Launch of Legal Institution SoBuJang Supply Chain Center... "More Time Needed" for Organizational Setup

The ‘Materials, Parts, and Equipment Industry Supply Chain Center’ (hereinafter referred to as the Supply Chain Center), which comprehensively supports the stabilization of our company’s supply chain, has officially opened, but it has been revealed that the organizational structure and the establishment of the center’s roles are still insufficient.

On the 20th, KOTRA announced that Jeong Woe-Young, head of KOTRA’s Innovation Growth Headquarters, will take on the role of director of the newly opened Materials, Parts, and Equipment Supply Chain Center, following the plaque ceremony held the previous day. Only the director has been confirmed, and the future organization and operation plans have not yet been decided. The Innovation Growth Headquarters, led by Director Jeong, has been handling supply chain-related tasks under its Global Supply Chain Office, but since it also oversees the Overseas Project Office and Service ICT Office, internal organizational changes are necessary. A KOTRA official explained, “Since KOTRA is responsible for the overall role of the Supply Chain Center, it is highly likely that the organization performing this role will also expand in the future,” adding, “The organizational structure has not yet been finalized as the center is still in its early stages.”

The Supply Chain Center became a statutory institution receiving government funding following the expansion and revision of the Materials, Parts, and Equipment Special Act into the Materials, Parts, Equipment, and Supply Chain Special Act last May. The main roles of the newly launched Supply Chain Center include ▲collecting, analyzing, and disseminating supply chain information ▲building and operating a supply chain information system (early warning system) ▲supporting supply chain stabilization projects. It will help convey field difficulties related to supply chains to the Ministry of Trade, Industry and Energy, assisting the government in supplementing or establishing related policies, and regularly hold industrial supply chain councils to support our companies’ supply chain management in areas such as diversifying import sources, establishing production facilities, and finance and taxation. In essence, it has become a government-affiliated dedicated supply chain agency.

KOTRA, which has overseas trade offices, serves as the overall center, while the Korea International Trade Association (KITA) handles trend surveys and information analysis, and the Korea Machine Industry Promotion Association is responsible for building the information system. However, aside from KOTRA’s overall leadership, detailed task divisions have not been finalized. The Korea International Trade Association, which previously operated a Global Supply Chain Analysis Center and published weekly Global Supply Chain Insights reports, reportedly conveyed that there is no longer a need for KITA to continue this work now that KOTRA is the overall center.

There are also voices suggesting that KOTRA’s role as the overall Supply Chain Center is influenced by government subsidies. According to Article 3 of the Special Measures Act to Strengthen the Competitiveness of Materials, Parts, and Equipment, the government decided to inject subsidies into the ‘Materials, Parts, and Equipment Supply Chain Stabilization Comprehensive Support Pilot Project,’ which KOTRA is leading to support mid-sized and small and medium enterprises in securing supply chain stabilization capabilities.

Industry insiders expect that since the revised Materials, Parts, Equipment, and Supply Chain Special Act will be fully enforced six months after its promulgation in May, the government budget for the Supply Chain Center, detailed role divisions for related institutions, and organizational adjustments within KOTRA as the overall center will be finalized within this year. Regarding the opening of the Supply Chain Center, Jang Young-Jin, Vice Minister of the Ministry of Trade, Industry and Energy, who attended the plaque ceremony the previous day, stated, “By advancing the early warning system (EWS) that detects global supply chain risks in advance and enables proactive responses, we will monitor supply chain anomalies in real time,” adding, “Through contingency plans, we will promptly block supply chain shocks.”

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