Ministry of Trade, Industry and Energy

Government and steel industries join hands to achieve carbon neutrality goals

The Ministry of Trade, Industry and Energy (MOTIE) and Korea Iron & Steel Association (KOSA) held the 25th Steel Day on June 3 at the POSCO Center in Seoul, attended by MOTIE Minister Dukgeun Ahn, Minister for Trade Inkyo Cheong, and representatives of steel industries and companies, including POSCO Group Chairman Jang In-hwa. Steel Day was launched in 2000 to commemorate the POSCO Pohang steel plant’s inaugural batch of molten iron tapped on June 9, 1973.   In his congratulatory message, Minister Ahn held the steel industry in high regard for its efforts toward shared growth and innovation, assuring that the Government will also work in tandem with the industry for carbon neutrality and supply chain stabilization goals through a number of measures, such as establishing a steel scrap processing industry nurturing plan for securing steel resources, conducting hydrogen-reduced steel demonstrations, actively responding to steel trade barriers, and improving investment conditions.   Trade Minister Cheong attended the Steel ESG Win-Win Fund agreement ceremony held on the sidelines of Steel Day. The Steel ESG Win-Win Fund is a private fund created in 2020 by POSCO, Hyundai Steel, and Industrial Bank of Korea to raise the competitiveness of steel SMEs, middle-market companies, and contractors, and support their carbon reduction endeavors. In accordance with the agreement, the fund will expand from the initial KRW 150 billion to 200 billion won. Moreover, starting this year, support can go towards facility funding and steel scrap processors are ach eligible to apply for assistance.   Meanwhile, MOTIE awarded orders of merit and government commendations to 31 persons for their contribution to the steel industry’s growth. The Silver Tower Order of Industrial Service Merit went to Hankum CEO Ryu Ho-chang for contributing to the localization of high carbon steel and technological development of automobiles and shipbuilding materials. POSCO’s Executive Director Lee Sang-ho was awarded the Bronze Tower Order of Industrial Service Merit for the local optimization of the company’s integrated steel mill system in Indonesia. date2024-06-03

Government to push pan-ministerial measures to assist exports

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 3 the following pan-ministerial measures for supporting exports and resolving issues arising from firms’ different export conditions and growing overseas uncertainties.   First, the Government will strengthen and expand the export infrastructure. It plans to inject a total of KRW 365 trillion in policy funding by adding five billion in export funding on top of the five major banks’ two billion won export preferential loan program, making the total public-private export assistance seven billion won. Moreover, information provision on technical barriers to trade (TBTs) will be strengthened to help resolve business challenges arising from the changing trade environment and companies will be able to check different ministries’ export assistance programs through a one-stop notification system.   Second, the Government will bolster measures for strengthening the export competitiveness of each sector. For instance, the current maximum of charging capacity limited to two LNG vessels for truck-to-ship (TTS) charging will be upped to a maximum of four to meet global demand. Boarding declarations will no longer be required for companies with top track records in trade safety management. Companies importing critical raw materials and items will be allowed to complete their post-import management procedures on these critical items prior to import declarations. Import duties on naphtha, LPG, and the crude oil required for their production will be slashed to zero by the end of this year. Also, standards for domestic animated films will be eased to boost overseas content market expansion through global joint productions.   Lastly, the Government will support SMEs and middle-market exporters’ quantitative and qualitative growth through catered support. Small business owners will receive a 50 percent cut in their service fees when using the overseas market research service provided by Korea Trade-Investment Promotion Agency (KOTRA). Furthermore, tech firms owning leading technologies will be eligible for preferential loans and extra scores in export assistance programs. date2024-06-03

