The government activated a public-private cooperation channel and asked major business groups to secure alternative supply sources and join in energy saving to respond to supply chain shocks from the Middle East war.
Minister Kim Jung-kwan of the Ministry of Trade, Industry and Resources on the 27th held an emergency meeting with the leaders of six business groups: the Korea Chamber of Commerce and Industry, The Federation of Korean Industries, the Korea International Trade Association, the Korea Enterprises Federation, the Korea Federation of Small and Medium Enterprises, and the Federation of Middle Market Enterprises of Korea (FOMEK). The meeting was arranged as a follow-up to the "Emergency economic review meeting" presided over by the president on the 26th.
At the meeting, the government stressed three points to the business community. First, it asked for immediate action to stabilize supply chains, including identifying alternative supply sources and assessing inventory status. It made clear a firm policy to respond strictly to supply chain disruptions such as collusion and hoarding. It also urged participation in energy saving, including voluntary odd-even commuting and the introduction of flexible work arrangements.
The government will also provide backing. It plans all-out support to ensure there are no disruptions to the production of health care, key industries, and daily necessities through measures such as the strategic release of stockpiled oil and covering the price difference when importing naphtha from overseas. A one-stop window to resolve corporations' difficulties, the "Middle East war supply chain support center," is also in operation.
The Minister said, "We must prepare for every possible scenario that could lead to a major crisis, with an awareness of a grave situation tantamount to wartime," and added, "We will push ahead without disruption with a great industrial transformation through MAX (M.AX, manufacturing AI transformation) and region-centered growth."