South Korea unveils roadmap to move chemical sector up global value chain SEOUL, December 23 (AJP) - South Korea will revamp public-private research and development in its chemical industry to accelerate a shift toward higher value-added and environmentally friendly production, the government said on Tuesday, aiming to lift the sector’s global standing by 2030. The Ministry of Trade, Industry and Energy said it launched a chemical industry innovation alliance at a ceremony held at the Lotte Hotel in central Seoul, attended by representatives from local governments, industry, academia and research institutions. The ministry also released its K-Chemistry Next-Generation Technology Innovation Road Map 2030. The initiative comes as policymakers increasingly view a structural shift toward specialty and advanced materials as essential, alongside ongoing efforts by petrochemical companies to rationalize excess capacity. A central change is the move to support R&D across the entire value chain – from feedstocks and materials to applications and end-user demand – rather than fragmented, material-specific projects. MOTIE said it will strengthen linkages between chemical suppliers and downstream industries such as semiconductors and next-generation vehicles. As outlined at a petrochemical industry meeting the previous day, the government will give priority R&D support to companies participating in business restructuring, the ministry added. The road map is built on three pillars: expanding higher value-added products, accelerating the transition to eco-friendly production, and strengthening responses to global environmental regulations. MOTIE said it will upgrade R&D capabilities and infrastructure to secure core materials and process technologies. To expand the use of manufacturing AI transformation in the chemical sector, the plan calls for applying artificial intelligence across the full production cycle, from materials design to manufacturing. This includes building autonomous experimentation systems that combine AI with automated equipment to shorten development timelines for new materials, as well as deploying AI in processes such as polymerization, separation and finishing. Planned projects also include the development of intelligent process-control systems that optimize operating conditions in real time while minimizing energy use, the ministry said. About 80 domestic experts participated over six months in identifying priority technologies and assessing technological capabilities. After additional reviews by research leaders at petrochemical companies, MOTIE said it compiled 217 practical component technologies. These technologies will be classified into four categories based on market potential and technological readiness, with tailored support strategies for each. “Short-term intensive” items with large markets and strong technological foundations will receive commercialization-focused R&D support, while “long-term managed” items will be backed by challenge-oriented research. “Market pioneering” items – smaller but fast-growing markets with weaker technological bases – will receive first-mover R&D and patent analysis support, while “performance diffusion” items involving mature technologies will be supported through infrastructure upgrades such as scale-up and process-efficiency improvements. The innovation alliance, described by MOTIE as a full life-cycle cooperation model for the chemical industry, will serve as the control tower for implementing the road map. It will pursue nine flagship projects across nine subcommittees, including those focused on semiconductors and future mobility. Park Dong-il, head of industrial policy at the ministry, said petrochemical companies at a meeting chaired the previous day by Vice Minister Kim Jeong-gwan had “agreed to go all-in on business restructuring.” He said the road map would serve as a springboard for an industry “in crisis” to transform itself into a higher value-added sector, adding that the government would provide full R&D and policy support to strengthen competitiveness across the chemical industry ecosystem. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-23 08:48:24

Korean Air, Asiana face fines for breaching merger conditions on seat supply SEOUL, December 22 (AJP) - South Korea’s antitrust regulator said on Monday it will impose penalties totaling 6.5 billion won ($5 million) on Korean Air and Asiana Airlines for violating merger-approval conditions that restrict sharp reductions in seat supply. The Fair Trade Commission (FTC) said it will fine Korean Air 5.88 billion won and Asiana 580 million won for breaching a corrective order that bars the airlines from cutting annual seat supply to below 90 percent of 2019 levels during the same period. The penalty is a monetary sanction imposed when companies fail to comply with corrective measures attached to a merger approval, the commission said. Korean Air and Asiana filed their merger notification in November 2020, with final approval granted on Dec. 24 last year. As part of the approval, the FTC enforced service requirements include limits on reductions in seat supply, caps on average fare increases, and the maintenance of seat pitch and free baggage allowances. According to the FTC, between Dec. 12, 2024, and March 28, 2025, the two airlines supplied 82,534 seats on the Incheon–Frankfurt route, equivalent to 69.5 percent of the 118,728 seats offered during the same period in 2019. This fell 20.5 percentage points short of the required threshold. The commission said the penalties are intended to raise compliance awareness and prompt tighter management of seat supply to prevent repeat violations. 2025-12-22 14:40:53

