Ministry of Trade, Industry and Energy

Korea's exports climbing strong amid expectations for continued growth in May

Trade, Industry and Energy Vice Minister Kang Kyungsung chaired the fifth Export Items Assessment Meeting on May 21 to take stock of this month’s exports situation.   Since snapping the losing streak in October 2023, Korea’s exports are showing strong growth and leading the country’s overall economic advancement in Q1 2024. Early this month, the Organization for Economic Cooperation and Development (OECD) revised its forecast for Korea's economic growth for 2024 to 2.6 percent, up 0.4 percent from its previous February forecast.   Korea’s aggregate export value through January–April in 2024 reached USD 220 billion (up 9.6 percent year-on-year), strongly backed by double-digit growth of IT goods like semiconductors (up 52.0 percent), displays (up 13.4 percent), and computers (up 36.4 percent). Major items like automobiles (up 4.7 percent), ships (up 47.5 percent), and general machinery (up 0.9 percent) likewise achieved growth.   Vice Minister Kang remarked that “Whereas semiconductors spearheaded the export growth in the first quarter, growth was seen across all IT items and major export items during the month of April,” and added that he looks forward to seeing May's exports and trade balance maintain this growth momentum and that public-private joint efforts will be made to reach the record high export target set for this year.   To this end, MOTIE will increase financial, marketing, and certification support for exporters and provide tailored support according to business category and company size. The vice minister stated that further measures for pan-ministerial export support will be established in tandem with the Ministry of Economy and Finance (MOEF) and other related ministries. date2024-05-21

Korea and Mongolia launch 2nd official negotiating round for bilateral EPA

The Ministry of Trade, Industry and Energy (MOTIE) announced on May 21 that the second official negotiating round for the Korea-Mongolia Economic Partnership Agreement (EPA) is to be held through May 21-23 in Ulaanbaatar, Mongolia.   Korea's Director General for FTA Negotiations Peob-min Ryu and State Secretary of Mongolia's Ministry of Economy and Development Batkhuu Idesh are each leading their respective delegations. Negotiations will focus on goods, services, investment, government procurement, country of origin, intellectual property, cooperation, and environment.   Through this second official negotiating round, the two sides aim to make tangible progress by narrowing their differences and covering key issues based on discussions from the first negotiating round held last December in Seoul. date2024-05-21

Korea and Malaysian state of Sarawak discuss energy cooperation

Deputy Minister for Energy Policy Lee Ho-hyeon met with Sarawak Premier Abang Johari Openg on May 21 in Seoul and discussed measures for energy cooperation in hydrogen and carbon capture and storage (CCS).   A number of Korean firms are pushing joint projects with the Sarawak state of Malaysia at the moment, and the above meeting came about on the occasion of Premier Johari’s visit for meetings with relevant Korean companies for discussions on Sarawak’s development direction.   Deputy Minister Lee asked that Sarawak give active support and interest towards the “Sarawak New Energy Hub” project underway by Korean companies like Samsung E&A and Korea National Oil Corporation (KNOC) for utilizing the state’s rich renewable energy and natural resources to produce clean ammonia and methanol. He also stated that he looks forward to seeing Korea-Sarawak cooperation continue in establishing the supply chain for clean hydrogen.   Moreover, with regard to the Shepherd CCS Project in which both countries’ companies are participating for transport and storage of carbon dioxide to Sarawak, the deputy minister requested interest in commencing talks concerning Korea-Malaysia cross-border carbon dioxide transfer and storage. date2024-05-21

Minister Ahn discusses renewable energy initiatives with Climate Group CEO

Trade, Industry and Energy Minister Dukgeun Ahn met Climate Group CEO Helen Clarkson on May 20 on the occasion of her visit to Korea to host the Asia Renewables Growth Forum 2024 and discussed Korea’s renewable energy policy directions and RE100 initiative cooperation.   Minister Ahn first expressed high regard for the Climate Group’s achievements in expanding the distribution of renewable energy around the world, explaining that the Korean government is pushing the Carbon Free Energy (CFE) Initiative to facilitate the utilization of renewable energy. He highlighted that the strategy MOTIE announced Thursday (May 16) on widening state-led renewable energy distribution and strengthening the supply chain embodies that very policy stance.   The minister also noted that 36 Korean companies have declared their commitment to RE100 in spite of comparatively challenging renewable energy utilization conditions as a manufacturing-intensive country led by power-heavy sectors like semiconductor, steel, and automobiles. He added that the Government promptly established officially recognizable RE100 implementation schemes in step with the companies’ commitments, mentioning that further effort will be made to keep enhancing companies’ renewable energy utilization convenience.   Minister Ahn explained the need for Korea’s carbon-free energy transition and related endeavors in view of the climate crisis and carbon neutrality response, and both sides agreed to bolster mutual cooperation on shared agendas under the CFE and RE100. date2024-05-20

