nbsp; &nbsp; &nbsp; Meanwhile, IT imports gained 6.1 percent from a year earlier to $6.75 billion. While inbound shipments of semiconductors, printed circuit boards and mobile phones rose, imports of flat display panels and computers and related devices declined. With the exception of Japan, impo date2013-08-09