Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy - Meeting with Alok Sharma, UK Secretary of State for Business, Energy and Industrial Strategy
Strengthening cooperation on climate change response... Activating 'Green New Deal' collaboration
Establishment of high-level industrial and energy dialogue channel
Yoo Myung-hee, Director-General, requests support for WTO election in the UK
British Prime Minister Boris Johnson (left) and Sir David Attenborough, a master of nature documentaries and zoologist (right), visiting a museum in London to explain the 'United Nations Climate Change Conference (COP26)' to students. (Photo by Reuters)
[Asia Economy Reporter Moon Chaeseok] South Korea and the United Kingdom are strengthening their climate change cooperation framework and establishing a high-level dialogue channel for industry and energy. They will actively promote government-level joint research and development (R&D) with the UK, a global leader in offshore wind power.
The Ministry of Trade, Industry and Energy announced that Minister Sung Yun-mo met with Alok Sharma, UK Secretary of State for Business and Energy, at the Lotte Hotel Seoul on the 26th. They agreed to enhance energy and industrial cooperation in preparation for the post-COVID-19 era.
Last year, despite global uncertainties, the two countries built a strong trust relationship, exemplified by the signing of the Korea-UK Free Trade Agreement (FTA).
Mutual Support at Bilateral Global Climate Change Events
On August 19th, SeAH Steel Holdings signed a memorandum of understanding (MOU) with the UK government for the production of offshore wind power structures. (Photo by SeAH Steel Holdings)
Next year, the two countries will host international climate change events. South Korea will hold the 2nd P4G (Partnering for Green Growth and the Global Goals 2030) Summit in the first half of next year. The UK will host the 26th United Nations Climate Change Conference of the Parties (COP26) in November.
Minister Sung told Secretary Sharma, "South Korea will do its best to ensure the UK COP26 next year achieves good results," and requested, "Please actively cooperate so that the P4G Summit held in Korea and COP26 can create a synergistic effect."
The two governments agreed to strengthen cooperation in offshore wind power. Minister Sung proposed to Secretary Sharma, "Let's actively promote joint R&D and policy exchanges." A recent example of collaboration is the establishment of a 160,000-ton offshore wind monopile foundation by SeAH Steel Holdings in the UK last August.
"Deep Interest in UK's Moorside Nuclear Power Plant"... Request for Cooperation
The Sellafield nuclear power plant in Cumbria, Northwest England. (Image source=Reuters Yonhap News)
Minister Sung conveyed the South Korean government and companies' interest in the UK's Moorside new nuclear power plant construction and requested active cooperation at the government level in the UK.
According to foreign media in July, the Moorside nuclear power plant construction project, which was suspended in 2018, is expected to resume. Previously, Korea Electric Power Corporation (KEPCO) was selected as the preferred negotiator in the 2017 Moorside nuclear power plant acquisition bid.
The Moorside nuclear power plant project involves building three nuclear reactors with a total capacity of 3.8 GW in the Moorside area of northwest England by 2025, with a project scale of 15 billion pounds (approximately 22 trillion won).
Cooperation in Advanced Industries: Bio, System Semiconductors, AI
AstraZeneca logo
The two countries agreed to cooperate in three major advanced industries: bio, system semiconductors, and artificial intelligence (AI).
In bio, last year, the UK-based pharmaceutical company AstraZeneca invested about $630 million (approximately 711 billion won) in July in SK Bioscience's COVID-19 vaccine, followed by a biopharmaceutical contract manufacturing agreement with Samsung Biologics last month, which was presented as a cooperation model.
In system semiconductors, synergy will be created between the UK's design intellectual property (IP) market and South Korea's solid demand base (future vehicles, 5G, etc.). Given Samsung Electronics' active investment of 133 trillion won since April last year, it is expected that opportunities for business and technological cooperation between the two countries will open.
In the AI sector, multifaceted cooperation such as joint technology development, big data analysis, and standardization was proposed. The UK plans to invest about 1 billion pounds (approximately 1.4754 trillion won) in AI by 2025.
Establishment of High-Level Industry and Energy Channel after Brexit
In March 2017, the British flag and the European Union (EU) flag fluttering against the backdrop of the clock tower 'Big Ben' at the UK Parliament in London. (Image source=AFP Yonhap News)
The two countries agreed to establish a high-level government cooperation channel not only in trade but also in industry and energy sectors.
On this day, both sides agreed to establish a high-level dialogue channel between the two ministries (South Korea's Ministry of Trade, Industry and Energy and the UK's Department for Business and Energy) after Brexit (the UK's withdrawal from the EU). They plan to address industry and energy issues multilayeredly in connection with the existing director-general level consultations on nuclear power and science and technology.
Additionally, the two sides signed the agreement for the 6th STIP (Science, Technology and Innovation Partnership) Committee meeting held last week. The STIP Committee is a director-general level committee between the two ministries held every two years.
With this signing, the two countries will operate an energy technology working group (WG) to cooperate on green R&D such as eco-friendly vehicles and energy efficiency.
A separate fund will be established to launch the "Korea-UK Joint Funding R&D Program." Through this, strategic industries such as AI and bio will be fostered between the two countries.
"UK, Please Support Yoo Myung-hee in WTO Director-General Election"
Famous Yeo Myung-hee, Head of Trade Negotiations at the Korean Ministry of Trade, Industry and Energy, and Ngozi Okonjo-Iweala, former Nigerian Minister of Finance and Foreign Affairs, who advanced to the final round in the World Trade Organization (WTO) Secretary-General election, during their respective campaign press conferences held in Geneva, Switzerland, on July 15-16. (Image source=AFP Yonhap News)
Minister Sung did not forget to ask the UK to support Yoo Myung-hee, the head of South Korea's Trade Negotiations Department, in the World Trade Organization (WTO) Director-General election.
He emphasized to Secretary Sharma, "Director Yoo is a person who combines both trade expertise and political leadership, making her the right candidate for WTO reform and the restoration of the multilateral trading system."
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