Korea's exports climb 11.7% in May

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 1 that Korea’s export value for May advanced 11.7 percent year-on-year to USD 58.2 billion, while imports dropped 2.0 percent to $53.2 billion. The trade balance stood at a surplus of $5.0 billion.   Korea’s May exports increased for the eighth consecutive month, posting double-digit growth for the second consecutive month. May exports reached the highest in 22 months since July 2022 ($60.2 billion), and the daily average export value accounting for the number of working days amounted to $2.64 billion (up 9.2 percent), a record high in 20 months since September 2022 ($2.66 billion).   By item, exports of 11 out of 15 major items achieved growth. All of information technology items, namely semiconductors, displays, computers, and wireless communication devices, increased for the third consecutive month and their aggregate value also increased for the seventh consecutive month.   Semiconductors reached $11.4 billion (up 54.5 percent) and expanded for the seventh consecutive month, surpassing $11 billion for the second time this year after the initial achievement in March ($11.7 billion).   Displays gained 15.8 percent to this year's all-time high of $1.6 billion, climbing for the 10th consecutive month. Computer exports also logged the highest in 17 months at $1.0 billion (up 4.8 percent) and advanced for the fifth consecutive month, while wireless communication devices (up 9.4 percent) advanced for the third consecutive month.   Automobile exports hit an all-time high for May with $6.5 billion, having entered the $6 billion thresholds every month in 2024 but for February when the Seollal holidays landed this year. Ship exports jumped in three digits (up 108.4 percent) to $2.1 billion and bio health exports (up 18.7 percent) recorded double-digit growth for the second month straight. Petroleum products (up 8.4 percent) increased for the third consecutive month, while home appliances (up 7.0 percent), petrochemicals (up 7.4 percent), and textiles (up 1.6 percent) climbed for the second consecutive month.   By region, exports to China recorded the highest in 19 months at $11.4 billion (up 7.6 percent). With the exception of February, China-bound exports maintained an upward trajectory all throughout this year and the daily average export value gained for the sixth consecutive month.   Exports to the U.S. advanced for the 10th consecutive month and achieved $10.9 billion (up 15.6 percent), a record high for May.   Exports to Latin America (up 25.5 percent) showed the steepest growth among all major destinations and expanded for the fifth consecutive month.   Exports to ASEAN (up 21.9 percent), Japan (up 2.4 percent), India (up 24.8 percent), and the Middle East (up 2.2 percent) all logged growth for the second consecutive month.   In May, Korea's energy imports inched up 0.3 percent to $11.7 billion as those of crude oil (up 6.7 percent) and gas (up 7.1 percent) rose.   The monthly trade balance recorded the highest surplus in 41 months and the accumulated surplus through January–May this year amounted to $15.5 billion, improving $43 billion year-on-year. date2024-06-03

First homegrown state-of-the-art geophysical exploration vessel sets sail

Trade, Industry and Energy Vice Minister Namho Choe visited Pohang Yeongilman Port on May 31 to attend the commissioning ceremony of the TAMHAE 3, Korea’s first domestically built geophysical exploration research vessel.   Weighing 6,000 metric tons, the TAMHAE 3 is a fully state-funded (KRW 181 billion) research vessel equipped with 35 different kinds of cutting-edge research equipment.   The TAMHAE 3 is replacing its predecessor TAMHAE 2 (built in 1996) for geophysical explorations in domestic and foreign waters, starting with Korea’s continental shelves and onto the polar regions and is expected to contribute to resource security development.   The vessel is capable of both 3D and 4D marine exploration and can analyze seafloor faults to detect changes occurring over time, which will come in useful in sensing seabed seismic signals and selecting sites for carbon capture and storage (CCS).   Vice Minister Choe remarked that efficient utilization of the TAMHAE 3 will go towards bolstering resource security, public safety, and achieving carbon neutrality. date2024-05-31

Korea and Uzbekistan hold 12th Trade and Economic Cooperation Committee meeting

Trade, Industry and Energy Minister Dukgeun Ahn met with Uzbekistan’s Investment, Industry and Trade Minister Laziz Kudratov on May 31 in Seoul for the 12th meeting of the Korea-Uzbekistan Joint Committee on Trade and Economic Cooperation (“Committee”).   Launched in 1994, the Committee is a 30-year running ministerial body co-led by the Korean trade, industry and energy minister and Uzbekistan’s investment, industry, and trade minister with the participation of agenda-relevant ministries and institutions.   During the meeting, the two sides reaffirmed the importance of expanding cooperation in supply chains and transportation infrastructure, also agreeing to strengthen cooperation in areas like trade, investment, science, technology, agriculture, and standards.   Noting the two countries’ mutually complementary industrial structure, Minister Ahn highlighted the need for wider cooperation across all industries, including minerals and plants. date2024-05-31

