Ministry of Trade, Industry and Energy

Starting this year, the Ministry of Trade, Industry and Energy (MOTIE) will be launching measures to stabilize the supply chain in earnest following the Industrial Supply Chain Strategy announced on December 13.

First, the ministry will drastically up the R&D budget on key supply chain items from last year’s KRW 17.6 billion to 73.9 billion won this year. Support will go towards the technological development of 29 key items like secondary battery materials and electrical and electronic core parts based on an R&D track set aside for key supply chain items.

Moreover, through the “Supply Chain Completion Cooperative Model” consisting of 3 project tasks worth 6 billion won, buyer and supplier companies will be assisted in their efforts to jointly develop two or more supply chain key items intertwined across the value chain. Also, key supply chain items will receive prioritized support through mass production capacity evaluation for supporting the commercialization of R&D output, which will be conducted for 150 companies in 2024 (up from 100 companies in 2023).

Furthermore, MOTIE is planning to help diversify import channels for SMEs and middle-market companies regarding the uncovering of substitute import sources and onsite inspections, sample imports and performance tests as well as the introduction of substitute goods. In 2023, the ministry rolled out a pilot project on four items including lithium hydroxide, germanium and molybdenum, and in 2024, it will be supporting the discovery of substitute import channels on 10 items after a demand survey on an increased budget of 780 million won, up from the 460 million won of 2023. K-SURE’s import insurance limit on raw materials (including key supply chain items) will cover up to 10 billion won, double the amount of last year.

In addition, the 37.2 billion won critical minerals stockpile budget of 2023 will be increased to 233.1 billion won in 2024 in order to stabilize the minerals supply chain. The stockpile of lithium and rare earth permanent magnet for electric vehicles and such critical minerals essential for advanced industries will be drastically expanded and new storage facilities will be constructed exclusively in preparation against the growing amount of stockpile.

MOTIE plans to keep expanding the range of projects for stabilizing the supply chain for Korean businesses through various measures, such as publishing a detailed analysis and strategy on key supply chain items.