The Federation of Korean Industries said in its report on Nov. 28 that the government and the private sector need to work more closely together for global supply chain restoration, with value chain uncertainties increasing due to COVID-19 and U.S.-China disputes.
“The joint effort has to take the form of a special committee for more systematic management of strategic materials and industrial supply chains,” the federation pointed out, adding, “At the same time, special acts need to be prepared for more active financing, long-term technological development and more tax benefits related to investment.” It also mentioned that the South Korean government’s supports in strategic industries such as hydrogen and drone are still too individual unlike those of the United States and China.
In addition, the federation urged the passage of the Framework Act on Service Industry Development, which has been pending for almost 10 years, so that the service sector can quickly recover from COVID-19.
The 15 policy tasks recommended in the report also include easier enterprise remodeling and restructuring, more support for reshoring companies, institutionalization of telemedicine, better medical big data utilization and small modular reactor development.
