Deputy Prime Minister Choi Sang-mok presided over the Ministerial Meeting on International Economic Affairs at the Government Complex-Seoul on April 25 to discuss ① response strategies to the restructuring of global supply chains, ② plans for implementing and utilizing the Indo-Pacific Economic Framework (IPEF) supply chain agreement, and ③ strategies for IPEF 2024.
The following are key messages of DPM Choi’s remarks.
In the first quarter of this year, the Korean economy grew by 1.3% compared to the previous quarter, showing a ‘clear signal’ of economic growth after a long time. Although there are some temporary factors that have driven this result, it can be viewed as a ‘textbook example of a return to growth trajectory’ for two main reasons: ① ‘private sector-led growth’ rather than relying solely on fiscal stimulus, and a ② ‘balanced economy’ driven by domestic factors such as consumption, construction, and investment in addition to a pickup in exports.
However, as the recent external economic conditions surrounding Korea remain uncertain, the government is exercising heightened vigilance over domestic and international financial markets, the real economy, and bargaining power in the global community, more so than ever before. Every ministry is exerting its utmost efforts to minimize any negative repercussions on the Korean economy. In the face of escalating uncertainty and instability in the global economy, the government will strive to establish a robust and tightly-knit supply chain to serve as a pivotal state in the global supply network.
To this end, the government will prepare pan-governmental supply chain response strategies ahead of the implementation of the Supply Chain Stabilization Act on June 27, aiming to strengthen the core capability protection system. At the same time, the government will systematically bolster its bargaining power by creating a cross-governmental platform which will allow related ministries to expeditiously respond as one-team in the event of crisis. Most importantly, concerted policy efforts from each ministry will be made to reshape the global supply chain in a direction that maximizes national interests.
Furthermore, the government will further endeavor to enhance its capacity to cope with supply chain crises in collaboration with countries in the Indo-Pacific region, including the United States and Japan. By strategically utilizing the IPEF supply chain agreement, which came into effect on April 17, the government will swiftly secure regional resources in times of supply chain crises, while engaging in various cooperation programs with resource-rich countries in the region to diversify the supply chains in advanced industrial sectors.
Please refer to the attached files.
