Ministry of Trade, Industry and Energy

Korea’s automobile exports hit all-time high for May

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 20 that Korea’s automobile exports logged in the past month climbed 4.8 percent year-on-year to USD 6.5 billion, a historic high for the month of May. The accumulated value from January to May this year is another all-time high for the period at $30.8 billion (up 4.7 percent year-on-year).   In May, eco-friendly vehicle exports grew 4 percent to $2.2 billion, driven by the steep growth of hybrid electric vehicles (HEVs) (up 48 percent) and surpassing $2 billion for three months straight.   By destination, automobile exports to North America advanced 36 percent to $4 billion, whereas those to the EU declined. Exports to Oceania improved 7 percent on the backs of new Korean model releases in the Australian market.   May’s automobile production volume amounted to 372,810 units (down 2 percent) and domestic sales recorded 141,313 units (down 7 percent). Domestic sales of eco-friendly vehicles rose 10 percent to 52,335 units as demand for HEVs climbed 19 percent to 38,134 units, while sales of battery electric vehicles (BEVs) marked a 3 percent downtick to 13,255 units. date2024-06-20

Korea and China's Jiangsu province to expand cooperation in investment and new industries

The Ministry of Trade, Industry and Energy (MOTIE) and the Jiangsu Provincial People's Government co-hosted the sixth Korea-Jiangsu Economic and Trade Cooperation Exchange on June 20 in Seoul and discussed measures for stimulating Korea-China mutual investment and expanding cooperation in advanced manufacturing, and new energy areas.   Based on the memorandum of cooperation (MOU) for strengthening Korea-Jiangsu economic and trade cooperation signed in 2016 between Korea’s MOTIE and the Jiangsu Provincial People's Government of China, the two countries have alternately hosted the Exchange since 2019. This year, the Exchange was held in Seoul on the occasion of Jiangsu Party Secretary Xin Changxing’s visit to Korea.   Held under the theme of “Shared Growth through Stronger Economic and Trade Cooperation,” this year’s Exchange was launched with the participation of 500 attendees, composed of both countries’ government representatives and business leaders.   Trade Minister Cheong highly assessed the growth of Korea-Jiangsu trade and investment amid the rapidly changing global trade environment and maintained that the two countries expand cooperation in heightening the existing supply chain’s stability, while also expanding cooperation in new industries, assuring the Korean government’s support towards creating synergy between the two countries’ companies.   During the program, speakers also presented on ways to promote bilateral investment through Korea's Saemangeum National Industrial Complex and the Yancheng China-Korea Industrial Cooperation Complex, as well as measures for bolstering bilateral cooperation in advanced manufacturing and new energy areas in Wuxi and Changzhou, cities in the Jiangsu province. date2024-06-20

Minister Ahn discusses supply chain cooperation with China's Jiangsu province party secretary

Trade, Industry and Energy Minister Dukgeun Ahn met with Xin Changxing, the party secretary of China's Jiangsu province, on June 19 in Seoul to discuss measures for stimulating trade and investment, supporting firms’ local market entry, and stabilizing Korea-China supply chains.   Jiangsu has the second highest gross regional domestic product (GRDP) among China’s 31 provinces and is Korea’s largest trade and investment partner region, with last year’s bilateral trade between Korea and Jiangsu reaching USD 72.3 billion. Major manufacturers of automobiles, semiconductors, and batteries make up the 3,000 Korean firms that have entered the Jiangsu market and serve as links in the bilateral supply chain.   Mentioning Jiangsu’s critical role in the two countries’ supply chain cooperation, Minister Ahn requested the Jiangsu Provincial People's Government’s strong support concerning future supply chain issues and asked for China’s support in facilitating a stable and predictable business environment for Korean firms. Party Secretary Xin Changxing responded in agreement on continuing these exchanges for expanding mutual trade and investment with aim to advance the two countries’ economic cooperation.   MOTIE and the Jiangsu Provincial People's Government plan on holding the sixth Korea-Jiangsu Economic and Trade Cooperation Exchange on June 20 to discuss ways for invigorating mutual investment and for increasing collaboration in new industries like advanced manufacturing and new energy areas. date2024-06-20

