Ministry of Trade Industry and Resources

New Law Brings Foreign Hospitals a Step Closer

Minister of Knowledge Economy Sukwoo HONG announced last week that the Cabinet had approved the revised enforcement decree of the Special Act on Designation and Management of Free Economic Zones (FEZs). The President proclaimed the revised decree on April 20 and it takes effect June 1. The change will improve Korea’s investment environment by making it easier for foreign medical institutions to enter the Korean market. Since the passage of the Special Act in 2002, the government has been working to bring foreign medical institutions to Korea. Until now, however, gaps in the legislation were obstacles to foreign investment in this important business area and proposed regulatory changes were still on hold in the National Assembly. The ordinance sets forth specific preconditions for the establishment of a foreign medical institution in one of Korea’s six Free Economic Zones (FEZs), as well as the approval procedure. Under the new ordinance, a foreign medical institution in an FEZ must operate in collaboration with a foreign entity and at least 10 percent of doctors and dentists practicing in each institution must hold foreign licenses. A related ordinance will be drafted by the Ministry of Health and Welfare this month and take effect in June. Shortly after the ordinances take effect, the first 600-bed foreign hospital is set to open in the Incheon FEZ. It is expected to attract at least 60,000 foreign patients every year from Korea and abroad. Regarding concerns over the possible impact of foreign hospitals on the domestic healthcare industry, Minister HONG said the government would consider restricting the number of beds in the new foreign institutions. * Released by the Planning Office of the Free Economic Zones date2012-04-26

Retail Sales Figures for March

date2012-04-20

Korea Takes Action to Stabilize Domestic Oil Market

Korea announced plans yesterday to increase competition in the domestic oil market and stabilize energy prices. Four major refiners currently dominate the domestic oil market, but a fifth petroleum supplier—Samsung Total Petrochemicals—is set to gain a presence as a new supplier for Korea’s thrift gas stations. Beginning in June, Samsung Total Petrochemicals will have the opportunity to supply gasoline to Korea’s thrift gas stations; the government will also increase the number of thrift gas stations by introducing tax incentives. Korea’s gas stations are currently under pressure to purchase petroleum products from a single refiner; however, the plan will make it easier for them to do business with different suppliers. Sellers of petroleum products will also enjoy tax benefits if they participate in the new electronic spot oil trading system that the government launched in March. To invigorate trade through the system, no tariffs will be imposed on oil products imported via the system. In addition, a support center will provide one-stop administrative services including detailed information on petroleum product prices and the progress of the new measures. The government pledges to monitor oil prices closely, and to take action to alleviate the burden that high fuel costs impose on consumers. * Released by the Petroleum Division date2012-04-20

Parts and Materials Industry Trade Figures for the First Quarter

date2012-04-19

MKE Releases Car Sales Figures for March

MKE Releases Car Sales Figures for March The Ministry of Knowledge Economy has released its car sales figures for March. Korea’s automobile production rose 6.3 percent year on year to 420,759 vehicles on the back of strong export growth. Rising demand for fuel-efficient vehicles, greater brand awareness and the Korea-EU FTA drove exports up 18.1 percent to 305,527 vehicles—a record high. Although the Korea-U.S. FTA took effect, high oil prices and weak consumer confidence pushed sa date2012-04-13

Foreign Investment Figures for First Quarter

date2012-04-12

IT Trade Figures for March

date2012-04-10

Trade Figures for March

The Ministry of Knowledge Economy has released its trade figures for March. The nation’s trade balance remained in the black, posting a $2.3 billion surplus. Although exports declined slightly for the month, the first quarter as a whole saw outbound shipments increase 3.0 percent to $135 billion. Exports fell 1.4 percent year on year to $47.4 billion. The average value of all exports per day increased 0.7 percent to 2.0 billion. While outbound shipments of automobiles and petroleum products showed strong performances, exports of semiconductors, shipbuilding and wireless communications devices weakened. March saw more exports to advanced nations such as the United States and Japan, as well as to emerging economies in the Middle East and the ASEAN region. However, the ongoing financial crisis in Europe depressed outbound shipments to the European Union. In addition, exports to the Chinese market showed slow growth. Meanwhile, imports declined 1.2 percent from a year earlier to $45.0 billion. The average value of all imports per day increased 0.9 percent to $1.9 billion. Strong demand for major energy resources such as gas, petroleum products and coal pushed inbound shipments of raw materials up 3.5 percent year on year. Imports of capital goods and consumer goods gained 2.1 percent and 5.6 percent, respectively. Inbound shipments from the United States and the Middle East increased. date2012-04-05