The government is broadening the scope of its Supply Chain Stabilization Fund to include stockpiling, diversifying imports, and securing overseas production bases. The number of economic security items will increase from 327 to 340, with around 100 designated as key management items for enhanced monitoring and financial and tax support.
Deputy Prime Minister and Minister of Finance Lee Hyung-il chaired a meeting of the Supply Chain Stabilization Committee at the Government Seoul Complex on October 12, discussing these supply chain stabilization measures. The meeting covered the fund's operational performance, future plans, revisions to economic security items and services, support for patent strategies, improvements in the stockpiling of urea for vehicles, and strategies for crude oil and naphtha supply amid ongoing instability in the Middle East.
Since its launch in September 2024, the Supply Chain Stabilization Fund has supported a total of 153 projects, amounting to over 17.4 trillion won. The government plans to establish new support programs for strategic material stockpiling and diversifying import sources, as well as increase investments in securing overseas production bases. The 2025 government budget includes 200 billion won for related investments, aimed at encouraging improvements in supply chain structures for projects that are critical but difficult for the private sector to invest in alone.
The management system for economic security items will also be revised. Key items in advanced industries such as semiconductors, renewable energy, and aerospace will be added, raising the total to 340. The existing classification system of grades 1 to 3 will be restructured into key management items and general management items. Approximately 100 key management items will focus on critical minerals, materials, components, equipment, and items related to public welfare stability.
Key management items will be monitored through a cross-departmental integrated early warning system (EWS) set to begin pilot operations in November. The fund will also offer preferential interest rates of up to 2.3 percentage points, focusing financial and tax support on these items. This is a proactive measure to respond to external risks such as export controls and to concentrate limited policy support on essential items.
The government is also pursuing the acquisition of supply chain technologies using patent information. By analyzing approximately 600 million global patent data, the government aims to identify alternative suppliers and technologies for items and technologies with high dependency on specific countries, while supporting technology transfers to domestic companies. Companies will receive information on technology diversification based on patent analysis, and an industry-specific supply chain patent strategy map will be developed to identify areas where securing core technologies and patent positioning is necessary.
Improvements will also be made to the management system for urea stockpiling for vehicles. To ensure that stockpiled quantities can be utilized immediately during supply chain crises, a safety stock level of 70% will be established, and on-site inspections will be strengthened. The government will directly stockpile some quantities, while private sector participants will be incentivized with expanded emergency loan and sales quantities during crises, as well as additional payments for storage and inventory circulation costs.
The government will continue to monitor crude oil and naphtha supply amid ongoing instability in the Middle East, closely observing supply trends and preparing additional response measures as necessary.
Deputy Prime Minister Lee stated, "Supply chain instability is not a temporary variable but a structural risk that our economy must manage continuously. We need to proactively identify and strengthen the vulnerable links in the supply chain beyond just short-term crisis responses."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.