Ministry of Trade, Industry and Energy

Trade ministers around the world to gather for acceleration of WTO reform

Minister for Trade Inkyo Cheong will be attending the World Trade Organization (WTO)’s 13th Ministerial Conference (MC13) through February 26-29 in Abu Dhabi, United Arab Emirates (UAE). As next year marks the 30th year of the organization’s inception, MC13 is expected to provide leading indicators for the direction of the WTO reform.   Ever since trade ministers from around the world gathered for MC12 in June 2022 and agreed to kick the WTO reform into high gear, multifaceted discussions have taken place on this front. MC13 will be for reviewing the progress made thus far and providing guidelines for completion of the reform by the end of the year. Ministerial talks will also be held under the themes of “Trade and Sustainable Development” and “Trade and Inclusiveness”, as strengthening the WTO’s deliberative function is one of the major agenda items. Trade Minister Cheong will be highlighting the fact that protectionist industrial policies and subsidies competition may undermine the rules-based multilateral trade system and that member countries should refrain from imposing measures that do not align with the WTO rules.   Ministerial meetings will also concentrate on a number of different topics, such as development, fisheries subsidies and agriculture. Development is a major agenda item for MC13 and attention will be given to gain outcomes in this area alongside the issue of special treatment for countries that have graduated from the least developed countries (LDC) status. Efforts will be made to seek consensus on the second phase of fisheries subsidies negotiations concerning overfishing and overcapacity, as well as for the entry into force of the Agreement on Fisheries Subsidies reached during MC12. Discussions will also be held on the extension of the moratorium on customs duties on electronic transmissions. Amid the persisting difference of opinion among member countries, discussions on agriculture will focus on the working plan for future negotiation progress.   In addition, Korea intends to make an official request for the Investment Facilitation for Development (IFD) Agreement (July 2023), for which Korea is co-chair, to be incorporated into the WTO Agreement and plans to hold a joint ministerial declaration for countries participating in the negotiations to garner member countries’ support.   Meanwhile, the accessions of Comoros and Timor-Leste to the WTO at MC13 raises the number of WTO member countries to 166. date2024-02-22

Beyond revival, Korea's nuclear ecosystem warming up to become global powerhouse

The Korean government held the 14th public forum on the revitalization of the nuclear energy industry and stimulation of local economy for Changwon and Gyeongsangnam-do on February 22 at the Gyeongsangnam-do Provincial Hall with approximately 100 civilians, composed of those working for SMEs and middle-market companies, nuclear energy majoring undergraduate and graduate school students and locals, to share the vision and strategy for Korea to become the world’s nuclear energy powerhouse and nurture Changwon into a “global SMR cluster”.   Changwon holds special value in Korea’s nuclear industry. After Korea Heavy Industries and Construction Co. (now known as Doosan Enerbility) moved to the Changwon National Industrial Complex, Changwon saw Korea’s first localization of the main equipment for nuclear power plants. The Changwon National Industrial Complex entered the KRW 10 trillion thresholds in terms of production value for manufacturing the main equipment of Hanbit Units 3 and 4, and even today, all of Korea’s nuclear plants’ major components are produced in Changwon. In a sense, the nuclear industry has served as the backbone of Changwon’s economy, which explains the backdrop of Changwon hosting the 14th public forum on the topic of nuclear power.   At the forum, officials presented the Government’s efforts and outcomes of normalizing Korea’s nuclear energy policies, and shared the changes felt across the nuclear industrial sites. Participants engaging in the forum voiced measures for not only normalization but also the qualitative advancement of the nuclear industry and building a global powerhouse.   Upon taking office, the Yoon administration vowed to abolish the previous administration’s nuclear phase-out policy and fully utilize nuclear power as a key energy source. Construction of Shin Hanul Units 3 and 4 immediately resumed and related licensing procedures were shortened by 18 months. The sluggish nuclear industry was injected with emergency work orders and vital funding programs were newly rolled out. The contracts for producing the major and auxiliary components of Shin Hanul Units 3 and 4 were signed in March and May of 2023, respectively, quenching the thirst of nuclear companies and increasing the project value from 2.4 trillion won in 2022 to 3 trillion won in 2023.   The Yoon administration set to work on developing Korea’s own small modular reactor (SMR) technology and launching the public-private SMR alliance in March and July of 2023, respectively, winning Egypt’s 3 trillion El Daaba project and Romania’s 260 billion won tritium removal facility project, successfully bagging over 4 trillion worth of deals since inauguration.   MOTIE’s Minister Dukgeun Ahn stated during the forum that “We aim for not merely the revival of the nuclear ecosystem but achieving the qualitative advancement of the whole industry to build Korea into an unsurpassed global nuclear powerhouse,” and proposed a number of key measures as directions for nuclear industry policies.   For the full restoration of the nuclear ecosystem, the Government will set a virtuous cycle to motion, through which ample amount of orders and funding will spill over to investment and R&D, and ultimately enhance the mid-to-long term competitiveness growth of the nuclear industry, bringing about innovation.   First, the Government enforced a law starting December 2023 so that SMEs and middle-market companies supplying auxiliary components for Shin Hanul Units 3 and 4 can receive up to 30 percent of the contract amount as special down payments immediately upon inking the contract. Up to 75 percent of the commission for guarantee premium will also be paid to mitigate the burden on financially struggling SMEs. The special law enactment has helped the smooth implementation of an accumul date2024-02-22

