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First Vice Finance Minister Lee Eog-weon (Yonhap) |
The government said Thursday it will launch a system to monitor some 20 key raw materials, such as magnesium and tungsten, to ensure stable supplies and prevent the recurrence of a crisis similar to the urea solution supply crunch.
The "early warning system" for the designated raw materials is aimed at prioritizing the supply management of materials highly dependent on imports so as to prevent shortages.
The system intends to expedite the process in which the government takes necessary action if any production or supply issues emerge from foreign markets and shorten the monitoring period for high-risk materials.
The government plans to extend the list of such materials to 200.
South Korea has been struggling to address the supply crunch of urea solution, a key fluid needed in diesel cars to cut emissions, since China tightened exports of urea for domestic supply.
Finance Minister Hong Nam-ki has said the government would bolster the monitoring of the supply chain of major strategic items and seek to diversify import sources.
As for the urea solution, the government said the market is showing signs of stabilization for the first time since the supply shortage crisis.
"The output of five major manufacturers has been surpassing the average daily consumption of 600,000 liters and the market appears to be in the mood of stabilization," First Vice Finance Minister Lee Eog-weon said in an interagency government meeting on urea solution supply Thursday.
The government has been striving to secure urea or urea solution from foreign countries, including Vietnam, Malaysia and Mexico. It said it will provide some 1.8 million liters of urea solution to about 100 gas stations. Since Friday, a total of 1.127 million liters have been distributed. (Yonhap)
