Ministry of Trade Industry and Resources

Northeast Asian Oil Hub Development Plan

As oil trade should be activated first, after which traders should be attracted and the financial infrastructure expanded to successfully develop the Oil Hub, this Plan focuses on the measures to solve the issues of and improve the current system, which has disturbed the activation of oil trade. First, oil refining facilities will be turned into bonded factories to streamline taxation and tax refund procedures, and the regulations on the processing and transportation of bonded cargo will be eased. In addition, regulations on blending or other activities will be eased so that oil products can be mixed or processed into high value-added products with additives. In addition, measures to develop the oil and logistics hub into a financial hub are also included to the plan, including improvement of the financial infrastructure and tax incentives geared toward attracting oil traders to Korea based on future activation of trade. Types of oil trade include direct trade for consumption, brokered trade through traders and the trading of derivatives through financial organizations. Direct trade refers to transactions in which a consumer directly purchases a volume of oil from a crude oil producer or an oil product manufacturer for actual consumption. A brokered trade is a transaction made through an oil trader to gain margin by taking advantage of oil price gaps, between oil types or between regions. A trade of derivatives is a transaction that does not involve logistical transactions. The oil to be supplied in the future or the right (option) to purchase or sell oil under a specific condition are traded. The period and the background of development varies, but the US Gulf Coast, ARA in Europe and Singapore are recognized as three major oil hubs. The US Gulf Coast and ARA, Europe, have been naturally developed over the long term, with large-sized oil production sites and storage facilities built adjacent to locations of consumers as centers. Meanwhile, Singapore has rapidly emerged as an oil hub of Asia in a relatively short period of time, thanks to the government’s clear vision and strategic setting of targets. As Singapore has lost its power due to the rapid growth of oil trade volumes in Northeast Asia, the demand for a new oil hub in Northeast Asia has been constantly increasing. Korea is most favorably situated to be an oil hub of Northeast Asia, considering its geopolitical location, the world-class refinery plants, its deep sea and its ideal port conditions. Ulsan, as the world’s No. 4 liquid terminal following Houston (US), ARA (Europe) and Singapore, has already secured the ideal conditions to grow into an oil hub. Accordingly, Korea will activate oil trade by easing regulations, and t date2014-03-13

Korea and UAE Conclude MOU for Cooperation in the Energy Sector

Minister of Industry, Trade and Energy Sang-Jik Yoon took part in a ceremony to sign the Korea-UAE MOU for Energy Cooperation with the UAE’s Minister of Energy Suhail bin Mohammed Al- Mazrouei at the Government Building in Seoul in Sejong-no, Jongno-gu, Seoul, at 10:00, February 28, 2014 (Fri). H. H. Sheikh Mohamed bin Zayed Al Nahyan of Abu Dhabi and Prime Minister Hong-Won Jeong attended the ceremony for the signing of the MOU, which aims to foster experts in energy and promote cooperation for joint advancements into the energy markets of third countries. date2014-03-05

Minister Welcomes Asian Energy Ministers

Minister of Trade, Energy and Industry Yoon Sang-jick delivers welcoming remarks on the occasion of the 5th Asian Ministerial Energy Roundtable on September 11 in Seoul. The event, aimed at establishing a cooperation network between oil producing nations and consumers, was attended by 31 energy ministers and around 150 industry leaders. date2013-09-13

Minister Meets with UAE Energy Minister

Minister of Trade, Industry and Energy Yoon Sang-jick met with his UAE counterpart Minister of Energy Suhail bin Mohammed Al-Mazrouei on September 11 in Seoul. The two officials shared views on bilateral cooperation in the areas of energy, resources and economy.   date2013-09-12

Vice Minister Celebrates Energy Tech Insight 2013

Vice Minister for Industry and Technology Kim Jae-hong speaks at Energy Tech Insight 2013 on August 28 in Seoul. The event drew around 300 participants. date2013-09-09

