KOTRA Expands Ukraine Emergency Response Team... Raises Response Level

Proactive Response to Exports and Supply Chains through Operation of Ukraine Business Difficulty Consultation Center

[Image source=Yonhap News]

[Asia Economy Reporter Park Sun-mi] Amid ongoing tensions between Ukraine and Russia, KOTRA has decided to expand the Ukraine Emergency Response Team and raise the response level.

On the 16th, KOTRA held an emergency meeting on Ukraine the previous day and made this decision. The vice president will serve as the head, functioning as a control tower, and the number of domestic and international participating departments and personnel will be significantly increased to strengthen activities such as monitoring trends of Korean companies and buyers, impact analysis, resolving corporate difficulties, and supporting supply chains and safety.

The Regional Research Office, Global Supply Chain Office, Overseas Expansion Consulting Center, CIS Headquarters, and trade offices will participate in and cooperate with the response team. A dedicated phone and online channel will also be newly established to handle complaints from export and local expansion companies. Intensive supply chain management will be implemented for key items supplied by Ukraine and Russia.

KOTRA established the Global Supply Chain Office and Supply Chain Monitoring Team on the 1st of this month. These departments, connected with overseas trade offices, plan to manage supply chains for items where Russia and Ukraine hold a significant share in the global raw materials market and items that account for a large portion of Korea’s imports, and to discover alternative suppliers if necessary.

A representative of the Ukraine Emergency Response Team said, "There are 13 and about 120 Korean companies with business sites in Ukraine and Russia respectively, and about 2,300 and 5,400 companies export annually to Ukraine and Russia respectively. Among KOTRA’s clients, about 9,500 companies have used services related to these two countries over the past five years." He added, "We will strengthen exchanges through individual contacts and meetings with these companies and respond accordingly."

Although Korea’s trade share with Russia and Ukraine is about 2.2% and 0.08% of the total respectively, it was judged that proactive measures are necessary as it could affect exports, overseas expansion, and supply chains.

Currently, most employees of the 13 companies operating in Ukraine have withdrawn. The approximately 120 companies in Russia are also preparing for possible disruptions in operations and business activities. Since Russia and Ukraine account for a significant share in the supply of energy such as oil, gas, and coal, rare metals used in semiconductors, and grains, preparations must also be made for supply chain management and price fluctuations of related items.

KOTRA President Yoo Jung-yeol said, “Although the trade volume with Russia and Ukraine is not large, we will respond meticulously as it can affect exports, companies operating abroad, and supply chains. If tensions prolong and expand, corporate difficulties may increase, so we will work with companies and the government to focus on proactive responses.”

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