South Korea's strategic oil reserves hit 100 million barrels SEOUL, December 22 (AJP) - South Korea's strategic oil reserves have surpassed 100 million barrels for the first time, the government said on Monday. The Ministry of Trade, Industry and Energy said the final oil tanker carrying this year’s stockpiled crude arrived at the Korea National Oil Corp.’s storage base in Geoje, bringing state-held reserves to 100 million barrels. Privately held oil stockpiles stood at about 95 million barrels as of October. Combined public and private reserves are sufficient to cover more than 210 days of net daily imports, exceeding the standard set by the International Energy Agency (IEA), the ministry said. South Korea began building strategic oil reserves in 1980 after the first and second global oil shocks highlighted the risks of supply disruptions. Since then, reserves have been expanded systematically, the ministry said. As a result, South Korea now holds the fourth-largest oil stockpiles among IEA member countries, providing a strong buffer against global energy supply shocks. 2025-12-22 14:22:06

Gov't urges Mexico to minimize impact of looming tariff hikes SEOUL, December 19 (AJP) - Deputy minister of Trade, Industry and Resources Park Jung-sung on Friday met with Mexican Ambassador to Seoul Carlos Peñafiel Soto to discuss trade-related issues ahead of planned tariff hikes next month. Their talks came after Park consulted with relevant industry officials last week to assess the expected impact of the tariff hikes on imports of automobiles, textiles, and other goods passed by Mexico's congress earlier this month, and come up with measures. Expressing Seoul's concerns, Park urged that steps be taken to minimize the impact on South Korean companies, adding that further revisions would be necessary. Park stressed that South Korean companies have contributed significantly to Mexico's economy and urged Mexico to ensure the tariff hikes do not affect future investment or bilateral trade. Park also said that talks on a free trade agreement between the two countries should be resumed as soon as possible to strengthen cooperation in advanced industries. The two also discussed recent progress on the U.S.-Mexico-Canada Agreement (USMCA), set to take effect in July next year, replacing the North American Free Trade Agreement (NAFTA). Park said the USMCA should continue to serve as the framework for free trade in North America and urged Mexico to actively support South Korean companies operating there. 2025-12-19 15:03:38

South Korea to support Egypt's customs system upgrade SEOUL, December 19 (AJP) - The Korea Customs Service (KCS) said Friday Commissioner Lee Myung-gu has signed a memorandum of understanding with Ahmed Amawy Robin, head of the Egyptian Customs Authority, to advance the customs system in Egypt. The agreement, concluded in Cairo, is part of South Korea’s official development assistance (ODA) efforts to modernize customs operations in partner countries. The KCS said it will support automation of Egypt’s express cargo logistics and broader customs system modernization under the project. The memorandum of understanding outlines key steps for collaboration, including technical advice on system development and equipment maintenance, training to strengthen the capabilities of Egyptian customs officials, and plans to secure a site in Egypt for an express logistics warehouse. The KCS also plans to export the express logistics system of UNI-PASS — its one-stop customs administration platform — for the first time overseas. “South Korea has rolled out UNI-PASS in seven African countries and is leading efforts to facilitate trade across the continent,” Lee said. He added that the agency plans to expand UNI-PASS further, especially in countries in the Global South, to contribute to smoother global trade. 2025-12-19 10:56:22

Korea's industry minister pledges to cut 'fake work,' boost efficiency SEOUL, December 17 (AJP) - South Korea’s Industry Minister Kim Jung-kwan said on Wednesday he aims to cut so-called “fake work” by 30 percent as part of broader efforts to strengthen organizational efficiency and innovation across government. Speaking at a government briefing in the administrative city of Sejong, Kim said reducing superficial or low-value tasks was essential to improving institutional capacity and productivity. President Lee Jae Myung voiced support for the initiative, saying that efforts to eliminate “fake work” were important for improving public-sector performance. Kim cited his experience in the private sector, including at Doosan Enerbility, where management sought to eliminate tasks that did not add customer value, such as unnecessary overtime, excessive reporting and redundant procedures. As part of the initiative, Kim said the ministry would gather ideas through town hall meetings and establish a task force to compile a list of non-essential activities by the first quarter of next year. The goal is to free up time and resources for more substantive work, he said. President Lee suggested that other ministries consider adopting similar approaches, noting that lessons from the private sector could help improve government efficiency. 2025-12-17 14:01:16

