Ministry of Trade, Industry and Energy

Meeting held to discuss ways to enhance petrochemical competitiveness amid global oversupply

On July 19 (Friday), the Ministry of Trade, Industry and Energy held a meeting with the presidents of major petrochemical companies. Chaired by Minister Ahn, the meeting had attendees discuss ways to overcome the crisis currently faced by the petrochemical industry. Since launching the public-private “Consultative Body on Competitiveness Building of the Petrochemical Industry” in April, the ministry has been steadfastly collecting opinions of the petrochemical industry through meetings on specific topics and on-site conferences. * Attendees: LG Chem, Lotte Chemical, SK geo centric, Korea Petrochemical Industry, Yeochun NCC, HD Hyundai Chemical, GS Caltex The participants at the meeting shared the understanding that the petrochemical industry was hit by a historical oversupply last year, and it would not be easy to recover from its impact in the short term given the aggressive expansion by China and the risk of further expansion from the Middle East as the oil peak becomes more of a reality. The presidents recommended actively creating government incentives for business restructuring, because the high interest and uncertainties in the peterochemical industry are hindering investment decisions despite the need for rapid restructuring. In addition, the attendees discussed ways to step up cooperation among resident companies in industrial complexes to reduce costs, expanding policy-driven financial support, and creating an early market for eco-friendly products. MOTIE plans to actively consult with the relevant ministries on the suggestions made by the companies and continue to formulate measures to strengthen the competitiveness of the petrochemical industry. Minister Ahn said, “The government will provide full support to help the Korean petrochemical industry leverage its global-level competitiveness to overcome the current crisis and rise once again.” He also urged the participant businesses to “give their best to prepare against disasters and keep their sites safe, as the recent heavy rain may affect on-site safety.” KITECH and CFI aim to bolster cooperation based on this MOU and plan to ink the MRA on the sidelines of the UN Climate Change Conference (UNFCCC COP 29) coming this November. date2024-07-19

Korea Trade Commission to launch Industrial Damage Response Centers

The Korea Trade Commission (Chairman: Lee Jaemin, KTC) of the Ministry of Trade, Industry and Energy (MOTIE) organized 22 Unfair Trade Practice and Industrial Damage Response Support Centers for industry associations and organizations to provide comprehensively support for Korean companies addressing damaged caused by unfair trade practices. The commission held a launch conference on July 19. On June 26, to encourage businesses to utilize the trade remedy systems, the KTC revised the relevant public notice to add industrial damage response to the functions of the existing Unfair Trade Practice Reporting Centers and renaming the centers to Unfair Trade Practice and Industrial Damage Response Support Centers (Support Centers) in order to strengthen companies' utilization of the trade remedy system. The launch conference was attended by KTC Chairman Jaemin Lee, Standing Member Younggil Chun, and Support Center representatives, who shared the main tasks and roles of the Support Center and the support to be provided by the KTC, and discussed the future activities of the Support Centers. Chairman Lee said, “With the launch of the Unfair Trade Practice and Industrial Damage Response Support Center, we will be able to comprehensively support Korean companies as they deal with industrial damage,” urging the support centers to actively introduce the trade remedy system to their member companies. He added, “We will continue to improve the relevant systems to provide quick and effective remedies against unfair trade practices such as dumping and intellectual property infringement.” date2024-07-19

Team Korea Selected as Preferred Bidder for New Nuclear Power Plants in Czech Republic

Preferred bidder announced On Wednesday, July 17, at approximately 8:50 p.m. (1:50 p.m. local time), the Czech government announced that it has selected Korea Hydro & Nuclear Power (KHNP) as the preferred bidder for the construction of new nuclear power plants. The project to build up to four large nuclear reactors in Dukovany and Temelin is known as the largest investment project in the history of the Czech Republic. According to the Czech government, the total estimated cost of the project is about CZK 200 billion (KRW 12 trillion) for the first phase and CZK 400 billion (KRW 24 trillion) for the second phase, of which the amount of the contract with KEPCO will be finalized after further negotiations. For the project, KEPCO (prime contractor) will form Team Korea with KEPCO E&C (design), Doosan Enerbility (main equipment & construction), Daewoo E&C (construction), KEPCO NF (nuclear fuel), and KEPCO KPS (commissioning and maintenance). Significance Being selected as the preferred bidder in the bid for a new nuclear power plant in the Czech Republic marks the Company’s entry into the European market, home to the first commercial power plant after the Middle East. Korea, which introduced European-style nuclear power plants in 1982, has now become a country capable of exporting nuclear power plants to Europe. This achievement will further accelerate the restoration of the nuclear ecosystem that the Korean government has been focusing on. Future plans This nuclear power project will mark the beginning of a new chapter in Korea-Czech Republic relations, as a nuclear power project is something that requires more than a century of cooperation between the two parties. In 2025, the 35th anniversary of Korea-Czech Republic diplomatic relations, the two countries will deepen their strategic partnership and actively identify and promote cooperation projects, by signing a framework for trade and investment promotion and expanding joint R&D in science, technology, industry, and energy. date2024-07-19

