South Korea on supply chains, oil prices amid Russia-Ukraine crisis
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CNBC reports that South Korea has been closely following the Russia-Ukraine conflict to evaluate its effect on energy prices or disruptions to supply chain, as its trade minister said to CNBC.
Yeo Hankoo explained that the first thing to do is monitor if there’s a rise in energy prices. He added that 92% of South Korea’s energy requirements are met through imports.
These supply chains are not all inclusive. [the]”These potential geopolitical threats could also affect the manufacturing sector,” he said to CNBC. Chery Kang. “So, we’re taking all of these policy actions to deal with this possible risk.”
Tensions between Russia and Ukraine have spiked in recent months as Russia built up troops along its border with Ukraine.
A senior Biden administration official said Wednesday that many as 7,000 troopsYou can find it here joined the 150,000 already near the border in recent days. That’s despite claims by the Russian governmentThe Kremlin had announced a partial drawdown and return of troops to its base along the Ukrainian border a day prior.
No one country is able to control the supply chain of semiconductors and other industrial products.
Yeo Han-koo
South Korea’s Finance Minister
The military tensions have sparked concerns that Russia may be preparing to invade the country, and set off fears of a repeat of the Kremlin’s illegal annexation and occupation of Crimea in 2014. Moscow repeatedly denies these allegations.
Gas as well as oil pricesDespite trading higher on the back these tensions, they were down on Thursday.
Supply chains – ‘Early Warning System’
CNBC heard from the minister of finance that his country was already working to mitigate supply chain risk.
Autos, electronics, and chips are some of South Korea’s most important exports.
Yeo indicated that Yeo believes the government is working out what critical raw materials may be most vulnerable.
“We are working to determine all critical raw materials that might disrupt our supply chain, and then we can decide, for example, whether one or two of these countries is important.” [for]He said that too much of the critical raw material could make you vulnerable.”
South Korea’s “early warning system”, which alerts them to potential dangers, is being developed. Some examples these key materials. These key materials can be used to identify red flags or signs in the supply chain. [we could]”In advance, respond to this potential risk right away,” said he.
Yeo stated that a stockpiling or swap system with other countries could be created if necessary.
“No country owns the chip supply chain”
You can find the following: global chip shortageThe problem continues to drag out, and Yeo called on international cooperation for a solution.
South Korea’s tech mega-corporation Samsung is joined by Taiwan’s TSMCCurrent: dominate the world’s chip production.
Yeo stated that “Korean firms play an important part in this semiconductor supply chains.” We believe no country is able to control the entire supply chain for semiconductors or other industries.
An ongoing supply crunch for chips has hurt production across a number of industries — ranging from cars to consumer appliances, personal computers and smartphones, which require semiconductors to run.
Yeo spoke out about the shortage of chip chips, saying that “it is important to maintain really tight international cooperation in managing this critically supply chain semiconductors, battery or electric vehicles.” South Korea’s “network for partnership” is being developed in semiconductor and industrial supply chains.
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