The Ministry of SMEs and Startups said on the 10th that Minister Han Seong-sook visited Shinkwang M&P, a plastic injection molding company in Bucheon, Gyeonggi, to inspect difficulties in securing raw materials and on-site responses as the Middle East war drags on.
The visit was arranged to review how plastic injection molding small and midsize companies are facing greater burdens amid prolonged instability in the Middle East, including disruptions in raw material supply and increased price volatility.
The Ministry of SMEs and Startups (MSS) plans to pursue a "two-track response strategy" that addresses the instability in supply chains stemming from the Middle East by providing urgent management stabilization support and strengthening manufacturing competitiveness.
First, the ministry will strengthen the use of the price indexing system for supply contracts so that cost increases can be reflected in delivery prices, and swiftly implement policy tools such as emergency management stabilization funds and logistics vouchers to ease the burden on corporations.
It also said it would improve resilience to external shocks by simultaneously enhancing process efficiency and fundamentals through the spread of smart factories and support for business conversion.
At the on-site roundtable that day, industry representatives raised concerns that, along with instability in securing raw materials, rises in raw material costs are not being sufficiently reflected in delivery prices, worsening profitability.
The Minister said, "Plastic injection molding corporations are a foundational industry in the manufacturing supply chain," and added, "We will reflect the difficulties raised on-site in policy to support crisis response."
The Ministry of SMEs and Startups (MSS) said that since the outbreak of the war, it has been operating an emergency response system involving associations and local offices of the Ministry of SMEs and Startups, and plans to continue expanding support for supply chain stability.