Seoul and London upgrade FTA, lower tariff for Korean cars and consumer goods SEOUL, December 16 (AJP) -South Korea and the United Kingdom have finalized an upgraded free trade agreement that locks in permanent tariff-free access across 98 percent of South Korean tariff lines, marking one of the most comprehensive post-Brexit trade resets between the two countries. The revised agreement, signed in London on Monday by South Korean Trade Minister Yeo Han-koo and UK Trade Minister Chris Bryant, concludes two years of negotiations aimed at modernizing the bilateral pact originally rolled over from the Korea-EU FTA after Brexit. With the temporary UK-Korea trade arrangement set to expire in January 2026, the new deal removes lingering uncertainty for exporters on both sides. According to the U.K. Department of Business Trade, Korea is the UK's 25th largest trading partner, accounting for 0.8 percent of the UK total trade in the 12 months to the end of June this year. At its core, the updated FTA significantly loosens rules of origin, most notably for automobiles, by lowering the domestic value-added threshold for tariff-free treatment from 55 percent to 25 percent. The change is expected to benefit Korean automakers and consumer-goods exporters while aligning UK practice more closely with EU standards. Car exports accounted for 36 percent of Korea's total exports to UK last year. The agreement also expands tariff exemptions to K-beauty and processed food products, allowing preferential access even when key ingredients are sourced from third countries, provided substantial processing takes place in Korea. For British exporters, the deal safeguards an estimated £2 billion worth of exports that would otherwise have faced higher duties once the temporary regime expired. The two governments will also streamline visa system under the upgraded FTA to facilitate the entry of Korean engineers and special workforces responsible for building manufacturing plants in Britain. Beyond goods trade, the revised FTA opens new ground in government procurement and services. The UK agreed to open its high-speed rail market — correcting what Seoul has long described as an imbalance — while expanding access for Korean firms in online gaming, advertising, translation and emerging technologies such as artificial intelligence. Visa procedures were also streamlined to reduce risks for engineers and skilled workers dispatched for large-scale industrial projects. A major pillar of the deal is the introduction of comprehensive digital trade norms, including freer cross-border data transfers, consumer protection standards and legal certainty for digital and audiovisual services — areas largely absent from earlier-generation FTAs. The agreement also establishes a supply-chain cooperation chapter covering joint research and development, material shortages and international standard-setting. “This agreement will help reinforce the free-market order at a time of growing protectionism and deepen economic cooperation with the UK, our key European partner,” Yeo said, adding that Seoul would move swiftly to complete legal reviews, impact assessments and parliamentary approval. Bryant said the deal provides “cast-iron protections” for British industries and supports growth in services, manufacturing and advanced technologies. British business groups welcomed the pact. Rain Newton-Smith, CEO of the Confederation of British Industry, said the agreement would “power growth through collaboration in advanced manufacturing, digital, services, clean energy and creative industries,” adding that it turns ambition into “long-term, sustainable growth” for both economies. The pharmaceutical sector also highlighted gains, with the Association of the British Pharmaceutical Industry noting expanded regulatory cooperation and new opportunities in South Korea’s fast-growing life-sciences market. 2025-12-16 09:24:31

Seoul, Beijing resume high-level trade talks after 7-year hiatus SEOUL, December 12 (AJP) - South Korea’s Trade Minister Kim Jung-kwan met Chinese Commerce Minister Wang Wentao in Beijing on Friday, marking the first bilateral ministerial trade meeting between the two countries in seven years. The talks followed the recent South Korea–China summit and focused on restoring trade momentum. The ministers agreed to resume regular high-level consultations to strengthen economic cooperation. Seeking to expand economic engagement beyond goods, the two sides agreed to build on the service-trade cooperation memorandum signed at last month’s summit. They also committed to convene the FTA Joint Committee soon to review implementation progress and accelerate phase-two negotiations covering services and investment. South Korea expressed interest in deepening cooperation with Chinese provinces such as Guangdong and Jiangsu, while China said it would dispatch investment delegations to South Korea’s Saemangeum region, the ministry said. Supply-chain stability — including the trade of rare earths and other key minerals — was a key agenda item. Both ministers agreed to maintain close communication to ensure uninterrupted flows of critical materials. Following the meeting, Kim and Wang signed a document outlining priority cooperation areas for 2026, including facilitating trade and investment events and strengthening engagement in multilateral forums. Ahead of the talks, Kim met South Korean business leaders operating in China to discuss challenges facing Korean firms. He also visited Xiaomi’s electric vehicle plant to examine recent developments in China’s manufacturing and technology sectors. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-12 16:55:59

