Framework Act on Supply Chain Stabilisation Support for Economic Security

Country / jurisdiction: Korea · Year: 2024 · Status: In force · Level: National · Type: Voluntary

The Framework Act on Supply Chain Stabilisation Support for Economic Security (Act No. 19828) was promulgated on 26 December 2023 and entered into effect on 27 June 2024. The Ministry of Economy and Finance (MOEF) oversees coordination within the government for the act, in consultation with the National Intelligence Service. The Act’s objective is to prevent supply chain risks and ensure an effective response to supply chain disturbances, thereby contributing to national security, the safety of the state and citizens’ economic activities, and national economic development. The Act defines “supply chain” to include acquisition of commodities or raw materials (including resources), and defines “economic security items” to include commodities and the raw materials, parts, facilities, equipment, devices, or software necessary for producing them, which includes critical minerals and mineral inputs.

The Act lays out the following government directives, each covered by a chapter:

Establishment of master plans for supply chain stabilisation & designation of Economic security items. The Act mandates a three‑year master plan and annual implementation plans, supported by sectoral plans submitted by relevant ministries, and creates the Supply Chain Stabilisation Committee as the national control tower. It also requires government surveys, statistics, and procedures for designating or revoking economic security items and services, along with provisions for international cooperation.

Monitoring supply chain risks. The Act establishes early warning systems for supply chain risks and mechanisms for domestic and international information‑sharing. It also imposes obligations on the State to ensure information protection related to supply chain stability.

Support for stabilisation of economic security items . The Act provides the legal basis for supporting the stability of essential items by enabling the government to designate leading business entities, support diversification of import sources, strengthen domestic and overseas production bases, and enhance technology development. It also covers public stockpiling provisions, management of economic security services, and special support mechanisms where needed.

Supply chain crisis and response. The Act sets out procedures for responding to supply chain crises, including crisis response manuals, designation of crisis items, emergency supply–demand adjustment measures, and the establishment of a Crisis Countermeasure Headquarters. It also includes provisions for preventing hoarding, providing customs duty support, facilitating emergency procurement, and compensating losses incurred during crisis response.

Supply chain resilience fund. The Act creates the Supply Chain Resilience Fund, specifying its financial resources, management, use cases, and eligibility criteria for companies seeking support. It lays out procedures for providing financial assistance, including loans, subsidies, and other instruments to reinforce national supply chain resilience.

Official source: https://sotong.go.kr/commonfile/downloadQustnrAtchmnfl.do?atchmnfl_id=38c94c4e86ee499a824e19018c8d08ff