South Korea and the United States have agreed to minimize uncertainty and business burdens for Korean companies investing in the U.S. arising from the implementation of the CHIPS Act, according to the Ministry of Trade, Industry and Energy, Friday. The two nations also decided to work closely with Korean companies to address their concerns regarding the Inflation Reduction Act (IRA).

Minister of Trade, Industry and Energy Minister Lee Chang-yang and his counterpart U.S. Secretary of Commerce Gina Raimondo issued a joint declaration at the first U.S.-Korea Supply Chain and Commercial Dialogue in Washington, D.C., held on the occasion of President Yoon Suk Yeol’s state visit to the U.S. on Thursday (local time).

The two countries agreed to minimize investment uncertainty and management burdens for companies under the obligations set out in the CHIPS Act, including the conditions for applying for subsidies and the guardrail clause that limits semiconductor production capacity in China for 10 years upon receipt of a subsidy.

Korea and the U.S. will also establish a public and private semiconductor cooperation forum to strengthen ties in the chip industry between the two countries.

Regarding semiconductor export controls, where the U.S. has banned the export of U.S.-made equipment to semiconductor companies in China, they will discuss how to operate export control measures more predictably to minimize supply chain disruptions after the expiration of the one-year blanket license applied to Korean companies in October.

The U.S. has been attempting to limit China’s chip technology development through the CHIPS Act but the details of the regulations have raised concerns over Korean companies actively selling their chips in China.

Source: Korea Times

More than 24,400 businesses with a total of US$7.42 billion in investment capital have been registered in the first phase of the Online Business Registration System known as Single Portal under the Ministry of Economy and Finance – as of April this year.

Over 14,500 business names of companies are in the stage of checking for approval, a ministry’s report said.

In terms of investment value by sector, construction took the lead, accounting for 15 percent, equal to US$1,050 million, followed by real estate 12 percent, equal to US$893 million.

Management consultant activities represented 10 percent, manufacturing 5 percent, financial and insurance activities 4 percent, and others 54 percent, the report added.

Men-owned businesses accounted for 62 percent of the total registered businesses, the same source pointed out.

The ministry launched the first phase of the Online Business Registration platform on June 15, 2020, and the second phase on Sept. 15, 2021.

Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, has said that the new system cut down on complex procedures, repetition of information, lost time and the cost of the old process.

All registrations are automatically shared with the relevant ministries and institutions for review and approval, ensuring that all departments are kept in the loop, he stressed.

Source: Khmer Times

Korea’s finance minister said Tuesday trilateral ties with China and Japan are “crucial” not only for the three countries but also for the world amid economic uncertainties.

Finance Minister Choo Kyung-ho said trilateral cooperation can serve as an engine for a “speedy and sustainable” recovery, noting the three countries make up 20 percent of the global economy.

He also said Korea plans to play an active role in the efforts to bolster the trilateral economic ties.

“To this end, on the back of the global reopening, Korea, China and Japan will expand their cooperation in a full-fledged manner, not only in sectors such as finance, trade and investment but also in tourism, culture, personnel exchanges and policy ties,” Choo said ahead of the trilateral meeting of finance ministers and central bank governors of Korea, China and Japan in Songdo, Incheon, 36 kilometers west of Seoul.

The meeting came on the sidelines of the 56th Annual Meeting of the Board of Governors of the Asian Development Bank (ADB), which kicked off for a four-day run Tuesday under the slogan “Rebounding Asia: Recover, Reconnect, and Reform.”

The annual meeting is the bank’s first in-person gathering since the pandemic began, and around 5,000 officials are expected to be invited, including member countries’ finance ministers and central bank governors.

Source: Yonhap

BELGRADE, April 30 (Xinhua) — The Belt and Road initiative has significantly improved railway connections between China and Europe, enabling a massive increase in the volume of trade, Chinese transport expert Shan Jing
has said here recently.

Shan, a researcher based in Germany at the Dresden University of Technology, was participating in the 10th International Conference of Railway Operations Modelling and Analysis “RailBelgrade 2023”. He told Xinhua at the conference on Wednesday that trade between China and Europe has flourished in the past decade.

“Eurasian railway transport is developing really fast. In 2011 there were only 11 trains, but last year there were 16,000 trains between China and Europe in both directions. It is becoming a plan B compared to air and sea routes. The service quality could fulfill the supply chain demand of big companies such as Mercedes Benz, BMW, and the other big companies, as they all use this Eurasian railway transport, between China and Europe”.

Infrastructure cooperation has significantly reduced the time and cost of shipments, he added, which has brought significant benefits to the industries involved.“After a ten-year development (through the Belt and Road initiative) Eurasian railway transport is pretty fast compared to the sea. By sea, you need 50 days, but with Eurasia railways, you need only 19 or 20 days. This express service saves time and could mean a lot for the industry. It can save money, by reducing time and cost,” Shan said.

The Chinese-built Belgrade-Budapest railway will one day represent a major connection between China and this part of Europe, he said, while the presence of Chinese infrastructure companies could help to accelerate Europe’s connection to this railway infrastructure.

Source: Xinhua