Ministry of Trade, Industry and Energy

Korea and Georgia enter first official negotiating round for bilateral EPA

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 20 that the first round of official negotiations for the Korea-Georgia Economic Partnership Agreement (EPA) is to be held through February 20-22 in Tbilisi, Georgia.   Director General for FTA Negotiations Chang Sung-gil and Deputy Minister of Economy and Sustainable Development Genadi Arveladze are each heading the Korean and Georgian delegation in this negotiating round.   The two countries launched a joint economic feasibility study on the Korea-Georgia EPA in 2021 based on the mutual need for cooperation and this first official negotiating round comes on the heels of the March public hearing and National Assembly briefing in April. The Korean delegation plans to narrow down the two sides’ differences through a total of 15 working groups’ in-depth discussions on goods, services, and cooperation.   The Korean government expects to see the Korea-Georgia EPA not only broaden the base for bilateral trade and cooperation, but also serve as an opportunity for Korean firms to expand their presence in the European and Middle Eastern markets. date2024-02-20

Korea and Netherlands launch Semiconductor Dialogue to bolster chip cooperation

High Technology Industry Director General Lee Yong-pil at the Ministry of Trade, Industry and Energy (MOTIE) met with Serpil Tascioglu, Director of Top Sectors and Industrial Policy at the Netherlands’ Ministry of Economic Affairs and Climate Policy and head of the Dutch delegation, for the first Korea-Netherlands Semiconductor Dialogue on February 19 in Eindhoven to discuss joint efforts for semiconductor policies as part of implementing the bilateral summit agreement in December on the establishment of a “chip alliance” encompassing the two countries’ governments, companies and universities.   The two sides shared semiconductor industrial policies, including the creation of the Mega Cluster announced in January. The Korean delegation emphasized the need for collaboration with major countries regarding policy implementation, particularly for semiconductors in view of their internationally divided specialization structure. The delegations discussed measures for technological cooperation in engineering, equipment, and packaging. They also considered taking turns hosting the Korea-Netherlands Advanced Semiconductor Academy program and expanding the range of participating universities and institutions to diversify the program in tackling the global chip industry’s shared issue of nurturing specialized talent.   Moreover, the delegations agreed on the need to strengthen the Korea-Netherlands industrial cooperation for stabilizing the semiconductor supply chain and discussed measures on supporting opportunities for launching new businesses through events like roundtables on the margins of the Korea-Netherlands Advanced Semiconductor Academy course for incumbent employees and other important occasions. They agreed to hold the Semiconductor Dialogue regularly on an annual basis to review the bilateral chip cooperation progress and bolster organic collaboration between their governments, industry, academia and R&D sectors.   Director General Lee said that MOTIE will continue efforts to further the two countries’ cooperation through the Korea-Netherlands Semiconductor Dialogue. date2024-02-20

Korea and Netherlands launch advanced semiconductor academy program to train chip talent

The Ministry of Trade, Industry and Energy (MOTIE) is launching the first Korea-Netherlands Advanced Semiconductor Academy (“Academy”) program through February 19-23 (local time) at the Eindhoven University of Technology (TU/e) in the Netherlands as part of the smooth implementation of the Korea-Netherlands memorandum of understanding (MOU) for training highly skilled talent in advanced semiconductor areas, as signed in December 2023.   The Academy program is an education course led by 20 international experts from seven institutions and taught at advanced global semiconductor companies like ASML, Imec, and NXP Semiconductors, integrating corporate professionals’ knowhow to train approximately 60 Korean (50) and Dutch (10) students with master’s and doctoral degrees specializing in semiconductor areas. In this program, ASML and Imec developers will be giving special lectures and facilitating discussions on Imec’s chip manufacturing processes, including extreme ultraviolet (EUV) lithography technology for micropattern fabrication, process development, atomic layer deposition technology development, and wafer surface control. Domestic talents taking the program can learn about the latest trends in global companies’ technological development and strategies difficult to pick up in Korea.   Participating students are composed of those with master’s and doctoral degrees in semiconductor specialization graduate schools designated last year for training highly skilled semiconductor talent. To enhance the effectiveness of the on-site courses, SK Hynix and other MPE (machinery, equipment, parts) companies’ experts were invited to give preliminary courses teaching advanced technologies like plasma etching and EUV lithography for semiconductor micropatterning. Moreover, courses on processes, materials and equipment will also open to articulate with the semiconductor specialization graduate schools’ courses during the first half of this year to push for mutual school exchanges.   MOTIE’s High Technology Industry Director-General Lee Yong-pil stated that “securing the semiconductor technology super gap hinges on sourcing highly-skilled talent” and added that “the Korea-Netherlands Academy for incumbent employees will likewise open in the first half of this year, and the plan is to launch the Academy program every year for the next five years to train 500 Korean and Dutch top talents and seriously push forward cooperation in advanced semiconductor R&D.” date2024-02-19

