Government Takes Proactive Steps to Strengthen Strategic Industries

The South Korean government is set to unveil a comprehensive supply chain plan for key strategic industries like semiconductors and batteries next week. This move comes as part of broader efforts to enhance industrial competitiveness and address challenges faced by sectors such as the petrochemical industry, which is grappling with global oversupply.

Deputy Prime Minister Choi Sang-mok outlined these policy initiatives during the Ministerial Meeting on Industrial Competitiveness Enhancement held at Hanwha Ocean's Research and Development (R&D) Center in Siheung, Gyeonggi Province on December 11. Choi emphasized the need for extraordinary responses in these extraordinary times, particularly with the upcoming inauguration of the new U.S. administration.

To address supply chain restructuring and support proactive restructuring in the petrochemical industry, Choi highlighted the use of the Supply Chain Stabilization Fund, the Corporate Vitality Act, and tariff policies. The government will also swiftly tackle challenges in the steel industry, which is contending with low-price competition.

The first basic plan, to be announced next week, aims to enhance supply chain stability over a three-year period. This plan includes advancing public stockpiling, expanding domestic production bases, and diversifying import sources. For industries struggling with global oversupply, relaxed standards of the Corporate Vitality Act will be applied to induce proactive business restructuring. In the steel industry, swift investigations and potential anti-dumping duties are planned.

Discussions during the meeting also covered the impact of the new U.S. administration on the shipbuilding industry, strategies for establishing global hub ports, and measures to enhance air transport industry competitiveness. Following the meeting, Choi toured Hanwha Ocean's R&D facilities and listened to industry concerns, pledging continuous support for the development of core technologies and eco-friendly ship technologies.