Readout on the Trilateral United States-Japan-Republic of Korea Convening of Commerce and Industry Export Control Principals in Tokyo

READOUT ON THE TRILATERAL UNITED STATES-JAPAN-REPUBLIC OF KOREA CONVENING OF COMMERCE AND INDUSTRY EXPORT CONTROL PRINCIPALS IN TOKYO   TOKYO, JAPAN – Today, Commerce and Industry Export Control Principals from the United States, Japan, and the Republic of Korea (ROK) convened as a follow-up to the Commerce and Industry Ministerial initiative from the Trilateral Leaders’ Summit at Camp David last August. This meeting is the first of its kind under the trilateral relationship focused on further aligning export controls, enhancing our ability to effectively collaborate on shared priorities. The United States hosted the convening at the U.S. Embassy in Tokyo [and were welcomed by Ambassador Emanuel].   The principals agreed to further align on Russia controls, collaborate on outreach to countries in Southeast Asia, and cooperate on controls for critical and emerging technologies. “Collaboration among like-minded allies and partners who share our values and security outlook on multilateral export controls is a longstanding priority for BIS,” said Assistant Secretary of the U.S. Department of Commerce for Export Administration Thea D. Rozman Kendler. “Our trilateral relationship with Japan and the Republic of Korea is a treasured relationship that cultivates the kind of trusted ecosystem that allows emerging technologies to develop in a safe space.”   “We deepened our knowledge on how respective export control systems work in Japan, the ROK and the U.S. in the first trilateral meeting,” said Director-General Katsuro Igari, Trade Control Department, Japan Ministry of Economy, Trade, and Industry. “We will further strengthen our export controls by further exchanging best practices, including engagement in industry and academia.”   “Trilateral cooperation between Korea, the US and Japan is crucial to respond to the changing global environment such as the instability of supply chains and export controls,” said Director General for Trade Control Policy Kamchan Kang, Republic of Korea Ministry of Trade, Industry and Energy. “Export control engagement with ASEAN countries should be enhanced to prevent the diversion of dual-use items and maintain international peace.”   Background on the Trilateral Leaders’ Summit at Camp David In August 2023, President Biden welcomed Japanese Prime Minister Kishida and ROK President Yoon to a historic trilateral summit at Camp David, the first-ever stand-alone summit of Leaders from the United States, Japan, and the ROK, and the first summit of foreign leaders at Camp David during the Biden-Harris Administration. The Leaders jointly inaugurated a new era of trilateral partnership and reaffirmed that cooperation between the United States, Japan, and the ROK advances the security and prosperity of our people, the Indo-Pacific region, and the world. Among other priorities, the Leaders committed to focusing efforts on coordinating export controls for advanced technologies. date2024-02-22

MOTIE and IEA seek stronger cooperation for energy efficiency innovation

The Ministry of Trade, Industry and Energy (MOTIE) held the “Korea-IEA Energy Efficiency Academic Conference” on February 22 in Seoul, attended by representatives of the Korea Energy Agency (KEA), Korea Energy Economics Institute (KEEI) and the Korea Chamber of Commerce and Industry (KCCI).   The conference was held to discuss measures for bolstering cooperation between the Korean government and the International Energy Agency (IEA) and to cover global energy efficiency issues on the margins of Nicholas Howarth’s visit to Korea. A policy analyst on energy efficiency, Nicholas Howarth is the main author of “Energy Efficiency 2023” published by IEA in October 2023.   At the conference, Howarth briefly explained “Energy Efficiency 2023”, assessing that the energy efficiency improved 2 percent worldwide in 2022 in comparison with the previous year, and Korea recorded double the global average with a notable 4 percent efficiency growth rate, thanks to strong policy pushes. Meanwhile, energy demand in 2023 rapidly increased, with the global energy efficiency growth stopping at 1.3 percent. According to Howarth, in order to implement the global goals for energy efficiency improvement by 2030 as agreed during the COP28 UN Climate Change Conference, the government’s role in decreasing the use of fossil fuels is critical, such as widening the distribution of heat pumps and other high-efficiency devices, increasing the proportion of EVs and small-sized cars, reducing energy consumption for cooling and heating buildings, and heightening lighting efficiency standards.   Next, speakers’ presentations were followed by discussions. KEA introduced Korea’s energy efficiency policy and proposed measures for cooperation for the international climate industry symposium in 2024; KEEI explained the cost-effectiveness of energy efficiency enhancement in Korea’s industrial sectors; and KCCI proposed measures for KCCI-IEA project cooperation.   MOTIE’s Energy Efficiency Director General Kim Hyun-cheol said that cooperation between Korea and IEA will continue to deepen in the future, with the diffusion of the Carbon Free Energy (CFE) Initiative and implementation of the nationally determined contributions (NDCs) and COP28 goals by 2030. He added that “In commemoration of IEA’s 50th anniversary, we plan to strengthen cooperative relations with IEA through launching joint international events and R&D projects.” date2024-02-22

