Ministry of Trade, Industry and Energy

MOU signing ceremony on margins of Korea-Africa Summit 2024

Minister for Trade Inkyo Cheong attended the Korea-Africa memorandum of understanding (MOU) signing ceremony held on the margins of the Korea-Africa Summit 2024 on June 4 at COEX in Seoul, where 11 agreements were signed among the two countries’ governments and companies.   The ceremony was attended by representatives from Rwanda, Tanzania, Mozambique and other African countries’ governments, companies, and public institutions, as well as Korea’s public and private sectors, including KOTRA, K-SURE, and Hyosung Heavy Industries. date2024-06-04

Government to push pan-ministerial measures to assist exports

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 3 the following pan-ministerial measures for supporting exports and resolving issues arising from firms’ different export conditions and growing overseas uncertainties.   First, the Government will strengthen and expand the export infrastructure. It plans to inject a total of KRW 365 trillion in policy funding by adding five billion in export funding on top of the five major banks’ two billion won export preferential loan program, making the total public-private export assistance seven billion won. Moreover, information provision on technical barriers to trade (TBTs) will be strengthened to help resolve business challenges arising from the changing trade environment and companies will be able to check different ministries’ export assistance programs through a one-stop notification system.   Second, the Government will bolster measures for strengthening the export competitiveness of each sector. For instance, the current maximum of charging capacity limited to two LNG vessels for truck-to-ship (TTS) charging will be upped to a maximum of four to meet global demand. Boarding declarations will no longer be required for companies with top track records in trade safety management. Companies importing critical raw materials and items will be allowed to complete their post-import management procedures on these critical items prior to import declarations. Import duties on naphtha, LPG, and the crude oil required for their production will be slashed to zero by the end of this year. Also, standards for domestic animated films will be eased to boost overseas content market expansion through global joint productions.   Lastly, the Government will support SMEs and middle-market exporters’ quantitative and qualitative growth through catered support. Small business owners will receive a 50 percent cut in their service fees when using the overseas market research service provided by Korea Trade-Investment Promotion Agency (KOTRA). Furthermore, tech firms owning leading technologies will be eligible for preferential loans and extra scores in export assistance programs. date2024-06-03

Korea's exports climb 11.7% in May

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 1 that Korea’s export value for May advanced 11.7 percent year-on-year to USD 58.2 billion, while imports dropped 2.0 percent to $53.2 billion. The trade balance stood at a surplus of $5.0 billion.   Korea’s May exports increased for the eighth consecutive month, posting double-digit growth for the second consecutive month. May exports reached the highest in 22 months since July 2022 ($60.2 billion), and the daily average export value accounting for the number of working days amounted to $2.64 billion (up 9.2 percent), a record high in 20 months since September 2022 ($2.66 billion).   By item, exports of 11 out of 15 major items achieved growth. All of information technology items, namely semiconductors, displays, computers, and wireless communication devices, increased for the third consecutive month and their aggregate value also increased for the seventh consecutive month.   Semiconductors reached $11.4 billion (up 54.5 percent) and expanded for the seventh consecutive month, surpassing $11 billion for the second time this year after the initial achievement in March ($11.7 billion).   Displays gained 15.8 percent to this year's all-time high of $1.6 billion, climbing for the 10th consecutive month. Computer exports also logged the highest in 17 months at $1.0 billion (up 4.8 percent) and advanced for the fifth consecutive month, while wireless communication devices (up 9.4 percent) advanced for the third consecutive month.   Automobile exports hit an all-time high for May with $6.5 billion, having entered the $6 billion thresholds every month in 2024 but for February when the Seollal holidays landed this year. Ship exports jumped in three digits (up 108.4 percent) to $2.1 billion and bio health exports (up 18.7 percent) recorded double-digit growth for the second month straight. Petroleum products (up 8.4 percent) increased for the third consecutive month, while home appliances (up 7.0 percent), petrochemicals (up 7.4 percent), and textiles (up 1.6 percent) climbed for the second consecutive month.   By region, exports to China recorded the highest in 19 months at $11.4 billion (up 7.6 percent). With the exception of February, China-bound exports maintained an upward trajectory all throughout this year and the daily average export value gained for the sixth consecutive month.   Exports to the U.S. advanced for the 10th consecutive month and achieved $10.9 billion (up 15.6 percent), a record high for May.   Exports to Latin America (up 25.5 percent) showed the steepest growth among all major destinations and expanded for the fifth consecutive month.   Exports to ASEAN (up 21.9 percent), Japan (up 2.4 percent), India (up 24.8 percent), and the Middle East (up 2.2 percent) all logged growth for the second consecutive month.   In May, Korea's energy imports inched up 0.3 percent to $11.7 billion as those of crude oil (up 6.7 percent) and gas (up 7.1 percent) rose.   The monthly trade balance recorded the highest surplus in 41 months and the accumulated surplus through January–May this year amounted to $15.5 billion, improving $43 billion year-on-year. date2024-06-03

Korea and Uzbekistan hold 12th Trade and Economic Cooperation Committee meeting

Trade, Industry and Energy Minister Dukgeun Ahn met with Uzbekistan’s Investment, Industry and Trade Minister Laziz Kudratov on May 31 in Seoul for the 12th meeting of the Korea-Uzbekistan Joint Committee on Trade and Economic Cooperation (“Committee”).   Launched in 1994, the Committee is a 30-year running ministerial body co-led by the Korean trade, industry and energy minister and Uzbekistan’s investment, industry, and trade minister with the participation of agenda-relevant ministries and institutions.   During the meeting, the two sides reaffirmed the importance of expanding cooperation in supply chains and transportation infrastructure, also agreeing to strengthen cooperation in areas like trade, investment, science, technology, agriculture, and standards.   Noting the two countries’ mutually complementary industrial structure, Minister Ahn highlighted the need for wider cooperation across all industries, including minerals and plants. date2024-05-31

