'Industrial Security TF' Reviews Supply Chain Issues... Full Effort to Stabilize Supply of Key Items and Raw Materials

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government reviewed issues related to supply chain instability caused by strengthened environmental regulations in major countries and the spread of the COVID-19 Omicron variant.

On the 5th, the Ministry of Trade, Industry and Energy held the 16th Industrial Security Task Force (TF) meeting, a public-private joint meeting, at the Korea Chamber of Commerce and Industry, chaired by First Vice Minister Park Jin-gyu. The meeting was attended by associations and organizations from key industries such as semiconductors and secondary batteries, economic organizations including the Korea Chamber of Commerce and Industry and the Korea International Trade Association, and related institutions such as KOTRA and the Korea Institute for Industrial Economics and Trade.

Vice Minister Park emphasized, "Supply chain risk factors such as the strengthening of environmental regulations in major countries, the spread of Omicron, increased instability in raw material supply including gas, and signs of supply chain decoupling due to US-China conflicts are continuously emerging. The public and private sectors must cooperate comprehensively on both offense and defense sides of our industry, including maintaining the technological gap in advanced technologies like semiconductors and establishing a seamless supply chain."

The industry groups attending the meeting assessed that aside from adjustments in local production due to the strengthening of environmental regulations in major countries and the spread of COVID-19, the possibility of supply chain disruption is limited. However, they noted that if the COVID-19 pandemic prolongs, there are concerns about raw material supply disruptions and price increases for Korean companies, so thorough stabilization measures for core items are necessary.

The automotive industry viewed that continuous management is needed as semiconductor demand for vehicles is increasing and supply disruptions may occur if Omicron spreads in Southeast Asia.

Experts diagnosed signs of supply chain decoupling due to US-China conflicts, such as the US ban on imports of products from Xinjiang and China’s restrictions on foreign investment in rare earths, as potential threats to our supply chain. They also suggested preparing for possible control measures related to rare earths and other materials as demand for key materials needed for secondary batteries may increase when China’s carbon neutrality efforts fully commence.

An official from the Ministry of Trade, Industry and Energy stated, "We will operate an Early Warning System (EWS) to thoroughly monitor supply chain instability factors and respond with full efforts to stabilize the supply of core items. In addition, we will respond promptly to raw material supply disruptions such as LNG and crude oil, and continue efforts to resolve supply difficulties and achieve self-reliance in automotive semiconductors."

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