Ministry of Trade, Industry and Energy

Korea hosts Seoul Symposium 2024 on rebuilding WTO dispute settlement system

Korea’s Minister for Trade Inkyo Cheong chaired the Seoul Symposium 2024 (“Symposium”) today at the Lotte Hotel Seoul under the theme of rebuilding the WTO dispute settlement system amid the changing trade environment. Now in its second year since launching in 2023, the Symposium had the world’s top experts speak on the topic, including Petros Mavroidis (Professor of Law at Columbia Law School), Mark Wu (Henry L. Stimson Professor at Harvard Law School), Joost Pauwelyn (Professor of International Law at the Graduate Institute of International and Development Studies in Geneva), and Kathleen Claussen (Professor of Law at Georgetown University Law Center). The Ottawa Group ambassadors to Korea and other experts also engaged in the discussions and Q&A sessions following the keynote speeches.  In a video message, Director-General of the WTO Ngozi Okonjo-Iweala expressed high recognition for the constructive contribution to the reform discussions process shown by Korea, an active user of the dispute settlement body. She especially highlighted the Symposium’s significance in terms of covering the reform challenges in depth.  Trade Minister Cheong stated that, in line with the reform discussions, the Symposium serves as a venue for timely discussions on seeking efficient measures to realign the system. He added that Korea will continue to proactively take part in the work on reforming the WTO’s dispute settlement body and other major functions, so that it can keep playing a relevant role in accordance with the changing trade landscape. The Korean government plans to host more such international symposiums so that Korea can take a strong part in the discussions for reforming the WTO’s key functions and take the initiative in related talks with the Ottawa Group and other like-minded countries.   date2024-08-28

Talented youth and companies seeking win-win at Global Talent Fair 2024

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea is co-hosting the Global Talent Fair 2024 with the Ministry of Employment and Labor (MOEL) through August 27–28 at COEX in Seoul. The Global Talent Fair was launched to provide decent employment opportunities to job-seeking youth and connect quality talent with global businesses. As did last year, three existing job fairs were integrated into one and drew the participation of an unprecedented 400 companies. This year’s event newly showcases recruiting booths for semiconductors, secondary battery, and bio sectors to address young job-seekers’ keen interest towards employment in advanced industries. Launched in July, the Global Talent Supporters—a team comprising 20 undergraduate students—will support the job-seeking and original self-promotional activities of young talent through in-person interviews at companies and sharing of job market information. At the Global Talent Fair, job-seekers can access a variety of support programs, including one-on-one interviews with companies’ hiring managers, counseling, special lectures, success stories, and job briefings. They can also tap into one-stop information service on recruitment by foreign-invested firms and overseas companies lesser known than domestic counterparts. MOTIE’s Minister for Trade Inkyo Cheong attended the opening ceremony and gave a congratulatory message, stating that “Korea is lately garnering attention as the nucleus of the supply chain for advanced industries like semiconductors and secondary batteries, with the nation’s human resources heightening investment attractiveness.” MOEL Minister Lee Jung-sik expressed hope that Global Talent Fair 2024 will foster mutual growth, helping companies recruit valuable talent and Korea’s youth achieve their goals.   date2024-08-27

Korea’s retail industry grows 6.3% in July

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced on August 27 that Korea’s retail industry grew 6.3 percent year-on-year (YoY) in July 2024, with sales declining 3.0 percent offline and increasing 16.9 percent online, 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. Offline sales were affected by the lower number of holidays (-2 days YoY) and frequent rains (+4 rainy days YoY), which led to sluggish department store sales (down 6.4 percent) and robust sales at convenience stores (up 2.9 percent) and SSMs (up 1.4 percent) as more consumers opted to shop closer to home. By offline retail channel, hypermarket sales dropped 7.9 percent overall and declined across all categories due to less holidays and more frequent rains, with food products and home appliances/culture down 5.2 percent and 13.7 percent, respectively. Department store sales sank 6.4 percent as the majority of categories fell, including foreign designer labels (down 11.0 percent), household goods (down 5.0 percent), and miscellaneous goods (down 4.0 percent). Convenience store sales rose 2.9 percent overall. Recurrent rains negatively impacted sales of coffee, water, and other beverages, while highballs, alcoholic beverages, and gimbap sales climbed, raising those of processed food (up 2.4 percent) and instant food products (up 2.3 percent) by a small margin. Meanwhile, the increased purchases of transit cards by foreign tourists are boosting the category labelled as “other” (up 3.4 percent). SSM operators showed an uptick of 1.4 percent in spite of the continued drop across nonfood items (down 3.9 percent), as sales expanded for agricultural, fishery, and livestock items (up 2.6 percent), processed food products (up 0.2 percent) and food items (up 1.9 percent). Online retail jumped 16.9 percent as the heat wave triggered demand for stamina health foods and sunscreen items, resulting in surging sales of food products (up 21.0 percent) and cosmetics (up 16.3 percent). Demand for food delivery services, detergent, and other daily household goods steadily advanced across categories like service/other (up 61.6 percent) and living furniture (up 12.8 percent), whereas sales of fashion/clothing (down 9.6 percent) and sports (down 7.8 percent) slowed.   date2024-08-27

