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Korea to Raise R&D budget, Enhance Global Research Collaboration According to Pulse by Maeil Business News Korea, The South Korean government has unveiled a blueprint to transform the country into a global hub for international cooperation in science and technology. The key to this strategy is a significant increase in global research and development (R&D) investment, aiming to raise it to 6-7 percent of the entire R&D budget. The plan also includes the establishment of relevant legal frameworks and the strengthening of overseas collaboration bases. The Ministry of Science and ICT announced these plans on Wednesday during The 2nd World Congress of Korean Scientists & Engineers held in Seoul. The policy directions are aimed at bolstering international cooperation in science and technology as geopolitical competition over technological dominance intensifies among major global powers. Experts said that the paradigm of value-neutral scientific and technological cooperation is shifting towards strategic alliances and competitive posturing among leading nations. In this complex international environment, Korea’s comprehensive strategy for global cooperation in science and technology aims to protect and advance the nation’s technological capabilities. The strategy includes plans for global R&D initiatives, international scientific diplomacy, and support for the overseas expansion of Korean tech firms. The Korean government plans to expand its global R&D investment significantly, with this year’s investment reaching a record 1.8 trillion won ($1.31 billion), a fourfold increase from last year’s 1.6 percent to 6.8 percent of the total R&D budget. The government intends to maintain this investment level, keeping global R&D at 6-7 percent of the total budget next year. In addition to increasing investment, the government is also working on legal and structural reforms. This includes drafting the Act on the Promotion of International Cooperation in Science and Technology, which will cover basic matters related to global R&D cooperation, including project selection, evaluation, agreements, and security management, as well as provisions for global R&D special cases. In May, the Ministry of Science and ICT selected four projects, including the Boston-Korea Project as the first flagship initiatives. This project, planned during the Korea-U.S. summit in April last year, focuses on advanced biotech R&D. Around 10 more projects are set to be selected later this year. Copyrights Pulse by Maeil Business News Korea. All Rights Reserved. Find out more information about Korea : www.investkorea.org #KOTRA #InvestKorea #Economy_News

🚀 Invest KOREA July 2024 Issue 🚀 🤖Korea, Transforming Itself into a Robot-Friendly Country 🔍 What's Inside: ◾Roundtable Discussion with Honorary Ambassadors of Foreign Investment Promotion for Korea ◾Namdong National Industrial Complex ◾Key Points of the 2024 Amendments to the Korean Tax Law Find out more information about Korea at www.investkorea.org #KOTRA #InvestKorea #July_2024 #Business_News

🤝Korean Free Economic Zones(KFEZ) : Where the Success Formula for Business Unfolds 🔍Korean Free Economic Zones (KFEZ) provide the optimal business environment for global enterprises, serving as a center of international business where global capital and information converge. Korean Free Economic Zones are designed to actively attract foreign investment by enhancing the business environment and living conditions for foreign-invested companies. They maximize corporate autonomy and investment incentives through deregulation. Starting with Incheon in 2003, a total of nine zones have been established, including Busan/Jinhae, Gwangyang Bay, Gyeonggi, Daegu/Gyeongbuk, Chungbuk, East Coast, Gwangju, and Ulsan. 📢Today, we introduce the Gwangyang Bay KFEZ. Find out more information about Korea : www.investkorea.org

🤝Korean Free Economic Zones(KFEZ) : Where the Success Formula for Business Unfolds 🔍Korean Free Economic Zones (KFEZ) provide the optimal business environment for global enterprises, serving as a center of international business where global capital and information converge. Korean Free Economic Zones are designed to actively attract foreign investment by enhancing the business environment and living conditions for foreign-invested companies. They maximize corporate autonomy and investment incentives through deregulation. Starting with Incheon in 2003, a total of nine zones have been established, including Busan/Jinhae, Gwangyang Bay, Gyeonggi, Daegu/Gyeongbuk, Chungbuk, East Coast, Gwangju, and Ulsan. 📢Today, we introduce the Gangwon, Gyeonggi KFEZ. Find out more information about Korea : www.investkorea.org #KOTRA #Invest_Korea

