Ministry of Trade, Industry and Energy

Korea discusses measures to bolster critical minerals cooperation with MSP partners

Resources Industry Policy Director General Peob-min Ryu at the Ministry of Trade, Industry and Energy (MOTIE) held high-level, bilateral meetings with Japanese and Canadian counterparts on March 4 in Toronto, Canada, on measures to strengthen cooperation in critical minerals on the margins of attending the Minerals Security Partnership (MSP) Chief Delegates Meeting.   First, Director General Ryu held talks with Japan’s Economy, Trade and Industry Ministry (METI) Director General Sadamichu Yuki to discuss measures for bilateral cooperation in natural resources like critical minerals, oil and gas. Noting that both Korea and Japan rely mostly on import for energy and resources, the two sides agreed on the need for cooperation in order to establish a stable energy and resources supply chain between the two countries. The two director generals decided to utilize the MSP, International Energy Agency (IEA) and other various opportunities in the future for further consultation in resources cooperation, agreeing to positively consider the prospects of establishing a regular director general-level consultation channel.   With Natural Resources Canada’s Director General Debora Yu, Director General Ryu discussed the launching of a critical minerals working level committee as part of a follow-up measure to the memorandum of understanding (MOU) entered between MOTIE and Natural Resources Canada on critical minerals supply chain cooperation, with plans to seek long-term and specific collaboration schemes through the working level committee.   In his meeting with Invest in Canda CEO Laura Broten, Director General Ryu underscored Korean firms’ high level of interest in Canada in the area of critical minerals and resources and requested the Canadian government’s interest and support towards facilitating their investment in Canada. He suggested measures for gaining tangible private sector cooperation outcomes, such as holding a business roundtable for the two countries’ critical minerals companies.   Director General Ryu also held a conference with locally operating Korean companies to gather suggestions on issues in propelling forward critical minerals projects in North America, introducing the Korean government’s business support policies and asked the Canadian government’s interest and support towards resolving issues voiced by Korean firms. He also stated that the Korean government will continue to provide support for companies in securing overseas resources through increased tax credits and loan programs. date2024-03-05

Korea and Indonesia to push forward cooperation in future new industries

Deputy Minister for Trade Yang Byeong-nae visited Jakarta, Indonesia, from March 3-5 to hold high-level meetings with Indonesian counterparts and talks with locally operating Korean companies with aim to solidify the base for Korea-Indonesia bilateral economic cooperation.   This comes as part of the two countries’ efforts to push forward the agenda items discussed during the Korea-Indonesia summit meeting in September, concerning EVs, batteries, critical minerals supply chain and “root (foundational)” technology talent nurturing, while also expanding cooperation in areas for facilitating carbon neutrality goals and future industries, such as nuclear energy and carbon capture and storage (CCS) in depleted oil and gas reservoirs.   Deputy Trade Minister Yang first met with Jisman P. Hutajulu, Directorate General of Electricity at Indonesia’s Energy and Natural Resources Ministry, to discuss measures for expanding cooperation in EVs, critical minerals supply chain and clean energy. The two sides affirmed plans for launching the Korea-Indonesia E-Mobility Cooperation Center within the first half of this year and agreed to closely cooperate on building an EV and battery ecosystem. They also discussed measures for establishing a stable critical minerals supply chain for batteries, including investment in mines, refineries and smelteries.   In his meeting with Andi Rizaldi, Head of the Standardization and Industrial Services Policy Agency (BSKJI) of Indonesia’s Ministry of Industry, the deputy trade chief discussed measures for resolving issues Korean companies face in entering the local market, such as talent training and import regulations. On this occasion, a memorandum of understanding (MOU) was entered for cooperation in foundational technology talent training between Indonesia’s PT Krakatau POSCO, Banten Petrochemical Industry Polytechnic and the Korea National Ppuri Industry Center as a follow-up to the Korea-Indonesia Industrial Cooperation MOU signed between the two countries’ industry ministries during the summit meeting held last September. This MOU is expected to help provide local Korean companies with quality industrial talent. Deputy Trade Minister Yang further asked for support in resolving issues regarding Indonesia’s import quota.   The talks were followed by a conference with representatives of 10 locally operating Korean companies to gather opinions on issues related to entering and expanding the Indonesian and ASEAN markets, which are to be incorporated into agenda items for bilateral governmental cooperation channels like the annual Korea-Indonesia Economic Cooperation Committee and in removing obstacles to Korean firms’ export and investment. date2024-03-05

