Ministry of Industry: "Global Supply Chain Instability, Obstacle to Economic Recovery... Need for Proactive Response"

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government has taken preemptive measures, viewing the recent global supply chain instability as a potential obstacle to the recovery of the Korean economy.

On the 7th, the Ministry of Trade, Industry and Energy announced that it held a 'Global Supply Chain Issue Review Meeting' at the Korea Chamber of Commerce and Industry, chaired by First Vice Minister Park Jin-gyu.

The meeting was convened to review and respond to the global supply chain issues that have spread comprehensively since COVID-19, including overseas power shortages, supply problems of automotive semiconductors, and raw materials.

Attendees included associations and organizations from key industries such as semiconductors, automobiles, and secondary batteries, as well as the Korea Chamber of Commerce and Industry, the Korea International Trade Association, KOTRA, and the Korea Institute for Industrial Economics and Trade.

Vice Minister Park emphasized, "Global crisis factors such as the continued spread of the Delta variant in Southeast Asia, potential power shortages in India following China's power restriction measures, and expanding instability in the supply of raw materials like gas are continuously being raised," "We must maintain vigilance and proactively review and respond to global supply chain issues that could affect our industries."

Participants noted that if power shortages in China and other countries persist long-term, it could lead to production disruptions and a sharp rise in prices of raw materials such as gas and steel.

The automotive industry stated, "The supply disruption of automotive semiconductors is lasting longer than expected," and requested the government to support corporate procurement activities for stable supply. They also urged the smooth implementation of mid- to long-term measures to expand domestic supply of automotive semiconductors.

The Ministry of Trade, Industry and Energy stated that it plans to monitor global supply chain instability factors centered on the Materials, Parts, and Equipment Supply Response Support Center and will do its utmost to alleviate corporate difficulties. It also responded that it will strive to resolve the automotive semiconductor supply shortage through cooperation requests to major suppliers, expedited customs clearance, and support for the movement of key personnel.

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