Ministry of Trade Industry and Resources

Minister Ahn chairs 31st Energy Commission meeting

Trade, Industry and Energy Minister Dukgeun Ahn chaired the 31st Energy Commission meeting with related ministries and energy experts on May 22 to discuss measures for overseas renewable energy market entry support, electric power market system improvement, and the strategy for nurturing the carbon capture and storage (CCS) industry. date2024-05-24

MOTIE to back global market entry of homegrown renewable energy

Trade, Industry and Energy Minister Dukgeun Ahn chaired the 31st Energy Commission meeting with related ministries and energy experts on May 22 on three following agendas: measures for overseas renewable energy market entry support; electric power market system improvement; and the strategy for nurturing the carbon capture and storage (CCS) industry.   Over the past four years, Korean companies have won 41 overseas renewable energy project bids totaling USD 14.3 billion and equivalent to 20.4GW. Last year, the 28th Session of the Conference of Parties (COP28) to the UNFCCC saw 123 countries gather to sign the agreement to up the renewable energy generation capacity three-fold by 2030, signaling the intensifying global competition in renewable energy areas.   In view of these developments, the Ministry of Trade, Industry and Energy (MOTIE) is forming a public-private “Overseas Renewable Energy Market Entry Committee” as well as a “Team Korea” consortium per project composed of both public and private developers, manufacturers, and export financing institutions. Moreover, the ministry will establish a one-stop information platform specialized to support global renewable energy market penetration by gathering the information currently dispersed across numerous institutions and creating a consumer-oriented data hub to resolve blind spots in overseas market entry.   Furthermore, MOTIE will improve the electric power market system by incorporating the wider supply of various different carbon-free energy sources like nuclear power, hydrogen, and renewable energy. It will first launch a separate power market that accurately factors in real-time supply and demand volatility, while heightening overall flexibility based on a phased price bidding system transition. Second, it will modify the nationwide unified pricing system and leverage the Distributed Energy Special Act’s special exemptions in optimizing the site location of electric power resources. Third, the ministry also aims for stability and efficiency in attaining the mid-to-long term power supply target by launching capacity and contract markets based on competitive auctioning.   In addition, amid the increasing importance of CCS technology, demand is likewise growing for the commercialization of key technologies, securing domestic and overseas storage sites, and participation in global joint projects. Accordingly, MOTIE plans to secure professional talents and build up specialized companies, create markets early on through securing domestic and overseas storage sites, and nurture the CCS ecosystem. date2024-05-22

Korea and Czech Republic discuss stronger trade, energy, and industrial cooperation

Deputy Minister for Energy Policy Lee Ho-hyeon met with the Czech Deputy Minister of Industry and Trade Petr Třešňák on May 22 in Seoul to discuss stronger economic cooperation in energy, industries, and trade.   The meeting was held as a working-level follow-up to the bilateral trade and industry ministers’ talks held last month in the Czech Republic on the occasion of Trade, Industry and Energy Minister Dukgeun Ahn’s visit.   Both sides held in high regard the continuously rising bilateral trade and investment since the two countries’ upgrading their relations to the level of a Strategic Partnership in 2015. With next year marking the 35th anniversary of the establishment of Korea-Czech Republic diplomatic ties, the deputy ministers agreed to further the forward-looking development of bilateral relations.   The two sides held extensive discussions on the Trade and Investment Promotion Framework (TIPF), scale-up of joint R&D projects, establishment of a hydrogen mobility ecosystem, production of hydrogen in conjunction with nuclear power plants, cooperation in nuclear power plant technology and small modular reactors (SMRs), and entry into overseas electric power materials and equipment markets. They also affirmed a shared understanding on the importance of nuclear power generation with respect to achieving carbon neutrality and bolstering energy security. date2024-05-22

Energy Policy Deputy Minister meets Sarawak Premier

Deputy Minister for Energy Policy Lee Ho-hyeon met with Malaysia's Sarawak Premier Abang Johari Openg on May 21 in Seoul and discussed measures for energy cooperation in hydrogen and carbon capture and storage (CCS). date2024-05-22

Pan-ministerial working group to strengthen corporate assistance for CBAM response

Deputy Minister for Trade Yang Byeong-nae chaired the fourth meeting of the pan-ministerial Carbon Border Adjustment Mechanism (CBAM) Response Working Group with related ministries and discussed measures for strengthening cooperation on supporting domestic companies and submitting Korea’s position on the CBAMs announced by the EU and UK.   The EU is currently preparing its draft for the adoption of CBAM subsections, and the UK has launched a consultation seeking views on proposals for the design and administration of its own CBAM on March 21, 2023, which is to close on June 13, 2024.   To address domestic companies’ requests for preemptive response, the Korean government will actively communicate its position to the EU and UK, while heightening interministerial cooperation for stronger CBAM guidance and information provision to relevant companies. To relevant companies, the Government will be introducing its corporate assistance projects and monitoring firms’ response situation on a weekly basis.   Deputy Minister Yang stated that the Government will “continue to communicate with the EU on improving the mechanism based on suggestions voiced by Korean companies” and highlighted that “related ministries will make concerted efforts to enable domestic companies to effectively adapt and respond to these changes.” date2024-05-21

Minister Ahn meets Climate Group CEO

Trade, Industry and Energy Minister Dukgeun Ahn met Climate Group CEO Helen Clarkson on May 20 on the occasion of her visit to Korea to host the Asia Renewables Growth Forum 2024 and discussed Korea’s renewable energy policy directions and RE100 initiative cooperation. date2024-05-21