Trade Minister discusses deeper Korea-U.S. cooperation with The Korea Society leaders

Minister for Trade Inkyo Cheong met Kathleen Stephens, The Korea Society Board Chair Ambassador, and Thomas Byrne, The Korea Society President and CEO and Honorary Ambassador for Foreign Investment Promotion for Korea, on June 19 in Seoul to discuss measures for strengthening the Korea-U.S. relations, bilateral trade issues, and The Korea Society’s wide-ranging activities across politics, diplomacy, and culture.   Trade Minister Cheong expressed gratitude for their interest and affection towards Korea as shown in their service via the Peace Corps and volunteer teaching in the 1970s, and held The Korea Society in high regard with respect to advancing the Korea-U.S. relations.   Ambassador Stephens mentioned the rising level of exchanges as of late, including President Yoon Suk Yeol’s state visit to the U.S. and the Korea-U.S.-Japan trilateral summit, vowing The Korea Society’s ongoing and future support for furthering the shared cultural understanding between Korea and the U.S.   In view of the recently increasing trade uncertainties, Trade Minister Cheong noted how the Korea-U.S. alliance has moved on from the traditional area of security to advanced industries and supply chains, and asked The Korea Society’s continued interest and support for Korean firms’ establishment of a mutually beneficial industrial ecosystem through stable investment in the U.S. date2024-06-19

MOTIE and KORAD call for site proposals for underground high-level radioactive waste research facility

The Ministry of Trade, Industry and Energy (MOTIE) and Korea Radioactive Waste Agency (KORAD) are calling for site proposals for underground facilities for high-level radioactive waste research beginning June 18 in accordance with the radioactive waste management technology development measures specified in the Korean government’s second high-level radioactive waste management basic plan (December 2021) and the High-Level Radioactive Waste R&D Roadmap (February 2024).   The underground research facilities are for conducting studies on Korea’s rock mass properties and disposal system performance at 500m underground, at a depth similar to that of disposal facilities. The research facility will be built at a site entirely separate from high-level radioactive waste disposal facilities, without admitting any radioactive waste or used nuclear fuel inside the area, and is for only research purposes. The U.S., Germany, Sweden, Switzerland, Canada, Belgium, France, and Japan have in the past operated or are currently operating such facilities in their territories.   The focus of the research facilities will be on specialized manpower training and development of disposal technologies suitable for the domestic geological environment, while also providing the general public the opportunity to experience an environment quite similar to that of a high-level radioactive waste disposal facility. Technologies developed in the facility will be utilized in the process of site selection, construction, and management of the high-level radioactive waste disposal facility upon the legislation of the Special Act on High-Level Radioactive Waste Management.   For siting, a site evaluation committee under KORAD will evaluate the site proposals submitted by local governments in terms of geological suitability and such eight criteria with aim to complete the selection process by the end of the year. Construction is to commence in 2026 with completion targeting 2032, and the operation period is approximately 20 years starting from 2030.   MOTIE and KORAD are holding a briefing on June 25 to explain the site selection process to interested local government bodies. Letters of intent and site proposals, respectively, must be submitted by July 19 and August 2, to KORAD. date2024-06-18