South Korea's government opens talks on nuclear expansion in drafting long-term power plan SEOUL, December 10 (AJP) - South Korea is drafting a long-term energy roadmap that prioritizes renewable power while accelerating a phase-out of coal and reopening debate over the construction of new nuclear reactors. On Wednesday, the Ministry of Climate and Energy convened the first general committee meeting for electricity supply and demand at the government complex in Seoul, chaired by Minister Kim Sung-hwan. Updated every two years, the plan sets out national power demand forecasts and generation strategies for the 2026–2040 period. The committee will prepare provisional proposals across five areas: electricity demand, generation facilities, power system innovation, market reform and a separate subcommittee on Jeju Island. With the government placing greater emphasis on renewable energy, debate is expected to intensify over how quickly to raise its share in the power mix. The ministry’s recent pledge at the UN climate summit to join the Powering Past Coal Alliance (PPCA) has signaled a tougher stance on coal. Coal remains a major source of electricity. Government data show coal accounted for 28.1 percent of power generation last year, down from a peak of 52.4 percent in 2017–2018, but still ranking third after nuclear and liquefied natural gas (LNG). Analysts say South Korea could face pressure to accelerate its timetable after the PPCA recommended that OECD members eliminate coal power by 2030. Seoul currently plans to shut all 61 coal-fired plants by 2040. A faster coal exit could push up electricity prices. While the government argues that renewable costs are falling, their still-limited share in the energy mix could increase reliance on costlier LNG in the near term. The transition of workers from coal plants also remains a policy challenge. Attention is also focused on whether plans for new nuclear reactors will be carried forward. The previous, 11th plan proposed two large reactors and one small modular reactor. The government said it aims to finalize public consultation methods on new nuclear projects by year-end. “We will make early decisions on new nuclear plants through public surveys and forums and reflect them in the upcoming plan,” Kim said. “We will gather a wide range of views to address decarbonization, renewable intermittency and the operational constraints of nuclear power.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-10 10:10:56

South Korean PM meets BOK chief amid KRW concerns SEOUL, December 09 (AJP) - South Korean Prime Minister Kim Min-seok and Bank of Korea Governor Rhee Chang-yong held an unusual closed-door meeting early Tuesday, signaling the government’s reinforced determination to arrest the prolonged weakness of the Korean won that is rippling through every corner of Asia’s fourth-largest economy — from inflation and purchasing power to investment sentiment and long-term growth potential. The meeting, held at the government complex in Seoul, was notable in itself. The central bank governor typically meets monthly with the finance minister and the Financial Services Commission chair; direct consultations with the prime minister are rare. Kim said “uncertainties remain despite back-to-back gains in GDP growth and an improvement in consumer sentiment,” pledging that the administration would “solidify the economic recovery and extend it to stabilizing people’s livelihoods.” He highlighted government efforts to ease food-price burdens, revitalize regional economies, and expand growth potential through artificial intelligence and innovation. Rhee said the Bank of Korea will continue research on structural reforms to strengthen long-term growth potential while maintaining close communication and cooperation with the government as foreign-exchange volatility persists. The meeting comes as the finance ministry prepares a sweeping package of measures — including tax incentives to increase dollar supply, expanded hedging tools for pension funds, and new liquidity-support mechanisms — to counter what policymakers increasingly see as a currency-driven threat to macro stability. The Korean won has hovered around 1,470–1,480 won per dollar for nearly a month. Separately, the government continues to operate a four-party FX consultative body — bringing together the finance ministry, the Bank of Korea, the National Pension Service and the welfare ministry — to coordinate market-smoothing efforts and prevent disorderly swings in the won. The dollar rose 0.50 won to 1,470 won as of 10:25 a.m. in Seoul Tuesday. The article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-09 10:23:36