Government to Strengthen Supply Chain Cooperation with Sweden in Bio and Future Cars in the First Half of This Year

Yeo Han-gu, Head of Trade Negotiations at the Ministry of Trade, Industry and Energy, delivers a congratulatory speech at the '2022 New Trade Strategy Seminar' held on the 6th at Lotte Hotel in Jung-gu, Seoul. This seminar was organized to explore various response measures for Korea's supply chain, technology, climate change, health, and medical issues amid new trade challenges. Photo by Moon Ho-nam munonam@

[Asia Economy Sejong=Reporter Dongwoo Lee] The government plans to hold the '1st Korea-Sweden Industrial Cooperation Committee' in the first half of this year to strengthen supply chain cooperation in bio, future cars, digital, and other sectors with Sweden.

On the 4th, Yeo Hang-gu, Director General of Trade Negotiations at the Ministry of Trade, Industry and Energy, held a virtual meeting with Anna Hallberg, Sweden's Minister for Trade and Nordic Cooperation, to discuss cooperation plans between the two countries in promising industries.

During the virtual meeting, Director General Yeo evaluated that since the 2019 business agreement between Sweden's global biopharmaceutical company AstraZeneca and Korean bio-related associations, AstraZeneca has made significant contributions to the development of the domestic biohealth industry and health improvement, including COVID-19 response.

Previously, through KOTRA, the Korea Health Industry Development Institute, the Korea Bio Association, and the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, the government negotiated with AstraZeneca on a total investment of $630 million from 2020 to 2024 for ▲ joint new drug development research ▲ production and mutual growth ▲ cooperation for global market entry ▲ and creation of a biohealth ecosystem.

Director General Yeo particularly mentioned the important role in COVID-19 prevention through the global supply of the domestically produced COVID-19 preventive agent ‘Evusheld’ and added that he hopes the successful cooperation in the biohealth sector between the two countries will expand to other fields and companies.

Additionally, regarding the participation of Korean companies in the construction site of the gigafactory of the Swedish electric vehicle battery company 'Northvolt,' he emphasized the enhancement of supply chain cooperation in the electric vehicle production sector. Currently, an electric vehicle battery factory with an annual production capacity of 40GWh is under construction in Skellefte?, northern Sweden.

The two sides also agreed to hold the third private-sector-led 'Korea-Sweden Digital Economy and Trade Forum' face-to-face in Stockholm after the COVID-19 situation stabilizes. Through the first and second forums, they created opportunities for exchange and cooperation between companies of both countries by exploring new agendas such as ESG (environment, social, governance) and the metaverse, which address climate change and COVID-19 response.

Both sides agreed to closely cooperate in areas such as trade, health, and fisheries subsidies negotiations to restore the multilateral trade order centered on the World Trade Organization (WTO). Previously, the 12th WTO Ministerial Conference scheduled for last November was indefinitely postponed due to the resurgence of COVID-19, and no new date has been set yet.