Ministry of Trade, Industry and Energy

Korea’s retail industry grows 9.2% in August

The Ministry of Trade, Industry and Energy (MOTIE) announced today that Korea’s retail industry advanced 9.2 percent year-on-year for the month of August 2024, with offline and online sales increasing 5.0 percent and 13.9 percent, respectively. MOTIE's monthly retail sales figures are based on surveys of 23 major retailers. Thirteen of them are brick-and-mortar retailers: three department store chains, three hypermarket chains, three convenience store chains, and four super supermarket (SSMs) operators. The remaining 10 are online retailers. Sales increased offline at department stores and hypermarkets as the heat wave (+10 days) and holidays both lengthened (+1) by number of days, in addition to the Chuseok holidays landing earlier by over a week this year compared to 2023. Convenience stores and SSM operators also rose in sales. By offline retail channel, hypermarket sales soared 5.9 percent overall, led by Chuseok gift purchases driving food product sales (up 9.9 percent). Meanwhile, non-food product categories (down 3.7 percent) mostly declined with the exception of clothing (up 4.5 percent). Department store sales hiked 4.4 percent, boosted by food product purchases (up 18.7 percent) soaring on the backs of Chuseok gift consumption. The heat wave and higher number of holidays (+1) drew more visitors to department stores, raising sales across all categories. Convenience store sales rose 4.5 percent overall, with beverages/processed food products (up 6.5 percent) growing from ice cream and beverage sales. Instant food products (up 1.8 percent), foreign tourists’ transit card, and tobacco sales all increased. SSM operators climbed 6.7 percent, with food products (up 7.5 percent) enjoying robust sales in conjunction with increased demand for homecooked meals and seasonal goods like agricultural, fishery, and livestock items (up 8.7 percent), fresh goods (up 6.8 percent), and processed food products (up 6.4 percent). Online retail sales surged 13.9 percent as the heat wave fueled demand for stamina health foods and food delivery, increasing sales of service/other (up 60.4 percent) and food products (up 19.8 percent). Demand for companion animal goods, cosmetic products (up 11.2 percent), and living furniture (up 10.8 percent) expanded, while fashion/clothing (down 17.8 percent) and sports (down 12.7 percent) continued to slow.   date2024-09-24

Global standards-setting on track to claim super gap in advanced industries

On Tuesday, September 24, the Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) held the Standards Leadership Forum, bringing together leaders from academia, industry, and research to review key achievements under the National Standardization Strategy for Advanced Industries jointly announced by the public and private sectors during a previous forum in May. The key achievements include the timely development of international and national standards in 12 advanced industries including semiconductors and AI, strengthening international cooperation, expanding industrial standardization activities, and nurturing a standardization infrastructure for training standardization professionals. Through a concentrated national effort based on the standardization strategy for advanced industries, Korea developed and proposed 50 international standards from January–August in 12 advanced industries including artificial intelligence and displays—more than double the number compared to previous years. * Number of international standard proposals in 12 advanced industries by year: 23 (2022) → 23 (2023) → 50 (Jan–Aug. 2024) Notably, two international standards were proposed for performance evaluation of displays used in rollable and foldable phones (including multi-folding models) under development by Korean and overseas companies, laying the groundwork for proper assessment of Korea's leading technologies. Additionally, three international standards were proposed to lead in AI technologies, including guidelines for lightweight AI systems applicable to on-device AI, such as smartphones. The increase in these international standard proposal activities has also resulted in a growing number of Korean executives leading international standard development at organizations like the Joint Technical Committee on Quantum Technologies (JTC3). As of August 2024, the number of Korean executives in these roles reached 274, up from 263 of the previous year.   date2024-09-24

Korean autonomous driving traffic signal data standard adopted as U.S. standard

Korea’s proposed Traffic Light Signal Message (TLSM) standard for autonomous driving data has been adopted in the 2024 revision of the U.S. Society of Automotive Engineers (SAE) standard (SAE J2735*), the de facto international standard in the autonomous vehicle sector, which was published on September 16 (U.S. local time). * SAE J2735 (V2X Communication Message Set Dictionary): A standard that defines data formats for autonomous driving, such as Traffic Light Signal Messages (TLSM), widely used as the dominant standard in the global autonomous driving industry. The Korean Agency for Technology and Standards (KATS, President Jin Jong-wook) has been actively engaged in standard cooperation, including participation in SAE standard revision activities, based on the MOU signed with SAE in 2023. This achievement is the result of proposing the content of KS R 1600-3 (Traffic Signal Data)—developed by the Korean National Police Agency and the Korea Road Traffic Authority, and currently in the process of becoming a Korean Standard (KS) under the direction of KATS—for inclusion in the SAE J2735 revision, which was accepted. Since 2020, KATS has been working with relevant government agencies and industries to develop national standards for autonomous driving data (KS R 1600 1-7*). Standardizing data formats for autonomous driving is crucial not only for improving basic safety in communication among autonomous vehicles, traffic infrastructure, and smart devices, but also for expanding future mobility business models, such as car-sharing and remote monitoring. * Seven Korean Standards (KS) related to autonomous driving, including data usage scenarios, vehicle information, traffic signals, maps, control systems, and pedestrian safety data, are under development, with completion targeted for 2025. KATS President Jin Jong-wook stated, "This is the first case where our autonomous driving data standard has been internationally recognized. KATS will continue to pursue the establishment of Korean Standards (KS) for autonomous driving data, which serve as the foundation for building autonomous driving infrastructure and invigorating the industry. We will also support the globalization of Korean technology through international cooperation, including Korea-U.S. standard collaboration." Korean National Police Agency Commissioner General Cho Ji-ho remarked, "The inclusion of Korea's traffic signal data in the U.S. standard is the result of interagency collaboration for the commercialization of autonomous driving. As standardized traffic signal information is essential not only for autonomous vehicles but also for the safe operation of future mobility, we ask for continued support and interest in expanding the infrastructure for data collection and provision."   date2024-09-24

