Ministry of Trade, Industry and Energy

Trade Minister visits Yantai Industrial Park

Minister for Trade Inkyo Cheong was the first high-level Korean government official to visit the Yantai Industrial Park in China, on August 21, and discussed measures for invigorating Korea-China industrial complex cooperation in view of next year marking the 10th anniversary of the two countries’ FTA’s entry into force, and gathered opinions from Korean firms on local business challenges. date2024-08-22

Korea announces Trade Policy Roadmap for enhancing FTA network and economic security

The Korean government held the 44th Ministerial Meeting on Current State Affairs on August 22, chaired by Prime Minister Han Duck-soo, where related ministries jointly announced the Trade Policy Roadmap (“Roadmap”) incorporating their assessments on trade policy outcomes of the past two years and policy directions in response to future changes in the global environment. In spite of difficult conditions, the Government has been active in responding to major countries’ legislations and economic policy revisions to mitigate business uncertainties, achieving all-time high exports and foreign direct investment (FDI) of USD 683.6 billion (as of 2022) and $32.7 billion (as of 2023), respectively, based on comprehensive summit-level sales diplomacy. Just last year alone, Korea sealed five trade agreements and inked the 23rd Trade and Investment Promotion Framework (TIPF) agreement, while bolstering its role with regard to supply chains, digital, clean economy and their new trade rules, including the inaugural chairmanship for the Crisis Response Network (CRN) launched under the Indo-Pacific Economic Framework for Prosperity (IPEF). However, the international trade order is undergoing substantial changes. The multilateral trade system has weakened noticeably, and major countries are shifting closer toward protectionism in the name of economic security, while the super election year is seeing an escalation of geopolitical risks. In view of these paradigm shifts, the Government has established the Roadmap based on cross-ministerial consultations and industry and academia opinions to launch an organized trade policy with a mid-to- long term outlook. The Roadmap lays out key policy tasks as follows. First, the goal is to expand Korea’s Free Trade Agreement (FTA) network to cover an unprecedented 90 percent of the globe in terms of gross domestic product (GDP). To this end, the Government plans to enter into Economic Partnership Agreements (EPAs) with key Asian and African countries rich in resources and growth potential, then extend the trade network to nearby untapped countries.  A southwest trade belt is to be established through EPA negotiations with countries like Mongolia, Pakistan, and Bangladesh, while also laying the groundwork for cooperation with Africa through EPA negotiations with countries like Tanzania and Morrocco. For the Middle Eastern and Latin American countries with which Korea has already concluded FTA deals, swift steps will be taken toward the Agreements’ entry into force. Across the Indo-Pacific region, Korea will work on weaving a more tightly knit trade network through multi-level FTAs and upgrading the existing FTAs. Efforts will be made to expedite the resumption of the Korea-China-Japan FTA negotiations and launching of bilateral FTA negotiations with Malaysia and Thailand. For the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), communication channels with various domestic stakeholders will be activated to build social consensus. Meanwhile, Korea intends to heighten cooperation with the Global South—ASEAN, India, Middle East, Central Asia, Africa, and Latin America—to diversify Korea’s supply chains for export, production, and critical minerals. Economic and industrial cooperation via multilateral platforms, such as the historic Korea-Africa Summit and K-Silkroad, will be strengthened. Simultaneously, the Government will increase trade financing, overseas certification support, and establish more Korea Trade-Investment Promotion Agency (KOTRA) trade centers. With resource-rich nations like Kazakhstan and Uzbekistan, Korea will boost its minerals cooperation partnership. Moreover, the Government will launch an official development assistance (ODA) program tying into homegrown industries in a way that maximizes the interests of both Korea and the Global South countries, so as to establi date2024-08-22

Trade Minister attends MOU signing ceremony in Jinan

Minister for Trade Inkyo Cheong attended the ceremony on August 20 in Jinan for the signing of MOUs and agreements on medical equipment export and new investment LOI, held on the sidelines of the Korea-Shandong Economic and Commercial Cooperation Exchange. date2024-08-22

Trade Minister attends Korea-Shandong Economic and Commercial Cooperation Exchange

Minister for Trade Inkyo Cheong attended the Korea-Shandong Economic and Commercial Cooperation Exchange on August 20 in Jinan with the participation of 250 attendees from the two sides’ governments, businesses, and related institutions, where he gave an opening address and exchanged views on various issues concerning decarbonization, bio, supply chain, and logistics, and discussed bilateral economic cooperation measures. date2024-08-22

