Ministry of Trade Industry and Resources

Korea and EU hold 12th meeting of FTA Committee on Trade in Goods

The Ministry of Trade, Industry and Energy (MOTIE) and the Ministry of Food and Drug Safety (MFDS) attended the 12th meeting of the Korea-EU Free Trade Agreement (FTA) Committee on Trade in Goods on June 12 in Brussels, Belgium.   The above Committee is a communication channel for discussing tariff and non-tariff issues related to the trade of goods. The Korean and EU delegations took stock of the bilateral FTA implementation progress and discussed measures for solving Korean and EU companies’ mutual market entry issues.   Since entering into force in 2011, the Korea-EU FTA has served as a pillar in bilateral trade and investment, helping their trade volume achieve an average annual growth rate of three percent amid global uncertainties. Last year’s Korea-EU trade volume hit a record high of USD 136.1 billion on the backs of strong demand for Korean automobiles and locally established plants’ increased parts and facility investment.   During the meeting, the Korean delegation (led by MOTIE’s Director General for Trade Policy Chang Sung-gil) focused on issues concerning the EU’s battery regulations, Carbon Border Adjustment Mechanism (CBAM), deforestation-free products regulation, and the steel safeguard extension, while responding to the EU’s questions regarding Korea’s cosmetics safety management system and alcoholic beverage labeling and online retail system. date2024-06-12

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 ASEAN hold 21st FTA Implementing Committee meeting

Director General for Free Trade Agreement (FTA) Policy Ahn Chang-yong is leading the Korean delegation in the 21st Korea-ASEAN FTA Implementing Committee meeting for furthering discussions on upgrading the bilateral FTA in Seoul through June 12–13. The ASEAN delegation is led by Alpana Roy, Senior Economic Official to ASEAN and Director at the Singaporean Ministry of Trade and Industry.   The Korea-ASEAN FTA Agreement on Trade in Goods entered into force in 2007, followed by the Trade in Services Agreement and the Investment Agreement, which both came into effect in 2009. Since 2013, the two sides have been engaging in discussions for further expanding their FTA.   During the 20th Implementing Committee meeting held this March, the two sides discussed whether to proceed with phased follow-up negotiations, based on the joint research outcomes on upgrading the FTA. In this 21st meeting, the two sides will be discussing the member countries’ FTA upgrade negotiation schedule; scope and method; joint research projects on new trade issues like digital and supply chains; and conversion of the tariff reduction schedule (TRS) and Product Specific Rules of Origin (PSR) from HS2017 to HS2022. date2024-06-12

Trade Minister discusses economic cooperation with Vietnam’s think tank president

Minister for Trade Inkyo Cheong met with Phan Chí Hiếu, President of the Vietnam Academy of Social Sciences (VASS), on June 11 in Seoul to discuss measures for Korea-Vietnam economic cooperation in trade, investment, critical minerals supply chain, and carbon neutrality, and agreed to continue their policy exchanges for the two countries’ forward-looking cooperative ties. VASS is Vietnam’s leading think tank established under the Prime Minister, overseeing 35 research institutes.   Trade Minister Cheong held VASS in high regard in terms of its contribution to strengthening the bilateral strategic communication in academic, political, economic, social, and cultural exchanges. He suggested that the two countries seek detailed cooperation measures through both intergovernmental and policy institutional communication for reaching the USD 150 billion bilateral trade volume target by 2030 declared in 2022.   Noting the elevation of Korea-Vietnam relations to a comprehensive strategic partnership in 2022 in commemoration of their 30th anniversary of the establishment of diplomatic ties, the VASS president said that he looked forward to opening doors to a new era of closer cooperation over the next 30 years, and that VASS will help deepen the two countries’ cooperative ties.   Lastly, Trade Minister Cheong expressed hope of expanding their trade and economic network across the entire ASEAN region and asked for strong support towards Korea’s Chairmanship of the Asia Pacific Economic Cooperation (APEC) Summit 2025. date2024-06-11

