IPEF Supply Chain Agreement to Take Effect Domestically on the 17th... 14 Countries to Jointly Respond Immediately to Supply Chain Crises

On the 17th, the Indo-Pacific Economic Framework (IPEF) Supply Chain Agreement will officially come into effect in Korea. In the event of a supply chain crisis involving key resources, 14 countries including the United States, Japan, and Australia will jointly respond immediately.

On the 12th, the Ministry of Trade, Industry and Energy announced that Korea will become the sixth country to ratify the IPEF Supply Chain Agreement, following the United States, Japan, Singapore, Fiji, and India. Korea deposited its instrument of ratification on the 18th of last month, and according to the agreement’s entry-into-force provisions, it will take effect domestically on the 17th of this month, 30 days later.

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IPEF is an economic security alliance in the Indo-Pacific region led by the United States. It includes 14 countries: the United States, Korea, Japan, Australia, India, Brunei, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, Thailand, Vietnam, and Fiji. IPEF is composed of four pillars: Pillar 1 (Trade), Pillar 2 (Supply Chain), Pillar 3 (Clean Economy), and Pillar 4 (Fair Economy). Except for India, which does not participate in Pillar 1, the other 13 countries participate in all pillars.

Under the Supply Chain Agreement, member countries will cooperate during peacetime to enhance supply chain resilience through increased investment, logistics improvements, and joint research and development (R&D). In the event of a supply chain crisis, if a member country requests, an emergency meeting will be held within 15 days to discuss overcoming measures such as matching supply and demand companies and discovering alternative transportation routes through a 'Crisis Response Network.'

An official from the Ministry of Trade, Industry and Energy stated, "The Supply Chain Agreement is the first multilateral international agreement related to supply chains and will greatly contribute to building a more stable regional supply chain." He added, "Through this, it is expected that Korea’s ability to respond to supply chain crises will be enhanced, as the country relies heavily on imports for key minerals and other major raw materials."

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