Choi Sang-mok, Deputy Prime Minister for Economy and Minister of the Ministry of Strategy and Finance, said on the 11th, “To protect our corporations and national interests, we will actively utilize the supply chain stabilization fund, corporate vitality law, and tariff policy as a set of three measures.”
Choi noted at the industrial competitiveness enhancement ministers' meeting, chaired at 9:30 a.m. at the Hanwha Ocean research and development center in Siheung, Gyeonggi Province, “With the launch of the new U.S. administration just 40 days away, we are taking this approach.”
Choi stated, “In a situation where countries around the world are waging an all-out war at the national level, strengthening industrial competitiveness is an essential task that cannot be halted under any circumstances.” Choi also said, “We will mobilize all available policy tools to protect our corporations and national interests.”
Choi continued, “We will announce the first basic plan to enhance the stability of the supply chain for key strategic industries such as semiconductors and batteries next week.” The basic plan is a three-year plan that includes the advancement of public stockpiling, expansion of domestic production bases, and diversification of import sources.
Choi said, “For sectors facing difficulties due to global oversupply, such as petrochemicals, we will apply relaxed corporate vitality law standards to induce preemptive business restructuring.” The current criteria for oversupply sectors require that “if the operating profit margin in the last three years has decreased by more than 15% compared to the past 10-year average,” and it will be supplemented with “if the operating profit margin in the last four quarters has decreased by more than 20% compared to the past 20-quarter average.”
Choi also noted, “For the steel industry and others facing difficulties due to low-price competition, we will conduct prompt investigations and impose anti-dumping tariffs if necessary.” Choi added, “Simultaneously, to dispel concerns about gaps in economic diplomacy, we will fully operate the public-private economic diplomacy cooperation channel.”
In the meeting, discussions were held not only on the challenges faced by our industries due to changes in the global industrial environment but also on the impact of the launch of the new U.S. administration on the shipbuilding industry and countermeasures, global hub port construction strategies, and ways to enhance the competitiveness of the airline industry.
Choi noted, “As the shipbuilding industry is experiencing a boom again, cooperation between South Korea and the U.S. in defense, maintenance, repair, and overhaul (MRO) is expected to become an opportunity for a new leap for our shipbuilding industry.” Choi added, “The government will promptly prepare specific cooperation measures by starting consultations with relevant ministries.” Furthermore, Choi said, “With the budget and tax support for eco-friendly and digital transition technology development and workforce training confirmed, we will swiftly proceed.”
Choi also noted, “We have also prepared preemptive measures for the global shipping and logistics sector, facing industrial environment changes such as supply chain restructuring and export diversification.” Choi added, “The government aims to rank third in global port competitiveness by constructing the Jinhae New Port, securing world-class container port infrastructure, and expanding the handling capacity of Busan Port to double its current level.”
Choi further added, “We will establish a logistics hub investment fund of 1 trillion won by 2028 and secure equity and operational rights for logistics facilities and terminals at key hub ports in the eastern United States, Latin America, and Southeast Asia.”
Regarding the airline industry, Choi said, “Once the merger of Korean Air and Asiana Airlines is completed, a super-large national airline ranked among the world's top 10 will be born.” Choi added, “We will actively support the creation of new flight routes and the expansion of transfer passenger attraction, so our airline industry can leap into the world's top five.”
Choi added, “For routes with monopoly concerns, we will limit fare increases until market competition is restored, and during the merger process, relevant ministries will thoroughly manage to ensure no loss occurs to the mileage held by the public.”