Moon Seung-wook "Extension of Fuel Tax Reduction... Securing 3 Months' Stock of Essential Semiconductor Raw Materials"

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] On the 25th, Moon Seung-wook, Minister of Trade, Industry and Energy, stated that in response to concerns over supply disruptions of essential raw materials for semiconductor processes due to the Ukraine crisis, "companies have prepared by identifying and securing about three months' worth of inventory."

Minister Moon said during an urgent inquiry at the National Assembly's Industry, Trade, and Energy Venture Committee in the afternoon, "Companies are making efforts to secure alternative import sources for gases such as Neon (Ne) and Krypton (Kr), and it seems possible to respond so that these can be received within three months if necessary."

Rare gases essential for semiconductor processes, such as Neon and Krypton, are about 50% supplied by Russia and Ukraine.

However, he explained, "Regarding semiconductor rare gases from Ukraine, the industry holds the view that short-term supply impacts are limited due to proactive measures such as inventory expansion," but "if the situation prolongs, supply disruptions are a concern."

Additionally, Minister Moon expressed his intention to extend the fuel tax reduction measure, which is set to expire at the end of April, if necessary.

He said, "Recently, unexpected variables have arisen, so if needed, the (fuel tax reduction) period can be extended, and if additional measures are necessary, there is a need for discussions within the government," adding, "Except for some items, crude oil is generally subject to a 3% tariff, but we can review with the financial authorities the possibility of expanding the application of tariff quotas to reduce cost factors."

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