Ministry of Trade, Industry and Energy

Minister Addresses EU Investors Ahead of FTA Effectuation

Minister Addresses EU Investors Ahead of FTA Effectuation A luncheon meeting hosted by the European Union Chamber of Commerce in Korea (EUCCK) drew nearly 70 European business leaders on April 13. Minister of Knowledge Economy Choi Joong-Kyung delivered the keynote speech. With the Korea–EU FTA due to take effect in July, the strong ties between Korea and the European Union are about to grow even stronger, Minister Choi explained. Pointing to Korea’s progress on FTAs with major coun date2011-04-25

Clean Energy Ministerial Produces Action on Smart Grids

Minister of Knowledge Economy Choi Joong-Kyung traveled to Abu Dhabi to attend the second Clean Energy Ministerial earlier this month. Korea, Australia, Canada, France, Germany, Italy, Mexico and the United States signed an agreement that will strengthen the International Smart Grid Action Network (ISGAN). ISGAN is a mechanism for multilateral collaboration in which Korea has taken the lead. The network was launched at the first Clean Energy Ministerial in July 2010, and the new implementing agreement will ensure its operational efficiency and institutional stability. Through ISGAN, countries can actively share information about ongoing smart grid projects so as to ensure the interoperability of the technology. This will facilitate the wider adoption of renewable energy sources such as solar and wind power, which can be harnessed safely and effectively once the advanced power grids are in use. “Globally, many countries have their own smart grid projects in various stages,” Minister Choi said at the Ministerial. “Considering how complex the systems are, it is imperative that we share our knowledge and enhance cooperation.” The Clean Energy Ministerial involved government ministers from more than 20 countries, who gathered to review the progress of their efforts to disseminate clean energy and increase energy efficiency. ISGAN was one of 11 initiatives launched at last year’s meeting.   * Released by the Energy and Resources Policy Division   * For further information, please see the attached files. 1. Transcript of the Minister’s presentation 2. CEM 2011 Fact Sheet: International Smart Grid Action Network (Source: )   date2011-04-21

Retail Sales Figures for March 2011

The Ministry of Knowledge Economy has released its retail sales figures for the month of March. Sales at the nation’s three major discount chains and its three major department store chains posted positive growth. Greater spending on food, which accounted for 54.6 percent of all sales, drove up sales at the major discount chains 1.9 percent. Sales were down in some categories such as household appliances and cultural goods (-13 percent), general goods (-1.4 percent) and apparel (-0.5 percent); however, spending on food, sporting items and household goods climbed 5.8 percent, 5.3 percent and 1.4 percent, respectively. Sales at the nation’s three major department store chains displayed double-digit growth (13.1 percent), and spending was up across a wide spectrum of categories. General goods, women’s suits, women’s casual wear, men’s clothing, children’s goods and sporting items, household goods and food gained 12.4 percent, 4.5 percent, 7.5 percent, 7.6 percent, 15.7 percent, 16.2 percent and 12.0 percent, respectively. Notably, luxury goods posted a 27 percent increase in sales and accounted for 14.1 percent of all sales—up from only 13.1 percent in February. Spending on household goods increased, mainly as a result of promotions and discounts involving home appliances.   * Released by the Distribution and Logistics Division date2011-04-15

MKE Releases Car Sales Figures for March

MKE Releases Car Sales Figures for March The Ministry of Knowledge Economy has released its car sales figures for Vehicle production and exports reached record heights despite the earthquake in Japan. The crisis seems to have had minimal impact on Korean automakers, which had adequate stockpiles of Japanese components. Sales of both domestic and imported cars saw a third consecutive month of positive growth. Korea produced 395,899 vehicles, a 3.6 percent increase from 2010, on the back of robus date2011-04-14

Parts and Materials Industry Trade Figures for First Quarter

The Ministry of Knowledge Economy has released its parts and materials industry trade figures for the first three months of 2011. The trade balance for that sector posted a $20 billion surplus—ore than twice as much as the corresponding figure for all industries combined. Amid external factors such as political instability in Libya and the recent earthquake in Japan, exports in the parts and materials industry posted an 18.3 percent increase to record $61 billion. In particular, exports of basic metals and general machinery parts showed a marked increase. This strong showing is partly attributable to the global economic recovery. Notably, outbound shipments to China reached the highest quarterly level, totaling $21.2 billion; however, with increased exports to other trading partners China accounted for 34.7 percent of all exports, down from 35.9 percent in the fourth quarter of 2010. Shipments both to and from Japan have increased, suggesting the earthquake has had minimal effects on bilateral trade in the short term.   * Released by the Components and Materials Policy Division date2011-04-13

