Ministry of Trade Industry and Resources

45th Korea-Australia Economic Cooperation Committee (ECCC) meeting

Minister for Trade Inkyo Cheong attended the 45th Korea-Australia Economic Cooperation Committee (ECCC) meeting opening ceremony on September 2 in Perth and gave a congratulatory message.   The event was attended by representatives of both countries’ governments and relevant companies. date2024-09-03

Minister Ahn and bipartisan U.S. lawmaker group discuss stronger Korea-U.S. economic cooperation

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn held a luncheon meeting with a bipartisan group of U.S. lawmakers today in Yeouido, Seoul, and discussed measures for stronger Korea-U.S. cooperation in advanced industries and other wide-ranging areas. Led by Republican Senator Bill Hagerty from Tennessee, the group consisted of seven U.S. Senators, including Republican Senator Katie Britt from Alabama, Republican Senator Dan Sullivan from Alaska, Democratic Senator Chris Coons from Delaware, Democratic Senator Gary Peters from Michigan, Republican Senator Eric Schmitt from Missouri, and Republican Senator John Thune from South Dakota. Minister Ahn remarked that amid recently intensifying changes in the global economy, Korea and the U.S. can secure both national prosperity and global supply chain stability through continued bilateral cooperation. He also highlighted the need for the two economic partners to solidify their shared understanding through various channels across diverse areas based on close communication and trust. Moreover, the minister noted that Korean businesses have sharply increased investments in the U.S.’ advanced industries like semiconductors, batteries, and electric vehicles (EVs), playing a major part in nurturing the U.S.’ industrial ecosystem. Requesting interest and support at the Congress-level, he asked that U.S. trade policies be carried out in ways favorable to Korean businesses in the local market so that Korean firms can further contribute to strengthening the U.S. supply chain while maintaining smooth business operations.   date2024-09-03

Korea’s exports climb 11.4% in August

The Ministry of Trade, Industry and Energy (MOTIE) announced on September 1 that Korea’s August monthly exports and imports climbed 11.4 percent and 6.0 percent year-on-year to USD 57.9 billion and $54.1 billion, respectively, and the trade balance stood at a surplus of $3.8 billion. The export value for August reached a record high for the month, increasing at a double-digit pace despite the lower number of working days (-1 weekday) year-on-year.  By item, seven out of 15 major export items posted growth. Semiconductor exports came in at a historic $11.9 billion (up 38.8 percent) for the month, entering the $11 billion thresholds for the fourth consecutive month and growing for the 10th.   Computer exports skyrocketed 183 percent to $1.5 billion, growing for the eighth consecutive month. Wireless communication devices soared 50.4 percent to $1.8 billion, growing for the sixth consecutive month. Automobile exports dropped 4.3 percent to $5.1 billion as a result of the production line modernization and operating rate decline from wage and collective bargaining agreement (CBA) negotiations at some automakers. Meanwhile, ship exports snapped the three-month losing streak, surging 80 percent to $2.8 billion. Petroleum products and petrochemicals each amounted to $4.5 billion (up 1.4 percent) and $4.2 billion (up 6.9 percent), rising for the sixth and fifth consecutive month, respectively. Bio-health jumped 39 percent and logged an all-time high $1.3 billion for August monthly exports, growing for the second consecutive month. By region, Korea’s exports to eight of nine major destinations increased.  Exports to China grew 7.9 percent to $11.4 billion, advancing for the sixth consecutive month, as demand for semiconductors and wireless communication devices heightened on the backs of China’s revitalized IT industry.  U.S.-bound exports hit a record $10 billion (up 11.1 percent), renewing each all-time monthly record for 13 months straight. Exports to the EU enjoyed sharp demand for ships, wireless communication devices, computers, and other IT items, breaking the seven-month downward streak and logging $6.4 billion (up 16.1 percent) overall. Notably, the August export value surpassed the previous high ($6.3 billion) set in March 2021 for the first time in 41 months. Exports to ASEAN and India each increased 1.7 percent and 2.3 percent to $9.8 billion and $1.6 billion, respectively, both expanding for the fifth consecutive month. Exports to Japan (up 6.8 percent to $2.5 billion), Latin America (up 29.4 percent to $2.6 billion), and the Commonwealth of Independent States (up 11.2 percent to $1.0 billion) all increased for the second consecutive month. Meanwhile, the country’s energy imports increased 17.3 percent to $12.6 billion in August as demand hiked for crude oil (up 30.1 percent) and gas (up 5.7 percent). Korea’s total trade balance recorded a surplus for the 15th consecutive month. The accumulated trade balance through January–August this year reached $30.6 billion in surplus, three-fold of last year’s entire trade deficit.   date2024-09-02

