Choi Sang-mok: “Uncertainties Rising due to Middle East Conflict, Tariffs on Electric Vehicles, US Presidential Election”
Government Selects 84 ‘Supply Chain Leading Companies’…Initiates 5 Trillion Won Funding Support,
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Deputy Prime Minister Choi Sang-mok Speaking
(Seoul=Yonhap News) Reporter Lee Jung-hoon = Deputy Prime Minister and Minister of Planning and Finance Choi Sang-mok is speaking at the second Supply Chain Stability Committee held at the Government Seoul Complex in Jongno-gu, Seoul on the 16th. 2024.10.16 uwg806@yna.co.kr,
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, ” (Sejong=Yonhap News) By Song Jeong-eun = The government plans to provide a 50% subsidy for short-term discrepancies when importing elements from countries other than China to prevent a recurrence of the past ‘element shortage crisis’. The government also plans to soon introduce support measures for domestic production.”,
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, ” A total of 84 leading companies have been selected for 55 economic security items and 2 services under the supply chain stabilization anchor company plan.”,
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, ” Deputy Prime Minister Choi Sang-mok held the second Supply Chain Stability Committee on the afternoon of the 16th at the Government Seoul Complex to discuss ‘measures to stabilize element supply for vehicles’, the results of selecting leading companies, and the operation plan for the supply chain stabilization fund.”,
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, ‘ Deputy Prime Minister Choi said, “Uncertainty and anxiety are the biggest factors undermining the will of economic entities to pursue economics,” and emphasized strengthening pre-check, early warning, and preemptive response to supply chain risks.’,
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, ‘ He stated, “Recent escalation of conflicts in the Middle East, imposition of tariffs on Chinese electric vehicles by the European Union, and the impending US presidential election are increasing uncertainties surrounding our economic security and supply chains.”‘,
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, ‘ The government has decided to provide a 50% subsidy for short-term discrepancies when importing elements from third countries other than China for long-term contracts next year and has reflected this in next year’s budget.’,
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, ‘ The government is also pushing for an extension of the application of allocation tariffs, lowering the base rate from 8% to 0%, to support import diversification.’,
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, ‘ In addition, to ensure fundamental stability of element supply for vehicles, the government is considering significantly expanding public stockpiles, supporting domestic production, and plans to announce decisions by the first quarter of next year.’,
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, ‘ The results of selecting leading companies were also announced on that day.’,
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, ‘ With the implementation of the Supply Chain Stabilization Act on June 27, businesses recognized as leading companies submitting plans for stabilization of economic security items or economic security services to relevant ministries have been selected as leading companies. Leading companies are designated for up to 5 years and receive focused support from the supply chain stabilization fund.’,
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, ‘ In June and July, 105 companies applied through 9 ministries, with 79 related to items and 5 related to services, resulting in the selection of a total of 84 companies.’,
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, ‘ Among the 84 companies, small and medium-sized enterprises accounted for 38, the most, followed by large companies with 21, and medium-sized companies with 23. One public agency and cooperative were also included.’,
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, ‘ The government plans to continually add more leading companies in the future.’,
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, ‘ The government initiated the 5 trillion won supply chain stabilization fund in earnest on the 5th of last month.’,
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, ‘ On the 27th of last month, the first approval for a 1.52 trillion won loan for 4 companies was granted.’,
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, ‘ On the 4th of this month, it issued the first round of fund bonds (1.9 trillion won) and set the interest rate at 2.961%, equivalent to government-guaranteed bonds.’,
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, ‘ In addition to loans and guarantees, the supply chain fund is also creating a 1 trillion won specialized private equity fund in the supply chain field, and the fund size will expand to 10 trillion won next year.’,
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, ‘ The government also decided to establish a government-wide strategic stockpiling policy, determining the necessity, scale, and method of stockpiling for key items, to enhance stockpiling policies.’,
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, ‘ Deputy Prime Minister Choi said, “With the launch of the Supply Chain Stability Committee, the government will systematically review the public stockpile status from a cross-ministerial perspective,” and emphasized that stockpiling is the ‘last line of defense’ for economic security.’,
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, ‘ sje@yna.co.kr’,
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