Foreign Investment Figures for First Quarter

Foreign direct investment (FDI) pledges amounted to $2.01 billion, representing a year-on-year decline of 30.1 percent in the first quarter of the year. Despite external factors such as political instability in the Middle East and North Africa and a devastating earthquake in Japan, the inflow of foreign capital into Korea has continued its upward swing on the back of the recovery of the global economy, a positive outlook for domestic growth, and an improved business environment.     Inward capital flows from the United States displayed a marked expansion, having jumped 1,068 percent to $467 million. Notably, FDI from the United States in the manufacturing sector surged 3,333 percent. The recent earthquake did not seem to hinder investment from Japan, which posted a 40.1 percent year-on-year increase. Investment from the European Union, however, dropped 48.5 percent to $434 million. Foreign capital from China went up 103.1 percent to $65 million, partly due to the launch of the “China Desk.”     For the first three months of 2011, both the manufacturing and service sectors saw foreign investment rise. FDI in the manufacturing sector climbed 20.3 percent to $787 million, while capital flows into the service sector gained 45.7 percent to record $1.19 billion. Greenfield investments stood at $1.49 billion, an increase of 48.7 percent, and FDI through mergers and acquisitions dropped 5.1 percent to $506 million.   * Released by the Foreign Investment Policy Division   date2011-04-11

IT Trade Figures for March

The Ministry of Knowledge Economy has released its IT trade figures for March. Despite uncertainties stemming from political turmoil in Libya and the recent earthquake in Japan, IT exports gained 6.2 percent to record $13.5 billion. This upward trend has remained in place for 18 consecutive months. For the first three months of 2011, IT exports totaled $37.5 billon, the highest quarterly level on record. (The previous record was $33.4 billion for the first quarter of 2010.) The national trade balance in the information technology sector stood at $6.28 billion.   Most of Korea’s key export items displayed positive growth. With shipments to China and Japan growing 10.6 percent and 10.8 percent, respectively, exports of semiconductors gained 10.9 percent to record $4.48 billion. An upswing in smartphone exports pushed outbound shipments of all mobile phones up 6 percent to $2.17 billion. Exports of smartphones shot up 248.7 percent from a year ago. Amid concerns over a slowdown in the global economy, exports of televisions went up 11.4 percent to $720 million. Outbound shipments of LED, 3D and smart televisions surged 504 percent, 1,151 percent and 1,851 percent, respectively. Meanwhile, display panel exports fell 4.8 percent to $2.7 billion, partly due to a continued decline in prices of display panels for LCD televisions. Outbound shipments of solid state drives surged 36 percent to $36 million.     Exports to major trading partners increased, but shipments to the United States and the European Union were exceptions to this trend. Notably, despite the earthquake, exports to Japan posted double-digit growth, with outbound shipments of mobile phones jumping 67 percent.     IT imports rose 11.9 percent compared with the same period the previous year to record $7.22 billion. With inbound shipments of semiconductors rising 8.2 percent, imports of electronic components gained 6.1 percent to reach $3.93 billion. Notably, inbound shipments of mobile phones surged 69.5 percent to $600 million.     * Released by the Electronics and IT Policy Division   date2011-04-07

More Koreans Embrace e-Learning

A recent survey by the Ministry of Knowledge Economy and the National IT Industry Promotion Agency showed that the government’s efforts to promote e-learning are already beginning to bear fruit. Since 2004, when the government first established a legal framework to nurture the e-learning sector, the field has grown at an average rate of nearly 10 percent. In 2010 it was worth 2.25 trillion won, a 7.4 percent year-on-year increase. The number of businesses operating in the e-learning sector posted a 13.2 percent increase to 1,549. In particular, many publishing companies are looking to e-learning as a lucrative opportunity and are putting more and more textbooks and reference books online. The number of employees in the e-learning sector rose 3.5 percent to record 23,468; however, 43.6 percent of all businesses surveyed cited a labor shortage as an obstacle to business activities in this area. This suggests training programs are needed. Of individual respondents aged 3 or older, 49 percent had taken advantage of e-learning programs in 2010. E-learners accounted for 74.4 percent of the primary and secondary students and 41.2 percent of respondents in their forties—this last figure was up 9.5 percentage points from 2009. Foreign language programs were the most popular, accounting for 38 percent of the total, and the Internet was the most popular method of delivery (72.2 percent) as opposed to broadcasting or mobile devices. Of the businesses in the survey with at least 300 employees, 62.8 percent had made use of e-learning for a year-on-year increase of 2.1 percentage points. Businesses used e-learning mainly to educate their employees about job duties (90.5 percent). Of those businesses that had adopted e-learning, 55.1 percent reported a cost savings. The number of educational institutions that use e-learning increased slightly to 81.4 percent. These now include 88.7 percent of primary schools and 79.7 percent of middle schools. Meanwhile, 77.6 percent of government and public agencies had adopted e-learning as of last year, including all Korea’s central government ministries. In March MKE announced a revised plan to promote the e-learning sector. The new plan aims to improve the business environment, advance the technology, nurture skilled personnel, encourage the wider adoption of e-learning, and open up overseas business opportunities.   * Released by the Service Industries Division date2011-04-06