SEOUL (Reuters). South Korea’s President Moon Jae In said Monday that the country will establish a fund in order to secure the key raw materials necessary for export and manufacturing, despite current supply shortages.

According to the statement by the president Blue House, Moon stated that “As control tower, The Presidential ‘Economic Security Supply Chain Management Committee” will be established. A fiscal backing will also be given as we create a fund for stabilizing supply chain woes.”

According to him, the government would create a list of essential raw materials for economic security purposes. These lists will be managed by local businesses to prevent shortages.

Consumer inflation is at an all-time high of 10 years. This means that everything, from food to memory chips, will become more costly, which could impact exporters like Hyundai Motor or LG Energy Solution.

In the United States, annul inflation has risen to 7.5% from its 40-year peak. Meanwhile, Euro zone inflation has soared to an all-time high of 5% in Dec, underscoring the challenges faced by export-led economies such as South Korea.

After sales of almost 44% less than their target 6.92M vehicles in 2017, Hyundai and Kia Corp are now among the top 10 global automakers.

South Korea’s January factory activity increased at the fastest pace for six months, according to a private-sector survey on Feb. 3. But persistent supply chain issues weighed on the outlook.

The survey respondents said that a slower recovery could be attributed to sustained material shortages as well as the Omicron coronavirus.