Ministry of Trade, Industry and Energy

Korea and U.S. discuss resuming bilateral exchanges and cooperation in trade remedies

Trade Commissioner Cheon Young-gil of the Korea Trade Commission under the Ministry of Trade, Industry and Energy (MOTIE) visited Washington D.C. from February 26-27 to meet with Amy Karpel, Commissioner for the U.S. International Trade Commission (USITC), and Ryan Majerus, Deputy Assistant Secretary for Policy and Negotiations at the U.S. Department of Commerce (DOC), to discuss measures for resuming exchanges and cooperation between Korean and U.S. trade remedy organizations, and to cover bilateral trade remedy issues.   Trade Commissioner Cheon Young-gil suggested that the two sides resume the bilateral technical committee on trade remedies, which has been on pause since the COVID outbreak, in order to expand and develop the cooperation between the two countries’ trade remedy organizations.   He also asked that the DOC actively consider the opinion submitted by the Korean government in July 2023 regarding the DOC’s proposed amendment (announced May 2023) on regulations regarding the enforcement of trade remedies through the administration of anti-dumping and countervailing duty laws, conveying Korea’s stance on major issues related to countervailing duties. Moreover, in view of the issues concerning the ongoing anti-dumping investigations on Korean aluminum extrusions, the trade commissioner requested a reconsideration of the investigation scope.   Lastly, Trade Commissioner Cheon extended an invitation to the USITC and U.S. DOC to attend Trade Remedies Seoul Forum 2024, slated for July 2 in Seoul this year. First launched in 2001 and held on a yearly basis, Trade Remedies Seoul Forum is an international forum bringing together major countries’ related institutions for promoting exchanges and cooperation on trade remedies. date2024-02-28

Korea's retail industry climbs 8.2% in January

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 27 that Korea’s retail sales for January gained 8.2 percent year-on-year.   Offline sales inched down 0.3 percent as the Seollal holiday effect paled in comparison for January, with the holiday landing in February and driving down hypermarkets’ sales by 9.2 percent and reducing overall sales.   Online sales soared 16.8 percent, thanks to reservation promotions for newly released mobile phone models, heightened demand for travel package reservations and growing sales of convenience food products as a result of persisting inflation.   By item, sales of kids/sports (down 0.3 percent) fell, while home appliances/culture (up 11.4 percent), home/living (up 11.1 percent) and services/other (up 15.8 percent) rose.   MOTIE releases monthly retail sales figures based on surveys of 25 major retailers. Thirteen of them are brick-and-mortar retailers: three department store chains, three hypermarket chains, three convenience store chains, and four SSM operators. The remaining 12 are online retailers.   By offline channel type, sales at hypermarket chains fell 9.2 percent, with sales declining across all items, including miscellaneous goods (down 21.3 percent), home/living (down 19.4 percent), sports (down 18.6 percent), clothing (down 13.8 percent) and food products (down 7.4 percent).   Department store chains saw sales increase 0.7 percent overall, with clothing and fashion items showing declines, but household goods (up 16.4 percent) and foreign designer labels (up 6.6 percent) expanded.   Convenience stores advanced 6.1 percent as close proximity, small purchase shopping and eat-in trends continued, driving sales of all items, including instant food products (up 12.8 percent) and beverages/processed food products (up 5.7 percent).   SSM operators grew 7.1 percent in spite of declines in daily necessities (down 10.6 percent), miscellaneous goods (down 1.2 percent) and other non-food items, as sales of agriculture, fishery and livestock products (up 11.2 percent), fresh/prepared food products (up 9.9 percent) and processed food products (up 3.5 percent) advanced.   Sales per store dropped sharply for hypermarkets (down 8.3 percent), while those for department stores (up 0.7 percent), convenience stores (up 1.5 percent) and SSM operators (up 4.2 percent) increased.   Online retail sales (up 16.8 percent) shrank in fashion/clothing (down 4.7 percent), but low pricing promotions and reservation purchases of Seollal holiday travel packages and gifts raised overall online sales.   To note, reservation promotions for newly released mobile phones delivered a strong boost for home appliances and electronics (up 13.2 percent). date2024-02-28

Export control enforcement to tighten on common high priority items to prevent circumvention

