Ministry of Trade, Industry and Energy

Korea and Japan hold 21st bilateral Steel Dialogue

Korea's Ministry of Trade, Industry and Energy (MOTIE) and Japan’s Ministry of Economy, Trade and Industry (METI) held the 21st Korea-Japan Steel Dialogue meeting on April 19 at Lotte Hotel Busan.   Launched in 2001, the bilateral Steel Dialogue is a regular communication channel for Korean and Japanese steel industries, with the 20th meeting held last year in Tokyo after a hiatus of almost five years. The 21st meeting was attended by representatives of MOTIE, METI, Korea Iron and Steel Association (KOSA), Japan Iron and Steel Federation (JISF), and both countries’ major steelmakers.   The two sides shared their overall economic and industrial trends and discussed the future direction for carbon regulations and trade issues. Both sides’ industry representatives noted the toughening trade conditions from slow demand for steel and oversupply, intensifying trade barriers, and geopolitical volatilities, and agreed that cooperation is needed for greater synergy.   They also decided to strengthen coordination in carbon reduction technology development, securing steel scrap and green hydrogen among other key raw materials and fuel for carbon neutrality, and in establishing international standards for low carbon steel, agreeing to further talks during the second Korea-Japan Green Steel Joint Seminar slated for the latter half of 2024.   Participants concurred that bilateral cooperation is all the more necessary amid difficult industry circumstances and agreed to continue uncovering prospective joint projects in view of Korea and Japan’s shared stance on key issues, including decarbonization and trade barriers. date2024-04-20

Defense industry spearheading Korea’s exports with $20 bln target in 2024

Trade, Industry and Energy Minister Dukgeun Ahn visited the Korea Aerospace Industries (KAI) headquarters in Sacheon on April 18 to inspect the production site of FA-50s and the Korean Utility Helicopter (KUH) Surion and discussed export issues with defense industry representatives.   Inking over USD 30 billion in business deals over the last two years, the domestic defense industry is leading Korea’s sprint towards this year’s total export target of $700 billion.   Based on competitive pricing and after-sales support, KAI has supplied 220 aircrafts, including FA-50s, to countries like Indonesia and Poland. Following the deal sealed with Malaysia on 18 FA-50s last year, KAI is eyeing exports to Africa and other new markets. First developed in 2013 for the purpose of replacing the aging fleet of military helicopters, the Surion is looking forward to taking flight in the Middle Eastern markets this year.   Along with the defense budget beef-up across major countries, the defense market is forecast to burgeon into a KRW 900 trillion market by 2027 and the Government plans to provide sweeping support to Korea’s defense industry in attaining this year’s $20 billion target through stronger trade financing and overseas marketing assistance. Measures will include injecting more than 10 trillion won in trade financing for defense exports and global bid projects, expanding the number of defense hub trade centers around the world, hosting trade shows, and pouring over 400 billion won this year alone into the research and development of advanced defense materials, parts, and equipment. Moreover, with a 29-billion won funding for military advancements like the single-seat FA-50 for increased range, the Government will support global market penetration and export portfolio diversification to include light armed helicopters and next-generation fighter aircrafts like the KF-21. date2024-04-20

Deputy Trade Minister visits Washington D.C. to discuss trade issues and bilateral cooperation

Deputy Minister for Trade Yang Byeong-nae visited Washington D.C. from April 15-17 and met with key figures in the Biden administration and Congress members to discuss major trade issues and forward-looking measures for advancing bilateral cooperation. On April 16, he attended the Korea Inter-parliamentary Exchange Center (KIPEC) opening ceremony at the Korea international Trade Association (KITA) Washington Center.   Deputy Trade Minister Yang held talks with the U.S. Department of Commerce and the U.S. Trade Representative regarding the Korea-U.S.-Japan industry ministers’ meeting slated for the first half of this year, as well as the major agenda items of the Korea-U.S. Supply Chain and Commercial Dialogue (SCCD). He also shared Korean companies’ export issues, including those related to trade remedies, and discussed the CHIPS Act and Inflation Reduction Act (IRA) incentives.   He also attended the KIPEC opening ceremony with a number of Korean lawmakers, meeting with key U.S. Congress members and discussed Korean firms’ investment in the U.S., flexibility in applying the IRA’s critical minerals requirement, additional CHIPS Act subsidies, and visa issues. date2024-04-18

First petroleum shipment received at Korea Energy Terminal

Deputy Minister for Energy Policy Lee Ho-hyeon visited the Korea Energy Terminal (KET) located in Ulsan on April 18 for reception of the first shipment of petroleum products and toured the construction site. Upon the successful reception, the terminal officially launched into commercial operation.   The KET is an oil and gas terminal established through joint investment by Korea National Oil Corporation (KNOC) and SK Gas as part of the Government’s Northeast Asia Energy Hub project. Construction commenced in July 2020, with its oil storage facility completing in December 2023 and the gas storage facility due completion this year.   In 2017, Korea eased restrictions for oil traders and in 2024, the Government worked with Korea Customs Service and the National Tax Service in making amendments to allow the immediate refund of duties, value-added tax, and import levies for domestic oil refiners upon shipping out their petroleum products from bonded areas, enabling international trading companies to blend Korean refiners’ products.   These efforts over the years have sparked the interest of various global traders and investors towards the Ulsan energy hub. Deputy Minister Lee remarked that the Ulsan KET is an exemplary model of successful public-private cooperation and asked that safety rules be strictly upheld in finishing the remaining construction of the gas storage facility. date2024-04-18

