Ministry of Trade, Industry and Energy

Trade Minister visits Georgia Institute of Technology

Minister for Trade Inkyo Cheong visited Georgia Institute of Technology in Atlanta, Georgia, on May 14 and met with its Korean professors and researchers to discuss Korea-U.S. advanced industrial cooperation and toured research facilities. date2024-05-16

Trade Minister meets with Georgia Tech Vice Provost for International Initiatives

Minister for Trade Inkyo Cheong met with Bernard Kippelen, Vice Provost for International Initiatives at Georgia Institute of Technology, on May 14 and discussed universities’ technology commercialization process and U.S.’ exports controls. date2024-05-16

Korea and U.S. hold opening ceremony for launching of eCERT for steel customs clearance

The Ministry of Trade, Industry and Energy (MOTIE), Korea Customs Service (KCS), and U.S. Customs and Border Protection (CBP) held the opening ceremony of the Electronic Certification System (eCERT), established as a bilateral platform for steel customs clearance, on May 15 (EDT) at CBP Headquarters in Washington D.C.   The eCERT is a filing system for quota-subject Korean steel that can manage quotas and customs, operated in sync with the export quota management system run by Korea Iron and Steel Association (KOSA). CBP will compare and cross-check the export approval document submitted by KOSA with the import declaration form and reply back on whether or not to approve customs clearance.   Beginning May 20, CBP will automatically reject filings with incompatible steel importer data. In other words, the export approval document from KOSA and import declaration form submitted to CBP must match for customs to clear.   MOTIE's Deputy Minister for FTA Negotiations Roh Keon-ki commented that “Whereas in the past it took over a week for Korean exporters to confirm customs clearance on their own through U.S. importers, now they can view the entire customs process with a single mouse click.” date2024-05-16

Korea's ICT exports climb 33.8% in April

The Ministry of Trade, Industry and Energy (MOTIE) announced on May 15 that Korea’s export and import of information and communications technology (ICT) goods for April recorded USD 17.1 billion and $11.6 billion, respectively, and the trade balance stood at a surplus of $5.5 billion.   April ICT exports achieved this year’s steepest climb of 33.8 percent year-on-year as the majority of key items like semiconductors, displays, mobile phones, and computers/peripherals advanced. The previous growth rate entering the 30 percent thresholds was set in March 2022 (33.6 percent).   By item, top items like semiconductors (up 53.9 percent), displays (up 15.2 percent), mobile phones (up 15.3 percent), and computers/peripherals (up 55.9 percent) increased in export.   By region, exports to China (including Hong Kong) (up 43.7 percent), Vietnam (up 22.4 percent), the U.S. (up 24.6 percent), Europe (up 15.5 percent), and Japan (up 9.1 percent) enjoyed growth.   Meanwhile, ICT imports rose 10.4 percent year-on-year as demand for semiconductor and display parts increased. date2024-05-16

Public and private sectors gather to discuss joint measures concerning UK's CBAM

The Ministry of Trade, Industry and Energy (MOTIE) held a conference on May 14 regarding the UK’s Carbon Border Adjustment Mechanism (CBAM) with related industries' representatives to gather opinions and discuss joint response measures.   The UK CBAM is to cover steel, aluminum, cement, fertilizer, hydrogen, ceramics, and glass and push for legislation after collecting stakeholders’ opinions by June 13 this year. As of 2023, Korea exports USD 300 million worth of steel to the UK, equivalent to 98 percent of the aggregate export value of the seven aforementioned items.   The majority of industries’ representatives viewed that the UK’s CBAM will not likely incur significant additional costs owing to its similarity to the EU’s CBAM, while some raised concerns regarding the quarterly report of greenhouse gas emissions and absence of transition periods prior to full enforcement in 2027. date2024-05-14

UK-based Edwards' new EUV parts and equipment plant completed in Asan

Deputy Minister for International Trade and Investment Choi Woo-seok attended the completion ceremony of UK-based company Edwards’ newest plant on May 14 in Asan, South Chungcheong Province, for producing key components for extreme ultraviolet lithography (EUV).   The global leader of vacuum pumps for semiconductor manufacturing, Edwards moved its production facilities from the UK to Korea in 2009 and has since built a total of five plants in Cheonan and Asan, including the newly built Asan plant. Minister for Trade Inkyo Cheong visited the older Asan plant in January this year to discuss business issues and future investment plans.   Edwards’ new Asan plant will be producing integrated vacuum solutions and waste gas treatment equipment to be used in the EUV process, which will then be supplied to a number of semiconductor producers, including Samsung Electronics, SK Hynix, Intel, and TSMC.   The Asan plant is anticipated to stabilize the supply chain of EUV parts and equipment, bolster Korea’s own parts and equipment production competitiveness, and help to secure the semiconductor super gap, while also strengthening cooperative ties with advanced chip firms around the world. The domestic economy expects to benefit from local job creation and the estimated yearly KRW 300 billion plus in exports as well. date2024-05-14

