Ministry of Trade, Industry and Energy

Korea and Chile launch 9th official negotiating round for upgrading bilateral FTA

Director General for FTA Policy Ahn Chang-yong is heading the Korean delegation in the ninth official negotiating round for upgrading the Korea-Chile Free Trade Agreement (FTA) from April 2-4 in Chile, Santiago. Pablo Urria, Acting Director for Bilateral Economic Affairs at Chile's Ministry of Foreign Affairs, is leading the Chilean delegation.   Having come into effect on April 1, 2004, the FTA with Chile is Korea’s first FTA and has increased bilateral trade five-fold, bolstering the economic cooperative relations.   The two sides commenced the FTA upgrade negotiations in 2018 with aim to deepen bilateral trade, investment, and cooperative relations, as well as to incorporate modernized trade rules into the Agreement with respect to supply chains, energy, raw materials, digital economy, intellectual property rights, and environment.   With this year marking the 20th anniversary of the Korea-Chile FTA’s entry into force, both sides’ trade authorities agreed to work on making tangible progress through this ninth official negotiating round. date2024-04-03

Applications now open for IPEF Climate Tech 100

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 2 that the global data platform and marketing survey company, HolonIQ, opened applications for Climate Tech 100 starting April 1, as part of an initiative to discover promising climate tech startups and connect them with global investors at the Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum to be held this June in Singapore.   The final ranking of the 100 climate tech companies will be revealed at the Forum, in the attendance of high-level officials of relevant governments, global investors, and multilateral development banks (MDBs). The top 100 startups' technologies are to be introduced and promoted to global investors at the Forum, while top 30 startups will be granted one-on-one matching and pitch opportunities for attracting investment.   More information is available at HolonIQ’s website (www.holoniq.com), where interested startups can sign up by April 22. date2024-04-02

FDI pledged to Korea hits record-breaking $7.1 bln for Q1 2024

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 2 that foreign direct investments (FDIs) pledged to Korea in the first quarter of 2024 (Jan-Mar, acc.) jumped 25.1 percent year-on-year to a record-breaking USD 7.1 billion. FDIs that actually arrived in Korea over the same period reached $1.9 billion.   By industry, the manufacturing sector saw FDI pledges soar 99.2 percent to $3.1 billion, whereas those to service inched down 2.5 percent to $3.9 billion. Among manufacturing, electrical and electronics (up 113.5 percent to $1.5 billion), machinery and precision medical devices (up 49.2 percent to $0.5 billion), and chemical engineering (up 69.5 percent to $0.3 billion) advanced year-on-year. In service industries, finance and insurance (up 34.3 percent to $2.2 billion) enjoyed growth.   By region, FDI coming in from the U.S. and EU decreased owing to the high base effect from last year’s bulk investments, contracting 3.4 percent and 69.8 percent, respectively, to $0.7 billion and $0.6 billion. FDI from Japan and Greater China leaped 281.8 percent and 146.7 percent, respectively, to $1.1 billion and $2.1 billion.   By type, greenfield investments shrank 7.1 percent to $3.9 billion, while M&A investments expanded 115.4 percent to $3.2 billion. date2024-04-02

Korea lays out blueprint for nurturing global biopharma hub

Trade, Industry and Energy Minister Dukgeun Ahn held a meeting on biopharma manufacturing competitiveness at the Pangyo Technovalley's Startup Campus on April 1 to lead discussions on biomanufacturing development and future strategies with representatives of major producers of bio materials, parts and equipment (MPE) like Hanhwa and Amicogen, and bio companies like Samsung Biologics and Celltrion.   MOTIE is aiming to secure Korea’s supergap in advanced biomanufacturing by pouring KRW 2.1 trillion from 2024-2030 into R&D support for global market penetration and the establishment of a bio MPE ecosystem and industrial base to assist 17.7 trillion won worth of private investment by 2030. This is in line with the goal of nurturing five contract development and manufacturing organizations (CDMOs) and five global bio MPE companies by 2030. By 2030, MOTIE intends to produce 15 trillion won worth of bio pharmaceuticals and achieve USD 10 billion in their export.   The ministry will also push a prefeasibility study for the Korean version of BioMADE, a project for advancing the high-tech bio production process. In order to advance the production process and accelerate commercialization in tandem with the public bio foundry project to be launched next year, MOTIE will collaborate with the U.S.’ Advanced Mammalian Biomanufacturing Innovation Center (AMBIC) in establishing an innovative bio manufacturing platform.   Prior to the meeting, Korea’s Bio MPE Solidarity Cooperation Consultative Group entered a memorandum of understanding (MOU) with major bio companies like Samsung Biologics, Celltrion, and Samsung Bioepis, as well as research and education institutions like the Korea Research Institute of Bioscience and Biotechnology (KRIBB), K-NIBRT and Osong Medical Innovation Foundation to strengthen support for bio MPE firms’ demonstration projects. Companies and institutions participating in this MOU will be engaging in the establishment of a bio MPE testbed project through the Bio MPE Solidarity Cooperation Consultative Group for securing MPE products’ track record beginning this year. date2024-04-02

Five-tier energy efficiency EV grading system now enforced in full

The Ministry of Trade, Industry and Energy (MOTIE) announced that beginning April 1, the five-tier energy efficiency grading system for electric vehicles (EVs) will be enforced in full, with all EVs (278 models) in the market to be given their respective energy efficiency grade rated on a scale of one to five, with one being the highest in efficiency.   The grading system had already been enforced on the newer EV models as of September 1 in 2023, and starting April 1 this year, all EV models, including older ones, are mandated to carry their energy efficiency grade label.   Six models landed under grade one, taking up 2.2 percent out of total, followed by 54 models classified as grade two (19.4 percent), 73 models as grade three (26.3 percent), 83 models as grade four (29.8 percent), and 62 models as grade five (22.3 percent).   Amid the recent steep climb of the number of EV registrations and registered models, the grading system is anticipated to help consumers compare EVs’ energy efficiency more easily, heightening the competitiveness of high-efficiency models.   MOTIE expects this grading system to facilitate the industry’s technological development and consumer preference towards high energy efficiency EV models. The ministry plans to analyze the EV market trends and outcomes of the grading system for further improvement. date2024-04-01

