South Korea's Ministry of Science and ICT held an emergency meeting on April 16 with ICT-related agencies and major associations and groups to discuss the impact of the Middle East war on the ICT industry and response measures.

The meeting was arranged to check difficulties in the ICT industry and seek directions for 대응 as the Middle East war spreads into supply chain risks across the sector. Participants agreed the impact of the war is creating a structural burden across manufacturing processes beyond logistics delays. They shared difficulties by ICT segment and their response status.

In particular, participants raised as key difficulties that worsening disruptions in supplies of naphtha-based materials and key parts are causing yield declines in manufacturing fields such as IoT. They also said profitability is deteriorating further due to raw material prices, freight rates and exchange rates. They also discussed concerns that credit risks for small and medium-sized companies could expand as financial conditions worsen, including high interest rates.

The ministry will operate an 'ICT supply chain inspection virtual situation room' involving related agencies and associations to monitor company conditions on an ongoing basis. It will expand surveys of difficulties faced by individual companies to establish a more precise support system. It will also diversify support measures for companies, including strengthening non-face-to-face export consultation services through the 'Global ICT Portal.'

Lee Do-gyu (이도규), director general for telecommunications policy at the Ministry of Science and ICT, said the ministry will work closely with relevant ministries and related agencies to continue preparing practical support measures that companies can feel.