Ministry of Trade, Industry and Energy

Korea and Gabon discuss trade and industrial cooperation

Minister for Trade Inkyo Cheong met François Mbongo Rafemo Bourdette, the Minister of Industry for the Gabonese Republic, on August 23 in Seoul and exchanged views on bilateral trade, investment, and industrial cooperation. With the highest per capita income in Central Africa, Gabon is a member of the Organization of the Petroleum Exporting Countries (OPEC) and is rich in resources like crude oil and manganese. Korea and Gabon have maintained mutually beneficial cooperative ties for over 60 years since the establishment of diplomatic relations in 1962.  Trade Minister Cheong remarked that Korea is Gabon’s third largest export market, while Gabon is Korea’s second leading African crude oil supplier and contributor to stabilizing Korea’s energy supply. To further economic cooperation going forward, he suggested that the two sides sign the Trade and Investment Promotion Framework (TIPF) agreement, for which talks are ongoing. Expressing interest in how Korea achieved rapid development through invigorating foreign direct investment (FDI) and fostering industrial complexes, Minister François Mbongo Rafemo Bourdette proposed that the two countries seal a memorandum of understanding (MOU) on industrial cooperation for nurturing an industrial cluster in Port-Gentil, Gabon’s second largest city.  The trade chief responded that Korea’s economic development and competitive manufacturing industry are founded on industrial complexes and Korean Free Economic Zones (KFEZs), suggesting that they share industrial complex policies and management knowhow to further their bilateral industrial cooperation.   date2024-08-23

Korea and Paraguay launch first intergovernmental cooperation channel for trade, industry and energy

Korean Minister for Trade Inkyo Cheong met Paraguayan Minister of Industry and Commerce Javier Gimenez on August 23 in Seoul, where they signed the Korea-Paraguay Trade and Investment Promotion Framework (TIPF) MOU. Alongside Argentina, Brazil and Uruguay, Paraguay is a full member of the MERCOSUR common market, the world’s fifth largest economic bloc. Paraguay is renowned for its agreeable business climate that offers affordable wages, lower tax rates and rules of origin advantages compared to other MERCOSUR countries, and enjoys a relatively higher economic growth rate than other South American nations.  Notably, Korean automobiles accounted for eight (roughly 40 percent) of Paraguay’s top twenty best-selling new cars in 2023. Moreover, a Korean automotive cable manufacturer operating in Paraguay achieved remarkable success by emerging as Paraguay’s largest local car parts manufacturer and exporter. Against this backdrop, it is anticipated that Korean businesses can look forward to expanding their presence in the Paraguayan market, which can serve as a springboard into manufacturing markets in MERCOSUR as well. During the Korea-Paraguay trade ministers’ meeting immediately following the TIPF MOU signing ceremony, the two ministers exchanged their views on measures for TIPF utilization, industrial and energy cooperation and advancing the Korea-MERCOSUR Trade Agreement (TA). They also decided to hold further discussions on details regarding future cooperation agendas through the Trade and Investment Cooperative Council (TICC) under the TIPF. Trade Minister Cheong stated that the cooperation channel established with Paraguay on this occasion is meaningful as the first bilateral foothold for kicking the two countries’ economic cooperation into high gear across the areas of trade, industry and energy. He also expressed his expectation that the TIPF will serve as the principal platform for identifying and pursuing tangible joint projects.   date2024-08-23

Korea announces Trade Policy Roadmap for enhancing FTA network and economic security

