"Prevent the AdBlue Crisis"... KITA Forms Supply Chain Inspection TF with Samsung C&T, GS, LX, and Others

Gu Ja-yeol, Chairman of the Korea International Trade Association Photo by Korea International Trade Association

[Asia Economy Reporter Kim Heung-soon] The Korea International Trade Association (KITA) is launching a system to manage and monitor items with high import dependence on specific countries, in collaboration with the government, general trading companies, and related associations, following the urea solution shortage crisis.

At a press briefing held on the 22nd at the Trade Tower in Samseong-dong, Gangnam-gu, Seoul, KITA announced plans to form and operate an "Export Supply Chain Monitoring Task Force (TF)" together with Samsung C&T, GS Global, LX International, and the Korea Importers Association.

According to an analysis by KITA's Institute for International Trade and Commerce, out of 12,588 items imported by South Korea, 3,911 items are imported over 80% from specific countries, with 1,856 of those items being Chinese imports. Specifically, up to October this year, 95.2% of industrial urea was imported from China, and magnesium ingots (raw materials for aluminum alloys) were entirely imported from China.

Additionally, tungsten oxide used in semiconductor and secondary battery production, neodymium permanent magnets, and lithium hydroxide also rely on over 80% imports from China. Furthermore, liquefied petroleum gas (LPG) fuel for transportation, heating, and power generation shows an import dependence of over 90% on the United States.

KITA Chairman Koo Ja-yeol emphasized, "The global supply chain bottlenecks triggered by COVID-19, the US-China conflict, protectionism, and increasingly stringent standards on environment, security, labor, and human rights will become critical variables in trade. KITA will closely monitor trade issues in each country and accurately convey industry voices to the government to actively respond to changes in the global trade environment."

Data provided by Korea International Trade Association International Trade and Commerce Research Institute

In response to questions about criticisms that the government responded late to the recent urea solution crisis, he said, "Although the response was somewhat delayed, I do not think it was a complete delay," adding, "To prevent a second urea solution crisis, the role of the government is as important as that of the association."

KITA Vice Chairman Lee Kwan-seop stated, "It is extremely difficult to identify items with high import dependence and closely examine those affecting citizens' lives. We will quickly grasp international trends to detect any abnormal signs in imports and resolve issues well through consultations led by the government."

Park Cheon-il, Director of KITA's Institute for International Trade and Commerce, also said, "We plan to investigate items with high dependence on specific countries and release a report soon. We have formed a TF with general trading companies that possess global networks and sourcing know-how to diversify import sources and prepare systematically, while coordinating with the government."

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