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Minister Kim Jeong-gwan reports to the State Council... "Proactive response to energy crisis from the Middle East"
The Ministry of Trade, Industry and Energy (MOTIE) cited the conclusion of negotiations with the US, record-high exports, response to the Middle East energy crisis, and the transition of manufacturing to artificial intelligence (AI) (M.AX) as key achievements of the first year of the people's sovereign government.
Minister Kim Jeong-gwan of MOTIE announced these as key achievements at a State Council meeting held at the Blue House on the 20th.
First, Minister Kim presented the conclusion of the Korea-US tariff negotiations as the biggest achievement. He explained that this eased tariff burdens on key export items such as automobiles and pharmaceuticals to about 15%, and secured non-disadvantageous treatment in the semiconductor sector compared to competing countries.
In addition, he stated that the agreement to establish the Korea-US Shipbuilding Cooperation Center has expanded opportunities for strategic industries such as shipbuilding and energy, by launching the 'MASGA (Make American Shipbuilding Great Again) Project'.
In the export sector, he emphasized that both quantitative and qualitative growth were achieved, with exports surpassing $700 billion for the first time ever last year.
Minister Kim explained that Korea's global export ranking rose from 7th last year to 5th as of the cumulative total in February this year, indicating that the "top 5 export countries" is becoming visible.
The export base also broadened, as the proportion of the US and China in overall exports decreased from 38.1% in 2024 to 35.8% last year, while the proportion of ASEAN, Latin America, and CIS expanded from 22.6% to 23.6%.
Exports of K-consumer goods such as cosmetics, fashion, and apparel also surged, leading to diversification of key export items.
Furthermore, MOTIE has taken steps to expand the growth foundation for export companies by creating 2.4 trillion won in win-win trade finance for large and small businesses, providing 15 trillion won in preferential finance for export companies, and launching the 'K-Export Star 500' project.
Response to the energy and resource crisis caused by the Middle East war was also presented as a key achievement.
Minister Kim stated that despite concerns about a Strait of Hormuz blockade, crude oil and naphtha volumes for May were secured at 90% of previous years' levels, and 100% of alternative natural gas supplies from the Middle East were secured.
Consequently, the operating rate of domestic petrochemical companies' Naphtha Cracking Centers (NCCs), which had fallen to 55%, recovered to about 70%.
In addition, Minister Kim explained that the implementation of the petroleum maximum price system significantly contributed to price stability, lowering inflation by 0.6 percentage points in March and 1.2 percentage points in April.
Finally, M.AX was also presented as a major achievement.
MOTIE is currently building the 'M.AX Alliance' with 11 divisions and over 1,500 companies and institutions participating, simultaneously pursuing Process AX, Product AX, and Industrial Complex AX.
The introduction of AI in semiconductor PCB processes shortened quality inspection time by 90%, and the accuracy of quality prediction for secondary battery electrode materials improved to 87%.
In the shipbuilding industry, the introduction of AI robots in ship assembly and welding processes reduced working hours by 12.5%, and the AI unmanned inspection system for agricultural machinery improved inspection speed by 11%.
Minister Kim said, "We will spread AI across local manufacturing sites to achieve productivity innovation and secure future competitiveness."
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