Sung Yun-mo: "We Will Build a Production Base Without Shutdowns" (Comprehensive)

Industrial and Crisis Response Team 1st Meeting
Responding to the Restructuring of the Global Economic Order
Preparing Policies for Commercializing 'K-Quarantine' Products

Sung Yun-mo, Minister of Trade, Industry and Energy, is delivering a speech at the Post-Corona Industrial Strategy Dialogue (1st Meeting of the Industry and Enterprise Crisis Response Team) held on the 6th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Moon Chaeseok] The government has set a plan to establish South Korea as a 'transparent and safe advanced product manufacturing base' in response to the global industrial and economic order restructuring following the COVID-19 pandemic. Policies are also being prepared to turn the rapidly emerging 'K-Quarantine' and 'K-Bio' into global products.

On the 6th, the government announced this plan at the first meeting of the 'Post-COVID Industrial Strategy Dialogue and Industry-Crisis Response Team,' chaired by Sung Yun-mo, Minister of Trade, Industry and Energy, held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. A total of 23 people, including officials from 13 ministries and experts from industry, academia, and research, attended the meeting.

At the meeting, the government identified five major changes after COVID-19: ▲Reorganization of global value chains (GVC) in home countries (health and environment) ▲Full-scale non-face-to-face economy and the possibility of continued low oil prices (economic activities) ▲Arrival of a high-cost management era and concerns over shrinking capacity for new investments (corporate management) ▲Expansion of win-win cooperation among economic agents (social value) ▲Retreat of global free trade and the possibility of renewed trade wars (trade environment).

Accordingly, the government presented eight major tasks as post-COVID industrial strategies: ▲Reorganization of GVC ▲Establishment of a production base without shutdowns (temporary work stoppages) ▲Promotion of 'K-Quarantine' and 'K-Bio' as global standards ▲Fostering non-face-to-face industries ▲Innovation in the energy industry and response to low oil prices ▲Enhancement of corporate vitality and support for new industry investments ▲Solidarity among economic agents ▲Exercising global trade leadership.

Among these, policies will be prepared in the first half of the year for the global advancement of 'K-Quarantine' and 'K-Bio,' GVC reorganization, fostering non-face-to-face industries, and post-COVID global trade cooperation leadership.

In particular, Minister Sung stated on the day, "We will support the reorganization of global supply chains and industrial sites in response to changes in health and environment and make K-Quarantine and K-Bio global products."

During the period when COVID-19 was rampant worldwide, domestic advanced production lines such as semiconductors and displays did not stop operating, attracting international attention. The government diagnosed that going forward, countries and companies worldwide will shift production methods to build 'less efficient but less risky' GVCs by relocating core supply chains closer to home countries to minimize production losses in case of infectious disease outbreaks.

Accordingly, the government's strategy is to utilize Korea's excellent quarantine capabilities to activate corporate reshoring (return to home country), strengthen management of key items, and attract core companies in supply chains to establish a safe advanced product manufacturing base. It also announced plans to enhance infectious disease response capabilities at industrial sites to build a 'production base without shutdowns.'

The government is also planning to make K-Quarantine and K-Bio new global Hallyu products following 'K-Pop' and 'Parasite.' Utilizing Korea's second-largest biopharmaceutical production capacity, it aims to make Korea a global center for vaccine production.

Minister Sung mentioned the possibility of a renewed global trade war and stated that South Korea will lead free trade-related agendas. He said that in bilateral and multilateral forums, they will propose ▲Leading a standard model for exceptions allowing essential corporate personnel to enter the country ▲Halting the setting of additional barriers related to trade and investment (standstill).

He said, "Utilizing our status as a model country for quarantine and a manufacturing powerhouse, we will advocate for breaking down protectionism and promoting free human and material exchanges, and lead related agendas. At the same time, we will support our companies' entry into major markets such as China, which is promoting post-quarantine economic stimulus projects."

This content was produced with the assistance of AI translation services.