US-China Competition and Ukraine Crisis... Formation of the 'Global Supply Chain' Avengers

'Global GVC Analysis Center' Launch
Nation's Only Supply Chain Analysis Institution
From Monitoring to Strategy Development

Minister Moon Seung-wook of the Ministry of Trade, Industry and Energy is conversing with attendees at the 18th Innovation Growth BIG3 Promotion Meeting held on the 13th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Sejong=Reporter Dongwoo Lee] Going forward, supply chain risks at home and abroad will be intensively managed through a dedicated organization composed of trade experts.

The Ministry of Trade, Industry and Energy announced on the 9th that it officially launched the "Global Supply Chain Analysis Center" together with the Korea International Trade Association (KITA). The center is the only specialized supply chain analysis institution in Korea, tasked with analyzing early warning signs of potential crises in the global supply chain, including domestic and international raw material supply and import-export logistics, to enable proactive responses.

The center is organized into three main divisions: the Comprehensive Strategy Office, the Industry Analysis Office, and the Supply Chain Monitoring Office. It is composed of about 30 specialized support personnel from various sectors including the Ministry of Trade, Industry and Energy, KITA, and KOTRA, with Sanghyun Jo, President of KITA's International Trade and Commerce Research Institute, serving as the center director. Centered on KITA, it collects information on supply chain response trends of major domestic companies and maximizes the use of KOTRA's overseas network.

The primary role of the Supply Chain Analysis Center is to continuously monitor and analyze global supply chains with the goal of establishing long-term strategic plans. A similar institution is the "Materials and Components Supply Response Support Center," launched in 2019. However, while the Supply Response Support Center focuses mainly on information about key materials and functions like a traffic light system to determine caution levels, the Supply Chain Analysis Center is a more advanced institution analyzing early warning signs by item, region, and country. It also supports the operation of the national Early Warning System (EWS) by recommending countermeasures when abnormal supply chain signs are detected.

The Ministry of Trade, Industry and Energy launched the Supply Chain Analysis Center centered on public-private experts due to rapidly changing supply chain risks such as the US-China competition, carbon neutrality, and the Russia-Ukraine conflict. Another major reason is the rapid shift in the global trade paradigm toward multilateralism. The recent domestic implementation of the Regional Comprehensive Economic Partnership (RCEP) earlier this month and the upcoming Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in April, forming mega economic blocs, are changing the export landscape of Korea’s economy, reflecting the opinion that close networks between the government and private sector are necessary.

Minister Seungwook Moon said at the launch ceremony, "Going forward, we will make every effort to mitigate corporate supply chain risks centered on the Global Supply Chain Analysis Center, and support its operation by designating the center as a statutory institution through amendments to the Materials and Components Act."

Meanwhile, the event was attended by Minister Moon, KITA Chairman Jayeol Koo, KOTRA President Jungyeol Yoo, and executives from major industry associations including semiconductors, automobiles, and steel.

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