Trade Minister attends 18th Trade Advisory Committee Meeting

Minister for Trade Inkyo Cheong attended the 18th Trade Advisory Committee Meeting on May 8 at Lotte Hotel Seoul to discuss future trade policy directions in view of recent changes in the global trade landscape. date2024-05-09

U.S.' BorgWarner establishes future mobility R&D center in Daegu National Industrial Complex

Director General for Cross-Border Investment Policy Park Deok-yeol attended the completion ceremony of the U.S.-based BorgWarner’s USD 43.6 million “Future Mobility Electrification Driving System R&D Center” on May 9 in the Daegu National Industrial Complex.   Since its initial establishment of transmission clutch production facilities in 1988, BorgWarner has invested a total of $140 million in Korea. The global automotive and e-mobility supplier currently operates seven production lines in Korea, including BorgWarner Changnyeong and BorgWarner Chungju, and has hired an estimated 1,400 employees. The construction of the R&D center commenced after BorgWarner's submission of its investment declaration during President Yoon’s state visit to the U.S. in September 2022.   The newly constructed R&D center is expected to complete a one-stop support system for the R&D, testing, and demonstration of electric vehicles’ driving systems, while also strengthening Korea’s automobile industry’s technological competitiveness and stabilizing the supply chain. The company will be further recruiting 43 highly skilled technical talents within the Daegu National Industrial Complex in the future, contributing to local employment.     date2024-05-09

Experts gather to discuss trade policy directions amid global paradigm shifts

Minister for Trade Inkyo Cheong attended the 18th Trade Advisory Committee Meeting on May 8 at Lotte Hotel Seoul to discuss future trade policy directions in view of recent changes in the global trade landscape.   The Trade Advisory Committee is a civil advisory body run by the Ministry of Trade, Industry and Energy (MOTIE) in accordance with the Act on procedures for concluding and implementing commercial treaties. Composed of 27 experts across the academic, industrial, and research spheres of various relevant areas, the Committee elected a new Chairperson and appointed new members during this meeting. The Committee is to be combined with another related committee dealing with domestic trade measures to form the Trade Policy Advisory Committee.   Attendees reviewed past trade policy outcomes and engaged in discussions on detailed policy tasks and proposals for Korea to play a key role in global trade while responding to trade environment shifts, such as this “super election year” and the rise in protectionism.   Trade Minister Cheong highlighted that MOTIE plans to “stabilize the supply chain and expand Korea’s export portfolio through upgrading and diversifying the trade network amid global paradigm shifts.” date2024-05-08

Government to strengthen support for reshoring companies in advanced industries

The Korean government plans to raise overall support for reshoring companies by lowering eligibility requisites and standards, while increasing incentives for reshoring firms in advanced industries.   Trade, Industry and Energy Minister Dukgeun Ahn held a meeting with 10 reshored companies on May 7 to discuss support measures, where he announced the ministry’s “Reshoring Company Support Strategy 2.0” and gathered companies’ opinions.   In view of the recent supply chain realignments and rising global protectionism, the Ministry of Trade, Industry and Energy (MOTIE) established support strategies based on opinions provided from relevant industries, experts, and ministries to address the increasing need for stimulating advanced industries’ reshoring.   The strategy aims to lower the eligibility bar to provide wider support. For one, reshoring firms in the retail industry will be eligible for government support and investing reshored capital in Korea will be recognized as a type of reshoring investment.   National strategic technologies, advanced strategic technologies, future mobility parts and products are to be added to the list of business sectors exempted of foreign subsidiary restructuring requisites. Companies subsidized with above restructuring exemptions are to be limited in making overseas investments for a minimum of only one year, instead of the current two.   This year, MOTIE significantly enlarged the reshoring company subsidy budget, up from last year’s KRW 57 billion to 100 billion won. MOTIE also plans to raise the subsidy cap for reshoring investment in national and advanced strategic technologies.   Seven more occupation types are to be added besides the one type currently eligible for the E-7 visa for reshoring companies. Businesses moving into the national high-tech strategic industry and MPE (materials, parts, equipment) specialization complexes will receive preferential support as well.   In 2023, the number of Korean reshoring companies reached 22, with more than 20 firms reshoring every year since 2020. Reshoring companies’ investment plan entered the 1 trillion won thresholds for the second consecutive year in 2023. date2024-05-07