Korea and Japan step up joint efforts for promoting clean hydrogen utilization

Director General for Hydrogen Economy Policy Park Chan-ki at the Ministry of Trade, Industry and Energy (MOTIE) and Hiroo Inoue, Director General for Energy Efficiency and Renewable Energy Department at Japan’s Economy, Trade and Industry Ministry (METI), held the Korea-Japan Director General-Level Hydrogen Cooperation Meeting on February 15 in Japan.   The two countries had agreed on the need for joint efforts regarding carbon reduction and clean energy cooperation during the Korea-Japan summit talks at Stanford University on the margins of the Asia-Pacific Economic Cooperation (APEC) Summit 2023, and this director general-level meeting was held as a follow-up discussion on clean hydrogen cooperation.   The two hydrogen and energy leaders reaffirmed the importance of clean hydrogen in achieving the nationally determined contributions (NDCs) for cutting greenhouse gas emissions and held the view that the two countries’ collaboration as consumers and importers of clean hydrogen offers substantial potential in light of their similar industrial structure and energy consumption dynamics. Based on their shared interest, the two sides agreed to continue cooperative efforts in various areas, including the development of global hydrogen supply chains and new fields of hydrogen utilization, related standards, specifications, and policies.   They also agreed to launch a director general-level “Korea-Japan Hydrogen Cooperation Dialogue” for the regular exchange of views and close cooperation on the global diffusion of hydrogen economy and clean hydrogen market leadership. date2024-02-16

Korea rolls out financial support package to better cater to companies

Trade, Industry and Energy Minister Dukgeun Ahn attended a conference on February 15 in Seoul to discuss measures for providing catered financial support to businesses.   Financial Services Commission (FSC) Chairman Kim Joo-hyun stated that the support measures are focused on backing companies making bold and innovative investments in advanced industries, middle-market companies. and SMEs and struggling companies facing high interest rates. The measures were established through numerous conferences and consultations with relevant ministries, policy financing institutions and city banks.   First, KRW 26 trillion worth of strategic financial support is to go towards companies in advanced industries, Korea’s future growth engine sectors. The Ministry of Economy and Finance (MOEF) and Suhyup Bank will aim to smoothly operate the “Supply Chain Stabilization Fund” created for supporting companies in need of funding for import channel diversification, alternative technology development and securing overseas resources. Korea Development Bank (KDB) will offer low-interest (down 1.2 percentage points) funds amounting to 15 trillion won for companies pursuing business in five core areas, including semiconductors, secondary batteries and bio.   Second, 15 trillion won worth of intensive support has been prepared for middle-market companies that were comparatively overlooked in past policy funding. Middle-market companies are low in number (5,600, only 1.5 percent of total number of companies) but take up a considerable chunk of the national economy, occupying 16.1 percent and 12.9 percent of Korea’s total sales and employment, respectively.   Accordingly, a number of funding measures have been devised to strengthen their competitiveness, which can translate into a more resilient value chain for the economy and drive innovative growth. With banks’ investment, a five trillion won funding exclusively for middle-market enterprises will be launched, which is anticipated to mitigate middle-market firms’ burden in many ways through equity investments and other means to inject the funds needed for new project participation and business expansion.   Not only that, but five major Korean banks and KDB are rolling out a six trillion won low-interest loan program for middle-market companies entering new businesses. Moreover, a 1.8 trillion won worth of new corporate bonds will be issued to facilitate various funding channels and a 2.3 trillion won “stepping stone” fund program through the collaboration of banks and guarantee institutions.   Third, swift recovery programs will be offered for companies and entrepreneurs struggling with high interest rates and related management challenges. For SMEs experiencing deteriorating sales, five major banks and the Industrial Bank of Korea (IBK) will jointly provide a special five trillion won program by slashing interest rates. IBK will further provide a forbearance program for companies struggling with interest rates by allowing interest repayment after their management conditions improve in the future. To reinforce the overall industrial dynamics, entrepreneurs with failed business experiences in the past will receive support for recovery in order.   FSC Chairman Kim stated that these measures are a result of joint public-private efforts and added that MOEF, MOTIE, and the SMEs and Startups Ministry (MSS) have actively helped out and banks have also extended support of 20 trillion won. In explaining the measures, he said that the industry-specific data in Korea Credit Information Services will be segmented in the future to better cater to companies so that private banks can handle corporate financing more readily.   Minister Ahn said that these corporate financial support measures will facilitate financial support for advanced industries’ competitiveness building, SM date2024-02-15

