Ministry of Trade Industry and Resources

Korea and Kazakhstan to expand cooperation in supply chains and electric power sectors

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 12 that MOTIE signed three memorandums of understanding (MOUs) with the Kazakh government for cooperation in the critical minerals supply chain, electric power industry, and regarding their joint economic commission on the margins of President Yoon Suk Yeol’s state visit to Kazakhstan and summit meeting with Kazakh President Kassym-Jomart Tokayev on June 12 in Astana.   First, through the MOU on the critical minerals supply chain, the two countries agreed to increase people exchanges as well as cooperation for each stage of the value chain, including joint geophysical exploration, development, refining and smelting of critical minerals for manufacturing electric vehicles (EVs), semiconductors, and alloy sheets, such as lithium, chromium, manganese, rare earth elements, and uranium. The two sides decided to launch a supply chain dialogue on the occasion of the summit and to continue discussing concrete cooperation measures among related research institutions, companies, and financial institutions.   Moreover, they signed an MOU for cooperation in electric power to enhance the two countries’ people exchanges and collaboration in the power sector. As the Kazakh government is pushing to expand the renewable energy mix ratio, transition from coal-fired power to gas-fired combined cycle power, upgrade old power plants’ energy efficiency, and convert to eco-friendly systems, Korean companies with competitiveness in these areas can look forward to future project opportunities.   Meanwhile, following the Trade and Investment Promotion Framework (TIPF) sealed last October, the two countries also established the basic framework for bilateral trade, investment, and economic cooperation through the joint Trade-Economic and Scientific-Technical Cooperation Commission MOU. date2024-06-13

MOTIE gives briefing on World Climate Industry Expo 2024

The Ministry of Trade, Industry and Energy (MOTIE) gave a briefing on the World Climate Industry Expo 2024 (WCE 2024) to the foreign embassies in Korea on June 12 in Seoul and explained the expo’s main programs and the need for utilizing carbon-free energy sources.   MOTIE will be co-hosting WCE 2024 with the International Energy Agency (IEA) from September 4–6 under the theme of “Ushering in a Carbon-Free Energy Era with Climate Technology” and 12 climate and energy related ministries are currently in preparation for the global event.   Based on the shared understanding on the need for extensive utilization of carbon-free energy sources, the Korean government and the IEA are calling for participation of countries and international organizations by distributing letters of invitation and promotion material via overseas missions.   The briefing was attended by the representatives of 50 embassies, including those from the U.S., EU, Denmark, and Australia. Carbon Free (CF) Alliance Secretary General Yang Euyseok noted that international consensus is building up, as seen in the agreement concluded at the COP28 UN Climate Change Conference declaring carbon-free energy technologies in nuclear power, hydrogen, carbon capture and storage (CCUS), and renewable energy as means of carbon reduction. He added that a global working group will be formed for establishing Carbon Free Energy (CFE) implementation and international standards.   WCE 2024 is to host 11 conferences via three summits (CFE, industry/technology, climate) and will showcase the latest future technologies on carbon-free energy at exhibition booths of global companies like Samsung, LG, Hyundai Motor, and RWE. date2024-06-12

Korea and Chile hold Critical Minerals Business Roundtable

Trade, Industry and Energy Vice Minister Namho Choe met with Chile’s Mining Minister Aurora Williams on June 11 in Seoul and held a Korea-Chile critical minerals business roundtable to discuss cooperation in critical minerals like lithium and copper. date2024-06-12

Korea and Chile hold critical minerals business roundtable

Trade, Industry and Energy Vice Minister Namho Choe met with Chile’s Mining Minister Aurora Williams on June 11 in Seoul to discuss cooperation in critical minerals like lithium and copper and held a Korea-Chile critical minerals business roundtable on the sidelines to facilitate information sharing for Korean firms seeking to enter the Chilean market.   The Korea-Chile roundtable is a follow-up to the Korea-Chile Resource Cooperation Committee meeting held this May to strengthen private sectors’ cooperation in critical minerals. The Committee meeting was held after a 12-year hiatus to activate intergovernmental discussions on lithium salt flat development procedures, tailings recycling, and lithium extraction technology cooperation.   Participating in the roundtable were Korean companies interested in energy transition and eco-friendly projects, including EcoPro Innovation, SK enmove, Korea Zinc, LS MnM, LX International, POSCO Holdings, and Hyundai Motor. They discussed key issues and made suggestions and requests to the Chilean government, which introduced its critical minerals policies and investment procedures.   Vice Minister Choe remarked that the bilateral business roundtable, held on the heels of the Resource Committee meeting, has helped bolster the two countries’ critical minerals supply chain cooperation a step further and asked for continued effort of their governments on tailings recycling and lithium extraction technology, and of companies concerning Chile’s supply chain diversification of lithium, copper, and other critical minerals. date2024-06-11

Korea and Malaysia to kickstart CCS cooperation

Director General for Energy Policy Choi Yeon-woo met Malaysia’s Deputy Secretary General for the Ministry of Economy Luqman Ahmad on June 10 in Seoul to discuss carbon capture and storage (CCS) cooperation between the two countries.   The meeting between the Korean and Malaysian CCS policy officials was arranged on the occasion of their participation in the Shepherd CCS Summit, organized by Samsung E&A.   Addressing the importance of CCS in achieving the nationally determined contributions (NDCs), Director General Choi requested the Malaysian Economy Ministry’s active support and interest towards establishing the public-private joint Shepherd CCS Project as a global anchor project.   Both sides agreed on the need for a bilateral agreement on cross-border transport and storage of CO2 between the two countries and decided to further intergovernmental discussions while factoring in the two countries’ institutional conditions, as well as related international rules and agreements.   During the presentation session, Korea and Malaysia’s government officials called attention to CCS policies to the participating representatives of the two countries' industries, academia, and research institutes. MOTIE introduced Korea’s CCS industry nurturing policy and highlighted plans for securing key technology and talents, nurturing specialization companies, creating markets early on by securing domestic and overseas storage sites, and fostering a sustainable ecosystem. date2024-06-10