Trade Minister meets governor of Shandong province

Minister for Trade Inkyo Cheong met Zhou Naixiang, the governor of Shandong province in East China, on August 20 in Jinan to discuss measures for creating a predictable management environment for Korean local businesses and for enhancing Korea-Shandong economic cooperation. date2024-08-22

Trade Minister chairs conference with Korean firms locally operating in China

Minister for Trade Inkyo Cheong chaired a conference with Korean firms locally operating in China on August 20 in Jinan with the participation of companies like Samsung Electronics, Hyundai Motor, CJ China, and SK China, and gathered their opinions on business challenges. date2024-08-22

Preview in Seoul 2024

Spokesperson for the Ministry of Trade, Industry and Energy (MOTIE) Wonju Lee attended the 24th Preview in Seoul (PIS) opening ceremony on August 21 at COEX and toured the exhibition. PIS 2024 showcased a total of 888 booths set up by 576 companies specializing in materials, textile machines, and fashion tech, as well as the participation of relevant associations including the Korea Federation of Textile Industries (KOFOTI) and Korea Fashion Industry Association.   date2024-08-21

Korea and China resume in-person Korea-Shandong Economic and Commercial Cooperation Exchange in 5 years

Minister for Trade Inkyo Cheong is visiting Jinan, the capital city of Shandong province in East China, through August 20–21 to attend the seventh Korea-Shandong Economic and Commercial Cooperation Exchange, where he met with Zhou Naixiang, the governor of Shandong province, and discussed measures for enhancing bilateral economic cooperation. Among China’s 31 provinces and cities, Shandong province is home to a record number of roughly 8,600 Korean businesses and ranks as one of Korea’s top three trade partners with last year’s trade volume reaching USD 37.8 billion. The province is also a key link in the Korea-China supply chain for automotive parts and urea. The Ministry of Trade, Industry and Energy (MOTIE) and the Shandong Provincial People's Government have jointly hosted the Korea-Shandong Economic and Commercial Cooperation Exchange on a regular basis since its launch in 2016 and this seventh convening is the first in-person exchange to take place in five years since 2019. On August 20, Trade Minister Cheong and Shandong Governor Zhou Naixiang discussed measures for creating a predictable management environment for Korean investors and promoting cooperation across the Korea-Shandong supply chain, Korea-China industrial complexes (Saemangeum and Yantai), and new industries like eco-friendly and bio.  In the following exchange session, 250 attendees from the two sides’ governments, businesses, and related institutions gathered to exchange views on a wide range of areas with regard to Korea-Shandong economic cooperation, including decarbonization, bio, supply chains, and logistics.  In his congratulatory address, Trade Minister Cheong highly appraised Shandong province’s contribution to the Korea-China economic cooperation, requesting that it play an active role in the two countries’ economic relations going forward. Moreover, the two countries’ companies sealed 20 memorandums of understanding (MOUs) and agreements, including the exporting contract on medical equipment and the exchanged letters of intent (LOI) on new investments. As the first high-level official from the Korean government to visit the Korea-China Yantai Industrial Park, the trade chief tours the site on August 21 to encourage the Korean tenant businesses. Launched as a pilot project under the Korea-China Free Trade Agreement (FTA), the two countries are currently operating Korea-China Economic Cooperation Complexes in several locations, including Saemangeum and Yantai. In view of next year marking the 10th anniversary of the Korea-China FTA’s entry into force in 2015, Trade Minister Cheong will address measures to further invigorate Korea-China industrial complex cooperation and gather issues faced by Korean companies. MOTIE will continue to support Korean firms’ business activities in China via cooperation channels with major local Chinese authorities. It also plans to resolve Korean firms’ business challenges and push for supply chain and economic cooperation based on coordination with the Chinese Central People's Government this year through the Korea-China Investment Cooperation Committee and the Joint Commission on the Korea-China FTA.   date2024-08-20

Briefing session held in Jakarta to support Korean companies’ regulatory compliance in Indonesian market

Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) held a briefing on August 9 in Jakarta, Indonesia, to Korean firms operating in the local Indonesian market to enhance their response capacity and understanding on Indonesia’s technical regulations.   With the world’s fourth largest population, Indonesia is one of Korea’s largest consumer markets where many Korean firms are currently active. However, amid tightening regulations on requirements for halal certification, halal labeling, and standards certification, it is expected that local business challenges will increase for Korean firms in the Indonesian market. To address these issues, the briefing consisted of in-person sessions by regulatory authorities from Indonesia’s Ministry of Industry, state-run halal certification agency (BPJPH), and state-run inspection and certification institution (SUCOFINDO) on technical regulations and recent amendments, followed by a Q&A session. Companies also received briefings on halal certification, TKDN (government policy mandating locally operating companies to use a minimum percentage of Indonesia’s homegrown components), and the Indonesian National Standard (SNI) product certification. Under its FTA TBT one-stop assistance program, KATS currently runs a task force (TF) for local regulatory support in major export destinations to which Korea’s exports are rising but whose technical regulatory information may be difficult to obtain. Through the program, KATS swiftly monitors domestic companies’ business issues to offer tailored consulting services, while also collecting and providing information on regulatory amendments and other relevant changes through networking channels established with local regulatory authorities. Director General Lee Chang-soo, in charge of technical regulatory response, stated that briefing sessions will also be held in China, Vietnam, and India later this year, with aim to help locally operating Korean firms’ technical regulatory compliance and to establish a stable business environment.   date2024-08-09

Korea’s exports rise 13.9% in July

The Ministry of Trade, Industry and Energy (MOTIE) announced on August 1 that Korea’s exports for July 2024 increased 13.9 percent year-on-year to USD 57.5 billion, the second highest in record for the month. Imports grew 10.5 percent to $53.9 billion and the trade balance stood at a surplus of $3.6 billion. Exports maintained their upward trajectory for the 10th consecutive month.  By item, 11 out of 15 major export items advanced, with the total export value (up 44.0 percent to $15.6 billion) of information technology (IT) items climbing for the ninth consecutive month. Notably, semiconductor exports logged $11.2 billion (up 50.4 percent), their growth rate surpassing the 50 percent mark for the fourth consecutive month. The export of displays (up 2.4 percent to $1.7 billion), computers (up 61.6 percent to $1.2 billion), and wireless communication devices (up 53.6 percent to $1.5 billion) achieved growth for the 12th, seventh, and fifth consecutive month, respectively. Automobile exports (down 9.1 percent to $5.4 billion) were impacted by major carmakers’ summer holidays landing in the month, but automobile parts (up 9.5 percent to $2.2 billion) enjoyed growth, snapping the three-month losing streak. General machinery exports recorded an all-time high for July, moving up 12.5 percent to $4.9 billion and turning to an expansion for the first time in three months. Petroleum products (up 16.7 percent to $4.5 billion) and petrochemicals (up 18.5 percent to $4.2 billion) surged for the fifth and fourth consecutive month, respectively. Meanwhile, bio-health (up 29 percent to $1.2 billion), textiles (up 1.6 percent to $0.9 billion), and home appliances (up 9.4 percent to $0.7 billion) all turned to growth after a month of decline. By region, exports to eight out of nine major destinations experienced growth. Exports to China logged $11.4 billion (up 14.9 percent), the highest in 21 months, and entered the $10 billion thresholds for the fifth consecutive month on the backs of rising exports of semiconductors, wireless communication devices, and other IT items amid the IT industry recovery. As a result, the aggregate China-bound export value through January–July this year recorded $74.8 billion (up 6.7 percent) for Korea, the highest among its export destinations for the period. U.S.-bound July exports also set a fresh record for the month at $10.2 billion (up 9.3 percent), renewing monthly highs for the 12th consecutive month. To ASEAN, exports posted $9.9 billion (up 12.1 percent) as major export items in IT, petroleum products, and petrochemicals met strong demand, advancing for the fourth consecutive month alongside those to India (up 13.4 percent to $1.6 billion). Exports to the Middle East jumped 50.6 percent to $2.2 billion, improving for two straight months. Exports to Japan (up 10.1 percent to $2.6 billion), Latin America (up 31.3 percent to $2.6 billion), and the Commonwealth of Independent States (CIS) (up 4.0 percent to $1.0 billion) all switched to an expansion. As for July imports, those of energy expanded 11.9 percent year-on-year to $10.9 billion, driven by increased shipments of crude oil (up 16.1 percent) and gas (up 23.8 percent). Korea’s accumulated trade balance through January–July expanded $51.2 billion year-on-year, amounting to an all-time high since 2018.   date2024-08-01