Trade Minister Cheong attends IPEF ministerial meeting, welcoming Agreements’ upcoming entry into force

Korea’s Minister for Trade Inkyo Cheong attended the Indo-Pacific Economic Framework for Prosperity (IPEF) ministers’ virtual meeting today and examined IPEF Agreements’ outcomes with the 14 IPEF partner countries and discussed future plans. Partner countries welcomed the upcoming Clean Economy Agreement and the Fair Economy Agreement’s entry into force scheduled for October 11 and 12, respectively, upon their reaching the requisite threshold following the signing ceremony held this June. Once the Clean Economy Agreement comes into force, they anticipate the innovation of clean energy technology, new project opportunities, and job openings, which in turn will heighten investment for clean infrastructure as well. With aim to eradicate corruption and enhance the transparency of tax administration, the Fair Economy Agreement is expected to contribute to advancing intraregional transparency and fostering a fair management environment. Partner countries agreed to expand the scope of Cooperative Work Programs (CWPs) on carbon market, hydrogen, small modular reactors (SMRs), and clean electricity in tandem with the faithful implementation of the Clean Economy and Fair Economy Agreements. They further decided to widen efforts for strengthening developing nations’ anti-corruption capacity. Meanwhile, ministers assessed the progress of the Supply Chain Agreement that entered into force this February. Going forward, partner countries are aiming to reinforce the IPEF-based Indo-Pacific supply chain cooperation through measures such as the sub-committee on logistics and movement of goods launched during the first in-person IPEF Supply Chain Council and Crisis Response Network meeting held recently in Washington D.C.  Lastly, the ministers stated that the first joint mock drill initiated by Korea as chair of the Crisis Response Network served as an opportunity to seek effective supply chain response measures. The Korean government plans to smoothly implement procedures for the ratification of the Clean Economy and Fair Economy Agreements, while deepening cooperation with major Indo-Pacific countries to create tangible outcomes under the IPEF and increase concrete benefits for Korean businesses.   date2024-09-24

Korea and Germany consult measures for stronger industrial and supply chain cooperation

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that it launched the third Korean-German Industry Working Group meeting, which MOTIE and Germany’s Federal Ministry for Economic Affairs and Climate Action have been regularly hosting on an alternate basis since 2021. The bilateral talks covered industrial supply chain data platform cooperation, supply chain emergency response, and automotive industry issues in depth. With regard to the industrial supply chain data platform to be established by Korea for stable supply chain management, the two countries intend to bolster intergovernmental communication and cooperative ties to fully leverage Germany’s experience and knowhow. In addition, the two sides took stock of the industrial supply chain situation and discussed measures for supply chain response and stabilization. They also discussed the future of the automobile industry, a key pillar for both economies. Agreeing to closely cooperate to secure a stable supply source for future mobility key materials and parts including electric vehicles (EVs) and autonomous vehicles, they further shared views on responding to cybersecurity risks in view of connected cars and other developments in future mobility technology.   date2024-09-24

Korea and ASEAN kick cooperation into high gear in supply chains, economy, and trade