Vice Minister attends TAMHAE 3 commissioning ceremony

Trade, Industry and Energy Vice Minister Namho Choe visited Pohang Yeongilman Port on May 31 to attend the commissioning ceremony of the TAMHAE 3, Korea’s first domestically built geophysical exploration research vessel, also attended by representatives of related institutions and companies, including Mayor of Pohang Lee Kang-deok and Korea Institute of Geoscience and Mineral Resources (KIGAM) President Lee Pyeong-koo. date2024-06-03

First homegrown state-of-the-art geophysical exploration vessel sets sail

Trade, Industry and Energy Vice Minister Namho Choe visited Pohang Yeongilman Port on May 31 to attend the commissioning ceremony of the TAMHAE 3, Korea’s first domestically built geophysical exploration research vessel.   Weighing 6,000 metric tons, the TAMHAE 3 is a fully state-funded (KRW 181 billion) research vessel equipped with 35 different kinds of cutting-edge research equipment.   The TAMHAE 3 is replacing its predecessor TAMHAE 2 (built in 1996) for geophysical explorations in domestic and foreign waters, starting with Korea’s continental shelves and onto the polar regions and is expected to contribute to resource security development.   The vessel is capable of both 3D and 4D marine exploration and can analyze seafloor faults to detect changes occurring over time, which will come in useful in sensing seabed seismic signals and selecting sites for carbon capture and storage (CCS).   Vice Minister Choe remarked that efficient utilization of the TAMHAE 3 will go towards bolstering resource security, public safety, and achieving carbon neutrality. date2024-05-31

Vice Minister attends Clean Hydrogen Trade Initiative Forum 2024

Trade, Industry and Energy Vice Minister Namho Choe attended the third Clean Hydrogen Trade Initiative Forum on May 30 in Seoul, where international organizations, governments, and experts gathered to discuss measures for invigorating the clean hydrogen ecosystem.   The Forum was attended by related global companies and institutions, including S&P Global, International Renewable Energy Agency (IRENA), and the Hydrogen Council. date2024-05-30

Korea hosts Clean Hydrogen Trade Initiative Forum 2024

Trade, Industry and Energy Vice Minister Namho Choe attended the third Clean Hydrogen Trade Initiative Forum on May 30 in Seoul, hosted by MOTIE and organized by Korea Energy Economics Institute, where international organizations, governments, and experts gathered to discuss key issues on clean hydrogen, defined not by production method but by the quantitative measure of greenhouse gas (GHG) emissions, and countries' carbon reduction efforts.   S&P Global stated that a total of 40 million metric tons of clean hydrogen is estimated to be produced by 60 countries around the world by 2030, emphasizing the role of government support in accelerating the production of green and blue hydrogen. Speakers from the International Renewable Energy Agency (IRENA) and the Hydrogen Council noted that Korea, likely be a major hydrogen buyer and importer, will be able to secure affordable clean hydrogen by utilizing overseas renewable energy and natural gas. The German Federal Ministry for Economic Affairs and Climate Action announced its plans to import a total of 45-90 TWh of clean hydrogen by 2030, mentioning that it intends to buy low carbon hydrogen like blue hydrogen in consideration of the available quantity and economic feasibility.   Japanese energy company JERA introduced its demonstration outcomes from co-firing 20% ammonia fuel at Hekinan power plants and the reduction of NOx and Sox, some of the causes of fine particulate matter.   In his welcome address, Vice Minister Choe said that Korea is earnestly pushing forward the transition into a clean hydrogen ecosystem through launching the clean hydrogen certification system (December 2023) and the world’s first clean hydrogen power bidding market (May 2024). He also called for joint efforts in establishing a mutually complementary supply chain and harmonizing countries’ different clean hydrogen standards. date2024-05-30

Korea launches world's first clean hydrogen power bidding market

The Ministry of Trade, Industry and Energy (MOTIE) announced on May 24 that Korea is launching the world’s first clean hydrogen power bidding market. The bidding market is expected to contribute to reducing greenhouse gases (GHGs) through the development of clean hydrogen, while also supplying clean hydrogen at affordable prices through competition.   The clean hydrogen power bidding market is a market for supplying and buying electricity produced by harnessing clean hydrogen. Participants are allowed to harness power generators using only hydrogen that fulfills the domestic clean hydrogen certification standards (GHG of 4㎏CO2e or less per 1kg of hydrogen). This year’s annual bidding volume is 6,500 GWh with a contract period of 15 years. Commercial operation must begin by 2028, following three years of preparation period plus one year of grace period.   The bid notification period will be 24 weeks, considering the length of time needed for power generators to seal their fuel supply contract. The winning bidder will be selected in December based on price indices, clean hydrogen utilization grade, fuel supply stability, and level of contribution to industry and economy and other nonprice elements.   Meanwhile, the power bidding market for general hydrogen is to be launched this year as well. This bidding market aims to catalyze the installation of distributed energy resources (DER), with the bidding volume reaching 1,300GWh and the power generation contract spanning 20 years. Commercial operation must commence by 2026 following two preparatory years. The winning bidder, like last year, will be selected in August after an evaluation of price indices, power system impact, industrial and economic contribution, and nonprice indices.   Bid notifications and further details are to be available at the Korea Power Exchange (KPX) website (kchps.kmos.kr). date2024-05-24