Vice Minister Attends Carbon Footprint Seoul 2013

Vice Minister for Trade and Energy Han Jinhyun (fifth from left) cut the ribbon at the opening of Carbon Footprint Seoul 2013 on August 8. The event aims to promote a nationwide campaign for energy conservation and lay a foundation for the development of eco-friendly products. date2013-08-22

Vice Minister Speaks on Energy and Resources Development

Vice Minister Speaks on Energy and Resources Development date2013-08-05

Korea, Abu Dhabi to Enhance Energy Ties

date2013-07-05

MOTIE Implements Energy-Saving Measures for Summer

The Ministry of Trade, Industry and Energy announced energy saving measures for the summer which came until force as of June 18 and will remain in effect until the end of August. As unprecedented power shortages are expected over the summer due to the higher temperatures than previous years and temporary shutdowns at some of the nation’s nuclear power plants, the Ministry will make it mandatory for businesses whose contract demand is greater than 5,000 kilowatts to reduce their electricity consumption up to 15 percent from 10 to 11 am and 2 to 5 pm when the electricity demand hits at peak level. The measures will be implemented from August 5. Commercial buildings with higher electricity demands are required to keep their indoor temperatures at 26 degrees Celsius or above, while stores should keep their doors closed when air-conditioning systems are in use. Additionally, during peak demand hours, public institutions and buildings with higher electricity demands will be required to turn off their air conditioners every 30 minutes. Government and public institutions also pledged to keep their indoor temperatures at or above 28 degrees Celsius and reduce electricity consumption by 15 percent. At peak hours, the percentage will be up to 20 percent. * Released by the Energy Saving Cooperation Division and the Electric Power Division date2013-06-27

Korea, Saudi Arabia Pursue a Closer Nuclear Partnership

The Ministry of Trade, Industry and Energy and King Abdullah City for Atomic and Renewable Energy (K.A.CARE), a Saudi Arabian institution established to implement the nation’s renewable-energy policy, hosted a Ministerial Roundtable meeting on June 24 in Seoul to enhance bilateral ties in the nuclear industry. The purpose of the meeting was to further specify the cooperation agenda discussed at the preparation meeting for the roundtable held in February. In his opening remarks, the Minister of Trade, Industry and Energy, Yoon Sang-jick, stressed his commitment to the nuclear partnership and predicted that “Korea’s nuclear technology and know-how will greatly contribute to the development of Saudi Arabia’s nuclear industry.” With regard to recent nuclear scandals, Yoon said, “Korea takes a very strong stance on the issue and it will thoroughly investigate the matter and take measures to prevent a recurrence.” In addition, he said, “to that end, the government will make every effort to upgrade Korea’s quality assurance system of nuclear parts to a world-class level.” At the meeting, K.A.CARE showcased Saudi Arabia’s nuclear program. MOTIE in turn briefed attendees on the current status of bilateral ties. The Korea Advanced Institute of Science and Technology (KAIST) highlighted the role of nuclear power in Korea’s industrial development. Moreover, Korea suggested various opportunities to strengthen bilateral ties. Sessions were also given by the Korea Electric Power Corporation (KEPCO), the Korea Nuclear International Cooperation Foundation (KONICOF), the Nuclear Safety and Security Commission (NSSC) and the Korea Atomic Energy Research Institute (KAERI) on areas including localization of nuclear power plants, training skilled personnel, safety and regulation of nuclear power and cooperation in the R&D sector. Saudi Arabian officials said, “the Roundtable was a good forum for exchanging constructive views of the two countries on Saudi Arabia’s nuclear development.” They added, “We expect further cooperation talks to come to learn more about Korea’s experience of successful nuclear power plants construction.” As part of efforts to develop sustainable and stable energy resources, Saudi Arabia plans to add 17.6 gigawatts of nuclear power generation capacity by 2032 and is expected to place an order for the construction of its first nuclear power plant next year. While countries like France, Japan, and China are vying to win future nuclear bids in Saudi Arabia, South Korea is also making vigorous efforts to attract Riyadh, having concluded the bilateral Nuclear Cooperation Agreement in November 2011. * Released by the Nuclear Plant Export Promotion Division date2013-06-26