Ministry of Trade, Industry and Energy

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

Korea to push state-led expansion of renewable energy distribution

Trade, Industry and Energy Minister Dukgeun Ahn chaired a conference on May 16 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul with renewable energy generator, manufacturer, and buyer companies and announced the strategy on widening renewable energy distribution and strengthening the supply chain.   In step with the global shifts, the Korean government has been making effort to expand renewable energy by balancing out the utilization of nuclear, hydrogen, and other carbon-free energy sources. Moreover, it has also concentrated on solving issues arising in the process of expanding renewable energy distribution, such as those concerning electric power systems and cost, in order to nurture an environment suitable for the sustainable distribution of renewable energy.   As a result, the energy market ecosystem has been showing signs of recovery, and the Ministry of Trade, Industry and Energy (MOTIE) intends to push a more orderly expansion for the renewable energy market. First, the Government will be taking up a leading role in the distribution process. For offshore wind power development, laws on providing state support for site location, licensing, and local consensus building are to be swiftly put in place. For solar power, public demonstration projects and regulatory improvements will be rolled out with focus on agrivoltaics and around industrial complexes to reduce challenges in local consensus building and electric power system capacity.   In line with domestic distribution expansion, preemptive efforts will be made to bolster the overall industrial base. Through widening and strengthening the competitive tendering of solar and wind power facilities, supply chain and security factors will be thoroughly addressed. Moreover, early securing of next-generation technology is another key task for future market dominance. By tackling technology development issues and strengthening support for shared infrastructure utilization, Korea aims to achieve early commercialization of tandem solar cells by 2026 and 35 percent efficiency rate by 2030.   The Government also plans to lower public burden while strengthening the state’s role in renewable energy supply by improving the renewable portfolio standards (RPS) program in accordance with market and policy landscape changes through extensive discussions with the National Assembly, industries, and experts on the subject. Furthermore, power purchasing regulations will be eased and transaction convenience enhanced to expand the market for companies’ direct power purchases from renewable energy power generators, while opening separate brokerage markets on the side.   Stronger support will go towards companies looking to penetrate overseas renewable energy markets. Korean firms have won a total of 41 overseas renewable energy projects over the last four years, worth USD 14.3 billion and equivalent to 20.4GW. The Government plans to establish a cooperative system between companies and assisting institutions, while launching locally tailored support programs as well.   MOTIE will be designing follow-up policies with other related ministries per each specific task and continue to seek measures for nurturing a balanced energy mix development plan among renewable energy and other carbon-free energy sources like nuclear and hydrogen. date2024-05-17

Korea proposes global workstream for CFE Initiative at Clean Energy Ministerial

Director General for Energy Policy Choi Yeon-woo at the Ministry of Trade, Industry and Energy (MOTIE) attended the Clean Energy Ministerial (CEM) Senior Officials' Meeting and Mission Innovation (MI) Annual Gathering held from May 15-17 in Bali, Indonesia, and partook in discussions on technology development and measures for accelerating clean energy transition.   Representatives of 29 member countries gathered for in-depth discussions on the effective management methods for the 24 clean energy working groups on nuclear power, renewables, battery, and efficiency, as well as measures for developing the seven Missions on areas like clean hydrogen, clean power, and carbon dioxide removal (CDR).   On this occasion, MOTIE proposed the launching of a new global workstream for Carbon Free Energy (CFE) Initiative as a platform for dialogue and cooperation on the schemes to expand and implement carbon-free energy utilization with member countries, and as a means to diffuse the CFE Initiative. The Initiative was initially suggested by President Yoon Suk Yeol during the United Nations General Assembly in September 2023 for achieving carbon neutrality and mitigating the climate change adaptation gap, winning official support from countries like Japan, the UK, France, the Netherlands, the United Arab Emirates, Saudi Arabia, and Romania.   On the margins of the CEM meetings, MOTIE and the Carbon Free (CF) Alliance held the “Advancing Climate Goals with Carbon-Free Energy,” where government officials, industries’ representatives, and experts engaged as panel speakers to exchange views on the need for wider utilization of carbon-free energy sources.   MOTIE and the CF Alliance aim to officially launch the global workstream for the CFE Initiative in the next CEM slated for October this year in Brazil. date2024-05-16

Korea and Chile to push forward cooperation in critical minerals supply chain

Resources Industry Policy Director General Yoon Chang-hyun at the Ministry of Trade, Industry and Energy (MOTIE) led the Korean delegation in the fifth Korea-Chile Resources Cooperation Committee meeting on May 15 (local time) in Santiago for discussions on bilateral collaboration in supply chains of lithium and such critical minerals. The Chilean delegation was led by Chile’s Mining Minister Aurora Williams.   The world’s largest lithium reservoir (9.3 million metric tons), Chile takes up 33.2 percent of global lithium reserves and is one of Korea’s key partner countries for building a stronger supply chain on critical minerals like lithium for batteries and other advanced industries. LG Energy Solution and Samsung SDI are some of the Korean firms importing lithium carbonate from Chile.   The fifth Resources Cooperation Committee meeting is a follow-up to the two countries’ agreement to discuss detailed lithium cooperation measures on the occasion of the Asia-Pacific Economic Cooperation (APEC) Summit held November 2023. Both sides shared their critical minerals strategies and discussed prospects of collaboration, including Chile’s tailings reprocessing technology development and Korea’s eco-friendly lithium extraction technology.   On the margins of the Committee meeting, MOTIE held a Korea-Chile symposium for business exchanges and networking, where Korean firms like LX International and POSCO Holdings and Chilean critical minerals firms like Sociedad Química y Minera (SQM) and Chilean national mining company ENAMI (Empresa Nacional de Minería) gathered to discuss bilateral lithium development, trade, and technology development.   Meanwhile, Director General Yoon and Minister Williams also discussed the Chilean government’s lithium salt flat development bid project among other areas of interest to Korean companies, as well as measures for strengthening the bilateral critical minerals supply chain. date2024-05-16