Ministry of Trade, Industry and Energy, 18th Industrial Security TF Meeting
Park Jin-gyu, Vice Minister of the Ministry of Trade, Industry and Energy, is delivering a congratulatory speech at the 2022 Korea Green Mobility Awards hosted by Asia Economy at Lotte Hotel in Jung-gu, Seoul on the 26th. Photo by Hyunmin Kim kimhyun81@
[Asia Economy Sejong=Reporter Dongwoo Lee] Amid escalating military tensions between Ukraine and Russia, the government announced that it will activate the 'Real Economy Security Countermeasures Headquarters' in the event of armed conflict between the two sides.
On the 26th, the Ministry of Trade, Industry and Energy held the 18th Industry Security Task Force (TF) meeting, a joint public-private session chaired by First Vice Minister Park Jin-gyu, to review the impact on major industries and energy supply and demand related to the Russia-Ukraine situation.
At the meeting, it was forecasted that if the current situation between the two countries continues, energy prices such as oil and natural gas could rise. It was also suggested that if armed conflict occurs, shocks could spread throughout the international economy, including disruptions to international trade and transactions and supply chain disturbances.
However, there was also an opinion that the short-term and direct impact on the real economy would be limited due to the relatively small trade volume with Russia and Ukraine. This is because South Korea's export volume to Russia accounts for 1.5%, ranking 12th (Ukraine 0.1%, 64th).
Possibility of some damage at the individual company level was also mentioned. It was analyzed that some effects such as deterioration of profitability for domestic companies due to rising international prices could occur.
Vice Minister Park, who chaired the meeting, emphasized, "We will always assume the worst-case scenario and prepare thoroughly," adding, "We will ensure that the industry is always ready to activate business continuity plans (BCP) for each company and make every effort to stabilize raw material supply."
He further stated, "In the event of armed conflict, we will immediately form the 'Real Economy Security Countermeasures Headquarters' involving industry and public institutions, and cooperate with relevant ministries to respond without any gaps."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
