Government Expands Economic Security Items to Include Materials, Parts & Equipment, Defense, and Pharmaceuticals (Comprehensive)

Kim Byung-hwan, Vice Minister of Strategy and Finance, is delivering opening remarks at the "12th Economic Security Core Items Task Force Meeting" held at the Government Seoul Office Building on the afternoon of the 7th.

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The government plans to expand economic security items to include materials, parts, and equipment (SoBuJang) related to key industries of our economy, as well as defense industry, pharmaceuticals, and major import items of small and medium-sized enterprises.

On the 7th, the Ministry of Economy and Finance held the 12th Economic Security Core Items Task Force (TF) meeting at the Government Seoul Office to discuss this plan.

The government discussed expanding economic security items by reflecting opinions from related ministries and industries. Economic security items refer to goods with high import dependence on specific countries or items essential for the stable operation of the economy and the daily lives of citizens.

Specifically, the plan is to expand economic security items to include SoBuJang items with potential supply chain risks, items requiring increased technological independence such as defense industry, pharmaceuticals directly related to people's livelihood, and major import items of small and medium-sized enterprises.

Among these, for items urgently requiring stabilization efforts at the inter-ministerial level, measures such as diversifying import sources, stockpiling, research and development (R&D) of alternative technologies, and infrastructure establishment will be implemented first for management. Items previously designated but with reduced demand due to import source diversification or alternative development have been excluded from economic security items.

The government will also newly designate economic security services. These include logistics and other services that may disrupt the introduction, production, and distribution of economic security items.

The government plans to submit this designation plan to the Supply Chain Stabilization Committee after the Supply Chain Stabilization Act takes effect on the 27th of this month for final approval.

The TF also discussed guidelines for selecting leading operators for supply chain stabilization. Leading operators for supply chain stabilization refer to businesses or business groups that contribute to the smooth introduction, production, and provision of economic security items under the Supply Chain Stabilization Act. They will be supported by the supply chain fund newly established in the second half of this year. The designation criteria include relevance to economic security items, appropriateness of business plans, and basic financial conditions for project implementation.

The government plans to announce the first public notice for the designation of leading operators on the 27th. Kim Byung-hwan, Vice Minister of the Ministry of Economy and Finance, said, "The decision to expand economic security items and to start the selection process for leading operators early reflects the government's strong will to promptly establish the foundation for supply chain stabilization."

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