Korea holds 2nd “Sales Diplomacy Support Group” meeting

On July 17, Minister for Trade Inkyo Cheong of the Ministry of Trade, Industry and Energy (MOTIE) convened the second “Sales Diplomacy Support Group” meeting in Seoul with the participation of economic agencies and companies to review economic outcomes and future plans following several significant events: the state visit of the United Arab Emirates (UAE) President to Korea (May 28 to 29), the Korea-Africa Summit 2024 (June 3 to 5) and the state visits of President Yoon Suk Yeol to three Central Asian countries (June 10 to 15). At the meeting, Trade Minister Cheong went over the implementation of 447 memorandums of understanding (MOUs) and contracts in the private sector, which have been signed during the presidential visits by President Yoon since his inauguration, and discussed follow-up measures with the companies involved. MOTIE assessed that the UAE President’s state visit to Korea, the Korea-Africa Summit attended by leaders from 33 countries, President Yoon’s state visit to Central Asia have significantly bolstered economic security cooperation in critical minerals and energy, while broadening the scope of collaboration with the Global South countries. The Ministry also indicated that it will accelerate the implementation of follow-up actions to key achievements―the establishment of critical minerals supply chain partnerships, support for bidding on energy plant projects, and the signing of the Trade and Investment Promotion Framework (TIPF). Of the 447 MOUs and contracts in place, 439 are currently in effect, while eight have been placed on hold due to changes in business conditions. As follow-up measures, the signing of export contracts, the establishment of joint ventures, and technology development are underway. Trade Minister Cheong said, “The government has created vast economic value amounting to USD 97 billion in exports, project contracts, and investments over the last two years through sales diplomacy led by the President. This has resulted in tangible outcomes such as a contract for 27 LNG carriers in Qatar, followed by numerous subsequent contracts.” Trade Minister Cheong also emphasized by saying, “The government, economic agencies, and companies will work as one team to closely monitor the implementation of each private sector outcome. The government will also support businesses facing difficulties in financing, export marketing, and securing local information in collaboration with relevant ministries, diplomatic missions, and trade centers as well as through a channel of communication between high-ranking government officials.” date2024-07-19

Korea’s carbon footprint verification system steps closer to gaining mutual recognition with Europe

The Ministry of Trade, Industry and Energy (MOTIE) announced on July 18 that the Korea National Cleaner Production Center (KNCPC), established under Korea Institute of Industrial Technology (KITECH), entered into a memorandum of understanding (MOU) with Italy’s Carbon Footprint Italy (CFI) for the mutual recognition of carbon footprints. The MOU is considered a significant step towards expanding the global scope of the carbon footprint verification system run by MOTIE and KITECH in terms of international acceptance. Despite the demands for carbon footprint verification recently rising out of the EU over the import and export of goods, Korean firms are experiencing time and cost issues in the local carbon footprint verification process. Accordingly, MOTIE and KITECH have been making joint effort to establish a carbon footprint verification system that is compatible with other countries’ systems to ensure mutual recognition of verification outcomes. Through the signing of this MOU, KITECH and CFI have agreed to cooperate to forge a mutual recognition agreement (MRA) between the two countries’ verification systems. Once the MRA is sealed, it is anticipated that Korea’s domestic footprint verification results will be more easily accepted throughout Europe. KITECH and CFI aim to bolster cooperation based on this MOU and plan to ink the MRA on the sidelines of the UN Climate Change Conference (UNFCCC COP 29) coming this November. date2024-07-18