Companies at the forefront of nurturing Korea's CCUS industry

The Ministry of Trade, Industry and Energy (MOTIE) held a conference on February 15 in Seoul to facilitate communication with companies, local governments and other institutions to explain the Carbon Dioxide Capture, Utilization and Storage Act (CCUS Act), promulgated on February 6, and shared the future direction and plans regarding its subordinate legislation that concern detailed support measures, which are of intense interest for companies. Companies and local governments in turn offered various opinions on their expectations of the legislation and need for government support.   At the conference, Korea Western Power Co. proposed the need for streamlining the licensing procedures required for installation and operation of carbon capture facilities and Korea Gas Corporation (KOGAS) reported that there exist various grounds to support demonstration project execution and special exemptions under the CCUS law and requested a higher level of receptivity in subordinate legislation. SK E&S proposed the need for government-led active support for international cooperation for cross-border CCS as well as bold incentives for the swift development of the infant industry. Chungcheongbuk-do representatives stated that the subordinate legislation should specify specific support measures for integrated complexes.   MOTIE officials responded that a wide range of opinions offered by companies and institutions are to be amply considered and incorporated into the subordinate legislation and emphasized that communication channels like public hearings will be continued in view of the high level of interest shown by companies through this conference. date2024-02-15

Korea's ICT exports advance 25.1% in January

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 15 that Korea's exports and imports of information and communications technology (ICT) goods for January recorded USD 16.4 billion (up 25.1 percent year-on-year) and $11.9 billion (down 3.2 percent), respectively. The trade balance stood at a surplus of $4.5 billion.   January ICT export growth was powered by semiconductors, as they posted double-digit growth for the third consecutive month and led ICT exports at the helm, which recorded double-digit growth for the first time in 20 months since May 2022. Memory chips’ fixed price rose for the fourth consecutive month, driving the entire semiconductor exports rebound.   Displays (up 2.6 percent to $1.5 billion) advanced in exports for the sixth consecutive month as high value-added items like panels for TVs and laptops met increasing demand.   Exports of mobile phones (down 20.1 percent to $1.1 billion) dropped, owing to the high base effect from the spike of last year’s finished product exports and as major global firms’ demand for parts declined.   Computers and peripherals (up 33.6 percent to $0.8 billion) returned to an expansion for the first time in 19 months as demand for solid-state drives (SSDs) hiked 57.5 percent.   Communications equipment (up 27.6 percent to $0.2 billion) enjoyed growing demand in regions like Vietnam and the U.S.   By region, exports to China and Hong Kong (up 43.1 percent to $7.5 billion), Vietnam (up 11.6 percent to $2.5 billion), the U.S. (up 4.9 percent to $1.8 billion), EU (up 1.9 percent to $0.9 billion) and Japan (up 1.5 percent to $0.3 billion) showed growth.   Korea’s ICT imports for January shrank as those of major devices like mobile phones (down 28.7 percent to $0.8 billion) and computers and peripherals (down 10.5 percent to $1.5 billion) contracted. date2024-02-15

MOTIE holds pan-ministerial meeting to take stock of Middle East economic diplomacy outcomes

Deputy Minister for Trade Yang Byeong-nae chaired the sixth Korea-Middle East Economic Cooperation Public-Private Joint Committee Support Working Group meeting on February 14 at K-SURE in Seoul to assess the economic diplomacy outcomes and to support Korean companies’ advances in the Middle Eastern market.   Meeting attendees consisted of representatives of related institutions, ministries and companies, including K-SURE, Korea Chamber of Commerce and Industry (KCCI), Federation of Korean Industries (FKI) and Korea International Trade Association (KITA). Attendees agreed that outcomes are growing increasingly tangible based on memorandums of understanding (MOUs), contract deals and plant project bid orders sealed to date. Companies also voiced opinions and requests concerning business challenges and related issues.   The first part of the meeting focused on introducing various institutions’ business support programs, such as K-SURE’s trade financing package supporting each stage of the bid order process and Korea Trade-Investment Promotion Agency (KOTRA)’s marketing support program.   Next, companies gave briefings on their follow-up outcomes to MOUs and agreements with their Middle Eastern partners. Company A shared that it entered a power equipment and materials supply contract worth KRW 63.8 billion with a Saudi firm and an 82.2 billion won supply contract with Saudi Electricity Company (SEC). Company B informed that a concept design for a biopharmaceutical plant is underway for a formal contract. Company C has applied for a permit for exporting defense supplies to the United Arab Emirates (UAE) and Company D is selling overseas travel packages to the Middle Eastern market following a formal contract with a UAE firm in July last year. Company E was offered a 70 billion won facilities investment project proposal for a joint sewing factory and managed to strike a $0.9 million export deal, while Company F reported that it completed the first stage of smart farm pilot installation in January this year for the Qatari royal palace.   Moreover, companies requested for government support in their business efforts for greater outcomes in the Middle East, such as financial support for accumulating overseas demonstration experiences, tax benefits, provision of professional manpower and legal information, prompt issuance of export permits, as well as customs benefits under the Free Trade Agreement (FTA). MOTIE and relevant ministries intend to seek practical support measures through the public-private joint committee and working group.   Deputy Trade Minister Yang stated that the MOUs signed by Korean companies are leading to contract deals and additional follow-up results, adding that full measure will be given to responding to suggestions and challenges voiced during the meeting through an extensive inspection on the implementation process. date2024-02-15