MOTIE to Nurture Bio and New Energy Industries as Korean’s Future Growth Engines

President Yoon Suk-yeol presides over a New Year’s business report session from the Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups at the guest house of Cheong Wa Dae on Dec. 27. (Photo on the courtesy of the Presidential Office)

The government has been intensifying efforts to stem the negative growth of the export industry. Korea, whose exports fell into negative growth territory in the fourth quarter of 2022, logged the biggest-ever trade surplus last year.

It intends to prevent annual negative growth of exports and boost the national economy by concentrating its capabilities on cooperation with the private sector.

The government is hitting the gas to implement an industrial paradigm shift by expanding the bio industry and nurturing new energy industries, on top of the export drive.

President Yoon Suk-yeol received a New Year’s business report from the Ministry of Trade, Industry and Energy at Cheong Wa Dae on Dec. 27.

President Yoon said, “If the government and the private sector do not make joint efforts harder than the past, it will be very difficult to boost exports, significant for overcoming an economic crisis.”

“The government will implement industry and corporate policies so that markets can be operated in a fair and efficient fashion,” Yoon said.

The Ministry of Trade, Industry and Energy (MOTIE) set the title of the briefing, “Strong Real Economy, Undaunted Export Powerhouse,” taking a cue from the Korean national soccer squad’s catchphrase “Important Thing is Undaunted Mind” during the 2022 Qatar World Cup.

The ministry set goals of exporting $680 billion, pouring 100 trillion won in facility investments and attracting $30 billion in foreign direct investments.

Earlier, the government predicted that exports for 2023 would stand at $650 billion, a 4.5 percent decline over last year. But reversing the forecast, it aims to see exports for the year 2023 amount to $680 billion, the same level of 2022.

MOTIE plans to diversify export markets to resources rich countries and emerging countries, which are predicted to see economic growth of around 5 percent.

The ministry plans to strengthen the nation’s presence in the ASEAN region by connecting hallyu (Korean Wave) and halal.

In the Middle Eastern region, Korea plans to ramp up exports in the energy sector, such as nuclear power and hydrogen, as well as the manufacturing sector, including the automobiles, shipbuilding and defense industries.

The government is seeking to strike FTAs with Ecuador, Guatemala, the Pacific Alliance and the Southern Common Market (MERCOSUR).

The incumbent government has set a national agendum of exporting 10 nuclear power units abroad by 2030.

It aims to win orders for nuclear power units from Poland, the Czech Republic, the Philippines, UK, Turkey, and the United Arab Emirates.

Korea aims to achieve more exports in 2023 than 2022 when the defense industry logged exports worth $17 billion.

Minister of Trade, Industry and Energy Lee Chang-yang said, “The government will push export drive via export strategy meetings, to be presided over by President Yoon.”

MOTIE plans to work out steps tailored to meet the needs of regions while operating an inter-ministry group to support market exploration.

The ministry plans to nurture bio and new energy industries into the nation’s future growth engines.