Hydrogen experts gather on Jeju Island for Green Hydrogen Global Forum 2024

The Ministry of Trade, Industry and Energy (MOTIE) and Jeju Special Self-Governing Province are hosting the Green Hydrogen Global Forum 2024 through June 17–19 at the International Convention Center (ICC) on Jeju Island to share clean hydrogen trends and policies and to facilitate discussions on cooperation measures.   Launched in 2023, this year’s Forum draws 400 participants from various countries, including Germany, Norway, and Denmark, composed of hydrogen experts and key government figures and ambassadors. James F. Miller, a senior scientist in the Energy Systems and Infrastructure Analysis division at U.S.’ Argonne National Laboratory, and Marco Alverà, the author of "The Hydrogen Revolution,” gave keynote speeches at the opening ceremony, followed by the “Leadership Dialogue” program.   The second day of the Forum will continue with discussions on measures for establishing the life cycle of clean hydrogen—production, storage, transport, and utilization—as well as sector coupling strategies for invigorating the accommodation of distributed energy resources, such as the conversion of surplus renewable energy to hydrogen.   The last day of the Forum will have members of the general public visit the Haengwon Green Hydrogen Production Facility and the Hamdeok Green Hydrogen Charging Station on the island by bus to see and experience firsthand the first commercialized domestic model of green hydrogen.   In his opening message, Vice Minister Namho Choe stated that “International cooperation and solidarity are key to realizing a clean hydrogen-based hydrogen economy,” and added that he looked forward to seeing the different countries’ governments and global experts take part in the vigorous information exchange and seek measures for mutual cooperation. date2024-06-18

Export financing authorities pool $10.8 bln refund guarantees for domestic shipyards

Trade, Industry and Energy Minister Dukgeun Ahn and Financial Services Commission (FSC) Chairman Kim Joo-hyun held the K-Shipyard Export Financing Support MOU ceremony on June 17 in Seoul with the participation of five major nationwide banks, three local banks, four policy financing institutions, and three shipyards for securing Korea’s global shipbuilding dominance and expanding exports.   Korean shipyards are currently on a tailwind of bulk orders for LNG carriers and such high value-added ships, winning over four years’ worth of work. Ship exports have also risen 57 percent year-on-year to USD 10.4 billion (Jan–May, 2024).   Amid these developments, the Ministry of Trade, Industry and Energy (MOTIE) and FSC agreed to increase the amount of advance payment refund guarantee (RG) for shipbuilders through collaboration with related ministries, banks, and policy financing institutions. Accordingly, RGs worth $10.1 billion and $0.7 billion will be provided to large and mid-sized shipyards, respectively, totaling $10.8 billion worth of RGs to homegrown shipyards.   The K-Shipyard Export Financing Support MOU is meaningful in that it is the first RG jointly issued by nationwide and local banks to mid-sized shipyards. date2024-06-17

K-SURE and Shinhan Bank sign MOU on ₩1 tln export financing support

Trade, Industry and Energy Minister Dukgeun Ahn and Financial Services Commission (FSC) Chairman Kim Joo-hyun attended the memorandum of understanding (MOU) signing ceremony between Shinhan Bank and K-SURE on June 17 for reducing SMEs and middle-market companies’ trade financing burdens and providing joint support for their overseas market entry as part of the trade insurance support measures announced this March.   According to the MOU, Shinhan Bank and K-SURE are to provide preferential loans of KRW 1 trillion ($720 mln) as export financing to support the overseas production facility establishment of SMEs and middle-market companies entering foreign markets in response to global supply chain realignment. Such companies will be offered loans at preferred rates from Shinhan bank and guarantee fee discounts and feasibility study expense grants from K-SURE.   Shinhan Bank and K-SURE are to cooperate in nurturing tech export businesses with high potential in terms of technology, growth, and innovativeness by selecting and giving catered support to 100 companies over the next three years for them to grow into unicorn companies. To this end, Shinhan Bank plans to give preferential investment funding assistance via Future’s Lab, its startup nurturing program, and K-SURE plans to offer special guarantees up to ₩10 billion maximum per company as well as a 90 percent discount on insurance premiums and guarantee fees.   Minister Ahn stated that the MOUs signed this day are part of a leading financial cooperation model to boost SMEs and middle-market companies’ exports and overseas entry amid protracted high interest rates and intensifying supply chain realignments worldwide. date2024-06-17