Ministry of Trade, Industry and Energy

Higher Oil Prices Boost Sales of Small and Hybrid Cars

Higher Oil Prices Boost Sales of Small and Hybrid Cars The Ministry of Knowledge Economy has released its car sales figures for February. Despite a shorter working month, vehicle sales in the domestic market totaled 114,465, the highest number in nine years. Of the total, 107,695 vehicles were domestic cars, which saw a 1.1 percent year-on-year increase in sales; meanwhile, imported cars saw a 5.2 percent increase with 6,770 vehicles sold. With the recent surge in oil prices, sales of fuel-effi date2011-03-15

IT Trade Figures for February

IT Trade Figures for February The Ministry of Knowledge Economy has released its IT trade figures for February. The national trade balance in the information technology sector totaled $5.33 billion. Despite adverse overseas conditions and a shorter working month, IT exports increased for the 17th consecutive month, having climbed 4.8 percent year on year to reach $11.18 billion.   Most of Korea’s key export items displayed positive growth. With shipments to China and Japan growing 9. date2011-03-09

Korea Reaches Out to Its South Asian Partners

Korea Reaches Out to Its South Asian Partners Vice Minister for Trade and Energy Park Young June and a delegation representing nearly 20 Korean businesses traveled to India, Sri Lanka and Nepal last week to meet with high-level government officials. This visit was part of Korea’s efforts to promote industrial partnerships with emerging markets in South Asia. In India, Vice Minister Park discussed potential partnerships involving energy, biofuel and information technology. The two sides al date2011-03-04

Trade Figures for February

The Ministry of Knowledge Economy has released its trade figures for the month of February. The trade surplus recorded $2.85 billion, down from $2.9 billion in January. The month-on-month decline is attributable to the Lunar New Year holiday, which fell in February this year and resulted in four fewer business days. Despite unfavorable conditions in the global market, brisk outbound shipments of petroleum products and automobile parts drove exports up 17.9 percent year on year to $38.96 billion. Most of Korea’s key export items displayed doubledigit growth. Notably, the average value of exports per day hit an all-time high, totaling $2.05 billion. The previous record was $1.94 billion.     With the exception of Latin America and Oceania, exports to most of Korea’s key trading partners increased during the first 20 days of February. Outbound shipments to China of textiles, automobile parts and petrochemicals grew 34.5 percent, 24.3 percent, and 19.3 percent, respectively. Outbound shipments of petroleum products to Japan surged 107.2 percent; while exports of ships to the United States and the European Union shot up 110.6 percent and 435.3 percent, respectively.     Meanwhile, imports climbed 16.3 percent to record $36.11 billion. The average value of imports per day stood at $1.9 billion, representing an increase of 25.5 percent from a year ago. During the first 20 days of February, with coal and crude oil gaining 63.3 percent and 34.1 percent, respectively, inbound shipments of raw materials went up 15.1 percent. While imports of capital goods slid 8.6 percent, the corresponding figure for consumer goods was 18.7 percent.       * Released by the Export and Import Division   date2011-03-02

Minister Meets with Leading Foreign Entrepreneurs

Pointing to a significant increase in foreign direct investment (FDI) to Korea in 2010, Minister of Knowledge Economy Choi Joong-Kyung expressed great enthusiasm about prospects for Korea’s business environment during a recent meeting with representatives of key foreign-invested businesses. Korea’s FDI inflow last year amounted to $13 billion, which marked a ten-year high. Minister Choi pointed specifically to Korea’s much-expected progress on bilateral trade partnerships with major trading partners, which will give significant improvements to its investment environment. He also encouraged foreign investors to take full advantage of the country’s strengths in information technology and new growth engine industries. With a three-year plan for facilitating FDI inflows in the works, the Minister urged foreign investors to seize opportunities to benefit from the proactive efforts of the Korean government to provide an ideal business climate as well as favorable living environment. According to the Minister, investors from major partner countries should consider partnerships with local businesses to make the most of Korea’s strong economic growth. He emphasized that such partnerships could greatly boost the performance of both foreign-invested and local firms by tapping into each other’s comparative strengths.   * Released by the Foreign Investment Policy Division   date2011-02-23

Retail Sales Figures for January 2011

The Ministry of Knowledge Economy has released retail sales figures for the month of January. The nation’s three major department store chains and its three major discount chains recorded a year-on-year increase in sales. Sales at the nation’s three major department store chains rose 24 percent compared with the same period the previous year. Sales were up across a wide spectrum of categories: general goods (18.9 percent), women’s suits (10.6 percent), women’s casual wear (14.8 percent), men’s clothing (15.9 percent), children’s goods and sporting items (16.8 percent), household goods (15.2 percent) and luxury goods (31.8 percent). Notably, spending on food surged 69.1 percent, largely due to the Lunar New Year holiday. The three major discount chains recorded a 21.4 percent increase in sales. Spending in all categories went up. Food, apparel, household goods, sporting items and general goods climbed 30.6 percent, 17.6 percent, 17.9 percent, 4.2 percent and 15.7 percent, respectively, with the notable exception of household appliances and cultural goods (down 2 percent).   * Released by the Distribution and Logistics Division   date2011-02-22

Korea Pursues Green Partnership with Canada

Representatives of Natural Resources Canada visited Seoul recently to discuss green technology with MKE officials, and the two sides concluded a memorandum of understanding. Areas of cooperation specified in the agreement include carbon capture and storage, renewable energy, smart grids, combined heat and power generation, and eco-friendly motor vehicles. Korean experts will work with their Canadian counterparts to engage in exchange programs, conduct joint research, and pursue demonstration projects involving these technologies. Details of the plan will be determined by the end of 2011. In a seminar that followed the signing ceremony, representatives of energy agencies in both countries shared policy information regarding the development of carbon capture and storage (CCS) technology and discussed ways to cooperate in this promising field. CCS and clean coal are two areas in which Canada has advanced technologies, so cooperative endeavors involving these technologies are expected to make particularly quick progress. * Released by the Energy Technology Division   date2011-02-16

Vice Minister Praises High-Performing Foreign Investors

Vice Minister for Industry and Technology Ahn Hyunho recently addressed representatives of the 10 foreign-invested businesses in Korea with the best investment performances of 2010. Vice Minister Ahn praised the companies’ contributions to Korea’s economy, particularly in terms of job creation, and called for their continued support. The Vice Minister noted that 2010 was a good year for foreign direct investment in Korea, with inflows reaching their highest level in nearly a decade. (For further information, please see the press release dated January 5.) In 2011, however, prospects are more uncertain for the world economy and global investment activities. Vice Minister Ahn pointed to Korea’s advantages—specifically, to its strong signs of recovery from the recession and its progress on bilateral trade partnerships with key partners—to show that the country is still a wise investment choice. He promised that Korea would remain attentive to the concerns of foreign investors and would continue to strive for an ideal business environment. To make the most of Korea’s strong economic growth, the Vice Minister encouraged foreign-invested businesses to seek partnerships with local businesses and to increase investment in Korea’s new growth engine industries. He also encouraged them to share their experiences with potential investors at investment promotion seminars.   * Released by the Investment Promotion Division     date2011-02-11