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

First and largest Korea-Africa summit seals 47 agreements and MOUs

The Ministry of Trade, Industry and Energy (MOTIE) announced on June 5 that through the Korea-Africa Summit 2024, a total of 47 agreements and memorandum of understanding (MOUs) were sealed in various areas like energy, minerals, manufacturing, and infrastructure. Moreover, 12 countries participated in the ministerial talks held with aim to expand economic cooperation.   On the second day of the Summit on June 5, approximately 400 persons, composed of both sides’ entrepreneurs, experts, and key government figures, were present at the Korea-Africa Business Summit 2024. Hosted by MOTIE and co-organized by six related institutions, the Business Summit spurred discussions on industrialization, trade, investment, food, resource security, decarbonization, and climate change, drawing the blueprint for the shared growth of Korea and Africa in the future.   MOTIE sealed 12 MOUs with 11 African countries for intergovernmental economic cooperation in trade, investment, and minerals. First, with Tanzania, MOTIE jointly declared the launching of negotiations for the bilateral Economic Partnership Agreement (EPA). MOTIE also agreed to start pushing negotiations for an EPA with Morrocco, commencing discussions on a trade agreement that would cover supply chains, digital, and clean economy. With eight African countries, including Ghana, Malawi, Côte d'Ivoire, and Zimbabwe, the ministry signed the Trade and Investment Promotion Framework (TIPF) for establishing a tailored economic cooperation platform void of bound tariffs.   Also, with Tanzania and Madagascar, MOTIE entered bilateral MOUs on critical minerals cooperation for stronger supply chain partnership with African countries. To note, the Korea-Madagascar Critical Minerals Cooperation MOU signing ceremony (June 4) was held in the presence of Madagascar’s President Andry Rajoelina, who expressed anticipation towards the bilateral minerals partnership.   As for the private sector, a total of 35 agreements and MOUs were inked between the two sides’ private parties, through which Korea Electric Power Corporation (KEPCO), Korea Trade-Investment Promotion Agency (KOTRA), K-SURE, and Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) will be stepping up their cooperation with African countries in areas like small modular reactors (SMRs), energy storage systems (ESS), trade and investment, new renewables, and critical minerals.   Hyosung sealed a $30 million transformer supply contract with Eletricidade de Moçambique at the Korea-Africa Business Partnership and Wise Bridge entered an agreement with Ethiopian and Kenyan companies on a joint venture for establishing a home appliances parts assembly line. OHYOUNG signed a contract deal for exporting dyes ($10 million) and E Green Global (EGG) signed one on smart farming.   Furthermore, Korea International Trade Association (KITA) and the African Continental Free Trade Area (AfCFTA) Secretariat agreed on establishing a Korea-Africa Economic Cooperation Commission for the continued development of Korea-Africa economic cooperation.   Trade, Industry and Energy Minister Dukgeun Ahn and Minister for Trade Inkyo Cheong both held numerous talks with African counterparts on the sidelines of the Korea-Africa Summit 2024 to discuss measures for wider cooperation in trade, investment, resources, supply chains, and digital.   At the beginning of this year, MOTIE launched a public-private joint support group consisting of major economic groups, institutes, and companies to prepare for a successful summit. The ministry plans to keep providing support so that the economic cooperation measures and agreements discussed during the Summit produce tangible outcomes and that the two sides can envision a forward-looking partnership. date2024-06-07

Trade Minister attends IPEF ministerial meeting in Singapore

Minister for Trade Inkyo Cheong attended the Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial Meeting and Clean Economy Investor Forum through June 5–6 in Singapore, where 14 IPEF partners – Australia, Brunei, Fiji, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, the U.S., and Vietnam – gathered to implement the Supply Chain Resilience (Pillar II), Clean Economy (Pillar III), and the Fair Economy (Pillar IV) Agreements and to uncover and facilitate joint projects in detail.   Ministers of partner countries signed the concluded Clean Economy Agreement and Fair Economy Agreement and agreed to promptly hold the inaugural Supply Chain Council meeting and push joint efforts in accordance with the Supply Chain Agreement that has come into effect.   On the margins of the meeting, Korea’s trade chief held bilateral talks with a number of counterparts, including U.S. Secretary of Commerce Gina Raimondo, on clean economy programs like clean electricity and small modular reactor (SMR) projects; Singapore’s Minister for Trade and Industry Minister Gan Kim Yong on measures for strengthening Korea-Singapore supply chain cooperation; and with Coordinating Minister for Economic Affairs of Indonesia Airlangga Hartarto, with whom he signed the memorandum of understanding (MOU) on implementing Article 6 of the Paris Agreement and on supporting companies’ global projects on carbon reduction and supply chain cooperation.   Over 300 persons participated in the Clean Economy Investor Forum, including the Asia-Pacific region’s governments and representatives of 103 investment firms, including the National Pension Service (NPS), Korea Post, Hana Financial Investment, Kohlberg Kravis Roberts (KKR), BlackRock, and Macquarie Group. The Forum also ran a briefing on a total of 72 clean infrastructure projects valued at USD 23 billion and 10 Korean startups like PMGROW and 60Hertz engaged in the Indo Pacific Climate Tech 100, a program connecting top climate tech startups to global investors through in-person meetings and presentations.   Trade Minister Cheong remarked that “This Forum proves that IPEF is up and running and that the region’s companies will tangibly benefit from the initiative,” and added that the Korean government will give full measure to accelerating Korean firms’ project bid winning and local market entry by building on this momentum. date2024-06-07