Minister Ahn speaks at special meeting with AMCHAM Korea

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn attended the special meeting on August 29 held at the American Chamber of Commerce in Korea (AMCHAM Korea) to discuss measures to enhance Korea-U.S. trade cooperation and bolster Korea’s role as Asia’s business hub, held with the participation of AMCHAM board members and roughly 100 domestic and overseas business leaders operating in Korea.   The meeting proceeded in the form of a Q&A session led by Minister Ahn and AMCHAM Korea Chairman James Kim on measures for expanding trade and investment amid changes in the global trade environment. date2024-08-30

MOTIE and AMCHAM Korea discuss measures to expand trade and investment amid changing global trade landscape

Korea’s Trade, Industry and Energy Minister Dukgeun Ahn attended the special meeting on August 29 held at the American Chamber of Commerce in Korea (AMCHAM Korea) to discuss measures to enhance Korea-U.S. trade cooperation and bolster Korea’s role as Asia’s business hub. The meeting proceeded in the form of a Q&A session led by Minister Ahn and AMCHAM Korea Chairman James Kim, with the participation of AMCHAM board members and roughly 100 domestic and overseas business leaders operating in Korea.   In answering questions, Minister Ahn articulated that amid the intensifying emergence of economic blocs, supply chain realignment, and other structural changes worldwide, Korea can turn these challenges into opportunities to establish itself as the regional hub by promoting foreign investment, reinforcing manufacturing competitiveness with focus on advanced industries, and mitigating trade risks for Korea-based companies. To the U.S. representatives of Korea-based businesses, Minister Ahn expressed appreciation for contributing to creating quality jobs and invigorating local economies in Korea, founded on their deep trust and investment in the Korean market. He added that the U.S. is Korea’s key ally and economic partner, conveying hope that the two countries’ economic cooperation strengthens going forward and asked for continued investment and interest in Korea. Driven by the all-time high foreign direct investment (FDI) Korea attracted last year, the Ministry of Trade, Industry and Energy (MOTIE) is aiming to reach its FDI target of USD 35 billion in 2024.   date2024-08-29

Trade Minister Cheong chairs International Seoul Symposium 2024

Korea’s Minister for Trade Inkyo Cheong chaired the International Seoul Symposium 2024 on August 28 at the Lotte Hotel Seoul under the theme of rebuilding the WTO dispute settlement system amid the changing trade environment.   The Symposium had the world’s top experts speak on the topic, including Petros Mavroidis (Professor of Law at Columbia Law School), Mark Wu (Henry L. Stimson Professor at Harvard Law School), Joost Pauwelyn (Professor of International Law at the Graduate Institute of International and Development Studies in Geneva), and Kathleen Claussen (Professor of Law at Georgetown University Law Center). The Ottawa Group ambassadors to Korea and other experts also engaged in the discussions and Q&A sessions following the keynote speeches.   Trade Minister Cheong stated that Korea will continue to proactively take part in the work on reforming the WTO’s dispute settlement body and other major functions, so that it can keep playing a relevant role in accordance with the changing trade landscape. date2024-08-29

Korea hosts Seoul Symposium 2024 on rebuilding WTO dispute settlement system

Korea’s Minister for Trade Inkyo Cheong chaired the Seoul Symposium 2024 (“Symposium”) today at the Lotte Hotel Seoul under the theme of rebuilding the WTO dispute settlement system amid the changing trade environment. Now in its second year since launching in 2023, the Symposium had the world’s top experts speak on the topic, including Petros Mavroidis (Professor of Law at Columbia Law School), Mark Wu (Henry L. Stimson Professor at Harvard Law School), Joost Pauwelyn (Professor of International Law at the Graduate Institute of International and Development Studies in Geneva), and Kathleen Claussen (Professor of Law at Georgetown University Law Center). The Ottawa Group ambassadors to Korea and other experts also engaged in the discussions and Q&A sessions following the keynote speeches.  In a video message, Director-General of the WTO Ngozi Okonjo-Iweala expressed high recognition for the constructive contribution to the reform discussions process shown by Korea, an active user of the dispute settlement body. She especially highlighted the Symposium’s significance in terms of covering the reform challenges in depth.  Trade Minister Cheong stated that, in line with the reform discussions, the Symposium serves as a venue for timely discussions on seeking efficient measures to realign the system. He added that Korea will continue to proactively take part in the work on reforming the WTO’s dispute settlement body and other major functions, so that it can keep playing a relevant role in accordance with the changing trade landscape. The Korean government plans to host more such international symposiums so that Korea can take a strong part in the discussions for reforming the WTO’s key functions and take the initiative in related talks with the Ottawa Group and other like-minded countries.   date2024-08-28