The Korean government held the 44th Ministerial Meeting on Current State Affairs on August 22, chaired by Prime Minister Han Duck-soo, where related ministries jointly announced the Trade Policy Roadmap (“Roadmap”) incorporating their assessments on trade policy outcomes of the past two years and policy directions in response to future changes in the global environment. In spite of difficult conditions, the Government has been active in responding to major countries’ legislations and economic policy revisions to mitigate business uncertainties, achieving all-time high exports and foreign direct investment (FDI) of USD 683.6 billion (as of 2022) and $32.7 billion (as of 2023), respectively, based on comprehensive summit-level sales diplomacy. Just last year alone, Korea sealed five trade agreements and inked the 23rd Trade and Investment Promotion Framework (TIPF) agreement, while bolstering its role with regard to supply chains, digital, clean economy and their new trade rules, including the inaugural chairmanship for the Crisis Response Network (CRN) launched under the Indo-Pacific Economic Framework for Prosperity (IPEF). However, the international trade order is undergoing substantial changes. The multilateral trade system has weakened noticeably, and major countries are shifting closer toward protectionism in the name of economic security, while the super election year is seeing an escalation of geopolitical risks. In view of these paradigm shifts, the Government has established the Roadmap based on cross-ministerial consultations and industry and academia opinions to launch an organized trade policy with a mid-to- long term outlook. The Roadmap lays out key policy tasks as follows. First, the goal is to expand Korea’s Free Trade Agreement (FTA) network to cover an unprecedented 90 percent of the globe in terms of gross domestic product (GDP). To this end, the Government plans to enter into Economic Partnership Agreements (EPAs) with key Asian and African countries rich in resources and growth potential, then extend the trade network to nearby untapped countries.  A southwest trade belt is to be established through EPA negotiations with countries like Mongolia, Pakistan, and Bangladesh, while also laying the groundwork for cooperation with Africa through EPA negotiations with countries like Tanzania and Morrocco. For the Middle Eastern and Latin American countries with which Korea has already concluded FTA deals, swift steps will be taken toward the Agreements’ entry into force. Across the Indo-Pacific region, Korea will work on weaving a more tightly knit trade network through multi-level FTAs and upgrading the existing FTAs. Efforts will be made to expedite the resumption of the Korea-China-Japan FTA negotiations and launching of bilateral FTA negotiations with Malaysia and Thailand. For the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), communication channels with various domestic stakeholders will be activated to build social consensus. Meanwhile, Korea intends to heighten cooperation with the Global South—ASEAN, India, Middle East, Central Asia, Africa, and Latin America—to diversify Korea’s supply chains for export, production, and critical minerals. Economic and industrial cooperation via multilateral platforms, such as the historic Korea-Africa Summit and K-Silkroad, will be strengthened. Simultaneously, the Government will increase trade financing, overseas certification support, and establish more Korea Trade-Investment Promotion Agency (KOTRA) trade centers. With resource-rich nations like Kazakhstan and Uzbekistan, Korea will boost its minerals cooperation partnership. Moreover, the Government will launch an official development assistance (ODA) program tying into homegrown industries in a way that maximizes the interests of both Korea and the Global South countries, so as to establi date2024-08-22

Korea boosts technical regulatory cooperation with Saudi Arabia and GCC

Director General Lee Chang-soo, in charge of technical regulatory response at the Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE), is heading the Korean delegation visiting Riyadh through August 11–13 to hold a meeting with the Saudi Standards, Metrology and Quality Organization (SASO) and the GCC Standardization Organization (GSO) for discussions on measures to strengthen technical regulatory cooperation. As Korea’s seventh largest trade partner, Saudi Arabia is high up on Korean companies’ list of attractive export destinations. Accordingly, KATS has been making long and consistent effort to push technical regulatory cooperation with SASO and GSO, entering into memorandums of understanding (MOUs) with each in 2008 and 2011, respectively. In January, a Saudi team visited Korea for the first time since the pandemic outbreak to give a briefing on technical regulatory policies and related updates. This visit to Riyadh is an extension of the above technical regulatory cooperation. Notably, domestic companies like LG Electronics and Hyundai Motor joined the delegation to take part in the meeting to provide in-person explanations of their challenges and discussed possible solutions. During the two-day meeting, the parties examined nine issues brought forward by Korean firms. Among the nine, three issues were resolved, including the requirements for minimum energy efficiency and fuel cell electric vehicles (FCEVs) exceeding 3.5 metric tons. The other six remain for further discussions, including the issue of EV certification.  Director General Lee stated that for other export destinations with which Korean firms require assistance in technical regulatory compliance, the Government will likewise make site visits to swiftly resolve issues.   date2024-08-21

