Bill passed in plenary session 14 months after proposal
Establish a basic plan every three years and check risks
Public Procurement Service secures additional 6,000 tons of vehicle elements
A law to prevent the ‘urea water crisis’ by creating a supply chain management control tower has passed the threshold of the National Assembly. It has been one year and two months since the law was proposed in response to China’s urea export controls.
According to the National Assembly and the government on the 8th, the enactment of the ‘Basic Act on Support for Supply Chain Stabilization for Economic Security (Supply Chain Basic Act)’ passed the plenary session of the National Assembly on this day. The gist of this law is to establish a basic plan for supply chain stabilization every three years by establishing a supply chain stabilization committee, a supply chain control tower, under the Ministry of Strategy and Finance and to inspect supply chain risks in advance. The purpose is to provide a stable supply of goods and services essential to people’s lives and industrial ecosystem. The bill also included support for companies to diversify the countries from which they import raw materials by creating a fund.
The Framework Act on Supply Chain was proposed last year in the wake of China controlling urea exports in 2021. At that time, there was great confusion as gas stations ran out of urea water and hoarding occurred. However, due to conflict between the ruling and opposition parties over the membership of the new committee, the process has been delayed for a year and two months. Meanwhile, China has blocked the export of key minerals such as gallium and germanium, which are used in semiconductors, and recently delayed export customs clearance of ammonium phosphate, a fertilizer raw material.
Meanwhile, the Public Procurement Service plans to import more than 6,000 tons of additional vehicle components from overseas. This is the amount that a domestic diesel car can use for one month. The contract is expected to be finalized within two weeks at the latest. The Ministry of Strategy and Finance and the Ministry of Trade, Industry and Energy are planning to hold a ministerial meeting of ministries related to the supply chain on the 11th to check the supply and demand situation of raw materials whose exports are controlled by China and seek countermeasures.
A government official said, “We are considering measures such as providing direct support to affected companies by investing finances or listing items such as elements in the notice prohibiting hoarding.”
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Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.