Korea’s Amended Act on foreign investment aiming to attract FDI while upholding national security

The Ministry of Trade, Industry and Energy (MOTIE) announced today that the enforcement of the amended Foreign Investment Promotion Act (the “Amended Act”) begins August 27. The Amended Act is anticipated to help raise stock return predictability for foreigners investing in Korea, while also regulating foreign investments that pose risks of endangering national security. The outline of the Amended Act is as follows: First, the amendment allows administrative agencies to initiate deliberations ex officio, without the requirement of a foreign investor’s voluntary reporting, should there exist concerns of national security risk. However, to raise stock return predictability, deliberations will not be required for foreign investments that have already gone through voluntary screening. Second, foreign investments in Korean firms with National High-Tech Strategic Technologies will be subject to national security screening to prevent Korea’s advanced industrial competitiveness from being hindered by illegal foreign investment. Third, the Amended Act provides grounds to ease foreign investors’ double burden by allowing the omission of screening for a foreign investor that has gone through similar deliberation procedures under other acts (Act on Prevention of Divulgence and Protection of Industrial Technology, National High-Tech Strategic Industry Act). Fourth, the maximum deliberation period for the Expert Committee on National Security Deliberation for reviewing national security risks of foreign investments is to be extended from the previous 30 days to 90 days, and the Foreign Investment Committee’s maximum deliberation period will be reduced from the previous 90 days to 45 days. Fifth, should a foreign investor make an inquiry prior to submitting a foreign investment declaration on whether the investment is subject to national security deliberation, administrative agencies are to respond to the inquiry within a 30-day period. The Korean government will continue to improve and modify the national security deliberation system with an aim to secure foreign investments contributing to Korea’s advanced industrial super gaps, while minimizing concerns of foreign investments endangering national security.   date2024-08-26

Korea-Hokuriku (Japan) Economic Exchange resumes after 6-year hiatus

Director General for International Trade Relations Kim Jong-chul attended the 20th Korea-Hokuriku (Japan) Economic Exchange (“Exchange”) today in Gangneung, held for the first time in six years since the previous event in 2018.  Co-hosted by Korea’s Ministry of Trade, Industry and Energy (MOTIE) and Japan’s Ministry of Economy, Trade and Industry (METI) and co-organized by the Korea-Japan Economic Association (KJE) and the Hokuriku Economic Federation, the Exchange was launched in 2000 to bolster interregional economic cooperation and is convened alternately by the two countries on an annual basis.  This year saw the Exchange resume after a six-year hiatus as the two countries’ private sector cooperation picked up with the convening of the Korea-Japan Business Roundtable and other major business meetings following the Korea-Japan Summit in March 2023. The attendance comprised roughly 100 persons from the local government bodies and companies of Korea’s four east coast provinces and cities (Gangwon-do, Gyeongsangbuk-do, Daegu Metropolitan City, and Ulsan Metropolitan City) and 40 persons from those of Japan’s three Hokuriku prefectures (Toyama, Ishikawa, and Fukui). The Hokuriku region takes up only 2.5 percent of the Japanese economy, but its advanced pharmaceuticals and heavy industries, including automotive, construction equipment, electrical and electronics engineering, make it a promising partner for Korea in future new industries. Prospects for cooperation in logistics and supply chains are increasing as well, with the Tokyo-bound Shinkansen extension opening across the region every March owing to Hokuriku’s advanced maritime transport capacity and its role as a trade hub of the East Sea Rim Area. During this year’s Exchange, the two sides focused their discussions on government policies for stimulating local economies, sharing companies and institutions’ exchange outcomes, and cooperation in logistics and tourism. They also discussed issues regarding the two countries’ key industries, supply chains, and future new industries, such as textiles, chemicals, medical equipment, nursing, port logistics, and local tourism, followed by exchanges between businesses and local government authorities. MOTIE plans to deepen cooperation with Japan’s major local government bodies and give strong support to the business cooperation between the two countries’ firms through the upcoming Korea-Kyushu economic cooperation meeting and the Pan-Yellow Sea Rim Economy and Technology Exchange slated for November 2024 in Ōita Prefecture, Japan. Meanwhile, the ministry aims to continue cooperation with METI by utilizing both high- and working-level channels over a wide range of areas, including industries, supply chains, decarbonization, new energy, and multilateral trade.   date2024-08-26

Trade Minister Cheong discusses economic cooperation with head of major ASEAN think tank