ORION SPIRIT to set sail as Korea's 500th LNG carrier exported since 1994

Trade, Industry and Energy Minister Dukgeun Ahn attended the naming ceremony for the LNG carrier ORION SPIRIT on April 18 at Samsung Heavy Industries’ Geoje Shipyard. Marking the 30th anniversary of Korea's first LNG carrier built in 1994, the ORION SPIRIT is the 500th LNG tanker to be exported and will be handed over to J.P. Morgan Chase & Co.   LNG carriers must be able to safely transport liquid gas at temperatures below minus 163 degrees Celsius and require highly advanced technology, costing over KRW 300 billion per vessel. Only nine countries around the world have successfully built the cutting-edge fleet. There are 680 LNG carriers presently in the water, three-fourths of which were built by Korean shipyards, and construction of another 256 vessels are underway.   Korean shipyards raked in USD 13.6 billion worth of global ship orders in the first quarter of 2024, winning 100 percent of total LNG and ammonia carrier orders. The high-value orders won in 2021 have entered the export stage this year as well. date2024-04-18

Korea seeking to bolster supply chain for critical items utilizing IPEF Agreement

Minister for Trade Inkyo Cheong is holding the first “New Trade Roundtable” at the Government Complex Sejong to assess the supply chain trade strategy on April 17, the day the Indo-Pacific Economic Framework for Prosperity (IPEF) Supply Chain Agreement entered into force in Korea. Representatives from related associations, academia, and research institutions are attending the meeting to participate in discussions for supply chain stability and diversification utilizing the IPEF Agreement.   Attendees examine the prospects of pushing joint projects with IPEF partner countries on import channel diversification, R&D, and logistics improvement concerning urea, graphite, rare-earth magnets, and other items included under the eight supply chain anchor projects MOTIE announced in March. Further negotiations will be held should it become necessary that the above items are handled in joint projects in implementing the IPEF Agreement. date2024-04-17

Top experts gather for first AI semiconductor working group meeting

The Ministry of Trade, Industry and Energy (MOTIE) and the Ministry of Science and ICT (MSIT), on April 16, jointly convened the first meeting of the AI semiconductor Working Group under the AI Strategy High-Level Committee, launched April 4, to gather opinions of top experts in the field of AI and semiconductors regarding the AI Semiconductor Initiative, which was first introduced during the President-chaired discussions on pending chip issues held April 9.   The AI Strategy High-Level Committee was created under the ministries’ shared understanding that a whole-of-the-government governance is needed to lead Korea’s AI innovation from an interconnected and integrative perspective. Co-chaired by the MSIT minister and a private-sector expert (Taejae University President Yeom Jae-ho), the Committee is composed of 23 top AI private sector experts and seven deputy ministerial-level officials from the Ministry of Economy and Finance (MOEF), Ministry of SMEs and Startups (MSS), Ministry of Education (MOE), Personal Information Protection Commission (PIPC), Korea Communications Commission (KCC), and MOTIE. The Committee will be running six working groups.   Attending the meeting were Professor Yoo Hoi-jun at the Korea Advanced Institute of Science and Technology (KAIST), Head of the AI Semiconductor Working Group, along with experts from related companies like Samsung, SK Hynix, KT, NHN Cloud, LG AI Lab, Sapeon, FuriosaAI, as well as academia and R&D experts in AI and AI chips. date2024-04-17

Korean delegation attends 14th Session of IRENA Assembly

Renewable Energy Director General Jeong Kyung-rok is attending the 14th Session of International Renewable Energy Agency (IRENA) Assembly from April 16-18 (local time) in Abu Dhabi, United Arab Emirates (UAE), as the Chief Delegate representing the Korean government.   Established in 2011 with aim to promote global cooperation and widespread use and adoption of renewable energy, IRENA is an international organization of which Korea is currently serving as a member of the Council.   The Korean delegation is attending the high-level meeting sessions and articulating Korea’s achievement of more than doubling the proportion of renewable energy in the country’s energy mix over the last five years despite its difficult renewable energy supply conditions, and will share various policy experiences accumulated throughout the process.   Meanwhile, Director General Jeong will meet with Francesco La Camera, IRENA’s Director General, on April 16 to discuss measures for stronger cooperation, asking IRENA’s role of bridging developed and developing member countries and taking into consideration the supply situation of each renewable energy source and different conditions per region and country in implementing the pledge declared at the United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP28) on tripling global renewable energy capacity by 2030.   On the margins of the general assembly, the Korean delegation will meet with Othman Al Ali, CEO of UAE’s Emirates Water and Electricity Company (EWEC), the client company of the Al Ajban Solar Photovoltaic (PV) Independent Power Project recently awarded to Korea Western Power Co., for bilateral talks. The delegation will also meet with Korean energy firms operating in the UAE market before departing for Korea. date2024-04-16