S. Korea, Thailand Launch First Round of Talks for Trade Deal According to Yonhap News, South Korea's trade ministry announced Tuesday that it has launched the first round of negotiations with Thailand to seek an Economic Partnership Agreement (EPA) aimed at bolstering bilateral trade and investment. The South Korean delegation, led by Deputy Minister for FTA Negotiations Roh Keon-ki, plans to discuss related matters with his counterpart, Chotima Iemsawasdikul, in Bangkok through Thursday, according to the Ministry of Trade, Industry and Energy. An EPA is intended to establish a mutually beneficial trade network with partner nations beyond simple market opening, though it covers a smaller scope of areas compared with a traditional free trade agreement. Seoul and Bangkok declared the launch of negotiations in March. "Although South Korea already holds trade agreements with Thailand under the South Korea-ASEAN FTA and the RCEP, there is still room for improvement in terms of bilateral trade and economic cooperation," Roh said. He was referring to the Regional Comprehensive Economic Partnership, one of the world's biggest free trade agreements, with its 15 member nations accounting for around 30 percent of the global gross domestic product. "The EPA between South Korea and Thailand, tailored specifically for the two countries, will build policy grounds to advance the bilateral economic cooperation to another level," the deputy minister added. The two countries will discuss promoting exchanges in a wide array of areas, including goods, services and investment, as well as the digital and government procurement sectors, the ministry said. "Thailand is the second-largest economy in Southeast Asia and the manufacturing hub of the region," the ministry said in a statement. "An EPA between South Korea and Thailand will bolster the competitiveness of South Korean good and service exports compared to those from other rivals, such as Japan and China." Copyrights Yonhap News. All Rights Reserved. Reprint or redistribution without permission is prohibited. Find out more information about Korea : www.investkorea.org #KOTRA #Invest_Korea #Economy_News

S. Korea Pledges US$7 mln to Global Fund for Climate Change Responses According to Yonhap News, South Korea has decided to contribute US$7 million to a global fund for responding to loss and damage caused by climate change as part of efforts to help underdeveloped nations better counter climate challenges, the finance ministry said Tuesday. Deputy Finance Minister Choi Ji-young made the announcement during a board meeting of the Fund for Responding to Loss and Damage held in Songdo, west of Seoul, on the day. The fund was officially launched in 2023 during the United Nations Climate Change Conference of the Parties, commonly known as COP28, which is meant to support vulnerable countries dealing with the effects of climate change. "We expect that this contribution will serve as a catalyst for encouraging parties to contribute more voluntarily," Choi said. "South Korea will do our best to share knowledge and skills for climate change responses and green transition with the international community," he added. So far, 19 nations have pledged $792 million combined, according to the ministry. Copyrights Yonhap News. All Rights Reserved. Reprint or redistribution without permission is prohibited. Find out more information about Korea : www.investkorea.org #KOTRA #Invest_Korea #Economy_News

9 out of 10 Top 500 Firms Plan to Maintain, Increase Investments in H2: Poll According to Yonhap News, Nine out of 10 large companies in South Korea plan to maintain or increase their investments in the second half of the year, despite challenges such as prolonged high interest rates, a weak local currency and international uncertainties, a survey showed Monday. In the survey conducted by Mono Research, which polled the top 500 companies by sales, 74.2 percent stated they have investment plans for the second half similar to those of the first half. Additionally, 16.7 percent said they will increase their investments in the July-December period compared with the first six months of the year. Only 9.1 percent indicated plans to reduce their investments in the second half. The poll was commissioned by the Federation of Korean Industries (FKI), South Korea's leading business lobby. Among the companies planning larger investments, 31.8 percent cited the need to replace or upgrade old equipment over the next six months. Another 31.8 percent attributed their decision to hopes for an industry recovery in the second half of the year. About 13.7 percent said they would make more aggressive investments during the recession to enhance competitiveness. On the other hand, companies with negative investment plans cited the prospect of continued global monetary tightening and increased risks from rising costs. The FKI explained that the expectation of an economic recovery, driven by increased global demand and other factors, has led many firms to maintain or increase their investment levels from the first half, despite concerns over continued monetary tightening. The survey also showed that 37.1 percent of companies predict they will invest more actively in the first half of next year, while 24.2 percent stated their investments are already active, and 15.2 percent plan to increase their investments in the second half of this year. The FKI said that many South Korean companies anticipate next year as a pivotal time to revitalize investments, expecting clear recovery in the global economy. Copyrights Yonhap News. All Rights Reserved. Reprint or redistribution without permission is prohibited. Find out more information about Korea : www.investkorea.org #KOTRA #Invest_Korea #Economy_News

