Passage of the Special Act on Materials, Parts, and Equipment in the National Assembly... Supporting Competitiveness and Supply Chain Stabilization of Materials, Parts, and Equipment

Items with Significant Economic Impact Selected as 'Supply Chain Stability Items'

A law to support the 소재·부품·장비 (SoBuJang, Materials, Parts, and Equipment) industry has passed the National Assembly.

The resolution on voluntary reporting and investigation of virtual assets by members of the National Assembly is being passed at the plenary session held at the National Assembly on the 25th. Photo by Kim Hyun-min kimhyun81@

On the 25th, the Ministry of Trade, Industry and Energy announced that the amendment to the "Special Measures Act for Strengthening the Competitiveness of the Materials, Parts, and Equipment Industry and Stabilizing the Supply Chain" (SoBuJang Special Act) has passed the plenary session of the National Assembly. The special act is scheduled to be promulgated after approval by the Cabinet meeting and will be fully enforced six months after promulgation.

The SoBuJang Special Act, one of the "Supply Chain 3 Acts" being legislated to respond to supply chain disruptions, has been expanded and amended. It is the first among the Supply Chain 3 Acts to pass the National Assembly.

According to the special act, the Minister of Trade, Industry and Energy will select certain items within SoBuJang products that have a high import dependency on specific countries or have a significant impact on the domestic economy as "Supply Chain Stability Items."

There are plans to proactively respond to supply chain risks. The Minister may comprehensively review the inventory and supply-demand outlook of the Supply Chain Stability Items and recommend companies to increase their inventory of those items. Costs necessary for establishing or expanding purchasing and storage facilities can also be supported. Additionally, to reduce import dependency on specific countries, if domestic companies relocate their overseas plants to neighboring countries (P-turn), financial and other support may be provided. Companies receiving such support may be ordered to bring items produced overseas back to the domestic market in emergencies.

Furthermore, the special act includes provisions for establishing and operating an Early Warning System (EWS) for supply chains, as well as the designation of the SoBuJang Industry Supply Chain Center and the National Rare Metals Center.

The bill for the Special Act on the Activation of Distributed Energy also passed. The Distributed Energy Act aims to build a distributed energy system that produces and consumes electricity near demand sites. Previously, social conflicts frequently occurred due to low acceptance by local residents during the construction of large-scale power plants and long-distance transmission networks. The Distributed Energy Act was proposed to overcome the limitations of such centralized power systems.

It also includes systems such as the integrated power plant system, which aggregates small distributed resources to trade in the electricity market as if they were a single power plant.

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