MOTIE to launch Super Supplier Project

Trade, Industry and Energy Minister Dukgeun Ahn chaired the Super Supplier Project Conference on August 20 at EO Technics in Anyang, where he announced the Korean government’s measures for nurturing materials, parts, and equipment (MPE) companies into “Super Suppliers” that are capable of wielding absolute dominance over the global supply chain. The conference was attended by representatives of domestic MPE firms and relevant institutions, including Jahwa Electronics, PI Advanced Materials, Korea Trade-Investment Promotion Agency (KOTRA) and Korea Evaluation Institute of Industrial Technology (KEIT). The term "Super Supplier" (from Korean expression "Super Eul") refers to a market-leading company that has established a prominent status in the global supply chain based on unrivaled technological prowess. A good example of a super supplier would be the Dutch company ASML, the world’s exclusive producer of photolithography machines. The Ministry of Trade, Industry and Energy (MOTIE) plans to concentrate support to help homegrown MPE firms grow into super suppliers through the following triple “super” package: Super R&D, Super Pass, and Super Growth.  First, MOTIE will provide exclusive R&D support to MPE companies for their development of the world’s first or most advanced supply chain chokepoint technologies. The Super Supplier R&D Committee, composed of Korea’s top experts in areas of technology, market and investment, will evaluate companies based on their R&D growth strategy roadmap to select grant recipients of a seven-year program funding the R&D process from prior technology to commercialization to subsequent technology. For early commercialization and global market penetration, the ministry will manage a Super Pass program that threads together services in patenting, standardization, certification, global buyer matching, and export assistance. It will also give stronger backing for obtaining patent grants from the Trilateral Offices and prioritized support towards performance assessments on overseas mass production, while providing tailored export assistance programs by leveraging KOTRA’s market research and Global Partnering (GP) Centers. Furthermore, MOTIE intends to launch a Super Growth Package that offers financial, investment, and tax incentives as well as infrastructure support. In 2025, the Government will create a Super Supplier Growth Fund, while also making effort to increase the number of MPE testbeds and digital simulation platforms to reduce the materials development cycle time. In the fourth quarter of this year, MOTIE plans to announce its MPE Industry Growth Support Strategy incorporating additional measures based on opinions from industry insiders and experts.   date2024-08-20

Korea and China resume in-person Korea-Shandong Economic and Commercial Cooperation Exchange in 5 years

Minister for Trade Inkyo Cheong is visiting Jinan, the capital city of Shandong province in East China, through August 20–21 to attend the seventh Korea-Shandong Economic and Commercial Cooperation Exchange, where he met with Zhou Naixiang, the governor of Shandong province, and discussed measures for enhancing bilateral economic cooperation. Among China’s 31 provinces and cities, Shandong province is home to a record number of roughly 8,600 Korean businesses and ranks as one of Korea’s top three trade partners with last year’s trade volume reaching USD 37.8 billion. The province is also a key link in the Korea-China supply chain for automotive parts and urea. The Ministry of Trade, Industry and Energy (MOTIE) and the Shandong Provincial People's Government have jointly hosted the Korea-Shandong Economic and Commercial Cooperation Exchange on a regular basis since its launch in 2016 and this seventh convening is the first in-person exchange to take place in five years since 2019. On August 20, Trade Minister Cheong and Shandong Governor Zhou Naixiang discussed measures for creating a predictable management environment for Korean investors and promoting cooperation across the Korea-Shandong supply chain, Korea-China industrial complexes (Saemangeum and Yantai), and new industries like eco-friendly and bio.  In the following exchange session, 250 attendees from the two sides’ governments, businesses, and related institutions gathered to exchange views on a wide range of areas with regard to Korea-Shandong economic cooperation, including decarbonization, bio, supply chains, and logistics.  In his congratulatory address, Trade Minister Cheong highly appraised Shandong province’s contribution to the Korea-China economic cooperation, requesting that it play an active role in the two countries’ economic relations going forward. Moreover, the two countries’ companies sealed 20 memorandums of understanding (MOUs) and agreements, including the exporting contract on medical equipment and the exchanged letters of intent (LOI) on new investments. As the first high-level official from the Korean government to visit the Korea-China Yantai Industrial Park, the trade chief tours the site on August 21 to encourage the Korean tenant businesses. Launched as a pilot project under the Korea-China Free Trade Agreement (FTA), the two countries are currently operating Korea-China Economic Cooperation Complexes in several locations, including Saemangeum and Yantai. In view of next year marking the 10th anniversary of the Korea-China FTA’s entry into force in 2015, Trade Minister Cheong will address measures to further invigorate Korea-China industrial complex cooperation and gather issues faced by Korean companies. MOTIE will continue to support Korean firms’ business activities in China via cooperation channels with major local Chinese authorities. It also plans to resolve Korean firms’ business challenges and push for supply chain and economic cooperation based on coordination with the Chinese Central People's Government this year through the Korea-China Investment Cooperation Committee and the Joint Commission on the Korea-China FTA.   date2024-08-20