Korea completes final step for DEPA membership

The Ministry of Trade, Industry and Energy (MOTIE) announced on March 4 that Korea has completed necessary domestic procedures for joining the Digital Economy Partnership Agreement (DEPA) and submitted the application on March 4 for the Agreement’s entry into force.   Korea proceeded with domestic procedures necessary for application upon receiving the DEPA Joint Committee’s approval in September 2023, following six negotiating rounds for reaching the agreement in June 2023 on acceding to DEPA, the first country to become a non-founding member.   It is anticipated that Korea can leverage DEPA as an opportunity to open more doors to overseas e-commerce and digital content markets, centering on ASEAN, Oceania and Latin America.   In view of the lack of rules on e-commerce under the existing bilateral FTAs with New Zealand and Chile, Korea’s DEPA accession is expected to strengthen the country's digital trade network. date2024-03-04

Korea engages in MSP meeting to further global collaboration in critical minerals supply chain

The Ministry of Trade, Industry and Energy (MOTIE) announced on March 4 that Korea’s Foreign Affairs Vice Minister Kang Insun and MOTIE's Resources Industry Policy Director General Peob-min Ryu attended the Minerals Security Partnership (MSP) Chief Delegates Meeting, chaired by the Under Secretary of State for Economic Growth, Energy, and the Environment Jose Fernandez, on March 3 in Toronto, Canada, and discussed measures for diversifying the critical minerals supply chain for lithium, graphite, nickel and rare earth elements with 14 other MSP partners, composed of 13 countries and the EU.   MSP partners launched the MSP Forum for the sustainable diversification of the critical minerals supply chain and provided the occasion for non-MSP partners to engage in the MSP, through which MSP partners aim to gather joint efforts to push forward effective policies. Partners also welcomed Estonia’s joining the MSP partnership.   Moreover, MSP partners agreed to expand policy support for pilot projects selected for global supply chain diversification and clean energy transition.   Held on the margins of the Prospectors & Developers Association of Canada (PDAC) Convention 2024, the MSP Chief Delegate Meeting saw the exchange of views on measures for sustainable minerals development cooperation among both MSP partners and non-MSP, resource-rich Latin American partners.   On the margins of the MSP Chief Delegates Meeting, Foreign Affairs Vice Minister Kang will be hosting an in-depth meeting on March 4 in Toronto on graphite supply chain issues with MSP partners’ governments, minerals experts, major global graphite business project participating firms and industry personnel to discuss measures for strengthening and stabilizing the global supply chain of graphite, a key material for producing battery anodes.   Meanwhile, Industry Policy Director General Ryu plans to hold bilateral talks with Japan’s Economy, Trade and Industry Ministry (METI) Director General Sadamichu Yuki, Natural Resources Canada’s Director General Debora Yu and Invest in Canda CEO Laura Broten on March 4 in Toronto to discuss bilateral cooperation measures in critical minerals. date2024-03-04

Trade Minister furthers bilateral economic cooperation with trade leaders on margins of WTO's MC13

