Government "Expands Core Economic Security Items"... Industry and Supply Chain Meeting

by Jo Youjin

Published 10 May.2024 11:30(KST)

Listening to Requests from Associations and Industry

Minister Bang Moon-gyu of the Ministry of Trade, Industry and Energy (left) is attending the Economic Security Supply Chain Ministerial Meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 11th, shaking hands with Kim Yoon-sang, Administrator of the Public Procurement Service. Photo by Jo Yong-jun jun21@

The Ministry of Economy and Finance announced that on the 10th, under the chairmanship of Deputy Minister Hong Du-seon, a joint meeting for supply chain stabilization was held at the Korea Fiscal Information Service with related ministries.

This meeting was organized to introduce the government's key policy directions, such as the selection of core economic security items, designation of leading businesses, and the supply chain fund, ahead of the enforcement of the 'Supply Chain Stabilization Act' scheduled for the end of next month, and to gather opinions from the private sector.

On the government side, participants included the Ministry of Economy and Finance, Ministry of Agriculture, Food and Rural Affairs, Ministry of Trade, Industry and Energy, Ministry of Environment, Ministry of Oceans and Fisheries, Ministry of SMEs and Startups, Ministry of Food and Drug Safety, Defense Acquisition Program Administration, Korea Disease Control and Prevention Agency, and Korea Eximbank. From the private sector, economic organizations, industry associations, and company representatives attended.

The attendees presented various opinions such as expanding core economic security items, supporting the establishment of R&D production infrastructure, diversifying import sources, and stabilizing logistics networks, and expressed interest in the supply chain stabilization fund.

Deputy Minister Hong Du-seon stated, "As the global supply chain restructuring accelerates, the government will build a more dense and robust supply chain for our economy and industry based on the proposals from the private sector."

Based on the Supply Chain Stabilization Act, which is set to be enforced on June 27, the government is establishing a pan-government response system and strengthening supply chain diversification and energy security.

Amid the global supply chain restructuring centered on the US-China hegemonic conflict, the demand for critical minerals used in advanced technology sectors such as semiconductors and electric vehicle batteries is rapidly increasing as essential materials for future strategic industries. However, since deposits and production are concentrated in specific countries, price and supply risks are growing, making the securing of a stable supply chain more important than ever.

Currently, the pan-ministerial economic security task force (TF), involving the Ministry of Economy and Finance, Ministry of Trade, Industry and Energy, Ministry of Environment, and others, is temporarily managing about 200 core items. The government plans to go further by establishing a Supply Chain Committee as a national control tower for supply chains and operating a rapid response team that can respond swiftly according to an emergency response manual when warning signs of crises occur.

Additionally, through the establishment of a fund worth up to 10 trillion won, the government will promote technological independence of core materials and components and strengthen resource development capabilities. The goal is to establish a 'Three-Year Basic Plan for Supply Chain Stabilization' containing these measures within the first half of this year.