Gov't Vows Support for Exports of Electric Equipment According to Yonhap News, Industry Minister Ahn Duk-geun said Thursday the ministry plans to offer 2.7 trillion won (US$1.94 billion) in trade finance for exports of electric equipment to foster the sector as a new growth engine. Ahn announced the plan during his visit to the headquarters of HD Hyundai Electric Co. in Seongnam, just south of Seoul, to discuss ways to support the electric equipment industry, according to the Ministry of Trade, Industry and Energy.  The visit came as the government has been seeking to set strategies to address the growing demand for electricity in various industries, following the boom of artificial intelligence services that led businesses to expand data centers. "South Korean businesses, Korea Electric Power Corp. and other state-run export firms, such as the Korea Trade-Investment Promotion Agency and Korea Trade Insurance Corp., will join forces to foster the electric equipment sector as a new export engine," Ahn said. He added the government plans to support other areas in the energy industry, including energy storage system solutions, as key export products.  South Korea's exports of electric equipment came to $15.1 billion in 2023, up 9.4 percent from $13.8 billion tallied a year earlier. The ministry estimates this year's shipment volume at $16.2 billion. Copyrights Yonhap News. All Rights Reserved. Reprint or redistribution without permission is prohibited. Find out more information about Korea : www.investkorea.org #KOTRA #Invest_Korea #Economy_News

S. Korea's Pharmaceutical, Biotechnology Exports Spike 55 pct on-Year in H1 According to Yonhap News, South Korea's exports of pharmaceutical and bio technologies surged from a year earlier in the first half of the year, data showed Saturday. In the first six months of the year, the country exported 4.5 trillion won (US$3.26 billion) worth of pharmaceutical and bio technologies, up 55 percent from 2.9 trillion won for the same period last year, according to the data from the Korea Pharmaceutical and Bio-Pharma Manufacturers Association. The number of export deals dropped to seven from 12 over the cited period, but the amount of each deal grew sharply, the association noted, adding that each of the three deals signed this month was worth over 500 billion won. At the current rate, the country's annual total is expected to reach 8 trillion won, according to the association. "This means the competitiveness of our country's pharmaceutical and biopharmaceutical technologies have significantly improved," an association official said. Copyrights Yonhap News. All Rights Reserved. Reprint or redistribution without permission is prohibited. Find out more information about Korea : www.investkorea.org #KOTRA #Invest_Korea #Economy_News

Korea, Vietnam to Cooperate on Supply Chain, Energy Transition According to Pulse by Maeil Business News Korea, Government officials and key business leaders from both Korea and Vietnam pledged to jointly address future challenges including supply chain restructuring and energy transition during a business forum. The Korea-Vietnam Business Forum, organized by the Korea Chamber of Commerce and Industry (KCCI), took place in Seoul on Monday. Attendees included Minister of Trade, Industry and Energy Ahn Duk-geun and Korean Ambassador to Vietnam Choi Young-sam, as well as business leaders such as Cho Hyun-sang, Chairman of the Korea-Vietnam Economic Cooperation Committee (KVECC) and Vice Chairman of Hyosung Group, Chey Chang-won, Chairman of SK Supex Council, Cho Hyun-joon, Chairman of Hyosung Group, Lee Hee-beom, Chairman of Booyoung Group, Park Seung-hee, President of Samsung Electronics Co., and Lee Kye-in, President of POSCO International. Representing Vietnam were Prime Minister Pham Minh Chinh, Minister of Planning and Investment Nguyen Chi Dung, Minister of Industry and Trade Nguyen Hong Dien, and Minister of Foreign Affairs Bui Thanh Son, along with business leaders such as Military Bank’s Luu Trung Thai and Sovico Group’s Nguyen Thanh Hung. “Korea and Vietnam are strategic partners to overcome changes in the global economic environment together,” KVECC Chairman Cho said in his opening remarks, anticipating “many wise solutions for cooperation” in the fields of energy transition and supply chain collaboration, which were the forum’s themes. The KVECC is a private cooperation organization jointly founded by the KCCI and the Vietnam Chamber of Commerce and Industry shortly after the two countries established diplomatic relations in 1992. It has become a key institution for economic cooperation between the two countries and organized the business delegation that accompanied President Yoon Suk Yeol on his visit to Vietnam in 2023. Noting that 2024 marks 32 years of Korea-Vietnam diplomatic relations, Ahn said in his welcoming address that it is now “time to prepare for the next 30 years,” adding that the two governments plan to actively cooperate in expanding investment and trade, building a stable supply chain cooperation network, and in areas such as climate change and nuclear power. For his part, Pham emphasized addressing the difficulties faced by Korean companies operating in Vietnam. “Korea is the largest investor among the 146 countries investing in Vietnam, with a total investment of over $87 billion. The Vietnamese government will streamline administrative procedures and improve regulations to expand investment by Korean companies, aiming to increase the trade volume to over $100 billion,” the Vietnamese prime minister said. Copyrights Pulse by Maeil Business News Korea. All Rights Reserved. Find out more information about Korea : www.investkorea.org #KOTRA #InvestKorea #Economy_News