Minister for Trade Inkyo Cheong met with the trade ministers of 14 countries on the margins of the 13th World Trade Organization (WTO) Ministerial Conference (MC13), held through February 26-29 in Abu Dhabi in the United Arab Emirates (UAE), for discussions to facilitate MC13 outcomes and strengthen commitment towards restoring the WTO-led multilateral trade system, while holding bilateral talks on measures to deepen cooperation in critical minerals, advanced industries and clean energy areas through trade initiatives like the Free Trade Agreement (FTA) and the Trade and Investment Promotion Framework (TIPF).   In talks with the U.S. Trade Representative Katherine Tai, Trade Minister Cheong highlighted the fact that bilateral relations between Korea and the U.S. are advancing towards an alliance on advanced industries and supply chains and requested the U.S.’ continued cooperation with regard to the Inflation Reduction Act (IRA).   The trade chief also met with China’s Commerce Minister Wang Wentao to discuss the two countries’ cooperation in industrial and supply chains, as well as follow-up Korea-China FTA negotiations on service and investment. They also agreed to closely cooperate on incorporating the Investment Facilitation for Development (IFD) Agreement into the WTO system.   With Hosaka Shin, Japan’s Vice Minister of International Affairs at the Ministry of Economy, Trade and Industry (METI), Trade Minister Cheong discussed measures for cooperation in hydrogen and other energy areas, multilateral trade and bilateral supply chain cooperation in advanced industries.   The Korean trade leader also met with Canada’s Minister of Export Promotion, International Trade and Economic Development Mary Ng, Australia’s Trade and Tourism Minister Don Farrell and Singapore’s Trade and Industry Minister Gan Kim Yong to discuss critical minerals, advanced industries, carbon-free and clean energy cooperation measures as key industrial, energy and trade partners, and asked for support in resolving Korean companies’ investment issues in local business operation and other challenges. Moreover, with Uzbekistan’s Deputy Prime Minister for Investments and Foreign Economic Relations and Minister of Investments and Foreign Trade Jamshid Khodjaev, Trade Minister Cheong affirmed continued support for Uzbekistan’s accession to the WTO.   The trade minister also attended the Coalition of Trade Ministers on Climate on the margins of the WTO’s MC13 and highlighted the importance of global efforts for climate change response and the free trade in goods, services, and technologies for mitigating climate change. In the WTO Ottawa Group Trade Ministers' meeting, he conveyed Korea’s expectations towards agenda items and outcomes related to strengthening the deliberative function of the WTO and other reform measures.   Meanwhile, Korea sealed TIPF agreements with Bulgaria and Oman, respectively, establishing the base for bilateral trade and investment expansion as well as economic, technology and people-to-people exchanges with Europe and the Middle East. date2024-03-04

Korea's exports advance 4.8% in February

The Ministry of Trade, Industry and Energy (MOTIE) announced on March 1 that Korea’s export value for February 2024 increased 4.8 percent year-on-year to USD 52.4 billion. Imports decreased 13.1 percent to $48.1 billion and the trade balance stood at a surplus of $4.3 billion.   February monthly exports recorded growth for the fifth consecutive month, despite the seasonal factors and relatively lower number of working days due to the Seollal holidays having landed in January last year. Factoring in the number of working days, the average daily export value ($2.6 billion) for February climbed 12.5 percent year-on-year and 12.2 percent month-on-month.   By item, six out of major 15 export items showed growth. Semiconductors skyrocketed 66.7 percent to $9.9 billion, achieving the steepest climb since October in 2017 (up 69.6 percent) and continuing on the growth pace for the fourth consecutive month.   Displays (up 20.2 percent) and computers (up 18.4 percent) both posted double-digit growth and advanced for the seventh and second consecutive month, respectively.   For wireless communication devices, smartphones gained 57.5 percent, but exports of parts dropped 31.9 percent, resulting in a 16.5 percent fall overall. Exports of general machinery (up 1.2 percent), ships (up 27.7 percent) and bio health (up 9.3 percent) improved for the 11th, seventh and fourth consecutive month, respectively. Automobile exports showed a temporary decline of 7.8 percent due to the Seollal holidays and some automakers’ production line maintenance work.   By destination, exports to five out of nine major export destinations increased in February.   Exports to China (down 2.4 percent) were affected by the Spring Festival holiday, but the daily average export grew 4.8 percent to approximately $0.5 billion. Korea’s trade balance with China snapped the downward streak for the first time in 17 months, recording a $0.2 billion surplus.   Exports to the U.S. posted an all-time high for the month of February, reaching $9.8 billion (up 9.0 percent) and continued on the growth streak for the seventh consecutive month.   Exports to Japan (up 1.0 percent) and ASEAN (up 1.4 percent) grew for the fifth consecutive month, while those to Latin America (up 25.1 percent) advanced for the second consecutive month.   Korea's February imports declined 13.1 percent year-on-year to $48.1 billion. The import of crude oil (up 0.9 percent) inched up, but that of gas (down 48.6 percent) and coal (down 17.3 percent) dropped, contracting overall energy imports by 21.2 percent.   The trade balance stood at a $4.3 billion surplus in February, continuing on the surplus pace for the ninth consecutive month.     * Short version date2024-03-04