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 26 that it plans to tighten enforcement on items listed under catch-all controls in accordance with the amended 33rd Public Notice on Trade of Strategic Items (enforced February 24) for export control against Russia and Belarus.   MOTIE is currently running an export control implementation working group with relevant institutes and ministries, including the Ministry of Foreign Affairs (MOFA), Korea Customs Service (KCS), Defense Acquisition Program Administration (DAPA), Korea Strategic Trade Institute (KOSTI) and the National Intelligence Service (NIS) for managing the implementation of export control against Russia and Belarus, uncovering companies that illicitly export catch-all items and imposing administrative or criminal punishment in accordance with the Foreign Trade Act.   Through close cooperation with relevant authorities and allied nations, MOTIE and other ministries have uncovered companies that exported illegally to Russia or circumvented through third countries, and cases of punishment are increasing in number as of late.   With the list of catch-all control items extended in accordance with the amendment, it is expected that attempts to bypass export controls or circumvent through third countries will increase, to which MOTIE plans to tighten enforcement through joint efforts with related institutions.   To note, investigations and crackdowns will be concentrated on common high priority items, machine tools and other sensitive items as requested by cooperating countries in order to prevent circumvention.   Moreover, efforts will also go towards promoting and providing guidance on the amendment with KCS and KOSTI to prevent unauthorized export due to businesses' lack of awareness. date2024-02-27

Minister Ahn and U.S. Commerce Secretary Raimondo discuss forward-looking measures to deepen industrial and trade cooperation

Trade, Industry and Energy Minister Dukgeun Ahn held a telephone conversation with U.S. Secretary of Commerce Gina Raimondo on February 27 to discuss forward-looking measures for bolstering industrial cooperation and requested the U.S.’ continued support over the Inflation Reduction Act (IRA), CHIPS Act subsidies and other trade issues.   The talks were held at the request of Secretary Raimondo to congratulate Minister Ahn’s taking office and to discuss measures on expanding bilateral cooperation. The Ministry of Trade, Industry and Energy (MOTIE) and the U.S. Department of Commerce (DOC) have maintained close and cooperative ties through a number of initiatives, including the Korea-U.S. Supply Chain and Commercial Dialogue (SCCD) and the Indo-Pacific Economic Framework for Prosperity (IPEF).   Minister Ahn viewed that the Korea-U.S. relations have advanced to a technological and advanced industrial alliance, encompassing semiconductors, the critical minerals supply chain, and technological security, and highlighted that MOTIE and the DOC continue to play key roles in strengthening the two countries’ cooperative relations in the future. Moreover, he asked for the U.S.’ cooperation on issues like the IRA tax credit, “foreign entity of concern” (FEOC), and the CHIPS Act subsidies.   The two sides highly assessed not only the bilateral Korea-U.S. cooperation, but IPEF and other forms of multilateral cooperation as well, building a shared consensus on the importance of the Korea-U.S.-Japan commerce and industry ministers’ meeting in accordance with the initiative from the Trilateral Leaders’ Summit at Camp David last August.   MOTIE plans to further efforts to enhance cooperation with the U.S. in advanced industries and supply chains, while giving full measure to promptly push policies to strengthen the competitiveness of semiconductors, EVs, and other advanced domestic industries. date2024-02-27

Government, industry and academia experts seek measures for overcoming global trade uncertainties in 2024

Trade, Industry and Energy Minister Dukgeun Ahn chaired the 1st Global Trade Strategy Meeting on February 26 at Lotte Hotel Seoul to discuss the global trade environment forecast and analysis and to review the response strategies and directions for the Korean government and industries in accordance with the shifting international landscape, in view of this year’s upcoming elections in 76 countries and the expected surge of global uncertainties and trade risks.   The Global Trade Strategy Meeting members were composed of representatives of relevant industries, trade, industry and international relations experts and Government officials.   Minister Ahn stated that “As the state of the global trade environment is critical, the Government will identify and share information at a faster pace and provide a more detailed response by utilizing the Global Trade Strategy Meeting as a platform.”   He added that “Trade authorities are closely negotiating through multilevel channels over various issues, including the U.S.’ Inflation Reduction Act (IRA), ‘foreign entity of concern’ (FEOC), chip subsidies and the EU’s Carbon Border Adjustment Mechanism (CBAM), and plan to team up with industries to redouble the efforts so that our position can be taken into utmost consideration.”   The Ministry of Trade, Industry and Energy (MOTIE) plans to launch a two-track system within this year consisting of the Global Trade Strategy Meeting, as a minister-chaired public-private joint cooperation channel, and a consultative working group. The consultative working group will be held on a regular basis as a follow-up to the Global Trade Strategy Meeting for developing response strategies per each possible scenario based on detailed analysis on various risks by issue, region, and business in order to give full attention to managing the trade risks for this year. date2024-02-27

