The Basic Supply Chain Act Passes National Assembly's Budget Committee... Introduction of Fiscal Rules Fails Again

Response to Global Supply Chain Disruption
Establish Stabilization Fund to Support Core Supply Chain Projects
Fiscal Rule Introduction in National Finance Act Fails to Pass

The bill for the "Basic Act on Supply Chain Stabilization Support for Economic Security" (Supply Chain Basic Act), aimed at effectively responding to the global supply chain disruption crisis, passed the National Assembly's Planning and Finance Committee on the 24th.

The bill focuses on establishing a supply chain stabilization fund operated by the Korea Eximbank to support core supply chain businesses, and setting up a Supply Chain Stabilization Committee to deliberate and coordinate related matters.

On the 5th, at the Planning and Finance Committee plenary meeting held at the National Assembly, Chairman Yoon Young-seok is striking the gavel. Photo by Hyunmin Kim kimhyun81@

Essential goods or services for the public are designated as economic security items or services, and the bill also specifies grounds for providing tax reduction benefits to "leading supply chain stabilization operators" handling economic security items. Additionally, it includes provisions for the Minister of Strategy and Finance to establish a basic supply chain stabilization plan every three years.

The Supply Chain Stabilization Committee, serving as a control tower, was established to address supply chain issues at the government-wide level, and the "Basic Act on Supply Chain Stabilization Support for Economic Security (Supply Chain Basic Act)" was passed.

Earlier, the ruling and opposition parties held an economic and fiscal subcommittee meeting of the Planning and Finance Committee in the morning and approved the Supply Chain Basic Act. They also passed the "Korea Eximbank Act Amendment," which adds supply chain stabilization to the areas where the Korea Eximbank provides funding, in accordance with the Supply Chain Basic Act.

However, the amendment to the National Finance Act was not reviewed. Ryu Seong-geol, the ruling party secretary of the Planning and Finance Committee, told reporters after the economic and fiscal subcommittee meeting, "Due to time constraints, we were unable to discuss the amendment to the National Finance Act."

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