Kim Jungkwan: "Even After the War, Energy Normalization Will Take Time... Supply Chain Strategy Shift Needed"

On the 14th, the Korea Trade Insurance Corporation in Jongno-gu, Seoul, hosted the "Financial Support Agreement Ceremony between Korea Trade Insurance Corporation and Woori Bank to Strengthen K-Consumer Goods Export Supply Chains." Kim Jung-gwan, Minister of Trade, Industry and Energy, who attended the ceremony, is delivering a greeting speech. 2026.04.14 Photo by Yoon Dongju

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Kim Jung-kwan, Minister of Trade, Industry and Energy, emphasized the need to restructure supply chains in light of the Middle East energy crisis, stating, "Even after the war ends, it will take a considerable amount of time before supply and demand normalize."

In an interview with Yonhap News on April 19, Minister Kim explained, "The current crisis is not just a matter of price volatility, but stems from our energy structure's heavy reliance on the Middle East." He added, "We need to pursue policies that diversify crude oil and naphtha import sources and disperse transport routes."

Minister Kim also made it clear that this situation calls for a shift in supply chain strategy. He said, "We must move away from the 'just-in-time' approach that prioritizes efficiency and transition to a 'just-in-case' strategy that maintains a certain level of buffer." He stressed, "We need to strengthen supply chain stability, not only for energy but for all key raw materials."

Regarding the government's implementation of the oil price cap, Minister Kim expressed a cautious stance. "Although it is not an ideal policy from a market-function perspective, it was an unavoidable measure given the impact of a sharp rise in oil prices on people's livelihoods," he said. "Once the situation stabilizes, we will gradually normalize the policy."

Concerning the supply of petrochemical feedstocks such as naphtha, he observed, "As we move past April, there is a possibility that market anxiety will gradually subside." He analyzed, "The confusion seen in some sectors is largely due to market jitters and preemptive stockpiling, rather than an actual shortage of supplies."

On the external trade environment, he stated, "Cooperation with major countries such as the United States is important, but rather than being caught up in a race for speed, we need to make strategic decisions that align with our industrial structure." He added, however, "We should address energy security and trade issues separately."

Regarding industrial competitiveness, Minister Kim identified the transition to artificial intelligence (AI) as a core task. He said, "If we fall behind in the AI transition, the very future of our manufacturing industry could be at risk," emphasizing, "We must enhance both productivity and competitiveness by spreading manufacturing AI."

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