Ministry of Trade, Industry and Energy

Korea and U.S. hold Telehealth / Telemedicine Showcase

The Ministry of Trade, Industry and Energy (MOTIE) and the U.S. Department of Commerce (DOC) held a Korea-U.S. Telehealth / Telemedicine Showcase (“Showcase”) on May 30 with aim to enhance mutual understanding and cooperation between the two countries’ digital health and telehealth industries as part of follow-up measures to the bilateral Supply Chain and Commercial Dialogue (SCCD) held this March. Spurred by rapid aging and heightened quality of life, the global digital healthcare industry is forecast to reach USD 4.09 trillion by 2032 and mobile-based contactless healthcare is also gaining traction.   The Korea-U.S. joint Showcase was held with the participation of both countries’ digital health associations and companies, including the Korea Digital Health Industry Association, American Telemedicine Association, Korea’s contactless healthcare application and platform leaders Carelabs and LULUMedic, U.S.’ contactless healthcare leader Teladoc, and global healthcare company Baxter. The companies shared their business achievements and future plans, followed by a Q&A session.   A MOTIE official stated that the ministry is currently pushing policies for product and service commercialization support and talent training to nurture the digital health industrial ecosystem and that this Showcase will be an opportunity to build on the two countries’ digital health cooperation, adding that “Through the upcoming Bio 2024 (June 3-6), Korea and the U.S. will strengthen across-the-board cooperation in bio, including pharmaceuticals, medical devices, and MPE (materials, parts, equipment).” date2024-05-30

Korea and UAE bolster forward-looking cooperation in trade, industries, and energy

The Ministry of Trade, Industry and Energy (MOTIE) announced on May 29 that Korea and the United Arab Emirates (UAE)’ energy and industrial sectors entered a total of eight agreements and memorandums of understanding (MOUs) on the occasion of the summit meeting between President Yoon Suk Yeol and UAE President Sheikh Mohamed bin Zayed Al Nahyan.   First, MOTIE Minister Dukgeun Ahn and the UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi formally signed the Korea-UAE Comprehensive Economic Partnership Agreement (CEPA) in the presence of both sides’ presidents.   Minister Ahn and the UAE Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber also inked a carbon capture and storage (CCS) cooperation MOU for establishing a clean hydrogen supply chain and joint carbon reduction measures. A first of its kind between the two countries, the MOU aims to support the two countries’ clean hydrogen production and CCS infrastructure projects and covers the interministerial cross-border transfer of CO2. It is also anticipated to help secure overseas storage space for domestically captured CO2 and contribute to achieving the nationally determined contributions (NDCs).   Cooperative ties were forged in the private sector as well. In energy, Korea Electric Power Corporation (KEPCO) agreed to the joint execution of nuclear power plant projects with the UAE’s Emirates Nuclear Energy Corporation (ENEC) in third countries. The two companies plan to form a working group to conduct research on emerging markets and uncover projects for heightening bid competitiveness in the global power plant market.   A consortium composed of Korea National Oil Corporation (KNOC), Samsung E&A, and GS Energy signed a strategic agreement with the Abu Dhabi National Oil Company (ADNOC) on the joint development of clean hydrogen production and supply. According to this agreement, the companies will develop and invest in the entire hydrogen value chain from local blue ammonia production, supply, and domestic distribution infrastructure investment to CCS transfer in line with the blue ammonia project (Harvest 2.0) in Ruwais, UAE.   Moreover, KNOC and ADNOC will discuss expanding the international joint oil stockpile capacity, which is currently at four million barrels. The two companies sealed the joint crude oil stockpiling agreement during President Yoon’s state visit to UAE in January 2023, which enables ADNOC to store crude oil in KNOC’s idle storage space for domestic and overseas sales and guarantee Korea with priority oil access in an emergency situation.   At the UAE’s request for additional storage capacity, the two companies agreed to amend their MOU and expand the scope of collaboration beyond joint oil stockpiling to include oil exploration, development, and R&D for enhanced oil recovery.   Meanwhile, Samsung Heavy Industries and Hanwha Ocean each signed a letter of intent (LOI) with ADNOC on an order for six LNG carriers (app. USD 1.5 billion), and Hyosung entered a joint investment cooperation MOU with ADNOC to seek petrochemicals and LPG joint project opportunities in Asia.   The Korean government intends to give full measure to advancing the Korea-UAE relations to forward-looking cooperation over multiple areas encompassing nuclear power, carbon reduction, clean hydrogen, shipbuilding, and petrochemicals. date2024-05-30