MOTIE launches advisory group for APEC in preparation for Korea's chairmanship in 2025

Minister for Trade Inkyo Cheong led the inaugural meeting of the Asia-Pacific Economic Cooperation (APEC) Advisory Group on May 30, where he presented appointment certificates to the 22 experts making up five key working groups (APEC Vision, Trade and Investment, Economic Security and Supply Chain, Digital, Sustainability and Inclusion) and launched forward preparations for Korea’s APEC chairmanship in 2025.   The trade chief stated that the APEC Advisory Group aims to select themes that align with APEC member countries’ interests as well as the APEC’s vision, while also uncovering timely agenda items. He expressed hopes of fostering solidarity and cooperation among APEC members amid persisting global uncertainties.   MOTIE’s Director General for Multilateral Trade and Legal Affairs Park Dae-kyu shared the “APEC Putrajaya Vision 2020-2040” and its three pillars, on which the four major tasks of MOTIE are based: preparation for the World Trade Organization (WTO)’s 14th ministerial conference (MC14) and recovering the multilateral trade system; establishing a resilient and sustainable supply chain; discussions on artificial intelligence (AI) and digital trade rules; and the diffusion of carbon-free energy sources in light of climate change and attaining carbon neutrality.   Director General Park explained that priority tasks will be pushed forward with private sector experts in line with the APEC’s cooperative vision. date2024-05-30

Government holds 2nd briefing for SMEs on EU's CBAM implementation

The Ministry of Trade, Industry and Energy (MOTIE) held the second briefing on the EU’s Carbon Border Adjustment Mechanism (CBAM) with the Ministry of SMEs and Startups (MSS), Ministry of Environment (ME), and Korea Customs Service (KCS) on May 30 in Seoul, focusing on measures for supporting SMEs based in the Seoul capital area. This briefing comes on the heels of the first pan-ministerial briefing held April.   As the majority of companies affected by the CBAM are located in the Seoul capital region, the number of pre-registration applicants for this second briefing reached 300. SMEs and companies facing difficulties responding to CBAM are highly interested in the event, as they can gain knowhow from other companies that managed to effectively implement corporate response measures.   The Korean government plans to provide education and training on CBAM response jointly with Korea SMEs & Startups Agency (KOSME) and other related institutions on the margins of these briefings and give corporate assistance through the One-stop FTA Support Center run by KCS. Moreover, the Government will voice to the  EU domestic firms’ suggestions concerning CBAM reporting requirements and maintain close communication with the EU to finetune implementation. date2024-05-30

Korea hosts Clean Hydrogen Trade Initiative Forum 2024

Trade, Industry and Energy Vice Minister Namho Choe attended the third Clean Hydrogen Trade Initiative Forum on May 30 in Seoul, hosted by MOTIE and organized by Korea Energy Economics Institute, where international organizations, governments, and experts gathered to discuss key issues on clean hydrogen, defined not by production method but by the quantitative measure of greenhouse gas (GHG) emissions, and countries' carbon reduction efforts.   S&P Global stated that a total of 40 million metric tons of clean hydrogen is estimated to be produced by 60 countries around the world by 2030, emphasizing the role of government support in accelerating the production of green and blue hydrogen. Speakers from the International Renewable Energy Agency (IRENA) and the Hydrogen Council noted that Korea, likely be a major hydrogen buyer and importer, will be able to secure affordable clean hydrogen by utilizing overseas renewable energy and natural gas. The German Federal Ministry for Economic Affairs and Climate Action announced its plans to import a total of 45-90 TWh of clean hydrogen by 2030, mentioning that it intends to buy low carbon hydrogen like blue hydrogen in consideration of the available quantity and economic feasibility.   Japanese energy company JERA introduced its demonstration outcomes from co-firing 20% ammonia fuel at Hekinan power plants and the reduction of NOx and Sox, some of the causes of fine particulate matter.   In his welcome address, Vice Minister Choe said that Korea is earnestly pushing forward the transition into a clean hydrogen ecosystem through launching the clean hydrogen certification system (December 2023) and the world’s first clean hydrogen power bidding market (May 2024). He also called for joint efforts in establishing a mutually complementary supply chain and harmonizing countries’ different clean hydrogen standards. date2024-05-30