March 2023 - MPR Korea Certification

Pledges for foreign direct investment in South Korea hit new high in 2022

Direct investment from abroad in South Korea, known as “foreign direct investment” or “FDI” for short, reached a new high last year in 2022. As per data released by “Korea Bizwire” in early January 2023, the investment amount exceeded 30 billion US dollars for the first time. Foreign institutions and companies pledged investments of 30.35 billion US dollars, up 3.2 per cent year-on-year, according to the Ministry of Trade, Industry and Energy. The previous record of 29.51 billion US dollars was set in 2021. In particular, investments were noted in the textile and apparel, chemicals, metals and electronics industries. Products from these areas usually need KC certification to be approved for import and distribution in Korea.

Contrary to the pledges, however, in 2022 actual foreign direct investment in South Korea fell 3.1 per cent year-on-year to US$18.03 billion. According to the data, the number of investment pledges increased by 12.1 per cent to 3,463 and actual investments executed rose by 12.4 per cent to 2,325. Broken down by industry, the manufacturing sector more than doubled the number of investment pledges to 12.48 billion US dollars, a new all-time high.

Looking at the countries of origin of foreign direct investment, the USA leads the way with 28.5 per cent. Here, an increase of 62.5 per cent to 8.69 billion US dollars was also recorded compared to the previous year. Investments from the EU decreased by 36.9 per cent to 8.07 billion US dollars, and investments from China and its territories were 31.6 per cent lower, bringing the total to 5.16 billion US dollars last year. Investments for the new establishment of companies increased by 23.4 per cent compared to the previous year to a new record value of 22.32 billion US dollars. In contrast, investments for company acquisitions and mergers fell by 28.8 per cent to 8.14 billion US dollars. A spokesperson for the Ministry of Trade, Industry and Energy said that the increase in FDI is expected to have a positive impact on employment and business investment in other related sectors. In addition, the government will continue its measures to deregulate and provide subsidies to foreign investors, the spokesperson said.

KCs certification was introduced in South Korea to ensure basic safety in the design and manufacture of hazardous machinery and protective equipment in hazardous workplaces in Korea. The aim is to protect the health and safety of workers by preventing accidents. We offer certification services for all product areas, including KC certification for consumer products and especially electronics, KC-EMC certification for electronic products and KCs certification for machinery, as well as KCs for explosion-proof products. We are at your disposal for all questions regarding Korea certifications.

Feel free to contact us any time if you need assistance or have any questions regarding Korean certifications like KC, KC EMC, KCs, KCs for explosion safety products or KGS factory registration.
Tel. Europe: +49-69-271 37 69 261 Tel. US: +1 773 654-2673
Email: info@korea-certification.com

For more information you can download our free brochure “Korea Certification Made Easy – The Booklet“.

Beginning of petrochemical project by Hyundai E&C

Hyundai Engineering & Construction and Hyundai Engineering have formally launched a project to construct the most extensive petrochemical facilities to date in Ulsan, South Korea, known as the “Shaheen Project.” S-Oil, a South Korean oil refiner, invested around 9.3 trillion won ($7 billion), the largest investment by Aramco, a Saudi Arabian state-owned oil and gas firm and S-Oil’s primary shareholder, in Korea. The facilities will manufacture high-density and linear low-density polyethylene on a large scale, including a steam cracker complex producing ethylene, a crucial raw material for petrochemical products. Explosion proof products from this branche need a KCs Mark for explosion safety products to import or market them in Korea.

This project is expected to increase S-Oil’s petrochemical business share from 12% to 25%. The project will incorporate the thermal crude-to-chemicals technology developed by Aramco for the first time, converting low-value oil into raw materials for value-added manufacturing, making it the world’s most significant project of its kind. Hyundai E&C will collaborate with Hyundai Engineering, Lotte Engineering & Construction, and DL E&C as its primary construction partners.

The project will be divided into three stages: constructing the steam cracker complex and TC2C equipment, setting up high-density chemical production plants, and installing tanks. The project is expected to be completed by 2026.
Feel free to contact us any time if you need assistance or have any questions regarding Korean certifications like

KC, KC EMC, KCs, KCs for explosion safety products or KGS factory registration.
Tel. Europe: +49-69-271 37 69 261 Tel. US: +1 773 654-2673
Email: info@korea-certification.com

For more information you can download our free brochure “Korea Certification Made Easy – The Booklet“.

Luxury brands expand their range of products for children in South Korea

Products aimed at children from international luxury brands such as Burberry, Moncler and Dior are growing in popularity in South Korea. This is reported by the Korea Times, citing industry sources. South Korea has the lowest birth rate in the world, with less than one child per female in 2018. This already results in a low number of students of primary school age. In line with the saying: “Only one child and raise it well”, many Korean parents follow this motto and spend generously on their offspring. Clothing for infants requires KC certification to be approved for import and distribution in Korea.

