Hong Nam-ki: "Early Warning if Major Items Are Short... 20 Items Prioritized for Management"

Visit to Rare Earth Producer KSM Metals Site on the 24th

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is seen on the 24th visiting KSM Metals in Cheongju, Chungcheongbuk-do, receiving an explanation about rare earth product facilities. (Photo by Ministry of Economy and Finance)

[Sejong=Asia Economy Reporter Moon Chaeseok] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki announced on the 24th, "An early warning system will be activated for 3,000 to 4,000 items with high external dependency, and 20 items with urgent importance will be selected as priority management targets."

Deputy Prime Minister Hong made these remarks during a visit to KSM Metals, a rare earth production company in Cheongju, Chungcheongbuk-do, in the afternoon. He stated, "Since the COVID-19 crisis, the global value chain (GVC) has been generally damaged, which has recently heightened concerns and awareness about the GVC safety net. The government will activate an early warning system for 3,000 to 4,000 items with high external dependency and will soon select about 200 'core economic security items.'" He added, "In particular, 20 items with urgent importance have been selected as priority management targets to enhance domestic production capacity, strategic stockpiling, and diversification of import sources."

Deputy Prime Minister Hong said, "KSM Metals is a company currently promoting the domestic production of 'neodymium metal' (an essential material for electric vehicles), one of the 20 management items, for the first time in Korea. It has been selected as a cooperation model between material, parts, and equipment demand and supply." He added, "Starting next year, research and development (R&D) and other support will be provided as a package to KSM Metals and other cooperating companies." He mentioned, "By attracting foreign investment from Australia, a major rare earth producer, we aim to secure scarce resources stably and promote subsequent production linkage with domestic returnee companies, setting a model for establishing a domestic self-reliance base for core economic security items."

He emphasized, "Supply chain stability is very important not only for private companies but also for the government's role. Therefore, it is urgent to actively utilize the public sector's 'strategic stockpiling system,' which was previously mentioned as one of the directions for stable supply measures." He stressed, "Although the Public Procurement Service and the Korea Mining Industry Promotion Corporation stockpile some of the 20 management items, they need to play a more active role to fully function as a supply chain safety device."

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