Ministry of Trade, Industry and Energy

Korea and New Zealand hold 6th FTA Joint Committee meeting

Director General for FTA Policy Ahn Chang-yong led the Korean delegation in the sixth Korea-New Zealand Free Trade Agreement (FTA) Joint Committee meeting held on May 28 in Seoul, breaking the four-year hiatus since the fifth meeting in 2020. His counterpart Greg Andrews from the Ministry of Foreign Affairs and Trade (MFAT) headed the New Zealand delegation.   Now in its 10th year of implementation, the Korea-New Zealand FTA has both markets offering high levels of openness and contributing substantially to the expansion in bilateral trade, which soared 84.8 percent to USD 4.6 billion in 2023 from the $2.5 billion in 2015, the year the FTA entered into force.   The sixth joint committee meeting covered FTA outcomes, measures for enhancing exporters and importers’ convenience, and joint projects in conjunction with FTA among other various issues of interest.   Director General Ahn stated that, as participants of not only the FTA but also the Regional Comprehensive Economic Partnership (RCEP), Indo-Pacific Economic Framework for Prosperity (IPEF), and the Digital Economy Partnership Agreement (DEPA), both countries have agreed to actively cooperate in diffusing intraregional free trade and responding to the rise in trade protectionism. date2024-05-28

Korea and UAE hold Business & Investment Forum on margins of state visit

Minister for Trade Inkyo Cheong attended the Korea-UAE Business and Investment Forum on May 28, co-hosted by Korea’s Ministry of Trade, Industry and Energy (MOTIE) and the United Arab Emirates (UAE)’ Ministry of Economy and co-organized by Korea Chamber of Commerce and Industry (KCCI) and the UAE Embassy in Seoul, with aim to encourage both countries’ business leaders and their new partnerships.   Held on the occasion of the UAE President Sheikh Mohamed bin Zayed’s first state visit to Korea and attended by UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi, as well as 200 business leaders of both countries, this forum is significant in that it deepened the economic ties between the two countries through jointly seeking out new investment opportunities.   At the forum, Medytox (Korea) and Tecom Group (UAE) signed a letter of intent (LOI) on the establishment of a plant in UAE producing botulinum toxin, the world’s first and only non-animal liquid toxin drug. The two sides have previously entered an MOU during President Yoon Suk Yeol’s state visit to UAE in January 2023.   In his congratulatory address, Korea’s trade chief mentioned that the 100-fold increase in bilateral trade (from USD 0.2 billion in 1980 to $20.8 billion in 2023) and their advancement towards a special strategic partnership are all outcomes of hard work made by the two countries’ entrepreneurs and expressed anticipation for the forum to further strengthen the Korea-UAE economic cooperation network. date2024-05-28

Korea and ASEAN discuss measures for advancing bilateral economic cooperation

Minister for Trade Inkyo Cheong met with the Association of Southeast Asian Nations (ASEAN) Secretary-General Kao Kim Hourn on May 28 in Seoul to discuss comprehensive economic cooperation between Korea and ASEAN.   Underscoring ASEAN’s position as Korea’s second largest trade and direct investment partner, Trade Minister Cheong noted how the Indo-Pacific Strategy and the Korea-ASEAN Solidarity Initiative (KASI) announced by President Yoon on the margins of the Korea-ASEAN Summit in 2022 are spurring their bilateral economic cooperation. As this year marks the 35th anniversary of the two sides’ dialogue relations, he further expressed anticipation for their cooperation to advance towards a Comprehensive Strategic Partnership (CSP) and to encompass economic, social, and cultural issues along with upgrading the Korea-ASEAN Free Trade Agreement (FTA).   Secretary-General Kao welcomed the Korean government’s specific collaboration measure laid out through KASI proposing to harmoniously combine Korea’s strengths and ASEAN’s industrial demand and assured to make efforts to expand bilateral economic cooperation.   Moreover, both sides agreed to make concerted and continued efforts to produce tangible results in the Korea-ASEAN joint projects that are ongoing for the establishment of electrical safety infrastructure and standards cooperation network. They expressed hope for the ASEAN Economy Ministers’ Meeting and ASEAN Summit slated for the second half of 2024 to catalyze economic cooperation in various areas.   Trade Minister Cheong also suggested that Korea and ASEAN cooperate in digital transition, clean economy, and new trade issues, for which he asked ASEAN’s proactive support and interest in the Carbon Free Energy (CFE) Initiative and the Asia-Pacific Economic Cooperation (APEC) Summit 2025 to be hosted by Korea next year. date2024-05-28

Korea's exports to major destinations on upward trajectory

Minister for Trade Inkyo Cheong led a meeting on May 27 at the Government Complex Sejong to monitor Korea’s exports per major destination with officials in charge of each region.   Korea’s exports in 2024 are continuously increasing across key destinations like the U.S., China, and ASEAN, with six out of nine major regions showing growth through January–April in accumulation. Notably, exports to the U.S. (up 17.7 percent year-on-year to USD 42.4 billion) and India (up 4.0 percent to $6.1 billion) set record highs for the period.   U.S.-bound exports advanced, driven by demand for automobiles (up 28.2 percent), general machinery (up 46.6 percent), and semiconductors (up 212.5 percent). To China, the information technology industry’s recovery spurred the expansion of semiconductors (up 34.4 percent) and displays (up 26.7 percent), which boosted the entire China-bound exports by 5.7 percent. Exports to ASEAN (up 3.8 percent) maintained their growth pace on the backs of semiconductors (up 19.0 percent), petroleum products (up 8.6 percent), and petrochemicals (up 20.1 percent). Exports to Latin America increased as those of machinery (up 22.2 percent), steel (up 2.5 percent), and automobile parts (up 4.6 percent) rose, marking the steepest climb (up 25.4 percent) among all destinations.   Noting the upward trajectory drawn across most destinations this year so far, Trade Minister Cheong expressed anticipation for the growth momentum acting as a tailwind for May exports and trade surplus as well. date2024-05-27

