Ministry of Industry Holds Meeting with Power Equipment Industry
Special Trade Insurance Preferential Program to Supply 2.7 Trillion Won This Year
Establishment of 'Power Equipment Export Promotion Plan' Scheduled for Second Half of the Year
The government has decided to foster the electric power equipment industry as a new export engine. Through trade insurance supply worth 2.7 trillion KRW, it plans to achieve exports of 16.2 billion USD and orders of 20 trillion KRW this year, aiming to grow it into one of the top 10 export items.
The Ministry of Trade, Industry and Energy announced that Minister An Deok-geun visited the headquarters of HD Hyundai Electric on the 4th to discuss export support measures for the electric power equipment industry. This visit was the 9th export field support team activity and the first field visit in the energy sector.
An official from the ministry explained, "Recently, due to the expansion of data centers for artificial intelligence (AI) implementation and the demand for grid connection to spread carbon-free power sources such as renewables and nuclear power, a massive amount of electricity is required, leading the electric power equipment market into a so-called 'super cycle.' Our country's electric power equipment exports have also increased, and in 2023, it has emerged as a new export engine competing with industries like biohealth and secondary batteries, surpassing home appliances and textiles."
If the government’s export targets for this year?16.2 billion USD in export value and 20 trillion KRW in orders?are achieved, the electric power equipment industry will rank within the top 10 export items of South Korea.
On the day, Minister An personally toured the 1MW-class commercial building direct current (DC) distribution system exhibition hall, which HD Hyundai Electric implemented for the first time in the world. Following this, Korea Electric Power Corporation (KEPCO), KOTRA, and Korea Trade Insurance Corporation signed the 'K-Grid Export Cooperation Memorandum of Understanding (MOU).'
To support exports of the electric power equipment industry, the government plans to supply 2.7 trillion KRW in trade insurance this year through a special preferential program for electric power equipment items. Additionally, it will designate key trade offices focusing on the North American, European, and ASEAN markets, where demand related to power grids is expected to surge, and strengthen overseas marketing support by expanding matching opportunities with ordering parties during domestic and international exhibitions and consultation meetings. Furthermore, in the second half of the year, the government plans to establish comprehensive export promotion measures, including strengthening ecosystem competitiveness, forming export consultative bodies, and expanding research and development (R&D).
During the subsequent meeting with the electric power equipment industry, major transformer companies such as HD Hyundai Electric, Hyosung Heavy Industries, and LS Electric, as well as small and medium-sized enterprises like Korea Electric Wire and Seojin High-Tech, and Cubitech participated. They presented industry difficulties including joint government R&D, support related to anti-dumping measures in export countries, expanded financial support for SMEs and mid-sized companies, and fostering the domestic related industry. The government plans to actively work to resolve these issues.
Minister An stated, "Together with our companies, KEPCO, export support organizations like KOTRA and the Korea Trade Insurance Corporation, we will nurture the electric power equipment industry as a new export engine. Not only K-Grid but also energy sectors such as renewables, energy efficiency, and energy storage systems (ESS) will be supported as key export industries through a public-private one-team effort."
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