Ministry of Trade, Industry and Energy

Trade Minister discusses measures for WTO reform at Ottawa Group meeting

Minister for Trade Inkyo Cheong attended the Ottawa Group trade ministers’ videoconference on February 1, held to review the key agenda items of the upcoming World Trade Organization (WTO)'s 13th Ministerial Conference (MC13) and discuss measures to facilitate the WTO reform and other outcomes.   At the Ottawa Group meeting, trade ministers discussed measures for gaining meaningful outcomes through MC13 based on the unofficial discussions for the full normalization of the dispute settlement system in 2024 and exchanged views on strengthening the deliberative function on global trade challenges like industrial policies, climate change and inclusiveness. They also discussed the outcomes of the investment facilitation for development and extension of the moratorium on imposing customs duties for electronic transmissions.   Trade Minister Cheong emphasized the need for close collaboration within the Ottawa Group at MC13 in addressing the WTO’s dispute settlement system reform and stronger deliberative function. Moreover, he asked for the Ottawa Group’s cooperation concerning the investment facilitation for development and stressed the need to maintain the e-commerce moratorium. date2024-02-01

Korea's exports advance 18% in January

The Ministry of Trade, Industry and Energy (MOTIE) announced on February 1 that Korea’s export value for January 2024 increased 18.0 percent year-on-year to USD 54.7 billion. Imports decreased 7.8 percent to $54.4 billion and the trade balance stood at a surplus of $0.3 billion.   January monthly exports recorded $54.7 billion (up 18.0 percent), growing for the fourth consecutive month and achieving the first double-digit growth since the 21.4 percent jump made in May 2022. Factoring in the number of working days, the average daily export value for January climbed 5.7 percent to $2.3 billion and monthly shipments gained 14.7 percent, increasing for the fifth consecutive month.   By item, 13 out of 15 major export items increased in exports, recording the highest number of items posting growth since May 2022 when 14 items achieved growth. To note, semiconductors soared 56.2 percent, the biggest climb made in 73 months and advancing for the third consecutive month.   Automotive exports (up 24.8 percent) reached an all-time high for January monthly export value at $6.2 billion, growing for the 19th consecutive month.   General machinery (up 14.5 percent) and home appliances (up 14.2 percent) grew for the 10th and eighth consecutive month, respectively, while displays (up 2.1 percent) and ships (up 76.0 percent) both increased for the sixth consecutive month. Petrochemicals (up 4.0 percent) and bio health (up 3.6 percent) improved for the third consecutive month.   Meanwhile, computers (up 37.2 percent) snapped the losing streak that persisted for 18 months since June 2022, and steel (up 2.0 percent), petroleum products (up 11.8 percent), automotive parts (up 10.8 percent) and textiles (up 8.5 percent) all broke their downward streaks as well.   By destination, eight of the nine major markets saw growth in January. Notably, China and the U.S. surpassed the $10 billion thresholds for the sixth and fifth consecutive month, respectively.   Exports to China (up 16.1 percent) snapped the losing streak for the first time in 20 months with $10.7 billion.   Exports to the U.S. (up 26.9 percent) continued the growth pace for the sixth consecutive month, hitting an all-time high for January monthly value at $10.2 billion.   Meanwhile, exports to India (up 5.6 percent) also amounted to a record-breaking $1.5 billion, and exports to ASEAN (up 5.8 percent) and Japan (up 10.6 percent) both increased for the fourth consecutive month.   Exports to the EU (up 5.2 percent), Latin America (up 28.2 percent) and the Middle East (up 13.9 percent) showed growth as well.   Korea's January imports declined 7.8 percent year-on-year to $54.4 billion. The import of crude oil (up 6.0 percent) increased, but that of gas (down 41.9 percent) and coal (down 8.2 percent) dropped, shrinking overall energy imports by 16.3 percent. Non-energy imports contracted 4.7 percent.   The trade balance stood at a $0.3 billion surplus for January, continuing on the surplus pace for the eighth consecutive month since June 2023. It is noted that every January usually records a steep deficit, but this year’s trade balance improved by $13 billion year-on-year, boosted by strong exports.   * Short version date2024-02-01

MOTIE holds FEZ Future Strategy Forum

The Ministry of Trade, Industry and Energy (MOTIE) held the Free Economic Zone (FEZ) Future Strategy Forum on January 31 at the Hotel Koreana in Seoul, where experts and personnel gathered to discuss Korea’s blueprint for FEZs’ future direction and growth.   The first FEZ to take root in Korea, the Incheon FEZ has developed into the nation’s major special economic zone over the last two decades, thanks to the various efforts of the Government, local government bodies and other experts, spawning eight more FEZs to date.   During the presentation session sharing the outcomes of each FEZ, the Ulsan FEZ shared success cases of having sealed the memorandum of understanding (MOU) on a public land reserve project with the Korea Land & Housing Corporation (LH) in March, 2023, which can contribute to the timely supply of industrial land and reducing financial burden from rising land prices. Likewise, other FEZs also shared their experiences of having successfully attracted investment and corporate support among other cases of proactive work achievements.   In the following discussion session, experts presented their policy proposals and panel discussions were held on future project tasks for the third FEZ basic plan, foreign investment facilitation measures and schemes for nurturing an innovative ecosystem.   Kim Hong-joo, Head of the Free Economic Zone Planning Office, stated in the opening message that “amid unstable internal and external conditions, FEZs are called to offer new visions and strategies,” and added that “for the FEZs to grow into global, cutting-edge business hubs in step with local development, the Government and the FEZs will work together as one team to give full policy support for attracting investment and corporate support.” date2024-02-01

