Ministry of Trade, Industry and Energy

MOTIE to back global market entry of homegrown renewable energy

Trade, Industry and Energy Minister Dukgeun Ahn chaired the 31st Energy Commission meeting with related ministries and energy experts on May 22 on three following agendas: measures for overseas renewable energy market entry support; electric power market system improvement; and the strategy for nurturing the carbon capture and storage (CCS) industry.   Over the past four years, Korean companies have won 41 overseas renewable energy project bids totaling USD 14.3 billion and equivalent to 20.4GW. Last year, the 28th Session of the Conference of Parties (COP28) to the UNFCCC saw 123 countries gather to sign the agreement to up the renewable energy generation capacity three-fold by 2030, signaling the intensifying global competition in renewable energy areas.   In view of these developments, the Ministry of Trade, Industry and Energy (MOTIE) is forming a public-private “Overseas Renewable Energy Market Entry Committee” as well as a “Team Korea” consortium per project composed of both public and private developers, manufacturers, and export financing institutions. Moreover, the ministry will establish a one-stop information platform specialized to support global renewable energy market penetration by gathering the information currently dispersed across numerous institutions and creating a consumer-oriented data hub to resolve blind spots in overseas market entry.   Furthermore, MOTIE will improve the electric power market system by incorporating the wider supply of various different carbon-free energy sources like nuclear power, hydrogen, and renewable energy. It will first launch a separate power market that accurately factors in real-time supply and demand volatility, while heightening overall flexibility based on a phased price bidding system transition. Second, it will modify the nationwide unified pricing system and leverage the Distributed Energy Special Act’s special exemptions in optimizing the site location of electric power resources. Third, the ministry also aims for stability and efficiency in attaining the mid-to-long term power supply target by launching capacity and contract markets based on competitive auctioning.   In addition, amid the increasing importance of CCS technology, demand is likewise growing for the commercialization of key technologies, securing domestic and overseas storage sites, and participation in global joint projects. Accordingly, MOTIE plans to secure professional talents and build up specialized companies, create markets early on through securing domestic and overseas storage sites, and nurture the CCS ecosystem. date2024-05-22

Korea lays out Aerospace Carbon Composites Technology Development and Certification Roadmap

Deputy Minister for Industrial Policy Lee Seung-ryeol chaired the second meeting of the Carbon Composites Jump Up Partnership (“Partnership”) on May 22 at the Korean Federation of Science and Technology Societies (KOFST), where representatives of related supplier and buyer companies and certification authorities gathered to share and discuss the Domestic Aerospace Carbon Composites Technology Development and Certification Roadmap (“Roadmap”).   As per the memorandum of understanding (MOU) signed in July 2023 during the first Partnership meeting, the Roadmap has been established with the participation of Korea Carbon Industry Promotion Agency, Korea Carbon and Nano Industry Association, Hankuk Carbon, four buyer companies, and 11 carbon material companies. It contains the technology development and certification application plans required for a vigorous utilization of domestic carbon composites in aerospace areas, laid out in line with homegrown aerospace firms' upcoming product development timelines.   Korea’s carbon composites have thus far faced difficulty entering overseas markets due to their lacking track record in aerospace utilization. It is anticipated that they can gain the opportunity to penetrate global markets via certification and technological development through the newly established Roadmap. The Aerospace and Defense Working Group run within the Partnership is to monitor the Roadmap’s progress for smooth implementation. date2024-05-22

Korea and Indonesia discuss comprehensive economic cooperation

Trade, Industry and Energy Minister Dukgeun Ahn met with Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto on May 22 in Seoul for this year’s first Korea-Indonesia industry and trade ministers’ talks to discuss measures for comprehensive economic cooperation.   Noting how the four summit meetings held over the last two years have spurred bilateral trade and investment to deeper levels, the two sides agreed to bolster forward-looking economic cooperation by actively leveraging the two countries’ mutually complementary industrial structure and trade platforms, such as the Korea-Indonesia Comprehensive Economic Partnership Agreement (CEPA) and Regional Comprehensive Economic Partnership (RCEP).   Minister Ahn asked for the Indonesian government’s support and interest towards Korean firms operating in the local market and for increased incentives for Korean carmakers’ local EV production, as well as attention to issues regarding Indonesia’s import quota system.   Lastly, the two ministers agreed to hold the third Korea-Indonesia Economic Cooperation Committee meeting in Jakarta in the second half of this year for in-depth discussions on trade, investment, energy, and industrial cooperation. Moreover, they reaffirmed their shared vision on establishing a stable critical minerals supply chain and expanding cooperation in greenhouse gas reduction and other projects in future new industries by building on the two countries’ current economic cooperative momentum. date2024-05-22

Korea and Czech Republic discuss stronger trade, energy, and industrial cooperation

Deputy Minister for Energy Policy Lee Ho-hyeon met with the Czech Deputy Minister of Industry and Trade Petr Třešňák on May 22 in Seoul to discuss stronger economic cooperation in energy, industries, and trade.   The meeting was held as a working-level follow-up to the bilateral trade and industry ministers’ talks held last month in the Czech Republic on the occasion of Trade, Industry and Energy Minister Dukgeun Ahn’s visit.   Both sides held in high regard the continuously rising bilateral trade and investment since the two countries’ upgrading their relations to the level of a Strategic Partnership in 2015. With next year marking the 35th anniversary of the establishment of Korea-Czech Republic diplomatic ties, the deputy ministers agreed to further the forward-looking development of bilateral relations.   The two sides held extensive discussions on the Trade and Investment Promotion Framework (TIPF), scale-up of joint R&D projects, establishment of a hydrogen mobility ecosystem, production of hydrogen in conjunction with nuclear power plants, cooperation in nuclear power plant technology and small modular reactors (SMRs), and entry into overseas electric power materials and equipment markets. They also affirmed a shared understanding on the importance of nuclear power generation with respect to achieving carbon neutrality and bolstering energy security. date2024-05-22

Pan-ministerial working group to strengthen corporate assistance for CBAM response

Deputy Minister for Trade Yang Byeong-nae chaired the fourth meeting of the pan-ministerial Carbon Border Adjustment Mechanism (CBAM) Response Working Group with related ministries and discussed measures for strengthening cooperation on supporting domestic companies and submitting Korea’s position on the CBAMs announced by the EU and UK.   The EU is currently preparing its draft for the adoption of CBAM subsections, and the UK has launched a consultation seeking views on proposals for the design and administration of its own CBAM on March 21, 2023, which is to close on June 13, 2024.   To address domestic companies’ requests for preemptive response, the Korean government will actively communicate its position to the EU and UK, while heightening interministerial cooperation for stronger CBAM guidance and information provision to relevant companies. To relevant companies, the Government will be introducing its corporate assistance projects and monitoring firms’ response situation on a weekly basis.   Deputy Minister Yang stated that the Government will “continue to communicate with the EU on improving the mechanism based on suggestions voiced by Korean companies” and highlighted that “related ministries will make concerted efforts to enable domestic companies to effectively adapt and respond to these changes.” date2024-05-21

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