Ministry of Industry Launches 'One-Stop Window for Supply Chain Issues' Amid COVID-19 Spread in China

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Dongwoo Lee] The Ministry of Trade, Industry and Energy announced on the 17th that it will operate a 'One-stop Window for Resolving Supply Chain Difficulties' in response to lockdown measures in major cities due to the recent surge in COVID-19 cases in China.

According to the National Health Commission of China, as of midnight the previous day (1 a.m. Korean time), 1,952 people were infected with COVID-19 across 31 provinces, municipalities, autonomous regions, and the Xinjiang Production and Construction Corps, bringing the total confirmed cases to 122,456. The number of new cases the previous day was 3,507, marking the highest in two years.

In response, China has implemented lockdown measures in major cities where Korean companies are concentrated, such as Changchun in Jilin Province, Weihai and Dezhou in Shandong Province, and Shenzhen in Guangdong Province. There are growing concerns about disruptions to the operations of Korean companies' factories in these areas and supply shortages of materials and components for domestic companies linked to the supply chain with China.

The Ministry of Trade, Industry and Energy has designated the Materials and Components Supply Response Support Center as the one-stop window for resolving supply chain difficulties related to the COVID-19 lockdown in China and plans to establish a support system through organic cooperation with local overseas diplomatic missions, KOTRA, the Korea International Trade Association, and the Korean Chamber of Commerce.

For identified supply difficulties, all available networks such as KOTRA will be mobilized to discover and facilitate contracts with alternative import countries in third countries. Additionally, if necessary, government-wide measures such as expedited customs clearance and exemption from the 52-hour workweek regulation will be actively considered.

The Ministry plans to conduct continuous monitoring and preemptive measures for the industrial supply chain through a 'Major Industry Supply Chain Impact Analysis Meeting' with industry associations such as semiconductors and displays on the 21st, in preparation for the possibility of expanded lockdown measures in China.

Joo Young-jun, Director of Industrial Policy at the Ministry of Trade, Industry and Energy, said, "As supply chain crises become more frequent due to the Russia-Ukraine conflict and COVID-19, cooperation between companies and the government to establish a stable industrial supply chain is more important than ever," adding, "We will do our utmost to manage the supply chain to prevent supply disruptions in key domestic industries' materials and components."

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