Choo Kyung-ho "Extension of Allocated Tariffs on Urea Until Next Year... Considering Establishment of Domestic Production Facilities"

Government Economic Security Supply Chain Ministerial Meeting
Support for Urea Maritime Transport Costs Until April Next Year
Procurement Agency to Release 1930t of Urea Stockpile This Month

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated on the 11th, "We will extend the allocation tariff on urea, which is scheduled to end this year, until next year and review plans to establish domestic production facilities for urea."

On the morning of the same day, Deputy Prime Minister Choo chaired the Economic Security Supply Chain Ministerial Meeting at the Government Seoul Office and said, "Recently, supply chain risks for items directly related to our economy's core industries and people's livelihoods, such as urea, ammonium phosphate, and graphite, have been expanding due to China's export controls."

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is speaking about urea solution at the Economic Security Supply Chain Ministerial Meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 11th. Photo by Jo Yong-jun jun21@

To stabilize the domestic market for urea solution, the government will continuously increase the volume imported from overseas and activate communication channels with China through the Ministry of Foreign Affairs and other ministries to expedite the resumption of exports for shipments that have completed quarantine at Chinese customs.

First, to prevent a domestic urea solution crisis, the allocation tariff will be extended until next year. Deputy Prime Minister Choo announced, "We will extend the allocation tariffs on urea from China, Indonesia, Saudi Arabia, and others until next year, and provide temporary financial support for part of the maritime transportation costs for volumes imported domestically until April next year." He added, "We will urgently release 1,930 tons of urea stockpiled by the Public Procurement Service within this month, expand the scale of public reserves, and promote joint purchases by small and medium-sized enterprises. We also plan to review plans to establish domestic production facilities for urea."

Deputy Prime Minister Choo emphasized, "We will closely monitor the domestic supply and demand situation of urea daily and, if necessary, consult with relevant ministries to consider implementing measures such as hoarding prohibition notices or emergency supply and demand adjustment actions to prevent market confusion caused by speculative demand or stockpiling due to anxiety." According to the government, unlike on-site sales at gas stations, the online market has seen price increases and delivery delays at less than 1% of total urea sales. The price of urea sold at gas stations averaged 1,602 KRW per liter as of the 7th, which the government considers stable compared to the 2021 urea solution crisis. As of today, the total domestic urea stockpile is sufficient for 4.3 months, an increase of 1.3 months compared to the 30th of last month.

Five Months' Stock of Fertilizer Raw Material 'Ammonium Phosphate' Secured Until Next Year

He also explained, "Regarding ammonium phosphate, a raw material for agricultural fertilizer, we currently have a total stock of 40,000 tons, including 10,000 tons of finished products and 30,000 tons of raw materials, enabling stable domestic supply until May next year." The government plans to apply allocation tariffs on ammonium phosphate until the first half of next year as well. To stabilize supply and demand, joint purchases from third countries such as Morocco and Vietnam will be supported, and if supply instability occurs, the government will consider converting the volume produced and exported by domestic companies (Namhae Chemical) to domestic consumption.

Deputy Prime Minister Choo stated, "Regarding graphite, a key material for secondary batteries, companies currently have stockpiles sufficient for 3 to 5 months, ensuring smooth supply. However, the government will monitor market conditions and support the establishment of a domestic graphite production base and alternative imports from third countries such as Tanzania." He added, "For gallium and germanium used in semiconductors and displays, although export permits from the Chinese government are underway, we will not hesitate to support expanding stockpiles, research and development (R&D), and discovering alternative import sources as needed based on supply and demand conditions."

He said, "With the Basic Supply Chain Act having passed the National Assembly plenary session last week, the government's ability to respond to and recover from supply chain risks will be strengthened." He added, "The government will prepare subordinate regulations and complete the establishment of funds by June next year, the enforcement date of this law, to ensure thorough formulation and execution of supply chain stabilization policies."

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