The government and the private sector put their heads together to overcome the supply chain crisis in the information and communication technology (ICT) industry caused by the Middle East war.
The Ministry of Science and ICT said on the 16th that it held an emergency meeting with related agencies and major associations to discuss the impact of the Middle East war on the information and communication technology (ICT) industry and response measures.
The meeting was arranged amid concerns over the overall ICT supply chain as restrictions on navigation in the Strait of Hormuz and disruptions in maritime logistics continue, driving a sharp rise in international oil prices and intensifying instability in crude oil and naphtha supply and demand.
About 15 officials from related agencies, including the director general for information and communications policy at the Ministry of Science and ICT, the National IT Industry Promotion Agency (NIPA), and the Institute of Information & communications Technology Planning & Evaluation (IITP), as well as major ICT associations such as the Korea Information and Communication Industry Association, the Korea Artificial Intelligence and Software Industry Association, the Korea Network Industry Association, and the Korea AI Internet of Things Association, attended the meeting.
Participants agreed that the impact of the Middle East war goes beyond simple logistics delays and is acting as a structural burden across manufacturing processes, and they shared difficulties by field.
In particular, as disruptions in the supply of naphtha-based materials and key components deepen, production delays and declines in Production yield due to process instability are occurring in manufacturing sectors such as the Internet of Things (IoT). It was also noted that increases in raw material prices, freight rates, and exchange rates are intertwining, adding to corporations' expense burdens and worsening profitability. In addition, as financial conditions deteriorate, including high interest rates, and order uncertainty widens, there were concerns that management burdens could intensify, centered on small and midsize companies, and that credit risk could expand.
The Ministry of Science and ICT plans to operate an "ICT supply chain inspection virtual situation room" with the participation of related agencies and associations to continuously monitor the status of corporations, and to strengthen non-face-to-face export consulting services through the "Global ICT Portal."