39th Trade Promotion Committee discusses Trade Policy Roadmap

Minister for Trade Inkyo Cheong chaired the 39th Trade Promotion Committee meeting on May 24 at the Korea Chamber of Commerce and Industry (KCCI) with related ministries to discuss the “Trade Policy Roadmap.”   The trade minister stated that “Over the last two years, the Government has actively responded to trade issues like the U.S.’ Inflation Reduction Act (IRA) and the EU’s Carbon Border Adjustment Mechanism (CBAM) to protect domestic companies’ interests, while expanding Korea’s trade network through various agreements like the Free Trade Agreement (FTA), the Trade and Investment Promotion Framework (TIPF), and the Economic Partnership Agreement (EPA) and achieving trade surpluses and new records in foreign investment.” He further requested the proactive cooperation of relevant ministries in establishing the abovementioned Roadmap, which is to lay out the vision and goals of Korea’s trade policies for the next three years.   At the meeting, the Ministry of Trade, Industry and Energy (MOTIE) and other ministries discussed measures for strengthening multi- and bilateral cooperation with major countries, taking the initiative in new trade norms formulation and multilateral consultative groups, entering new markets through wider cooperation with the Global South, enlarging the trade network, pushing industrial and trade convergence policies for industrial competitiveness, and promoting exports and foreign investment.   MOTIE plans to announce the Trade Policy Roadmap after further consultation with related ministries. date2024-05-24

Korea launches world's first clean hydrogen power bidding market

The Ministry of Trade, Industry and Energy (MOTIE) announced on May 24 that Korea is launching the world’s first clean hydrogen power bidding market. The bidding market is expected to contribute to reducing greenhouse gases (GHGs) through the development of clean hydrogen, while also supplying clean hydrogen at affordable prices through competition.   The clean hydrogen power bidding market is a market for supplying and buying electricity produced by harnessing clean hydrogen. Participants are allowed to harness power generators using only hydrogen that fulfills the domestic clean hydrogen certification standards (GHG of 4㎏CO2e or less per 1kg of hydrogen). This year’s annual bidding volume is 6,500 GWh with a contract period of 15 years. Commercial operation must begin by 2028, following three years of preparation period plus one year of grace period.   The bid notification period will be 24 weeks, considering the length of time needed for power generators to seal their fuel supply contract. The winning bidder will be selected in December based on price indices, clean hydrogen utilization grade, fuel supply stability, and level of contribution to industry and economy and other nonprice elements.   Meanwhile, the power bidding market for general hydrogen is to be launched this year as well. This bidding market aims to catalyze the installation of distributed energy resources (DER), with the bidding volume reaching 1,300GWh and the power generation contract spanning 20 years. Commercial operation must commence by 2026 following two preparatory years. The winning bidder, like last year, will be selected in August after an evaluation of price indices, power system impact, industrial and economic contribution, and nonprice indices.   Bid notifications and further details are to be available at the Korea Power Exchange (KPX) website (kchps.kmos.kr). date2024-05-24

Minister Ahn discusses response measures amid global uncertainties with RAND Corporation CEO

Trade, Industry and Energy Minister Dukgeun Ahn held talks with Jason Matheny, CEO and President of the U.S.-based thinktank RAND Corporation, on May 24 in Seoul.   Held on the occasion of President Matheny’s visit for meetings with Korean companies and experts concerning cooperation in defense, technology, and security, the talks covered Korea’s measures in responding to the rapidly changing trade landscape amid the U.S.-China conflict, Russia-Ukraine war, and other geopolitical uncertainties, as well as the intensifying global protectionism and technology and security competition.   They also discussed the impact on Korea from the U.S.’ recent announcement to levy new tariffs on Chinese imports and China’s complaint filed to the World Trade Organization (WTO) over U.S. subsidies under the Inflation Reduction Act (IRA). date2024-05-24

Korea and Kazakhstan hold 10th meeting of Trade-Economic and Scientific-Technical Cooperation Commission

Trade, Industry and Energy Minister Dukgeun Ahn and Kazakhstan’s Industry and Construction Minister Sharlapaev Kanat Bisimbayevich held the 10th meeting of the intergovernmental Korea-Kazakhstan Commission on Trade-Economic and Scientific-Technical Cooperation on May 23 via teleconferencing.   Launched in accordance with the bilateral trade agreement that went into force in 1992, the above Commission is a high-level consultative group co-led by Korea’s Trade, Industry and Energy minister and Kazakhstan’s Industry and Construction minister, with the participation of related ministries and institutions. The Commission’s previous meeting was held four years ago in November 2020.   During the 10th meeting, both sides decided to strengthen cooperation across various areas, including critical minerals, energy, trade, investment, infrastructure, and science technology based on the shared understanding of the importance of economic security and wider energy cooperation, which were some of the issues discussed during the Korea-Kazakhstan summit held on the margins of the United Nations General Assembly in September 2023. date2024-05-24