Martial Arts and Trade Industry CEOs Unite to Advise Government: "Support Needed" in Unison

Industry Opinions and Suggestions on Current Issues Including Supply Chain, Logistics, Marketing, Business Environment, and Carbon Neutrality Response

[Asia Economy Reporter Park Sun-mi] The Korea International Trade Association (KITA) has delivered a policy recommendation report titled "Voices from the Export Field for the New Government," which reflects the opinions of 342 CEOs of small and medium-sized as well as mid-sized trading companies nationwide, to the Ministry of Trade, Industry and Energy.

According to KITA on the 18th, industry representatives unanimously emphasized that "since the export environment is expected to worsen due to disruptions in the supply of raw and subsidiary materials and logistics difficulties, the government’s prompt support is necessary in areas such as supply chains, logistics, marketing, business environment, and carbon neutrality response."

According to the report, it was particularly identified that instability in the supply of general-purpose semiconductors is causing disruptions in the production of finished products in other industries. Company A, which produces semiconductor equipment, stated, "Even if we order goods from global MCU (Microcontroller Unit) manufacturers at prices 30 times higher than before the pandemic, we only receive about 10% of the required quantity," adding, "Moreover, we can only receive them six months later, causing difficulties in semiconductor equipment production."

KITA suggested that regarding the industry's difficulties in securing raw and subsidiary materials, "the government should provide incentives to large corporations so that they can contribute to stabilizing the supply of raw and subsidiary materials for small and medium enterprises by utilizing their own networks." They also proposed expanding the deferral system for value-added tax payments on imported raw materials for export and the application of import quota tariffs to alleviate the cost burden on trading companies.

Another major challenge cited was that global large corporations participating in RE100 (a global campaign to convert 100% of corporate electricity consumption to renewable energy) are strengthening carbon neutrality-related demands on companies within their supply chains.

Automotive parts company B stated, "Although finished vehicle manufacturers require greenhouse gas reduction plans including the use of renewable energy, it is difficult not only to secure renewable energy sources but also to even measure the overall greenhouse gas emissions status." In response, the association requested that the government establish a foundation to quantitatively measure carbon emissions and improve systems to enhance small and medium enterprises’ access to renewable energy.

In addition, they jointly proposed measures for the trading industry, which must actively resume face-to-face marketing activities after COVID-19, including "expansion of air routes," "exemption from submitting negative test certificates upon return from overseas business trips," "increased budget support for logistics costs," and "establishment of a government-wide logistics control tower" to help resolve logistics difficulties.

Kim Byung-yu, Head of KITA’s Member Services Division, stated, "We plan to conduct in-depth discussions with the Ministry of Trade, Industry and Energy to reflect the industry's difficulties and suggestions contained in this report," adding, "We will continue to receive and address scattered trade regulations and difficulties through the Regulatory Reform Task Force (TF) and do our best to resolve them."

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