Ministry of Trade, Industry and Energy

Korea’s retail industry climbs 6.7% in October

The Ministry of Trade, Industry and Energy (MOTIE) announced today that Korea’s retail industry grew 6.7 percent year-on-year for the month of October 2024, with offline sales remaining flat (up 0.0 percent) and online sales advancing 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. By offline retail channel, hypermarket sales dropped 3.4 percent despite the increase in food products (up 2.4 percent), as home appliances/culture (down 22.2 percent) fell. Department store sales slid 2.6 percent despite the growth in food products (up 2.5 percent) and foreign designer labels (up 2.5 percent), as autumn apparel purchases and the number of holidays (-1) decreased in comparison with last year. Convenience store sales increased 3.7 percent overall, with food products (up 4.0 percent) and nonfood products (up 3.4 percent) both expanding. SSM operators climbed 7.1 percent, driven by food products (up 8.3 percent) from high demand for eating in, while nonfood products (down 5.5 percent) continued to drop. Online retail sales leaped 13.9 percent on the backs of robust demand for travel packages and food deliveries, steadily raising service/other (up 66.5 percent), food products (up 24.8 percent), and living furniture (up 11.7 percent). Meanwhile, the decline in consumer sentiment and impact from overseas direct purchases (ODP) are slowing down sales of fashion/clothing (down 9.8 percent), sports (down 6.6 percent), and home appliances/electronics (down 12.7 percent).   date2024-11-26

MDB Project Plaza 2024 launches to enhance global project opportunities for Korean firms

The Ministry of Trade, Industry and Energy (MOTIE) and the Ministry of Economy and Finance (MOEF) of the Republic of Korea are jointly hosting the MDB Project Plaza 2024, organized by the Korea Trade-Investment Promotion Agency (KOTRA), through November 26–27 at the JW Marriott Hotel Seoul. The MDB Project Plaza was first launched in 2013 as a pan-ministerial, international event with the aim to provide Korean businesses with greater opportunities to participate in promising bid projects funded by multilateral development banks (MDBs) and to expand the scope of Korean businesses’ project collaboration with MDBs and other countries’ project owners. This year, the event will take off on the first day with an MDB project forum and briefing sessions on MDB trust funds and promising projects, followed by a one-on-one project consultation session the next day.  Representatives of the World Bank (WB), Asian Development Bank (ADB), Inter-American Development Bank (IDB), African Development Bank (AfDB), Central American Bank for Economic Integration (CABEI), and the European Bank for Reconstruction and Development (EBRD) will be introducing the financing procedures and each MDB’s key projects. Meanwhile, the Export-Import Bank of Korea (KEXIM) will outline the Korean government-contributed MDB trust fund system and the ADB and WB will be giving an overview of the details and project bidding procedures regarding each organization’s trust funds. Relevant authorities from Indonesia, Ukraine, Montenegro, and Oman will also introduce the participation procedures and plan concerning their upcoming projects during the briefing session on promising MDB projects. The second day of the event will have Korean engineering and construction companies engage in one-on-one consultations with overseas MDB-funded project owners over 24 projects worth approximately $47.9 billion in areas like energy, environment, and transport infrastructure.   date2024-11-26

Korea and Mongolia enter 4th negotiating round for bilateral EPA

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced today that the fourth official negotiating round for the Korea-Mongolia Economic Partnership Agreement (EPA) will convene from November 26–29 in Seoul. Director General for FTA Negotiations Kwon Hye-jin and State Secretary of Mongolia’s Ministry of Economy and Development Batkhuu Idesh are each leading their respective delegation. In this fourth negotiating round, the two sides plan to make progress in 19 key areas including goods, services, investment, digital, government procurement, intellectual property, rules of origin, and economic cooperation. Rich in resources like rare earth elements and tungsten, Mongolia is currently seeking to diversify its trade network. Through the EPA, the Korean government is aiming to boost Mongolia-bound exports of Korea’s promising items and expand its services market presence and investment, while further stabilizing the supply chain of key materials for advanced industries by establishing a legal and institutional framework for the bilateral development and cooperation in mineral resources and energy. Trade Minister Inkyo Cheong attended the opening ceremony of the fourth official EPA negotiating round and asked both delegations to make concerted effort to swiftly conclude a mutually beneficial agreement.   date2024-11-26

Korea and Malaysia hold trade ministerial talks

Minister for Trade Inkyo Cheong of the Republic of Korea met with Malaysia’s Minister for Investment, Trade and Industry Tengku Zafrul Aziz today in Seoul on the occasion of Malaysian Prime Minister Anwar Ibrahim’s visit to Korea (November 24–26) and discussed various pending issues including measures for the swift conclusion of the Korea-Malaysia Free Trade Agreement (FTA), clean energy projects in green hydrogen and carbon capture, as well as local business issues experienced by Korean companies in Malaysia. Notably, the two sides agreed to step up Korea-Malaysia FTA negotiations with the goal of reaching a deal by 2025. Malaysia is Korea’s third largest trading partner and fourth largest investment destination among ASEAN countries. In view of their mutually complementary trade structure, the bilateral FTA is anticipated to serve as a strong trade and investment foundation for Korea in the ASEAN market. On the margins of the Korea-Malaysia summit (November 25), MOTIE and Malaysia’s Ministry of Economy entered a memorandum of understanding (MOU) for cooperation in carbon capture and storage (CCS) with both countries’ leaders present. This agreement establishes the groundwork for cooperation on the smooth implementation of the two countries’ cross-border CCS project, while also facilitating discussions for the bilateral agreement on cross-border transport of carbon dioxide and thereby kicking related companies’ business endeavors into high gear. Korean President Yoon Suk Yeol proposed that the two countries seriously push forward bilateral efforts for greenhouse gas (GHG) reduction based on the CCS cooperation MOU sealed this day. Both leaders agreed that achieving carbon neutrality and transitioning to a green economy are vital for facilitating sustainable development. Meanwhile, Korea’s energy and industry institutions and companies signed three MOUs with their Malaysian counterparts for cooperation in minerals, trade, and hydrogen. MOTIE plans to strongly back these MOUs so that they can translate into tangible outcomes. Prior to the trade ministerial talks, the Korea-Malaysia Business Forum was jointly hosted by the Malaysian Investment Development Authority (MIDA) and the Malaysia External Trade Development Corporation (MATRADE), attended by approximately 200 representatives of both countries’ governments and institutions. During the forum’s Q&A session, Prime Minister Ibrahim listened to local investment issues facing Korean firms in the Malaysian market.   date2024-11-25

