South Korea's Ministry of Trade, Industry and Energy has activated an emergency cooperation channel with major business groups to respond to a supply chain crisis stemming from the war in the Middle East. Trade Minister Kim Jung-kwan (김정관) on Thursday held an emergency meeting with chairmen and full-time vice chairmen from six economic organisations, including the Korea Chamber of Commerce and Industry, the Korea Enterprises Federation, the Korea International Trade Association, the Korea Employers Federation, the Korea Federation of SMEs and the Korea Association of Medium-sized Enterprises. The meeting was arranged as follow-up to an emergency economy review meeting chaired by the president.

At the meeting, the government asked the groups to work to stabilise supply chains by finding alternative sources of supply and checking inventory conditions. It also requested steps to prevent supply chain-disrupting acts such as collusion and hoarding. The government urged participation in energy-saving efforts such as voluntary five-day rotation systems and flexible working hours. It also said it would respond strictly if any supply chain-disrupting acts occur.

The government said it would provide all-out support to prevent disruptions in production of healthcare and medical items, key industries and daily necessities. It said this would include strategic use of stockpiled oil and support for price differences when importing naphtha from overseas. It plans to focus on easing companies' difficulties through the one-stop "Middle East War Supply Chain Support Center" for receiving and resolving supply chain problems.

Kim warned against supply chain-disrupting acts such as collusion and hoarding, saying there have often been cases in which anti-community deviating behaviour focused only on the individual interests of some companies tarnished the reputation of all companies during crises. He said under recognition of a grave situation akin to wartime, it is necessary to prepare for all possible scenarios that could lead to a serious crisis. He called on the business groups to serve as a bridge.

Kim said the initiative in the global economy has always been reshaped through crises. He said the government would push ahead without disruption with a major industrial transformation through M.AX (Manufacturing.AX) and region-centred growth to find new opportunities using this crisis as a springboard.