Minister for Trade Inkyo Cheong attended the 56th ASEAN Economic Ministers (AEM) Meeting from September 21–22 in Vientiane, Lao People's Democratic Republic (PDR), and discussed economic agenda items for the coming 44th ASEAN Summit slated for this October. He also agreed to continue expanding cooperation with ASEAN and the Global South countries as part of follow-up measures to the Trade Policy Roadmap the ministry announced in August. Trade Minister Cheong first attended the 12th East Asia Summit (EAS) Economic Ministers Meeting on September 21 and highlighted the need for cooperation at the EAS level to deal with challenging new trade issues such as supply chains, digital transition, and climate change, which are difficult agendas for countries to tackle on an individual basis. At the 21st Korea-ASEAN Economic Ministers Consultation held on September 22, he took stock of various Korea-ASEAN joint projects including the implementation and upgrade of the Korea-ASEAN Free Trade Agreement (FTA), extending the Korea-ASEAN Startup Policy Dialogue, support for electrical safety infrastructure establishment, and enhancing standards cooperation. In commemoration of the 35th anniversary of the establishment of Korea-ASEAN dialogue relations, the trade chief proposed that they launch the Korea-ASEAN Think Tank Dialogue in 2025 as a regular channel for bilateral consultations among ASEAN economic and trade research institutions, which was received favorably by the majority of ASEAN member states. Next, he attended the 27th ASEAN Plus Three (Korea, China, Japan) Summit, where he emphasized the need for the three countries’ cooperation on developing a stable supply chain and built shared consensus on East Timor’s accession to ASEAN and strengthening the multilateral trade-based cooperation amid global economic fragmentation. Moreover, at the third Regional Comprehensive Economic Partnership (RCEP) Ministers Meeting, Trade Minister Cheong examined several issues including measures for stronger RCEP implementation for regional economic integration, laying down RCEP accession procedures, and setting up an RCEP support organization.  The trade minister also held bilateral talks with counterparts from other countries including India, the Philippines, Switzerland, and the UK on ways to expand bilateral cooperation across diverse areas such as trade, investment, supply chains, nuclear reactors, carbon-free energy utilization, and digital transition. MOTIE plans to keep expanding collaboration over supply chains, digital transition, climate change response and other areas in high demand by ASEAN countries to smoothly implement the joint projects discussed during the Korea-ASEAN Economic Ministers Meeting and closely cooperate with ASEAN for the successful launching of the 25th Korea-ASEAN Summit in October.   date2024-09-24

Korea and Czech Republic hold 1st bilateral Supply Chain and Energy Dialogue (SCED)

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn and Czech Industry and Trade Minister Jozef Sikela held the first bilateral Supply Chain and Energy Dialogue (SCED) on September 20 in Prague. The Korea-Czech SCED is Korea’s second ministerial-level consultative channel following the Korea-U.S. Supply Chain Commercial Dialogue (SCCD). As strategic partners, Korea and the Czech Republic agreed to further reinforce cooperation over supply chains and energy areas. Through the SCED, both sides reaffirmed the mutual importance of their global position in the industrial and energy supply chain and laid the groundwork for swift cooperation amid the growing urgency for energy security and increasing supply chain instabilities. During this first SCED meeting, the two trade and industry ministers shared areas of key interest per each cooperation sector and discussed measures to expand the scope of collaboration. For trade, investment, and supply chains, the two sides noted the rapidly increasing bilateral trade volume and diversification of trade items, seeking cooperation measures by sharing best practices of supply chain crisis response. In advanced industrial sectors, they discussed collaboration and R&D support for the three major high-tech areas—battery, robot, and future mobility. Regarding carbon-free energy, the ministers concurred on strengthening policy and technology exchange in areas of common interest such as hydrogen, energy storage systems (ESS), and energy efficiency. For nuclear energy, they agreed to continue effort towards realizing their shared vision of building the Czech nuclear reactor together. For joint action, they decided to discuss steps for joint entry into third countries among other cooperation measures. Lastly, Minister Ahn stated that the SCED will serve as an important cooperation channel closely connecting the two countries amid intensifying global uncertainties and the growing emphasis on energy security. He maintained that the director general-level consultative channel be established by the end of this year for discovering and discussing joint projects.   date2024-09-23

Korea and Czech Republic hold Industry & Energy Technology Cooperation Forum to step up high-tech collaboration

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea held the Korea-Czech Industry and Energy Technology Cooperation Forum (“Forum”) on September 20 in Prague to bolster cooperation with the Czech Republic, which holds world-leading technology in advanced manufacturing industries like high precision engineering, optics, and nanomaterials. Participating in the Forum were 40 top R&D institutions from the Czech Republic including Czech Technical University and the Czech Academy of Sciences as well as a number of academic, industrial, and research institutions from Korea such as Korea Photonics Technology Institute (KOPTI), Hyundai Motor, and Sungkyunkwan University.  Twelve memorandums of understanding (MOUs) were signed between the two countries to identify projects for joint technology cooperation in various areas like robot, laser source, and hydrogen, increasing anticipation for substantial technology exchanges and collaboration ensuing the Forum. In areas where bilateral cooperation is currently ongoing such as high precision engineering and optics, the two sides aim to uncover mid-to-large sized R&D projects to achieve impactful outcomes. Moreover, Korea’s master’s and doctoral researchers will be sent to study at prestigious Czech universities to promote active technology exchanges and joint research between the two countries’ innovative talents. For this aim, MOTIE will be providing KRW 70 billion for joint Korea-Czech R&D. The ministry plans to discuss the prospects of establishing a Korea-Czech industrial cooperation foundation for paving the way to stable bilateral technology collaboration between the two countries’ academia, industries, and research institutions. MOTIE Minister Dukgeun Ahn assessed that Korean President Yoon Suk Yeol’s state visit has created the opportunity for both countries to step up cooperation in cutting-edge technology, vowing continued effort to uncover impactful joint projects on the occasion of this Forum to assist Korean firms’ open innovation.   date2024-09-23