Korea and Malaysian state of Sarawak discuss energy cooperation

Deputy Minister for Energy Policy Lee Ho-hyeon met with Sarawak Premier Abang Johari Openg on May 21 in Seoul and discussed measures for energy cooperation in hydrogen and carbon capture and storage (CCS).   A number of Korean firms are pushing joint projects with the Sarawak state of Malaysia at the moment, and the above meeting came about on the occasion of Premier Johari’s visit for meetings with relevant Korean companies for discussions on Sarawak’s development direction.   Deputy Minister Lee asked that Sarawak give active support and interest towards the “Sarawak New Energy Hub” project underway by Korean companies like Samsung E&A and Korea National Oil Corporation (KNOC) for utilizing the state’s rich renewable energy and natural resources to produce clean ammonia and methanol. He also stated that he looks forward to seeing Korea-Sarawak cooperation continue in establishing the supply chain for clean hydrogen.   Moreover, with regard to the Shepherd CCS Project in which both countries’ companies are participating for transport and storage of carbon dioxide to Sarawak, the deputy minister requested interest in commencing talks concerning Korea-Malaysia cross-border carbon dioxide transfer and storage. date2024-05-21

Minister Ahn discusses renewable energy initiatives with Climate Group CEO

Trade, Industry and Energy Minister Dukgeun Ahn met Climate Group CEO Helen Clarkson on May 20 on the occasion of her visit to Korea to host the Asia Renewables Growth Forum 2024 and discussed Korea’s renewable energy policy directions and RE100 initiative cooperation.   Minister Ahn first expressed high regard for the Climate Group’s achievements in expanding the distribution of renewable energy around the world, explaining that the Korean government is pushing the Carbon Free Energy (CFE) Initiative to facilitate the utilization of renewable energy. He highlighted that the strategy MOTIE announced Thursday (May 16) on widening state-led renewable energy distribution and strengthening the supply chain embodies that very policy stance.   The minister also noted that 36 Korean companies have declared their commitment to RE100 in spite of comparatively challenging renewable energy utilization conditions as a manufacturing-intensive country led by power-heavy sectors like semiconductor, steel, and automobiles. He added that the Government promptly established officially recognizable RE100 implementation schemes in step with the companies’ commitments, mentioning that further effort will be made to keep enhancing companies’ renewable energy utilization convenience.   Minister Ahn explained the need for Korea’s carbon-free energy transition and related endeavors in view of the climate crisis and carbon neutrality response, and both sides agreed to bolster mutual cooperation on shared agendas under the CFE and RE100. date2024-05-20

Minister Ahn chairs conference with renewable energy CEOs

Trade, Industry and Energy Minister Dukgeun Ahn chaired a conference on May 16 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul with renewable energy generator, manufacturer, and buyer companies and announced the strategy on widening renewable energy distribution and strengthening the supply chain.   The conference was attended by representatives of renewable energy firms, including POSCO International, Samsung Electronics, and LS Cable & System. date2024-05-20

Korea to push state-led expansion of renewable energy distribution

Trade, Industry and Energy Minister Dukgeun Ahn chaired a conference on May 16 at the Korea Chamber of Commerce and Industry (KCCI) in Seoul with renewable energy generator, manufacturer, and buyer companies and announced the strategy on widening renewable energy distribution and strengthening the supply chain.   In step with the global shifts, the Korean government has been making effort to expand renewable energy by balancing out the utilization of nuclear, hydrogen, and other carbon-free energy sources. Moreover, it has also concentrated on solving issues arising in the process of expanding renewable energy distribution, such as those concerning electric power systems and cost, in order to nurture an environment suitable for the sustainable distribution of renewable energy.   As a result, the energy market ecosystem has been showing signs of recovery, and the Ministry of Trade, Industry and Energy (MOTIE) intends to push a more orderly expansion for the renewable energy market. First, the Government will be taking up a leading role in the distribution process. For offshore wind power development, laws on providing state support for site location, licensing, and local consensus building are to be swiftly put in place. For solar power, public demonstration projects and regulatory improvements will be rolled out with focus on agrivoltaics and around industrial complexes to reduce challenges in local consensus building and electric power system capacity.   In line with domestic distribution expansion, preemptive efforts will be made to bolster the overall industrial base. Through widening and strengthening the competitive tendering of solar and wind power facilities, supply chain and security factors will be thoroughly addressed. Moreover, early securing of next-generation technology is another key task for future market dominance. By tackling technology development issues and strengthening support for shared infrastructure utilization, Korea aims to achieve early commercialization of tandem solar cells by 2026 and 35 percent efficiency rate by 2030.   The Government also plans to lower public burden while strengthening the state’s role in renewable energy supply by improving the renewable portfolio standards (RPS) program in accordance with market and policy landscape changes through extensive discussions with the National Assembly, industries, and experts on the subject. Furthermore, power purchasing regulations will be eased and transaction convenience enhanced to expand the market for companies’ direct power purchases from renewable energy power generators, while opening separate brokerage markets on the side.   Stronger support will go towards companies looking to penetrate overseas renewable energy markets. Korean firms have won a total of 41 overseas renewable energy projects over the last four years, worth USD 14.3 billion and equivalent to 20.4GW. The Government plans to establish a cooperative system between companies and assisting institutions, while launching locally tailored support programs as well.   MOTIE will be designing follow-up policies with other related ministries per each specific task and continue to seek measures for nurturing a balanced energy mix development plan among renewable energy and other carbon-free energy sources like nuclear and hydrogen. date2024-05-17