Ministry of Trade, Industry and Energy

Automobile Industry Trends for July 2015

    □ South Korea’s domestic automobile sales increased 7.3 percent from a year earlier, mainly due to rising purchases of SUVs and minivans. The country’s domestic production and exports figures decreased 1.1 percent and 2.0 percent, respectively, as a result of economic downturns in emerging markets and decreasing price competitiveness.   □ : Monthly automobile production for July was 404,770 units, down by 1.1 percent. The primary cause of this was a decline in the volume of exports. This happened because the volume of exports declined while domestic sales increased. In addition, some domestic factories made significant improvements to their production lines.   □ Diesel, as well as the continuing popularity of Hyundai Motors' Santa Fe, Kia's Sorento and Carnival, GM Korea's Captiva, and Ssangyong's Tivoli.   - Sales of imported cars amounted to 23,104 units. Although this figure was up 22.8 percent YoY, the MoM figure was down by 12.7 percent.   □ : Exports of finished cars declined by 2.0 percent to 258,781 units. This was primarily due to economic weakness in emerging markets (including Russia), as well as lower price competitiveness following the devaluation of the yen and the Euro.   - Exports of auto parts fell by 10.7 percent to $2.25 billion from a year earlier. This was mostly due to sluggish demand from emerging markets.   □ YoY production of finished vehicles from January to July 2015 was down by 0.9 percent. Exports fell 3.3 percent, while domestic sales increased by 6.4 percent. Exports of auto parts fell by 4.9 percent.   date2015-08-30

The Korean Agency for Technology and Standards selects 21 new technologies

The Ministry of Trade, Industry and Energy (MOTIE) announced on August 27 that the Korean Agency for Technology and Standards under the Ministry of Trade, Industry and Energy selected 21 new technologies and awarded certificates.     One of the new technologies that received the award was the one developed by Daewon Sanup that can be used to make sheets that minimizes injuries to the passengers' head and upper body in a car accident by absorbing the shock of the collision. The company plans to apply the new technology in 450,000 vehicles in the next three years, and expects to see sales of 180 billion won ($ 162 million).     Another one is the textile jointly developed by Hyundai Motor, NVH Korea and Toray Chemical Korea that can absorb engine noise and block the heat from the engine. They expect to see sales of 150 billion won in the next four years.     Another award recipient, Pharos Vaccine, created a protein vaccine modeled after an antigen for the foot-and-mouth disease. It can improve animals' immune system and response speed. Products using this technology will bring import substitution effects, which can translate to nearly 60 billion won a year.     The Korea Industrial Technology Association accepts "New Technology Certificate" applications and issues the certificate three times a year, and the third application season for this year starts from September 1, 2015.     * Short version date2015-08-27

Internship opportunities to be available for 300 engineering students

The Ministry of Trade, Industry and Energy (MOTIE) announced on August 27 that students of engineering colleges anywhere in South Korea who have applied for a 6-month internship program can work as R&D staff at SME's in different regions. More than 300 students were accepted to the program, which provides a stipend of 1.2 million won ($1,100) a month as well as 12 units.     MOTIE selected 6 businesses that will operate the R&D internship support program in May this year, and r date2015-08-27

Korea and Ecuador start SECA negotiations

The Ministry of Trade, Industry and Energy (MOTIE) announced on August 25 that Korea and Ecuador will start the negotiations on SECA (Strategic Economic Cooperation Agreement) on the same day in Seoul after a meeting with Nathalie Cely, Minister of Production of Ecuador, and Diego Aulestia Valenci, Minister of International Trade.   For reasons of political sensitivity, Ecuador requested to replace the term "FTA" with something else, and Korea agreed to use the term "SECA (Strategic Economic Cooperation Agreement)" instead.     Korea and Ecuador agreed that the SECA should be closed as soon as possible after high level and comprehensive talks, and signed the joint statement on the initiation of Korea-Ecuador SECA.     Both governments plan to start the first negotiation talks as soon as possible based on the statement, and discuss the details of negotiation.     Ecuador's domestic market has been growing rapidly in the recent years thanks to its steady economic growth and expansion of middle class, and it has a mutually complementary economic structure with that of Korea which helped triple the trade volume in the recent 10 years, leaving lots of room for cooperation.     For Korea, Ecuador is a great market for plant and construction thanks to its abundant resources such as oil, and it can also serve as a foothold to enter the South American markets since it's tied to the MERCOSUR trade agreement with Brazil and Argentina.     * Short version date2015-08-25