Korea's public and private sectors join hands to secure semiconductor super gap

Trade, Industry and Energy Minister Dukgeun Ahn held a conference on February 26 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul to meet with semiconductor industry leaders to discuss the recently intensifying global semiconductor market competition and its impact on Korea’s chip industry, and to seek response measures. Government and corporate representatives at the meeting decided to combine public and private sector efforts as “one team” to claim the AI semiconductor market with aim to overcome the nation’s semiconductor industry challenges, while also discussing the follow-up measures necessary for the successful implementation of the Semiconductor Mega Cluster plan announced through the recent public forum. Minister Ahn is to spearhead the efforts to resolve chip industry challenges by installing a communication hotline with CEOs of major companies.   Representatives of leading MPE (materials, parts, equipment) companies like Samsung Electronics, SK Hynix and Dongjin Semichem attended the conference and stated that they will join efforts with the Government in achieving this year’s investment and export targets of KRW 60 trillion and 120 billion won, respectively, for the semiconductor industry. Moreover, they suggested measures for improving the investment environment in terms of sustainability, such as providing new investment subsidies, expanding support for base facilities of the Mega Cluster and establishing an MPE testbed.   Ever since the inauguration of the current administration, MOTIE has been introducing bold support measures for the semiconductor industry, which include sharply raising the investment credit rate, creating an unprecedented chip mega cluster and training 150,000 chip talents. The ministry also plans to continue to push these types of bold support measures to “level the playing field” for homegrown companies. One example would be the upcoming memorandum of understanding (MOU) to be signed on February 27 between Korea Electric Power Corporation (KEPCO), Korea Land and Housing Corporation (LH), power companies and buyer companies to swiftly implement the Yongin General Industrial Complex power supply plan finalized at the end of last year under the Government’s aim to take charge of establishing the essential infrastructure like those for electrical power and water.   In addition, the “Comprehensive Support Measures for the High-Tech Strategic Industry Specialization Complex” to be announced in March will incorporate additional investment incentives for semiconductors and other advanced industries. Furthermore, MOTIE plans to inject a total of 24 trillion won worth of policy funds to train world-class MPE and fabless talent, while also establishing a public-private joint demonstration fab steering team to speedily propel forward the MPE mass-producing mini fab project selected as the prefeasibility study project last week. Not only that, but the ministry also intends to launch a 19.8 billion won technology development project in April this year to support the advanced packaging technology development industry to meet urgent market demands and roll out a large-scale prefeasibility study within this year. To raise fabless competitiveness, it plans to establish a semiconductor design and inspection center this year, while also forming an AI semiconductor cooperation forum within the domestic semiconductor industry association. By the first half of this year, MOTIE also aims to establish measures for nurturing Korea’s fabless industry.   Minister Ahn stated that it is important to establish industrial support policies that are tangible and hands-on for companies and emphasized that “The Government and companies must join as ‘one team’ to strengthen communication and cooperation.” He added that “Related licensing procedures for semiconductor industrial date2024-02-27

Trade Minister holds bilateral talks with WTO Director General & UAE's Trade Minister on margins of MC13