Startups now rising as key partners for middle-market businesses in open innovation

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea held a forum today in Seoul to spur shared growth between middle-market companies and startups, with the participation of roughly 130 attendees from relevant companies and institutions. Launched in 2020 by MOTIE and convened on an annual basis, the forum aims to catalyze joint growth through combining middle-market companies’ business capacity and startups’ innovative technologies. This year, the forum consisted of a presentation session for sharing best practices of global companies, middle-market firms, and startups; an artificial intelligence (AI)-based development program demonstration; and startups’ promotion of their leading technologies. In introducing best practices, India’s Tata Consultancy Services and Korean startups like Byucksan, Techcross Water & Energy, and Daewon CTS shared their experience and knowhow on joint projects with startups. DLIT gave a demonstration of its AI-based solutions for handling overseas firms’ RFx, developed through collaboration with a startup. In addition, four startups—Hulampro, Metazone, Kaier, and GUPSA—showcased their respective technology solutions for human resources (HR) automation, VR- and AR-based ultra-immersive interactive experience, and project-based interdivisional collaboration assistance. In this year alone, MOTIE uncovered seven project models for collaboration between middle-market companies and startups, providing support in areas of technical verification and new business development training.   date2024-11-25

Trade Minister chairs conference to assess trade landscape for Korean businesses in Vietnam

Minister for Trade Inkyo Cheong of the Republic of Korea chaired a conference today in Seoul on response measures for the U.S.’ shifts in trade policy concerning Vietnam and to take stock of the possible impact on Korean businesses operating in the local Vietnamese market. The conference was attended by relevant ministries, institutions, and companies. Following the previous conference on Mexico, today’s conference aims to seek public-private joint measures regarding Vietnam, Korea’s third largest trading partner and home to 9,000 Korean businesses. Korea is Vietnam’s largest investor with firms locally operating in various areas including semiconductors, textiles, and electrical and electronics. Possible policy shifts toward Vietnam under the Trump administration may also impact Korean businesses in the market. MOTIE plans to thoroughly examine global trade environment changes based on today’s discussions to closely communicate with related industries and seek measures for policy assistance so that companies can effectively respond to changes.   date2024-11-25

Korea and Germany Strengthen Standards Cooperation to Address Climate Crisis

Korean Agency for Technology and Standards (KATS), under the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea, collaborated with the German Institute for Standardization (DIN) and the German Commission for Electrical, Electronic & Information Technologies (DKE) to hold the Korea-Germany Standards Cooperation Forum (“Forum”) today in Seoul. The event brought together approximately 100 standards experts from both countries, marking a significant step in bilateral collaboration. The Forum began with the introduction of the two nations’ national standards strategies: Korean Government National Standardization Strategy for the High-tech Industry and Germany’s SMART Standards for the Future. This was followed by discussions on technical issues related to Sustainability and Digital Transformation, with active participation from standards experts on both sides. The program included panel discussions in seven technology areas—artificial intelligence (AI), smart manufacturing, battery technologies, hydrogen, climate change/carbon neutrality, smart standards and direct current power sources—to share technical standards trends, exchange policy directions, and explore opportunities for joint international standards projects. KATS also announced plans to strengthen bilateral standards activities with DIN and DKE in clean energy sectors, building on the agreement reached during the bilateral summit in July to enhance Korea-Germany collaboration in addressing the climate crisis and other global challenges. As part of this initiative, the two countries agreed to establish a working group of standards experts to achieve tangible outcomes, such as joint research and the development of international standard proposals in areas including hydrogen, battery technologies, and other clean energy fields.   date2024-11-22

Trade Minister chairs public-private conference to take stock of changing business landscape

Minister for Trade Inkyo Cheong of the Republic of Korea chaired a conference today in Seoul with related ministries, institutions, and companies on response measures for the U.S.’ shifts in trade policy regarding Mexico to take stock of the possible impact on Korean businesses operating in the local Mexican market. Home to numerous Korean automakers and car parts manufacturers, Mexico is a favorable destination for nearshoring investments as companies can benefit from duty-free trade and subsidies upon fulfilling related requirements. Meanwhile, it is projected that possible policy shifts under the new U.S. regime may considerably impact Korean businesses operating in the Mexican market. Trade Minister Cheong stated that the Korean government will make efforts to minimize business uncertainties by activating intergovernmental cooperation channels with Mexico. The ministry plans to hold further meetings to seek public-private joint measures and assess the situation through the Global Trade Strategy Meeting and other platforms.   date2024-11-22