Korea's automobile export value hits all-time high of $6.2 bln for January

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 21 that the value of Korea’s automobile exports for the month of January grew 24.7 percent year-on-year, reaching an all-time high of USD 6.2 billion for January. The trade balance stood at $5.4 billion, ranking automobiles first among export items in terms of trade surplus and as the largest driver behind Korea’s overall January trade surplus. The number of automobiles exported in January amounts to 245,255 units, a first to enter the 240,000 units threshold in nine years since January 2015.   The automobile production volume in January achieved 358,423 units, up 16.9 percent. The growth can be attributed to the base effect from last year and the increased number of working days. Meanwhile, production trends for January over the last five years indicate that automobile production has emerged to pre-COVID levels thanks to the normalization of the supply chain and parts supply.   Domestic sales of automobiles contracted 0.4 percent year-on-year to 116,152 units in January. Homegrown models saw a 2.5 percent growth in demand and sold 103,057 units in Korea, whereas foreign models declined by 18.8 percent and sold 13,095 units. In terms of passenger car sales, consumer preference for SUVs was prominent.   This January, MOTIE announced the eco-friendly mobility regulatory innovation measures for removing obstacles to corporate activities and stimulating automotive investment. The ministry plans to complete 33 of the 43 project tasks by the end of this year and also intends to strengthen support for the automotive parts industry through the “Future Car Parts Industry Act” scheduled to take effect this July. date2024-02-21

Wind power experts discuss standards strategies for global competitiveness

The Korean Agency for Technology and Standards (KATS) under the Ministry of Trade, Industry and Energy (MOTIE) hosted the wind power experts’ conference on February 21 at the Korea Planning & Evaluation Institute of Industrial Technology (KEIT) for discussions with industry, academia and R&D experts on strategies for industry standards to enhance Korea’s wind power global competitiveness.   Over the past year, KATS has been preparing strategies for standards on core parts, super-sized wind turbines, and project certification through the “Wind Power Standards Forum” composed of experts from related industries, academia, and R&D institutes with aim to achieve carbon neutrality and invigorate the wind power industry.   The conference was held to gather opinions on industry challenges and to facilitate discussions with approximately 20 wind power experts attending the conference. They proposed various ways to respond to the global market and contribute to industry growth through standardization, expressing anticipation towards the upcoming mega wind power complex development and the accompanying progress in Korea’s wind power industry standards.   KATS President Jin Jong-wook emphasized that “Wind power is a vital measure for countries around the world in attaining carbon neutrality. We will provide active support in the standards sector for the growth and global competitiveness of Korea’s wind power industry.” date2024-02-21

2nd official negotiating round for Korea-EU Digital Trade Agreement kicks off in Seoul

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 20 that the second round of negotiations for the Korea-EU Digital Trade Agreement is held through February 20-22 in Seoul with the participation of 30 government representatives of both sides composing the Korean and EU delegations.   The second negotiating round aims to further the discussions that are currently underway on trade rules concerning data transfer, personal information protection and cybersecurity agreed in accordance with the Korea-EU Digital Trade Principles of November 2022.   The Korea-EU Digital Trade Agreement is anticipated to propose a new digital trade rules model for creating an open, reliable, and fair digital trade environment and enhance Korean firms’ business competitiveness through the expansion of the digital trade network.   MOTIE plans to closely communicate with industries and other stakeholders throughout the negotiation process. date2024-02-20

Amended 33rd Public Notice on Trade of Strategic Items to take effect Feb. 24

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 20 that the amended 33rd Public Notice on Trade of Strategic Items with an extended list of items subject to export control against Russia and Belarus will take effect starting February 24.   To join in the efforts of the international community’s export control against Russia and Belarus, MOTIE gave an administrative announcement on December 26, 2023, of the amended notice with an extended list of items subject to catch-all controls, which was finalized after a period of collecting public opinion. The amended notice has added 682 items to be subject to catch-all controls for export, including heavy construction equipment, secondary batteries, machine tools, aircraft parts and other items with high risk of utilization for military purposes, extending the list to a total of 1,159 items.   Export of items newly added to the list is prohibited beginning February 24. Meanwhile, an export license may be granted for goods that fulfill licensing conditions, such as those contracted for export prior to or on February 23 and items to be sent to subsidiaries.   Moreover, the amended notice places stronger emphasis on the post-management of industrial blanket license exports and contains an extended list of items for emergency humanitarian relief that are exempted from licensing requirements.   MOTIE will be running an “Export Control Issue Desk” to facilitate exporting businesses’ compliance with the amended public notice and provide guidance on inquiries referring to the controls policy and export items, while also working with relevant ministries to double down on enforcement of the catch-all controls to prevent relevant items from entering Russia or Belarus through third countries. date2024-02-20