Korea, China, and Japan step up international standards cooperation

Korea Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) hosted the 22nd Northeast Asia Standards Cooperation Forum (NEAS Forum) through July 15–17 in Seoul. A total of 127 government officials and private experts from Korea, China, and Japan participated in the event. Launched in 2002 and rotated among Korea, China, and Japan, the NEAS Forum serves as a trilateral public-private standards cooperation and exchange platform for the major standards institutions of the three countries. The Forum also facilitates the sharing of national standards strategies and exchanges among private-sector standards experts. Through these interactions, the experts of three countries were able to publish 29 international standards. In conjunction with the Forum, Korea’s KATS, Japan’s Ministry of Economy, Trade, and Industry (METI), and China’s State Administration for Market Regulation (SAMR) hold bilateral and trilateral director general-level meetings to discuss measures for enhancing standards cooperation among the three nations. During the 22nd NEAS Forum, the three countries engaged in in-depth discussions on 18 new joint projects, including one on metaverse healthcare service, and nine existing joint projects, including one on freight containers. They also agreed to consider launching a working group of experts from each country to oversee the new projects.  In relation to Korea’s technical white paper project on medium voltage direct currents (MVDC), which was selected by the International Electrotechnical Commission (IEC), Korea requested the participation of experts from China and Japan. Additionally, Korea sought support from the two countries for six international standards proposals, such as the service robot testing method, to submit to the International Organization for Standardization (ISO).   date2024-07-17

Korea discusses measures for bolstering supply chain resilience with G7 member countries

Deputy Minister for FTA Negotiations Roh Keon-ki attended the G7 Trade Ministers’ Meeting Outreach Session as Chief Delegate of the Korean government on July 16 in Reggio Calabria, Italy. The Session was attended by representatives of the G7 countries, Outreach countries, the business community of G7 countries (B7), and international organizations for discussions on strengthening the resilience of supply chains. During the Session, Deputy Minister Roh stated that unlike the past when low-cost and high-efficiency were endowed utmost priority, the global supply chain as of late is undergoing drastic changes. Highlighting the importance of cooperation with trustworthy partners in establishing a resilient and stable supply chain, he said that Korea is currently engaging in multilateral cooperation, including the Indo-Pacific Economic Framework for Prosperity (IPEF) and the Minerals Security Partnership (MSP), as well as bilateral cooperation with Africa, Latin America, and other regions. Moreover, he introduced Korea’s domestic policies, including the early warning system and the industrial supply chain strategy of lowering key items’ dependency to 50 percent or less by 2030. On the margins of the G7 Trade Ministerial, Deputy Minister Roh met with World Trade Organization (WTO) Director General Ngozi Okonjo-Iweala to discuss measures for securing follow-up outcomes to the WTO's 13th Ministerial Conference (MC13) and asked for interest in Korean trade talent’s participation in WTO internships. The deputy minister also met with a government representative of Brazil, which holds this year’s G20 presidency, and discussed the Korea-Brazil Trade and Investment Promotion Framework (TIPF) implementation, Korea’s preparations for Asia Pacific Economic Cooperation (APEC) chairmanship in 2025, and both bilateral and multilateral measures for stronger cooperation. date2024-07-17

Korea and India launch 11th negotiating round on upgrading bilateral CEPA

Director General for FTA Negotiations Peob-min Ryu is leading the Korean delegation in the 11th round of official negotiations for upgrading the Korea-India Comprehensive Economic Partnership Agreement (CEPA) through July 17–19 in Seoul. The Korean delegation is composed of representatives of the Ministry of Trade, Industry and Energy (MOTIE), Ministry of Economy and Finance (MOEF), Ministry of Agriculture, Food and Rural Affairs (MAFRA), and the Ministry of Oceans and Fisheries (MOF) and will negotiate goods, services, rules of origin, and investment with the Indian delegation, headed by Additional Secretary for the Department of Commerce Anant Swarup. With aim to further invigorate bilateral trade and investment, the two countries have been engaging in negotiations since 2016 on upgrading the initial Korea-India CEPA, which entered into force in 2010. In this 11th round, the Korean government will be focusing on expediating the negotiation progress by narrowing the differences based on outcomes gained from the 10th official negotiating round that took place this January. date2024-07-17