South Korea, U.S., Japan and 12 Other Countries to Jointly Tackle Overcapacity in Five Sectors, Including EVs and Semiconductors

[Financial News]  
South Korea, the United States, Japan and 12 other countries have agreed to jointly address structural overcapacity in five industries: automobiles and electric vehicles, batteries, chemicals, general-purpose semiconductors, and solar power. They plan to set up dedicated working groups for each sector to assess whether overcapacity exists and its impact on markets, and to develop countermeasures.
According to the Ministry of Trade, Industry and Energy on the 8th, 15 countries, including South Korea, issued a “Joint Ministerial Statement on Addressing Structural Overcapacity” at the OECD headquarters in Paris, France, on the 7th (local time).
The statement was joined by 15 countries, including South Korea, the United States, Japan, the European Union (EU), Canada, Australia, India and the United Kingdom.
The joint statement is a follow-up to the G20 Trade Ministers’ Meeting held in Milwaukee, United States, from September 30 to the 1st of this month. At the time, member countries discussed the need for a joint response to structural overcapacity but failed to reach agreement due to opposition from some countries. In response, countries that shared concerns issued a separate joint statement.
The participating countries shared the view that structural overcapacity poses a serious threat to the global economy and the economies of individual countries. They particularly called for an end to non-market policies and practices that distort markets and perpetuate overcapacity.
To that end, they agreed to first establish dedicated working groups in five areas: automobiles and electric vehicles, batteries, chemicals, general-purpose semiconductors, and solar panels. The groups will analyze whether overcapacity exists in each industry and its impact on markets, and seek effective countermeasures.
The participating countries agreed to hold a working-level meeting before December to develop plans for operating the working groups and share information and data related to overcapacity. They plan to open participation in the groups to non-OECD members in the future.
The government plans to actively participate in establishing the sector-specific working groups and in follow-up discussions, while strengthening cooperation with major countries.

[email protected] Park Ji-young Reporter