Software integrated parts to be selected to turn the key industries into smart industries

The Ministry of Trade, Industry and Energy (MOTIE) announced on August 25 that it has selected 20 software integrated parts that are necessary to advance the key industries and turn them into smart industries.     The parts are for wearable devices, OLED, high-quality virtual multimedia, smart sensors, high fuel efficient motors and high-precision controllers that can be used in 13 industrial engines used by self-driving vehicles and intelligent robots.     According to a res date2015-08-25

Delegation to be dispatched to Iran to boost economic cooperation after sanctions are lifted

The Ministry of Trade, Industry and Energy (MOTIE) announced on August 24 that it sent a delegation to Iran for which sanctions were recently lifted to restore cooperative relationship in industrial and energy areas and discuss some of the issues to boost cooperation.     Led by the Second Vice Minister of Trade, Industry and Energy and composed of representatives from the Korea National Corporation, Korea Gas Company, Korea Resources Corporation, National Research Foundation of Korea, Korea Institute for International Economic Policy and Korea Trade-Investment Promotion Agency.     The Korean delegation will have a meeting with the president of ITPO, Iran and the president of National Iranian Oil Company to discuss matters of cooperation in economy and energy, as well as issues that are often faced by Korean companies wishing to do business in Iran.     They will also hold meetings with high ranking officials of National Iranian Oil Company to discuss the possibilities of Korean companies in the development of oil and gas fields based on their years of experience in the area.     * Short version date2015-08-24

Bupyeong Industrial Complex celebrates 50th anniversary

The Ministry of Trade, Industry and Energy (MOTIE) announced on August 21 that Bupyeong National Industrial Complex is celebrating its 50th anniversary this year.     Designated as a National Industrial Complex in 1965 according to the Export Industrial Complex Development Act, the complex located in Changcheon-dong, Bupyeong-gu, Incheon currently houses a total of 761 companies on 610,000㎡ (6.5 mil sqft) of land.     It's the largest industrial complex in Korea for electric and electronics businesses, and 54.3 percent of the entire area is currently occupied by foreign invested companies.     Last year alone, it produced goods worth 2.9 trillion ($ 2.6 billion) and exported 2.8 trillion won worth of goods. There are more than 12,000 people currently working there.     * Short version date2015-08-21

Export and Import Trends for July 2015

    □ South Korea’s exports fell 3.3 percent to $46.6 billion and imports decreased 15.3 percent to $38.8 billion in July from a year earlier, resulting in a trade surplus, for the 42 consecutive month, of $7.76 billion.   □ The volume of overseas shipments rose while unit prices fell as a result of factors such as falling oil prices and global oversupply. - By product, exports including petro products and petrochemical products increased. Shipments of steel, ships, and semiconductors rose, while those of automobiles, mobile telecom equipment, and home appliances decreased. Exports of OLED and cosmetics also showed steady gains. By region, exports declined for most regions amid the global trade slowdown. - Exports to Vietnam increased sharply due to increasing local production of South Korean wireless communication devices and home electronic appliances.   □ Unit prices of major raw materials continued to decrease and imports of consumer goods fell slightly, while capital imports remained strong.   □ ○ South Korea’s export volume maintained an upward trend despite a continued decline in exports in terms of dollar-denominated value. The profitability of export companies will likely improve slightly as won-denominated exports increased 8.4 percent in July thanks to a more favorable exchange rate.   ○ The downward trend in overseas shipments could continue for the time being due to unfavorable external conditions such as a decline in world trade, falling oil prices, and the weakening yen and euro. - Exports of semiconductors and solid state drives (SSDs) are likely to show solid growth as a result of rising demand for automobiles, smartphones (in emerging countries), and wireless communication devices on the back of new product introductions.   ○ The Korean government plans to focus on seeking new opportunities to promote exports of products such as cosmetics, SSDs, and organic light emitting diodes (OLEDs), while implementing measures to reinvigorate short-term exports announced in April and other steps aimed at strengthening export competitiveness in July as scheduled.   date2015-08-10