Korea and UAE hold formal signing of bilateral CEPA

Trade, Industry and Energy Minister Dukgeun Ahn and the United Arab Emirates (UAE) Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi formally signed the Korea-UAE Comprehensive Economic Partnership Agreement (CEPA) on May 29 at the presidential office in Seoul in the presence of both countries’ presidents.   The Korea-UAE CEPA was pushed forward with the state visit of President Yoon Suk Yeol’s to UAE in January 2023 and concluded in October of same year after intensive negotiations. The Government has since proceeded with legal scrubbing of agreement documents and other domestic procedures necessary for the formal signing.   The Korean government plans to swiftly implement follow-up measures and submit the ratification documents to the National Assembly. Once both countries complete their respective domestic legal procedures for the CEPA’s ratification and entry into force, the bilateral CEPA takes effect on the first day of the second month following the exchange of written notifications certifying the completion of necessary legal procedures.   As of 2023, the UAE is Korea’s 14th largest trade partner and a growing export destination for automobiles, car parts, electronic devices, and synthetic resins, while Korea imports crude oil, petroleum products, natural gas, aluminum, and other energy and resource materials from the UAE. The CEPA is anticipated to spur Korean firms’ entry further into the Middle East, Africa, and South Asia as well. date2024-05-29

Public and private sectors make final preparations for Korea-Africa Summit 2024

Minister for Trade Inkyo Cheong chaired the second meeting of the Public-Private Committee for Korea-Africa Economic Cooperation on May 29 in Seoul with major economic groups, companies, and related institutions to prepare for the upcoming Korea-Africa Summit 2024 (June 4–5).   The meeting was held for a final monitoring of planned events slated for the Summit. Korea International Trade Association (KITA) and five other economic groups are co-organizing the Korea-Africa Business Summit (June 5), where 400 experts and representatives of both sides’ governments and companies are to seek measures for bilateral cooperation in industrialization, stimulating investment, expanding trade and job creation, food and critical minerals security, decarbonization, and climate change response.   Korea Trade-Investment Promotion Agency (KOTRA) will be holding a Business Partnership for one-on-one matching between 200 Korean companies and 50 African companies in areas like energy, infrastructure, automobiles, shipbuilding, bio, and home appliances.   The Ministry of Trade, Industry and Energy (MOTIE) plans to reach tangible results through supporting the private sector’s business-to-business (B2B) contract deals and memorandums of understanding (MOUs) on the sidelines of the Summit, while also pushing forward the Trade and Investment Promotion Framework (TIPF) with  African governments. date2024-05-29

Merck invests KRW 430 bln in bioprocessing materials plant in Daejeon

Minister for Trade Inkyo Cheong attended on May 29 the groundbreaking ceremony for Germany-based Merck’s KRW 430 billion (EUR 300 million) Bioprocessing Production Center to be built within the Daejeon International Science Business Belt.   Having entered the Korean market in 1989, Merck currently operates 13 production and R&D facilities in areas like Pyeongtaek, Anseong, and Incheon, employing approximately 1,730 workers.   The groundbreaking ceremony is an outcome following the memorandum of understanding (MOU) on investment cooperation for a bioprocessing materials plant signed in May 2023 by the Ministry of Trade, Industry and Energy (MOTIE), Daejeon Metropolitan City, and Merck. On completion of the plant in 2026, the German company will be supplying raw and subsidiary materials essential for processing biopharmaceuticals to domestic buyers as well as biopharma manufacturers in the Asia-Pacific region, with plans for 300 new local hires in Daejeon.   Trade Minister Cheong stated that “Merck’s investment is expected to not only expand exports and secure a stable domestic supply chain for bioprocessing raw and subsidiary materials, but also stimulate the local economy through creation of quality jobs in Daejeon,” and added that the Government will continue to nurture a choice investment environment for Merck and other advanced global companies. date2024-05-29