Minister for Trade Inkyo Cheong met Tetsuya Watanabe, President of the Economic Research Institute for ASEAN and East Asia (ERIA), today at the Korea Chamber of Commerce and Industry (KCCI) in Seoul and discussed comprehensive measures for economic cooperation. The two sides reviewed economic issues in trade, investment, supply chains, and clean economy covered during the Korea-ASEAN Summit 2023 and agreed to continue efforts on widening cooperation for the successful management of the Korea-ASEAN Trade and Economic Think Tank Dialogue in preparation to be launched next year. A major ASEAN think tank alongside the Korea Institute for International Economic Policy (KIEP), ERIA was established on the occasion of the East Asia Summit in 2007 as an independent research institute and operates a research network spanning 16 countries. Expressing appreciation for ERIA’s across-the-board contribution to expanding the Korea-ASEAN cooperation in terms of economy, society, and culture, Trade Minister Cheong noted that ASEAN has become Korea’s second largest trade partner and direct investment destination. He proposed that they continue joint efforts as ASEAN’s leading think tanks to seek detailed cooperative measures for furthering Korea-ASEAN ties. President Watanabe agreed, saying that the Korea-ASEAN Solidarity Initiative (KASI), which Korea announced last year, has come to be a new milestone and catalyst in the Korea-ASEAN cooperation and articulated hope for uncovering more joint economic projects that incorporate Korea’s strengths while addressing ASEAN’s industrial demands. Meanwhile, Trade Minister Cheong introduced the ministry’s plan to launch the Korea-ASEAN Trade and Economic Think Tank Dialogue, a platform for engaging think tank experts of Korea and ASEAN countries in discussions on policies for ASEAN’s economic development and requested strong support and participation from ERIA in view of its rich experience in ASEAN economic research.  President Watanabe conveyed appreciation towards Korea’s efforts for spurring ASEAN’s economic development and assured that ERIA will also give full measure to successfully launching the aforementioned Korea-ASEAN thinktank dialogue.   Lastly, the trade minister asked for ERIA’s interest and support with regard to Korea’s hosting the Asia-Pacific Economic Cooperation (APEC) Summit 2025.   date2024-08-26

MOTIE to take the initiative over digital, AI, and supply chain cooperation in APEC

The Ministry of Trade, Industry and Energy (MOTIE) gained members’ active support to its proposed projects in the area of supply-chain cooperation and digital and AI in the APEC on the margin of the 3rd Committee on Trade and Investment Meeting (CTI3) and its sub-fora, which were held on August 16–26 in Lima. At these meetings, Korea obtained final approval on the project on establishing sustainable supply chains. In addition, Korea got consensus from the members to the concept note for holding a policy dialogue on digital economy and AI at the Digital Economy and Steering Group (DESG), which is expected to be notified in late August. With these projects, MOTIE will seek cooperation such as sharing best practices for sustainable supply chains across the APEC region, and create tangible outcomes with regard to establishing an AI cooperative system by taking lead of the digital order and establishing digital trade rules. MOTIE stated that “These projects have laid the foundation for harmonizing Korea’s trade interests with the APEC Putrajaya Vision 2040, where APEC members aim to enhance cooperation in the areas of trade and investment, innovation and digital economy, and inclusive and sustainable growth, and leading practical cooperation on key trade agendas including environment, supply chain cooperation, and digital trade.”   date2024-08-26

I-SMR Simulator Center completion to accelerate Korean SMR development towards achieving carbon neutrality

Trade, Industry and Energy Vice Minister Namho Choe attended the completion ceremony of the i-SMR Simulator Center and SMR Smart Net-Zero City (SSNC) control center today at the Korea Hydro & Nuclear Power (KHNP)'s central R&D center in Daejeon. The ceremony was held with the participation of 70 key figures from related industries, academia, and research institutions, including 2050 Presidential Commission on Carbon Neutrality and Green Growth Chairperson Kim Sang-hyup and KHNP CEO Whang Joo-ho. An innovative small modular reactor (i-SMR) is Korea’s homegrown SMR with a tenth of the large-sized reactor’s power capacity but built with enhanced safety and operation flexibility. In 2022, the Korean government launched a prefeasibility study for the i-SMR development project following the Atomic Energy Commission (AEC)’s deliberations in 2020, with aim to obtain the standard design approval for i-SMRs by 2028. The completed i-SMR Simulator Center will be used to verify SMRs’ optimal design and operation adequacy. It will also serve as a venue for training reactor operators and for performing and strengthening safety inspections through emergency drills inside a mock-up identical to the actual main control room. The data gained from the simulator will play a central role in the process of obtaining the i-SMR design approval and going forward, an operation license required for activation. For Korea to become a global leader in SMRs, Vice Minister Choe highlighted in his congratulatory message that not only is it important to develop reactors, but to conduct thorough safety inspections and talent training as well. He requested that KHNP and related institutions actively take part in the simulator design verification and operation training, vowing that the Government will provide consistent support for demonstration projects and paving the way towards commercialization in light of SMRs’ initial incorporation into the working-level draft of the 11th Basic Plan for Power Supply and Demand. In his keynote speech, KHNP CEO Whang addressed measures for leveraging i-SMRs to foster the SMR Smart Net-Zero City (SSNC) and emphasized that SMRs are a major alternative for climate crisis response.   date2024-08-23