Korea's exports grow 3.1% in March

The Ministry of Trade, Industry and Energy (MOTIE) announced on April 1 that Korea’s export value for March 2024 increased 3.1 percent year-on-year to USD 56.6 billion. Imports decreased 12.3 percent to $52.3 billion and the trade balance stood at a surplus of $4.3 billion.   March monthly exports recorded growth for the sixth consecutive month despite the lower number of working days (-1.5), and the daily average export value likewise soared 9.9 percent to $2.5 billion when factoring in the number of working days.   Seven out of 15 of Korea’s major export items advanced in March. To note, all four of core IT devices, namely semiconductors, displays, computers, and wireless communication devices, recorded growth, a first in 24 months and boosted overall exports at the helm.   Semiconductors, Korea’s leading export item, leaped 35.7 percent in exports and reached $11.7 billion, an all-time high since the $12.3 billion recorded in June 2022, and gained for the fifth consecutive month.   Exports of displays (up 16.2 percent) and computers (up 24.5 percent) increased for the eighth and third consecutive month, respectively, and those of wireless communication devices (up 5.5 percent) snapped the downward streak in three months.   Ship exports surged 102.1 percent and advanced for the eighth consecutive month. Bio health exports (up 10.0 percent) grew for the fifth consecutive month, and petroleum products (up 3.1 percent) turned to an expansion in one month.   Meanwhile, the exports of automobiles (down 5.0 percent) and general machinery (down 10.0 percent) were directly impacted by the lower number of working days.   By region, Korea’s exports increased to three out of nine major destinations in March.   Exports to China (up 0.4 percent) recorded growth, with the daily average export value (app. $470 million), considering the number of working days, rose (up 7.1 percent) for the fourth consecutive month since December 2023.   Exports to the U.S. posted double-digit growth (up 11.6 percent to $10.9 billion) and improved for the eighth consecutive month and broke the March monthly export record as they did for those of January and February this year as well.   Exports to Latin America (up 14.4 percent) extended their positive performance for the third consecutive month.   In addition, exports to Vietnam (up 4.4 percent) and Hong Kong (up 67.8 percent) maintained growth for the third and fifth consecutive month, respectively, on the backs of strong demand for semiconductors and IT devices, increasing for the third and fifth consecutive month.   Meanwhile, Korea’s March imports declined 12.3 percent to $52.3 billion, and import of energy sources decreased 24.4 percent, as demand for crude oil (down 12.8 percent), gas (down 37.4 percent), and coal (down 40.5 percent) contracted.   Korea’s trade balance for March stood at a surplus of $4.3 billion, gaining for the 10th consecutive month.   * Short version date2024-04-01

Trade Minister chairs meeting on export promotion measures

Minister for Trade Inkyo Cheong held a meeting on March 29 at the Korea Chamber of Commerce and Industry (KCCI) to review export conditions per region and discuss export promotion measures.   Korea’s exports have posted growth for the last five consecutive months, adding up to USD 107.2 billion through January and February in accumulation (up 11.2 percent year-on-year).   The trade chief gave a positive forecast for exports this year across major markets, saying that exports are likely to show growth and the trade balance a surplus in March despite the lack of working days (-1.5), maintaining that for export to continue on the upward trajectory and lead Korea’s economic growth, there must be efforts in the market to keep building competitiveness and diversify into newly emerging markets. He mentioned that the Government will work together with embassies and Korea Trade-Investment Promotion Agency (KOTRA)’s trade centers for effective management of trade issues.   To this end, the trade minister said that several measures will be pushed to support exporting companies’ overseas new market penetration, such as launching a new special export insurance, strengthening export financing support for local corporate entities, and making further progress in Free Trade Agreements (FTAs) and Economic Partnership Agreements (EPAs). date2024-03-29

MOTIE to power Korea's economic growth through investment and export drive

Trade, Industry and Energy Minister Dukgeun Ahn attended the 178th CEO Breakfast Meeting at Korea International Trade Association (KITA) on March 29 and vowed that the Ministry of Trade, Industry and Enery (MOTIE) will take full charge of export and investment to lead Korea’s economic growth this year.   During his lecture, he noted last year’s global trade volume decline amid high interest rates, the Russia-Ukraine war, and other geopolitical and geoeconomic crises, stating that even in these difficult conditions, Korea’s exports managed to snap the losing streak in October and contributed to the country’s relatively high economic growth, and forecast that the strong performance of major items like semiconductors, information and communications devices, and ships is expected to continue on an upward trajectory throughout the second quarter as well.   Moreover, he highlighted the need for increased investment in Korea’s top 10 manufacturing sectors to freshly vitalize the economy to build on the export growth momentum, articulating the following three goals: all-time high export target of USD 700 billion, facility investment of KRW 110 for the top 10 manufacturing sectors, and the foreign investment target of $35 billion.   The minister added that in order to achieve these goals, MOTIE plans to push the following five measures: designation of 20 major export items to create a new export drive; penetrating the Global South and other new markets; providing exporting firms with an unprecedented 360 trillion won in trade financing and 1 trillion won in overseas marketing support; activating the regulatory sandbox to improve the investment environment of new industries; and revising outdated regulations.   date2024-03-29