Trade Minister holds bilateral talks on margins of APEC Trade Ministerial

Minister for Trade Inkyo Cheong attended the Asia-Pacific Economic Cooperation (APEC) Trade Ministerial as the Korean government’s Chief Delegate from May 17-18 in Arequipa, Peru, and participated in discussions with other APEC member countries under the themes of "Empower. Include. Grow."   The trade minister attended three sessions on the following agendas: 1) trade liberalization and WTO, 2) Free Trade Area of the Asia-Pacific (FTAAP), and 3) trade and inclusion, where he proposed Korea’s policy efforts and vision for intraregional cooperation in line with its APEC chairmanship in 2025.   In the first session of the above, he called for joint efforts with regard to formulating norms through multilateral negotiations as part of implementing the outcomes gained during the 13th World Trade Organization Ministerial Conference (MC13). In the second session, he proposed that the FTAAP talks also cover digital and supply chain among other new trade agendas in view of the changing trade environment. In the third session, he introduced Korea’s e-commerce platform “uTradeHub” and startup nurturing program for SMEs and women, sharing how digital technology can promote inclusive trade. Moreover, he suggested measures for women’s economic empowerment and trade participation through trade policies during the Joint Meeting of Ministers Responsible for Women and Ministers Responsible for Trade.   Following the meeting, the 21 APEC member countries issued a joint statement, meaningful in that it contains consensuses on new trade agendas like supply chains, digital, and artificial intelligence (AI).   Meanwhile, Trade Minister Cheong held bilateral talks with counterparts from Thailand, the U.S., and Peru, each having served as APEC chair for 2022, 2023 and 2024, respectively, to discuss APEC chairmanship experiences and share Korea’s preparation for APEC 2025 chairmanship. He also met with representatives of Australia, Japan, China, and Indonesia to discuss trade, supply chain stabilization, and inclusive economic trade cooperation measures. date2024-05-20

Korea and Cambodia hold Business Forum

Trade, Industry and Energy Minister Dukgeun Ahn attended the Korea-Cambodia Business Forum, co-hosted by the two countries’ Chambers of Commerce, on May 16 in Korea on the occasion of Cambodian Prime Minister Hun Manet’s visit.   The forum was attended by approximately 250 persons, consisting of representatives of the two countries' governments, companies, and related institutions, to discuss measures for Korea-Cambodia economic cooperation, investment and promising sectors, and Korean companies’ Cambodia market entry success cases.   In his congratulatory address, Minister Ahn stated that it is the optimal opportunity for the two countries to step up their economic cooperation, noting the signing of the bilateral Free Trade Agreement (FTA) and Regional Comprehensive Economic Partnership (RCEP) joint participation, and proposed measures for expanding trade and investment, upgrading advanced industrial cooperation, and achieving carbon neutrality by 2050.   A total of six memorandums of understanding (MOUs) were signed at the forum. Korea Chamber of Commerce and Industry (KCCI) and Cambodia Chamber of Commerce (CCC) entered an MOU for supporting both countries’ companies through business partner matchings and trade and investment information provision. In addition, four financial cooperation MOUs and one infrastructure cooperation MOU were sealed, signaling the vitalization of private economic cooperation as well. date2024-05-20

Government to give strong backing to corporate investment

Trade, Industry and Energy Vice Minister Kang Kyungsung chaired the Corporate Investment Conference on May 16 and reviewed the first quarter’s investment situation and corporate issues. The conference is a follow-up to the Industrial Investment Strategy Meeting held in February this year.   Korea’s top 10 manufacturing sectors, namely semiconductors, automobiles, displays, secondary batteries, shipbuilding, bio, machinery/robotics, steel, petrochemicals, and textiles, were found to have implemented approximately 96 percent of the annual investment plan of 100 trillion won in 2023, and implemented 20 percent of the 10 percent-upped 110 trillion-won investment plan for 2024 during its first quarter.   Companies attending the conference voiced suggestions for stronger government support, such as heightening investment tax credit for securing advanced industrial super gaps and for the green transitioning of major industries, securing investment for advanced industries, and enhancing cost competitiveness. They also proposed measures for creating a sound industrial ecosystem through imposing stricter punishment on tech leaks and nurturing materials, parts, and equipment (MPE) manufacturers.   The Korea Chamber of Commerce and Industry (KCCI) suggested that it is necessary to introduce investment policies in line with global standards to address the issue of funding shortages, such as extending sunset-due investment tax credit incentives and expanding the subject scope to include buildings, introducing direct payment of tax credits, and improving the corporate inheritance tax system. date2024-05-17

MOTIE and steel companies take stock of global trade issues impacting domestic industry

Industrial Policy Deputy Minister Lee Seung-ryeol at the Ministry of Trade, Industry and Energy (MOTIE) chaired a meeting on May 17 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul with major steel companies to review trade issues.   Korea’s steel industry is currently up against a number of challenges, including the 40 percent jump in China’s steel exports, Latin American countries’ heightened steel import duties, and the U.S.’ announcement on imposing a three-fold increase in the Section 301 tariff rate for Chinese steel imports. The “super low yen” and its impact on the domestic steel industry is yet another factor to watch.   Based on opinions gathered from the conference, MOTIE plans to establish detailed measures to support Korea’s steel businesses build competitiveness amidst the global oversupply and rising protectionism.   Deputy Minister Lee stated that “the Government will actively engage in dialogue with major countries on trade issues impacting our steel industry, while in the mid-to-long term, establish a system for domestic steel companies’ fair competition against foreign steel companies.” date2024-05-17