Korea and Malaysia launch 4th official negotiating round for bilateral FTA

Director General for FTA Negotiations Peob-min Ryu and Malaysia’s Senior Director for Strategic Negotiations at the Ministry of Investment, Trade and Industry (MITI) Sumathi Balakrishnan are heading their respective delegations in the fourth official round of negotiations for the Korea-Malaysia Free Trade Agreement (FTA) through August 20–23 in Kuala Lumpur, Malaysia. This fourth negotiating round is the two countries’ first official round in five years since the previous negotiations held in September 2019. On top of the ongoing negotiations for their working group on trade in goods, the two sides will be adding working groups on services, investment, digital, green, and bio with aim to facilitate a comprehensive FTA that encompasses the opening of markets and new trade rules. As Korea’s third and fourth largest ASEAN partner in terms of trade and investment, respectively, Malaysia is a resource-rich supplier of natural gas and petroleum products, while Korea exports petroleum products, semiconductors, and fine chemical materials to the Southeast Asian nation. In view of their complementary trade structure, the inking of a bilateral FTA is anticipated to bolster Korea’s trade and investment base across the ASEAN region.   date2024-08-20

Korea’s automobile exports log $5.4 bln in July

The Ministry of Trade, Industry and Energy (MOTIE) announced that Korea’s automobile exports for the month of July 2024 reached USD 5.4 billion (down 9.1 percent year-on-year), coming in at an all-time second highest for the month of July. The accumulated value of automobile exports through January–July this year amounts to a historic $42.4 billion (up 2.0 percent year-on-year). July exports of automobile parts recorded $2.2 billion (up 9.5 percent), the first time in seven years and eight months to surpass the $2.2 billion mark. Meanwhile, the number of automobiles produced in Korea during July added up to 290,910 units (down 17.6 percent year-on-year). The decline is attributed to major domestic automakers’ wage and collective bargaining agreement (CBA) negotiations, coinciding with summer breaks concentrated in the last week of July. Production is anticipated to revive in August along with the higher number of working days for the industry. Domestic sales contracted 2.7 percent to 132,396 units. Despite Korean automobiles falling 6.0 percent in domestic sales, the top 10 models sold in July were all homegrown cars. Eco-friendly car sales jumped 19.1 percent to 50,325 units, among which hybrid electric vehicles (HEVs) showed a steep climb of 22.4 percent and led the green car market. With the Special Act on Future Automotive Parts Industry Transition and Ecosystem Development having entered into force on July 10 in Korea, MOTIE is mulling various measures to support domestic car parts companies’ transition to future mobility, while also actively seeking to resolve issues faced by exporting businesses.   date2024-08-16