Korea becomes 9th country in the world to produce liquid hydrogen

The Ministry of Trade, Industry and Energy (MOTIE) held the completion ceremony for Korea’s first commercial-scale liquid hydrogen production plant on January 31 at Doosan Enerbility’s Changwon Plant. The Changwon Plant was established through a joint investment by Doosan Enerbility, Gyeongnam Province and Changwon, and is capable of supplying up to 1,825 metric tons every year to nearby research institutes, companies and hydrogen charging stations. Liquid hydrogen is gaining attention as a core means of accelerating the commercialization of fuel-cell electric vehicles and large-scale transport of hydrogen, thanks to its ten-fold transport efficiency. Considering the absence of safety standards due to unprecedented domestic use, the Government is providing active support through a regulatory sandbox by granting special exemption for demonstrations concerning the localization of materials and equipment parts as well as the establishment of a liquid hydrogen plant. Homegrown technology was incorporated in building the Changwon liquid hydrogen plant transport and storage facility, and a liquid hydrogen trailer developed by another domestic company will be co-operated with the plant. On the sidelines of the completion ceremony, a memorandum of understanding (MOU) was signed between local governments, companies and Government-funded institutions for the construction of a liquid hydrogen charging station, the utilization and supply of hydrogen buses, and supply and purchasing of liquid hydrogen. In his congratulatory message, Director General for Hydrogen Economy Policy Park Chan-ki stated that “with the completion of the Changwon liquid hydrogen plant, Korea is now the world’s ninth producer of hydrogen,” and added that “the Government will make effort to invigorate the liquid hydrogen ecosystem through localization of core technologies, modification of laws, regulatory improvement and diversification of demand.” date2024-01-31

Global semiconductor cooperation to continue strong in 2024

Trade, Industry and Energy Vice Minister Kang Kyungsung attended the SEMICON Korea 2024 Industry Leadership Dinner on January 31 at Grand InterContinental Seoul Parnas and held talks with Semiconductor Equipment and Materials International (SEMI) Chairman Ajit Manocha to discuss cooperation with Korean and overseas semiconductor companies.   Annually hosted by SEMI, SEMICON Korea is Korea’s largest semiconductor material and equipment exhibition, and its Industry Leadership Dinner is an event that gathers around 400 chip industry leaders from around the world.   Throughout 2023, the Ministry of Trade, Industry and Energy (MOTIE) has been strengthening its cooperation network with countries taking up core roles in the global semiconductor value chain via summit diplomacy to build up a semiconductor alliance. The alliance is a major project under the semiconductor mega cluster plan announced on January 15, and MOTIE intends to continue utilizing the alliance in 2024 to bolster efforts to stabilize the global chip value chain.   During his Industry Leadership Dinner congratulatory message and talks with Chairman Manocha, Vice Minister Kang stated that “this year, we are seeing the beginning of the end of the global chip industry’s downturn, with the global chip market projected to grow by over 14 percent year-on-year in 2024,” and highlighted that “the Korean Government is aiming to nurture a robust semiconductor ecosystem within the mega cluster that was announced on January 15 by establishing a cutting-edge testbed, providing 24 trillion won in policy funding over the next three years and stabilizing the supply chain via cooperation through the global chip solidarity.”   Meanwhile, MOTIE’s Semiconductor Division Director Lee Kyu-bong met with the UK’s Department for Science, Innovation and Technology Director Rebecca Chapman on January 30 at the Government Complex Sejong to discuss measures for stronger cooperation based on the Korea-UK semiconductor cooperation framework, in tandem with the Korea Evaluation Institute of Industrial Technology, Innovate UK and other related institutions. The two countries discussed mutually beneficial measures for cooperation in manpower training, technology development, supply chain and policies incorporating semiconductor industry trends. date2024-01-31

Korea's retail industry grows 6.3% in 2023

The Ministry of Trade, Industry and Energy (MOTIE) announced on January 30 that Korea’s annual retail sales for 2023 advanced 6.3 percent year-on-year. All offline channels (up 3.7 percent), including hypermarkets, department stores, convenience stores and super supermarket (SSM) operators, showed growth in 2023. Online retail sales rose 9.0 percent amid widening age range of consumers. For the month of December, offline sales achieved a 4.5 percent growth year-on-year despite December 2 date2024-01-31

Korea aiming to enlarge future green mobility pie by removing "killer" regulations

The Ministry of Trade, Industry and Energy (MOTIE) announced the eco-friendly mobility regulatory innovation measures on January 30 at LG Science Park together with other relevant ministries and held a meeting to discuss the automotive industry’s major issues and strategic export measures. As technological breakthroughs like autonomous self-driving and AI, software and advanced automotive parts of future mobility are converging and the competition for global dominance is intensifying, the date2024-01-30

Korea and India hold 10th official negotiating round for upgrading bilateral CEPA

The Ministry of Trade, Industry and Energy (MOTIE) announced on January 30 that the 10th official negotiating round for upgrading the Korea-India Comprehensive Economic Partnership Agreement (CEPA) is to be held through January 30-31 in New Delhi, India. Numbering 60 persons in total, the Korean and Indian delegations are led by Director General for FTA Policy Ahn Chang-yong and the Indian Commerce Department’s Additional Secretary Anant Swarup, respectively. The first official round to date2024-01-30