Government holds 2nd briefing for SMEs on EU's CBAM implementation

The Ministry of Trade, Industry and Energy (MOTIE) held the second briefing on the EU’s Carbon Border Adjustment Mechanism (CBAM) with the Ministry of SMEs and Startups (MSS), Ministry of Environment (ME), and Korea Customs Service (KCS) on May 30 in Seoul, focusing on measures for supporting SMEs based in the Seoul capital area. This briefing comes on the heels of the first pan-ministerial briefing held April.   As the majority of companies affected by the CBAM are located in the Seoul capital region, the number of pre-registration applicants for this second briefing reached 300. SMEs and companies facing difficulties responding to CBAM are highly interested in the event, as they can gain knowhow from other companies that managed to effectively implement corporate response measures.   The Korean government plans to provide education and training on CBAM response jointly with Korea SMEs & Startups Agency (KOSME) and other related institutions on the margins of these briefings and give corporate assistance through the One-stop FTA Support Center run by KCS. Moreover, the Government will voice to the  EU domestic firms’ suggestions concerning CBAM reporting requirements and maintain close communication with the EU to finetune implementation. date2024-05-30

Trade Minister attends groundbreaking ceremony for Merck's Bioprocessing Production Center

Minister for Trade Inkyo Cheong attended on May 29 the groundbreaking ceremony for Germany-based Merck’s KRW 430 billion (300 million euros) bioprocessing plant to be built within the Daejeon International Science Business Belt, also attended by government officials, related institutions, and companies’ representatives. date2024-05-29

Merck invests KRW 430 bln in bioprocessing materials plant in Daejeon

Minister for Trade Inkyo Cheong attended on May 29 the groundbreaking ceremony for Germany-based Merck’s KRW 430 billion (EUR 300 million) Bioprocessing Production Center to be built within the Daejeon International Science Business Belt.   Having entered the Korean market in 1989, Merck currently operates 13 production and R&D facilities in areas like Pyeongtaek, Anseong, and Incheon, employing approximately 1,730 workers.   The groundbreaking ceremony is an outcome following the memorandum of understanding (MOU) on investment cooperation for a bioprocessing materials plant signed in May 2023 by the Ministry of Trade, Industry and Energy (MOTIE), Daejeon Metropolitan City, and Merck. On completion of the plant in 2026, the German company will be supplying raw and subsidiary materials essential for processing biopharmaceuticals to domestic buyers as well as biopharma manufacturers in the Asia-Pacific region, with plans for 300 new local hires in Daejeon.   Trade Minister Cheong stated that “Merck’s investment is expected to not only expand exports and secure a stable domestic supply chain for bioprocessing raw and subsidiary materials, but also stimulate the local economy through creation of quality jobs in Daejeon,” and added that the Government will continue to nurture a choice investment environment for Merck and other advanced global companies. date2024-05-29

Korea-UAE Business & Investment Forum

Minister for Trade Inkyo Cheong attended the Korea-UAE Business & Investment Forum on May 28 with UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi, as well as 200 business leaders of both countries, where Medytox (Korea) and Tecom Group (UAE) signed a letter of intent (LOI) on the establishment of a plant in UAE producing botulinum toxin, the world’s first and only non-animal liquid toxin drug. date2024-05-28

Trade Minister meets ASEAN Secretary-General

Minister for Trade Inkyo Cheong met with the Association of Southeast Asian Nations (ASEAN) Secretary-General Kao Kim Hourn on May 28 in Seoul to discuss measures for expanding Korea-ASEAN trade, investment, and joint projects. date2024-05-28

Korea and UAE hold Business & Investment Forum on margins of state visit

Minister for Trade Inkyo Cheong attended the Korea-UAE Business and Investment Forum on May 28, co-hosted by Korea’s Ministry of Trade, Industry and Energy (MOTIE) and the United Arab Emirates (UAE)’ Ministry of Economy and co-organized by Korea Chamber of Commerce and Industry (KCCI) and the UAE Embassy in Seoul, with aim to encourage both countries’ business leaders and their new partnerships.   Held on the occasion of the UAE President Sheikh Mohamed bin Zayed’s first state visit to Korea and attended by UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi, as well as 200 business leaders of both countries, this forum is significant in that it deepened the economic ties between the two countries through jointly seeking out new investment opportunities.   At the forum, Medytox (Korea) and Tecom Group (UAE) signed a letter of intent (LOI) on the establishment of a plant in UAE producing botulinum toxin, the world’s first and only non-animal liquid toxin drug. The two sides have previously entered an MOU during President Yoon Suk Yeol’s state visit to UAE in January 2023.   In his congratulatory address, Korea’s trade chief mentioned that the 100-fold increase in bilateral trade (from USD 0.2 billion in 1980 to $20.8 billion in 2023) and their advancement towards a special strategic partnership are all outcomes of hard work made by the two countries’ entrepreneurs and expressed anticipation for the forum to further strengthen the Korea-UAE economic cooperation network. date2024-05-28