The Ministry of Economy and Finance building in Sejong (Image courtesy of Yonhap)
SEOUL, Aug. 20 (Korea Bizwire) — The government on Wednesday announced a set of measures aimed at stabilizing supply chains in the nation’s strategic industries, with support extending to “every stage” of the industrial process, the finance ministry said.
The Ministry of Economy and Finance said the measures will focus on sectors particularly vulnerable to disruptions from ongoing global supply chain realignments and geopolitical uncertainties, such as secondary batteries, semiconductors, critical minerals, logistics and infrastructure.
“Supply chains are intricately connected and multilayered, spanning from securing raw materials to distribution, processing of intermediate goods and final product manufacturing,” a ministry official said. “A preemptive restructuring of the industrial system is necessary.”
As part of the plan, the government will provide 45.8 trillion won (US$32.8 billion) in low-interest policy financing to companies within key sectors this year.
The government will also expand support for overseas resource development, especially in securing critical minerals and raw materials amid heightened geopolitical risks stemming from the prolonged Russia-Ukraine war and conflicts in the Middle East.
“Securing resources goes beyond the private sector’s capacity as it is a high-risk endeavor, compounded by a lack of information,” the official said.
To that end, the government plans to invest 50 billion won through a dedicated supply chain fund in overseas mineral resource development projects, while also expanding linked support such as success-based loans.
Citing persistent trade and geopolitical uncertainties and other conflicts, the ministry also emphasized the importance of securing stable logistics networks.
The government will significantly expand funding through the supply chain stabilization fund to cover transportation and distribution infrastructure.
As part of this effort, the ministry announced plans to increase the number of joint overseas logistics hubs from six in 2025 to around 40 by 2032.
The hubs allow small and mid-sized enterprises (SMEs), which often lack the capacity to establish independent logistics centers abroad, to share warehouse space operated by local logistics companies.
The ministry noted that major economies are increasingly providing aggressive support for high-tech industries as part of efforts to restructure supply chains to ensure economic security.
The United States’ CHIPS Act, for instance, is designed to strengthen the semiconductor supply chain by offering incentives for domestic manufacturing and R&D, thereby reinforcing overall supply chain stability, it said.
(Yonhap)
