Government Meets Business Leaders to Discuss 'Supply Chain Basic Act'... "Managing Economic Security Items"

Bang Gi-seon, 1st Vice Minister of Strategy and Finance / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Sejong=Reporter Son Seon-hee] The government met with the business community to discuss the 'Basic Act on Supply Chain Stabilization Support for Economic Security (Supply Chain Basic Act)' that it is promoting.

On the afternoon of the 19th, Bang Ki-seon, First Vice Minister of Strategy and Finance, held a meeting on supply chain stabilization at the Korea Eximbank in Yeongdeungpo-gu, Seoul, attended by representatives of six economic organizations. He shared related details and listened to opinions from the business sector, stating, "We will establish a government-wide support system and build a minimum safety net to respond to the global supply chain restructuring." This meeting was the first occasion to exchange views with the business community regarding the Supply Chain Basic Act.

Vice Minister Bang explained the background, saying, "Overseas supply chains are rapidly being reorganized beyond resource security bloc formation into a bifurcation between the US and China supply chains. Countries are weaponizing supply chain superiority technologies strategically and expanding protectionist tendencies such as frequent export controls to secure stable domestic demand."

He added, "It will be difficult for companies to overcome the major wave of global supply chain restructuring on their own. While some companies with established global networks are turning crises into opportunities even under difficult conditions, many companies, including small and medium-sized enterprises, still struggle to adapt systematically and efficiently to rapid changes."

Vice Minister Bang further emphasized the necessity of enacting the Supply Chain Basic Act, stating, "Although various ministries already support related industries through individual laws, there are limitations in stipulating all response measures such as supply chain risk detection, comprehensive support including finance, taxation, and funding, and emergency measures in case of crises within separate laws."

He said, "We will establish a government system to manage key items and services directly linked to economic security, provide grounds for financial, tax, and financial support so that relevant ministries can support the stabilization of their respective industries, and separately prepare a supply chain stabilization fund."

The government plans to gather opinions from related industries, academia, and experts to prepare the Basic Act going forward.