Korea to make amendments concerning 31 national core technologies to incorporate changing technological landscape

Trade, Industry and Energy Minister Dukgeun Ahn chaired the 49th Industrial Technology Protection Committee (“Committee”) meeting on February 29 in Seoul and led the deliberation and resolution on proposed amendments concerning 31 national core technologies in semiconductors, automobiles, railway transport, steel, nuclear power plants and other sectors for incorporation of new technology designations, revocations, standards adjustment, and scope specification to reflect the shifts in the technological landscape.   The amendment will be touching on 31 technologies across nine areas out of a total of 75 technologies over 13 areas. Details of the amendment will be notified during the first half of this year via administrative notice and other procedures.   The Committee members discussed measures to improve deliberation and resolution standards for technology export and mergers and acquisitions (M&As). Members agreed on the need to clarify deliberation standards for export declaration and approval in order to prevent export delays caused by application of excessive deliberation criteria on technologies mandated for declaration and developed without government support. They also agreed to further specify deliberation standards to reduce ambiguity, and newly install a special criterion for M&As that pose risks of technology leak.   In his opening address, Minister Ahn presented policy measures for the protection of industrial technology in 2024, including plans to introduce the blanket review system and other simplified review procedures not only to areas like semiconductors and biotechnology (2023), but also to shipbuilding, batteries, and automobiles starting this year.   The Committee meeting held this day saw export approval granted to 15 national high-tech strategic technologies and national core technologies in the areas of semiconductors (3), displays (2), secondary batteries (6), automobiles (1), and biotechnology (3). date2024-02-29

Korea declares 2024 as first year for initiating global diffusion of CFE Initiative

Trade, Industry and Energy Vice Minister Kang Kyungsung attended the Carbon Free (CF) Alliance general assembly and conference on February 28 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul, where the Ministry of Trade, Industry and Energy (MOTIE) and the CF Alliance declared this year as the first year of the Carbon Free (CF) Energy Initiative diffusion and that efforts will concentrate hereon on expanding the scope of the Initiative on a domestic and global scale.   Launched in October 2023, the CF Alliance was proposed by President Yoon Suk Yeol during his speech at the United Nations General Assembly in September 2023 and is a private-led cooperative organization pushing the CFE Initiative, a global campaign to accelerate the achievement of carbon neutrality by promoting businesses’ and industries’ extensive utilization of various carbon-free energy sources according to each circumstance.   The 20 member companies attending the event voiced in unison the need for a foundational base that makes it feasible for Korean industries to utilize various carbon-free sources in order to attain both carbon neutrality and industrial competitiveness. Member companies also stressed that it is important for the CFE Initiative to gain global support for international diffusion.   Vice Minister Kang stated that “We are aiming at launching a global working group by the end of the first half in 2024 with the participation of major countries to establish internationally applicable CFE implementation standards,” and added that “we will make sure to actively take domestic companies’ needs into consideration in establishing the global implementation standards in areas like electrical power use and production, while also pushing for stronger cooperation with not only major countries’ government authorities but also global organizations like the International Energy Agency (IEA) and the Clean Energy Buyers Association (CEBA).”   On the sidelines of the CF Alliance general assembly, Korea Data Center Energy Efficiency Association, Korea Institute of Industrial Technology (KITECH) and FITI Testing & Research Institute declared their decision to join the CF Alliance. Having just begun welcoming new domestic members, the CF Alliance plans to open doors to overseas companies and organizations in the second half of 2024. date2024-02-28