MOTIE Minister Joo Hyung-hwan speaks during a meeting with CEOs of the nation’s top 30 business groups.

Minister Joo Hyung-hwan of the Ministry of Trade, Industry and Energy (MOTIE) renews a pledge of solidarity with CEOs of the nation’s top 30 business groups  while participating in their meeting at the Conference Center of the Federation of Korean Industries (FKI) in Yeouido, Seoul, on Jan. 4.

Minister Joo Hyung-hwan of the Ministry of Trade, Industry and Energy (MOTIE) had a meeting with the CEOs of the nation’s top 30 business groups on Jan. 4 in which he promised government support to help industries ramp up competitiveness. MOTIE Minister Joo convened the meeting with CEOs of business groups for the first time since he took office at the Conference Center of the Federation of Korean Industries (FKI) in Yeouido, Seoul. The meeting came some two years after former MOTIE Minister Yoon Sang-jick had a similar meeting with CEOs of business groups in January 2014.

“Korea saw exports drop by a large margin in January like last year. The reason is that our mainstay industries have seen their competitive edge weaken and the creation of new industries to replace them be delayed,” Minister Joo said. He called for the transformation of the mainstay industries into high-tech ones and a shift into business portfolios focusing on new convergence and multidisciplinary industries and value-added service industries. 

Joo said his ministry will concentrate its policy capacity to help the private sector’s massive investments translate into early results. He promised regulatory reform so that the private sector can make investments and provision of such government support as budgetary, taxation, R&D, manpower and marketing support. 

The participating business group CEOs demanded the expansion of the electricity retail market and support for new energy industries. The business community also requested the easing of power consumption standards for smart electronic appliances and expanded utilization of the Asian Infrastructure Investment Bank (AIIB) in the implementation of projects to tap the emerging Iranian market. Minister Joon responded affirmatively as to the reclassification of smart electronic appliances into items excluding standby electricity. 

The participants at the meeting included Samsung Electronics President Park Sang-jin, Hyundai Motor President Chung Jin-haeng, SK Energy President Kim Joon, LG Corp. President Ha Hyun-hoe, Lotte Group President Soh Jin-sae and POSCO Senior Executive Vice President Choi Jung-woo.

MOTIE Minister Joo speaks at a meeting of Korean companies doing business in the Middle Eastern country at the K-sure building in Seolin-dong, downtown Seoul, on Jan. 12.

How Korea Can Tap the Iranian Market

MOTIE Minister Joo said his ministry will make inter-ministry efforts with other ministries to Korean companies entering the Iranian market. Minister Joo made the remarks while attending a meeting of Korean companies doing business in the Middle Eastern country at the K-sure building in Seolin-dong, downtown Seoul, on Jan. 12. 

“Korean companies have demonstrated Sincerity and prowess in Iran, and the fact that they stay there despite U.S.-led sanctions will be stepping stones for Korean firms’ exploration of the Iranian market,” he said. “Thanks to the Korean government’s negotiations with the United States, Korea has continued to import crude oil from Iran and opened Korean-denominated accounts for settlements.” 

Korea will establish a partnership with Iran in the restricting of the latter’s national economy through soft power areas such as culture, health and medical services that can enhance mutual understanding and concern, Joo added. 

Korea wants to boost cooperation with Iran in such mainstay areas as automobiles and petrochemical industries as well as related parts and components and equipment, said Minister Joo, adding that Korean firms need to pay attention to such consumer markets as cosmetics and electronic appliances whose consumption is expected to climb according to rising income levels. 

Minister Joo specified such government tasks as the expanding of government financial support, the easing of corporate complaints and grievances, and the boosting of economic relationships with Iran. 

Participating in the meeting were representatives from 11 companies doing business there, including Hyundai Motor, LG Electronics, and Daelim Industrial Co. 

The participants demanded the government seek the continuity of a won-based settlement system and establish a Euro-base settlement and provision of information on the entry into Iran.