Yet products for children from luxury brands are almost as expensive as those for adults. A school bag and coat from Burberry, for example, costs between the equivalent of 830 and 1,150 US dollars. Padded jackets by Moncler cost over 1,000 US dollars and were often sold out last year. The South Korean luxury department stores’ “Galleria Department Store” recently opened a pop-up store with children’s clothing by the brand Thom Browne. Thom Browne is a luxury fashion brand from New York that became famous in South Korea after stars such as the rapper G-Dragon and the boy band BTS wore corresponding clothing and accessories.

According to a department store employee, the demand for children’s clothing collections from luxury brands is currently growing considerably. Department stores such as Shinsegae and Hyundai opened numerous boutiques of luxury brands in their branches and did good business with them, the employee said. According to the Korean Textile Industry Association, the volume of the domestic apparel market was about US$32 billion last year, ending with a 7.5 per cent increase. The market for children’s clothing, on the other hand, grew by 16.8 per cent in the same period, more than doubling to 1.2 billion US dollars.
Certifications for the Korean market are a complex hurdle and difficult to navigate due to different authorities and certification systems. With over 15 years of experience in the certification business, MPR International GmbH is your best contact for competent service when it comes to exporting to Korea. For example, KC Safety is relevant for electronics and household products, which are mostly intended for consumers, as well as products for children and babies.

Hankook tyre service collaborates with charging station provider

Back in December 2022, South Korean tyre manufacturer Hankook Tire signed a memorandum of understanding with Daeyoung Chaevi (referred to as “Chaevi” in the following text). The cooperation is to build more infrastructure to facilitate access to charging stations in response to the increasing number of EVs in South Korea. According to a report by Business Korea, Chaevi is one of the leading providers of EV charging stations in the Asian country. Production around charging stations and e-mobility in general requires components and equipment, many of which need KC certification to be approved for import and distribution in Korea.

Under the agreement, Chaevi charging stations will be located on the premises or in the buildings of T-Station, Hankook’s tyre and car service company. This is to make it easier for customers to charge their EVs while visiting T-Station. The two companies also aim to become more customer-friendly for EV owners and actively promote their cooperation in the EV sector. Chaevi says it is one of the leading providers in South Korea with more than 4,000 charging stations and is currently expanding into foreign markets such as the US and Europe.

Hankook Tire is currently offering customers credit for using Chaevi charging stations as part of the launch of its new “Hankook iON” EV tyre range. Hankook’s tyre service T-Station offers online-to-offline services in more than 460 locations. It offers customers standardised maintenance and repair services with the latest equipment and trained professionals. In the online shop “T-Station.com”, customers can conveniently and easily purchase tyres from home and have them mounted in the workshops. Hankook describes itself as an innovation leader for EV tyres and underlines this by supplying tyres to the world’s largest EV manufacturers. Hankook was also the exclusive supplier and technical partner of the ABB FIA Formula E racing series in 2022.

Certifications for the Korean market are a complex hurdle and difficult to navigate due to different authorities and certification systems. With over 15 years of experience in the certification business, MPR International GmbH is your best point of contact for competent service when it comes to exporting to Korea. For example, KC Safety is relevant for electronics and household products, which are mostly intended for consumers, as well as products for children and babies.

SF Battery with 18-minute quick charge presented as global novelty

Back in 2018, the South Korean company SK On received an order from a global car manufacturer to develop an EV battery with fast charging within 18 minutes. In the course of development, this resulted in the so-called SF Battery (Super Fast Battery), which received the “Best of Innovation” award in the “Embedded Technologies” category at the CES technology trade fair held in January.
At the time of commissioning, charging times of 18 minutes for EV batteries were considered a challenge in the industry. In 2018, most car manufacturers demanded fast charging times of 30 minutes from their development departments or suppliers, while the realistic values were around 50 minutes. SK On was nevertheless confident of achieving the 18-minute target, as it had been researching batteries with fast-charging capabilities since 2016. “The spread of EVs depended on their range, speed and charging time,” said Park Ki-soo, SK On vice president and head of cell development. Battery production may involve, among other things, components and equipment that require KC certification to be used in the Korean market.

The key to fast charging is to reduce the anode resistance in lithium batteries. SK On has developed a special method for coating the anode and a new battery material for this purpose. SK On has also optimised the manufacturing process by using a new adhesive inside the cells called “SBR”. Afterwards, tests regarding the reliability and safety of the new SF battery were carried out by the car manufacturer who commissioned the battery. According to SK On, the SF battery can also tolerate more frequent fast charging and thus achieves a longer lifespan. In 2021, a newly launched EV was equipped with the SF battery and won numerous awards. At SK Group’s CES booth, the SF battery was one of the main attractions and attracted many visitors. SK On plans to launch an EV battery that can be charged in just 10 minutes in the coming years.

Pledges for foreign direct investment in South Korea hit new high in 2022

Beginning of petrochemical project by Hyundai E&C

Luxury brands expand their range of products for children in South Korea

Hankook tyre service collaborates with charging station provider

SF Battery with 18-minute quick charge presented as global novelty

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