Min "GVC, Partner Management and Alternative Supplier Securing"... Government "Leap to a Strong SoBuJang Manufacturing Nation"

Ministry of Industry Holds 'Public-Private Joint Online Symposium on Global Supply Chain Crisis Response'

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] In preparation for the post novel coronavirus infection (post COVID-19) era, it has been suggested that companies should directly manage key partners and secure alternative suppliers to establish a global value chain (GVC). The government stated that, with Korea's international trust enhanced through 'K-quarantine,' it will spare no support to help the country leap forward as a powerhouse in materials, parts, and equipment manufacturing.

On the 7th, the Ministry of Trade, Industry and Energy held a 'Public-Private Joint Online Symposium on GVC Crisis Response' jointly with the Korea Production Management Society. Considering social distancing in daily life, the symposium was held via online video conference. Officials from the Ministry, the Production Management Society, Hyundai Motor Company, Hansol Textile, the Korea Institute for Industrial Economics and Trade, and AT Kearney attended.

In the first session of the symposium, a representative of a small and medium-sized automotive parts company requested active government support such as financial aid for domestic export companies, as the entire world is simultaneously affected by COVID-19.

In the keynote presentation, Heo Daesik, president of the Production Management Society, evaluated that as governments worldwide have locked down, a serious crisis has occurred in the global supply chains of manufacturing companies. He stated that companies should ▲ directly manage key partners ▲ secure real-time visibility of partner networks ▲ strengthen supply chain resilience by securing multiple and alternative suppliers ▲ and establish local supply chains within economic blocs.

Ilmyung Kwon, president of the US consulting firm AT Kearney, expressed concern that a second wave of COVID-19 could occur in the US in the third quarter. He mentioned that companies need to restructure their value chain operations. Specific areas for restructuring include raw material suppliers, demand sources, domestic and overseas production bases, and securing value chain visibility. He especially advised the need for strategies to relocate domestic and overseas factory sites.

In the panel discussion, experts from industry, academia, and research institutes such as the Korea Institute for Industrial Economics and Trade, Hyundai Motor Company, and Hansol Textile discussed Korea's industrial and corporate response strategies in the post COVID-19 era. Lee Jun, head of the Materials Industry Division at the Korea Institute for Industrial Economics and Trade, analyzed that the COVID-19 crisis will have a much greater impact on the global economy than the 2008 financial crisis. He predicted that countries and companies that proactively respond to GVC changes will be advantaged in economic recovery and corporate growth after COVID-19.

Dongheon Lee, executive director at Hyundai Motor Company, cited the case earlier this year when domestic automobile factories halted operations due to wiring harness supply disruptions. He emphasized the need to improve the material procurement method, which is focused on concentrated ordering, to secure supply stability, continuous and rapid risk detection, and resilience through standardization and platform sharing.

Inho Park, executive director at Hansol Textile, introduced the digital supply chain system operated by his company. He explained that through the digital system, all processes in the value chain such as 'design-material procurement-production-sales' can be managed in real time to enhance competitiveness and maintain a stable supply chain.

Kang Kyungseong, director of the Industrial Policy Office at the Ministry of Trade, Industry and Energy, said, "The GVC restructuring situation caused by COVID-19 can be both a crisis and an opportunity for Korea's industry. We will enhance supply chain stability through strong and continuous policy implementation." He added, "With international trust in Korea increased through 'K-quarantine' during the COVID-19 response, we will spare no support to help Korea, which has secured safety and technological capabilities, to leap forward as a powerhouse in materials, parts, and equipment manufacturing."

The Ministry and the Production Management Society announced plans to continuously analyze the GVC restructuring situation in the post COVID-19 era and hold symposiums regularly to discuss response strategies.

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