Minister for Trade Inkyo Cheong, on the margins of the 13th World Trade Organization (WTO) Ministerial Conference (MC13), held bilateral talks with the WTO Director General Ngozi Okonjo-Iweala and the MC13 host country United Arab Emirates (UAE)’ Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi, respectively, on February 24, followed by a meeting with representatives of Korean businesses operating in the local UAE market to discuss measures for facilitating the utilization of the Korea-UAE Comprehensive Economic Partnership Agreement (CEPA).   Minister Cheong expressed agreement to Director General Okonjo-Iweala on the need for the WTO reform and for making significant progress in key negotiations for the restoration of the WTO-led multilateral trade system amid concerns raised over the contraction and disruptions in global trade, and also exchanged views over in-depth talks on the key agenda items for MC13.   Trade Minister Cheong emphasized the importance of making progress on the WTO reform for normalizing the dispute settlement system by the end of this year, incorporation of the Investment Facilitation for Development (IFD) Agreement into the WTO system, and the extension of the moratorium on customs duties on electronic transmissions. He also stated that Korea will engage actively for a successful MC13 based on support for multilateral trade and assessed that the Korea-WTO cooperation has strengthened owing to the Director General’s visit last May, requesting interest in opportunities for Korea’s capable trade talent to take an active part in the WTO.   On the margins of the talks, Trade Minister Cheong officially announced the Korean government’s decision to provide KRW 1.4 billion for the WTO Fisheries Funding Mechanism to support developing countries’ implementation of the Agreement on Fisheries Subsidies.   Trade Minister Cheong also met with Thani bin Ahmed Al Zeyoudi, MC13 Chair and UAE’s Minister of State for Foreign Trade. The two trade ministers shared the anticipation for the Korea-UAE relations to further deepen through the Korea-UAE CEPA signed last October based on the bilateral diplomatic ties established in 1980, and agreed to swiftly proceed with the formal signing and ratification submission so that both countries’ peoples and businesses can benefit early on from the Agreement. Moreover, Trade Minister Cheong noted that Korea will make continued efforts to implement the Korea-UAE Trade and Investment Promotion Framework (TIPF) sealed on the occasion of the state visit last January and expressed Korea’s support for the UAE’s accession to the Digital Economic Partnership Agreement (DEPA), to which Korea acceded last June.   On the heels of the two bilateral talks, the trade chief met with representatives of Korean companies operating in the local UAE market and gave a briefing on the Korea-UAE CEPA inked last October and led discussions on measures for securing a competitive advantage utilizing this Agreement. The conference was attended by representatives of Korea’s major and promising export sectors like automobiles and defense, as well as those expecting to benefit from the opening of the services market through the Korea-UAE CEPA, such as healthcare and e-commerce.   Trade Minister Cheong will be participating in the WTO’s MC13 through February 26-29 and hold bilateral talks with other countries’ trade leaders. date2024-02-26

Korea Trade Commission gives final decision on anti-dumping duties for import of Egyptian white cement

The Korea Trade Commission (“Trade Commission”) under the Ministry of Trade, Industry and Energy (MOTIE) held the 445th Trade Commission meeting on February 22 and gave the final decision that the import of white cement from Egypt is incurring damage on the domestic industry and submitted a proposal to the Economy and Finance Minister that a 60.83 percent anti-dumping duty be levied on Egyptian white cement over the next five years.   White cement is a material used for brighter colored finishing and mixed with pigment to be made into pavement blocks, floor tiles, or artificial stone.   A 72.23 percent provisional anti-dumping duty is currently being imposed on Egyptian white cement since November 15 in 2023, and the Economy and Finance Minister is to finalize the anti-dumping duty rate and levy period by the end of April this year.   Moreover, on an investigation on pneumonia vaccines and electric skillets, the Trade Commission gave the decision that the respective respondents are committing patent infringement.   Upon the request of U.S. pharmaceutical company Wyeth LLC for investigations on a domestic firm’s alleged patent infringement of pneumonia vaccines, the Trade Commission gave the decision that the respondent’s producing and exporting undiluted solutions for pneumococcal vaccines is an act of patent infringement and unfair trade practice. Accordingly, the Trade Commission gave the respondent orders to halt production and export of said item and to disclose the correction order, imposing a fine of KRW 15 million.   Concerning investigations on the alleged patent infringement of electric skillets requested by DNW, the Trade Commission gave the decision that the respondent’s importing of Chinese electric skillets and selling them in Korea is an act of patent infringement and unfair trade practice. The Trade Commission ordered the respondent to suspend import and sales of said item, dispose of inventory and disclose the correction order, imposing a fine of 11.2-28.7 million won.   As for DMT Solutions’ request on investigations on the alleged design right infringement and trade secret piracy of mobile phone screen protection film lamination rollers, the Trade Commission gave the decision that exporting the rollers is not an act of design right infringement or trade secret piracy.   Upon Hurom’s request for investigations on a juicer produced by a domestic firm and its alleged patent infringement and OsteoSys’ request for investigations on another domestic company’s body composition analyzer and its alleged trade secret piracy, the Trade Commission decided to launch investigations on both respective respondents.   Standing Trade Commissioner Cheon Young-gil stated that “requests for investigations on alleged patent infringements are rising as corporate patent disputes are intensifying as of late,” and added that “the Trade Commission will do its job as a watchman for the protection of industrial technology and establishment of the fair trade order.” date2024-02-23