Trade Minister meets major ASEAN thinktank (ERIA) president

Minister for Trade Inkyo Cheong met Tetsuya Watanabe, President of the Economic Research Institute for ASEAN and East Asia (ERIA), on August 26 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul and discussed economic issues in trade, investment, supply chains, and clean economy covered during the Korea-ASEAN Summit 2023 and agreed to continue efforts on widening cooperation for the successful management of the Korea-ASEAN Trade and Economic Thinktank Dialogue to be launched next year. date2024-08-27

Korea’s Amended Act on foreign investment aiming to attract FDI while upholding national security

The Ministry of Trade, Industry and Energy (MOTIE) announced today that the enforcement of the amended Foreign Investment Promotion Act (the “Amended Act”) begins August 27. The Amended Act is anticipated to help raise stock return predictability for foreigners investing in Korea, while also regulating foreign investments that pose risks of endangering national security. The outline of the Amended Act is as follows: First, the amendment allows administrative agencies to initiate deliberations ex officio, without the requirement of a foreign investor’s voluntary reporting, should there exist concerns of national security risk. However, to raise stock return predictability, deliberations will not be required for foreign investments that have already gone through voluntary screening. Second, foreign investments in Korean firms with National High-Tech Strategic Technologies will be subject to national security screening to prevent Korea’s advanced industrial competitiveness from being hindered by illegal foreign investment. Third, the Amended Act provides grounds to ease foreign investors’ double burden by allowing the omission of screening for a foreign investor that has gone through similar deliberation procedures under other acts (Act on Prevention of Divulgence and Protection of Industrial Technology, National High-Tech Strategic Industry Act). Fourth, the maximum deliberation period for the Expert Committee on National Security Deliberation for reviewing national security risks of foreign investments is to be extended from the previous 30 days to 90 days, and the Foreign Investment Committee’s maximum deliberation period will be reduced from the previous 90 days to 45 days. Fifth, should a foreign investor make an inquiry prior to submitting a foreign investment declaration on whether the investment is subject to national security deliberation, administrative agencies are to respond to the inquiry within a 30-day period. The Korean government will continue to improve and modify the national security deliberation system with an aim to secure foreign investments contributing to Korea’s advanced industrial super gaps, while minimizing concerns of foreign investments endangering national security.   date2024-08-26

Korea-Hokuriku (Japan) Economic Exchange resumes after 6-year hiatus

Director General for International Trade Relations Kim Jong-chul attended the 20th Korea-Hokuriku (Japan) Economic Exchange (“Exchange”) today in Gangneung, held for the first time in six years since the previous event in 2018.  Co-hosted by Korea’s Ministry of Trade, Industry and Energy (MOTIE) and Japan’s Ministry of Economy, Trade and Industry (METI) and co-organized by the Korea-Japan Economic Association (KJE) and the Hokuriku Economic Federation, the Exchange was launched in 2000 to bolster interregional economic cooperation and is convened alternately by the two countries on an annual basis.  This year saw the Exchange resume after a six-year hiatus as the two countries’ private sector cooperation picked up with the convening of the Korea-Japan Business Roundtable and other major business meetings following the Korea-Japan Summit in March 2023. The attendance comprised roughly 100 persons from the local government bodies and companies of Korea’s four east coast provinces and cities (Gangwon-do, Gyeongsangbuk-do, Daegu Metropolitan City, and Ulsan Metropolitan City) and 40 persons from those of Japan’s three Hokuriku prefectures (Toyama, Ishikawa, and Fukui). The Hokuriku region takes up only 2.5 percent of the Japanese economy, but its advanced pharmaceuticals and heavy industries, including automotive, construction equipment, electrical and electronics engineering, make it a promising partner for Korea in future new industries. Prospects for cooperation in logistics and supply chains are increasing as well, with the Tokyo-bound Shinkansen extension opening across the region every March owing to Hokuriku’s advanced maritime transport capacity and its role as a trade hub of the East Sea Rim Area. During this year’s Exchange, the two sides focused their discussions on government policies for stimulating local economies, sharing companies and institutions’ exchange outcomes, and cooperation in logistics and tourism. They also discussed issues regarding the two countries’ key industries, supply chains, and future new industries, such as textiles, chemicals, medical equipment, nursing, port logistics, and local tourism, followed by exchanges between businesses and local government authorities. MOTIE plans to deepen cooperation with Japan’s major local government bodies and give strong support to the business cooperation between the two countries’ firms through the upcoming Korea-Kyushu economic cooperation meeting and the Pan-Yellow Sea Rim Economy and Technology Exchange slated for November 2024 in Ōita Prefecture, Japan. Meanwhile, the ministry aims to continue cooperation with METI by utilizing both high- and working-level channels over a wide range of areas, including industries, supply chains, decarbonization, new energy, and multilateral trade.   date2024-08-26