Korea and Georgia hold 2nd official negotiating round for bilateral EPA

Director General for FTA Negotiations Peob-min Ryu is leading the Korean delegation in the second official round of negotiations for the Korea-Georgia Economic Partnership Agreement (EPA) through May 29–31 in Seoul. Georgia’s delegation is headed by Economy and Sustainable Development Deputy Minister Genadi Arveladze.   Following the launch of negotiations in November 2023, the two sides have managed to swiftly reach agreements in many areas through the first official negotiating round and the intersessional negotiations held in February and April this year, respectively.   In this second round, negotiations will take place across a total of 13 Working Groups on various areas, including goods, services, digital, and cooperation. The Korean government anticipates that the bilateral EPA will contribute to strengthening the two countries’ economic ties. date2024-05-29

Korea's retail industry grows 10.8% in April

The Ministry of Trade, Industry and Energy (MOTIE) announced on May 28 that Korea’s retail industry grew 10.8 percent year-on-year in April 2024, with offline sales inching down 0.2 percent and online sales soaring 22.2 percent, respectively.   MOTIE releases monthly retail sales figures based on surveys of 25 major retailers. Thirteen of them are brick-and-mortar retailers: three department store chains, three hypermarket chains, three convenience store chains, and four super supermarket (SSMs) operators. The remaining 12 are online retailers.   Offline sales slid as supermarket discount promotions that were concentrated in April 2023 became relatively dispersed this year. Online sales increased on the backs of strong demand for convenience food products, travel packages, delivery services, and other various discounts.   By offline retail channel, hypermarket sales dropped 6.7 percent, as most items like home/living (down 13.9 percent), home appliances/culture (down 13.2 percent), miscellaneous goods (down 11.7 percent), and sports (down 10.8 percent) decreased, while sales of clothing (up 2.7 percent) increased.   Department store sales fell 2.0 percent as men’s clothing (down 7.8 percent), women’s suits (down 5.1 percent), kids/sports (down 3.7 percent), and foreign designer labels (down 3.3 percent) declined. Sales of household goods (up 2.9 percent) improved.   Convenience (up 5.9 percent) stores enjoyed growth across all items, especially for tobacco/other (up 5.5 percent), miscellaneous goods (up 3.7 percent), beverages/processed food products (up 7.3 percent), and instant food products (up 3.5 percent).   SSM operators gained 3.2 percent despite the shrink in daily necessities (down 8.2 percent), as sales of food products like agriculture, fishery, and livestock products (up 7.8 percent) and processed food products (up 1.0 percent) expanded.   Online sales jumped 22.2 percent, driven by the steep ascent of food products (up 28.1 percent), living/furniture (up 19.0 percent), and service/other (up 54.4 percent) with the rollout of various discounts. Meanwhile, sales of fashion/clothing (down 4.1 percent) decreased. date2024-05-28

Korea hosts Inaugural Plenary of JTC3 for standards development in quantum technology

The Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) is holding the Inaugural Plenary Meeting of the IEC/ISO JTC 3 (“JTC3”) from May 28–30 at the Plaza Hotel Seoul with the participation of approximately 100 representatives from 22 countries, including the U.S., UK, Germany, and China.   Aware that quantum technology is key to future advanced industries, the International Electrotechnical Commission (IEC) and International Organization for Standardization (ISO) jointly established JTC3 in December 2023 with aim to catalyze both R&D and industrialization of quantum computing, communications, materials, and sensing through standardization, which comes 37 years since launching the ISO/IEC JTC 1 in 1987 as a joint technical committee (JTC) for information technology (IT) like artificial intelligence (AI) and information security. Korea is serving as the inaugural JTC3 Chair since this February and is now holding the first Plenary in Seoul.   The Inaugural Plenary saw the gathering of representatives from various affiliations, including companies like IBM, Microsoft, LG Electronics, and Huawei, research institutes like the UK’s National Physical Laboratory (NPL) and the U.S.’ National Institute of Standards Technology (NIST), as well as government authorities like Japan’s Ministry of Economy, Trade, and Industry (METI) and China’s Ministry of Industry and Information Technology (MIIT).   Over the three-day period, experts will discuss standards development in quantum computing, quantum sensing, basic terminology, and quantum technology classification. The second day will proceed with an international symposium, where countries can share standards strategies and their respective quantum technology development progresses. date2024-05-28