Government Launches Supply Chain Inspection... "Pursuing Amendment of SoBuJang Special Act Within the Year"

Vice Minister Jang Young-jin Chairs the '24th Industrial Resource Security TF' Meeting

Business Restructuring-Policy Finance Coordination Strategy Meeting
(Seoul=Yonhap News) Reporter Shin Jun-hee = On the 3rd, at the 1st Business Restructuring-Policy Finance Coordination Strategy Meeting held at the Korea Chamber of Commerce and Industry, Jang Young-jin, the 1st Vice Minister of the Ministry of Trade, Industry and Energy, is speaking. 2022.8.3 [Joint Coverage]
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[Asia Economy Sejong=Reporter Lee Jun-hyung] The government has launched an inspection of supply chain risks. It plans to push for the revision of the 'SoBuJang (Materials, Parts, and Equipment) Special Act' within the year to stabilize the supply chain.

The Ministry of Trade, Industry and Energy announced that First Vice Minister Jang Young-jin held the '24th Industrial Resource Security Task Force (TF)' meeting on the 18th at the Korea Chamber of Commerce and Industry in Seoul. This meeting was organized to assess the impact of supply chain crisis factors such as the US-China technological hegemony competition, the prolonged Ukraine war, and China's export-import controls against Taiwan on our industry.

The TF focused on discussing the domestic supply and demand status of over 30 key items, including semiconductor rare gases and core materials for secondary batteries. Emergency supply chain response measures for each item were also discussed. Vice Minister Jang said, "We have established an Early Warning System (EWS) for 119 key items across industrial sectors to thoroughly monitor unusual trends in major countries and export-import status without fail," adding, "So far, there are no supply crisis items identified that could cause a 'second urea solution incident'." He further stated, "(However) efforts to stabilize the supply chain, such as diversifying import countries, expanding stockpiles, and developing technologies for localization, must continue."

The TF also gathered opinions on the SoBuJang Special Act from economic organizations such as the Korea Chamber of Commerce and Industry and the Korea International Trade Association, as well as industry-specific associations attending the meeting. The Ministry of Trade, Industry and Energy is preparing a revision bill for the SoBuJang Special Act that includes measures to strengthen government support for private stockpiling and import diversification. Meeting participants agreed with the purpose of the special act revision and urged the government to promptly establish a supply chain support system.

The ministry stated its intention to push for the revision of the SoBuJang Special Act within the year. A ministry official said, "We will continue to thoroughly monitor supply chain instability factors through the EWS," and added, "We plan to respond with full force to stabilize the supply and demand of key items."