{"id":2204728,"date":"2024-04-18T08:00:59","date_gmt":"2024-04-17T23:00:59","guid":{"rendered":"https:\/\/koreapro.org\/?p=2204728"},"modified":"2024-04-17T16:34:08","modified_gmt":"2024-04-17T07:34:08","slug":"ipef-supply-chain-agreement-takes-effect-in-south-korea-amid-uncertainties","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/04\/ipef-supply-chain-agreement-takes-effect-in-south-korea-amid-uncertainties\/","title":{"rendered":"IPEF Supply Chain Agreement takes effect in South Korea amid uncertainties"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">South Korea\u2019s Ministry of Trade, Industry and Energy (MOTIE) <\/span><a href=\"https:\/\/www.motie.go.kr\/kor\/article\/ATCL3f49a5a8c\/168922\/view?mno=&amp;pageIndex=1&amp;rowPageC=0&amp;displayAuthor=&amp;searchCategory=0&amp;schClear=on&amp;startDtD=&amp;endDtD=&amp;searchCondition=1&amp;searchKeyword=#\"><span style=\"font-weight: 400;\">announced<\/span><\/a><span style=\"font-weight: 400;\"> that the <\/span><a href=\"https:\/\/www.commerce.gov\/sites\/default\/files\/2023-09\/2023-09-07-IPEF-Pillar-II-Final-Text-Public-Release.pdf\"><span style=\"font-weight: 400;\">Indo-Pacific Economic Framework (IPEF) Supply Chain Agreement<\/span><\/a><span style=\"font-weight: 400;\">, a U.S.-led initiative involving 14 member nations, took effect on April 17. Trade minister Cheong In-kyo convened the first \u201cNew Trade Round Table\u201d meeting of the year to discuss strategies for leveraging the agreement to strengthen supply chain resilience.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The meeting brought together industry associations, academia and research institutions to explore potential joint projects with IPEF members. It focused on diversifying import sources for critical materials such as elements, graphite, and rare earth permanent magnets and improving R&amp;D and logistics. Cheong emphasized the need for policies that bolster supply chains.<\/span><\/p>\n<p><b>Why It Matters<\/b><\/p>\n<p><span style=\"font-weight: 400;\">South Korea\u2019s reliance on China for critical materials like <\/span><a href=\"https:\/\/koreapro.org\/2023\/10\/seoul-grapples-with-beijings-graphite-export-control-battery-industry-at-risk\/\"><span style=\"font-weight: 400;\">graphite<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/koreapro.org\/2023\/05\/the-challenges-ahead-for-south-koreas-critical-minerals-strategy\/\"><span style=\"font-weight: 400;\">rare earth metals<\/span><\/a><span style=\"font-weight: 400;\"> poses significant risk amid escalating U.S.-China trade tensions. As China is South Korea\u2019s vital trade partner and the U.S. remains its principal security ally, diversifying supply sources through the IPEF is crucial to mitigate geopolitical risks and safeguard its semiconductor and battery industries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the prospect of Donald Trump\u2019s re-election complicates Seoul\u2019s position, given his <\/span><a href=\"https:\/\/www.reuters.com\/world\/us\/trump-vows-kill-asia-trade-deal-being-pursued-by-biden-if-elected-2023-11-19\/\"><span style=\"font-weight: 400;\">intentions to withdraw<\/span><\/a><span style=\"font-weight: 400;\"> the U.S. from IPEF. Such a withdrawal could significantly weaken the framework, challenging South Korea\u2019s strategy to reduce dependence on Chinese imports and expand economic relations with other IPEF members.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Given the uncertainties surrounding the IPEF\u2019s stability, South Korea will likely intensify its <\/span><a href=\"https:\/\/koreapro.org\/2024\/04\/us-china-trade-war-pushes-south-korean-companies-to-invest-in-africa\/\"><span style=\"font-weight: 400;\">outreach to African countries<\/span><\/a><span style=\"font-weight: 400;\"> to secure access to critical minerals. Africa, which holds about <\/span><a href=\"https:\/\/www.unep.org\/regions\/africa\/our-work-africa\"><span style=\"font-weight: 400;\">30%<\/span><\/a><span style=\"font-weight: 400;\"> of the world\u2019s mineral reserves and significant portions of the global oil and natural gas supplies, is a strategic focus for South Korea. The upcoming South Korea-Africa summit in Seoul will serve as a platform to secure favorable investment conditions for South Korean businesses in Africa. Additionally, South Korea has already begun to bolster its relationships with these nations by <\/span><a href=\"https:\/\/www.mafra.go.kr\/home\/5109\/subview.do?enc=Zm5jdDF8QEB8JTJGYmJzJTJGaG9tZSUyRjc5MiUyRjU3MDA3NCUyRmFydGNsVmlldy5kbyUzRg%3D%3D\"><span style=\"font-weight: 400;\">distributing<\/span><\/a><span style=\"font-weight: 400;\"> this year\u2019s first batch of rice to countries facing food shortages, including eight African nations, Afghanistan and Yemen.<\/span><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/inter-korean-foreign-relations\/\"><span class=\"tag\">Inter-Korean &amp; Foreign Relations<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>South Korea\u2019s Ministry of Trade, Industry and Energy (MOTIE) announced that the Indo-Pacific Economic Framework (IPEF) Supply Chain Agreement, a U.S.-led initiative involving 14 member nations, took effect on April 17. Trade minister Cheong In-kyo convened the first \u201cNew Trade Round Table\u201d meeting of the year to discuss strategies for leveraging the agreement to strengthen [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2204729,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24,28],"class_list":["post-2204728","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy","tag-inter-korean-foreign-relations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>IPEF Supply Chain Agreement takes effect in South Korea amid uncertainties - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2024\/04\/ipef-supply-chain-agreement-takes-effect-in-south-korea-amid-uncertainties\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IPEF Supply Chain Agreement takes effect in South Korea amid uncertainties - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"South Korea\u2019s Ministry of Trade, Industry and Energy (MOTIE) announced that the Indo-Pacific Economic Framework (IPEF) Supply Chain Agreement, a U.S.-led initiative involving 14 member nations, took effect on April 17. Trade minister Cheong In-kyo convened the first \u201cNew Trade Round Table\u201d meeting of the year to discuss strategies for leveraging the agreement to strengthen [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/koreapro.org\/2024\/04\/ipef-supply-chain-agreement-takes-effect-in-south-korea-amid-uncertainties\/\" \/>\n<meta property=\"og:site_name\" content=\"KOREA PRO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/nknewsorg\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-17T23:00:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-17T07:34:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/koreapro.org\/wp-content\/uploads\/sites\/6\/2024\/04\/eb-13.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1870\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"johnleenknews\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:site\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"KOREA PRO\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/koreapro.org\/2024\/04\/ipef-supply-chain-agreement-takes-effect-in-south-korea-amid-uncertainties\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/2024\/04\/ipef-supply-chain-agreement-takes-effect-in-south-korea-amid-uncertainties\/\"},\"author\":{\"name\":\"johnleenknews\",\"@id\":\"https:\/\/koreapro.org\/#\/schema\/person\/b9766dba611638edc06a6e0b7078714d\"},\"headline\":\"IPEF Supply Chain Agreement takes effect in South Korea amid uncertainties\",\"datePublished\":\"2024-04-17T23:00:59+00:00\",\"dateModified\":\"2024-04-17T07:34:08+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2024\/04\/ipef-supply-chain-agreement-takes-effect-in-south-korea-amid-uncertainties\/\"},\"wordCount\":346,\"publisher\":{\"@id\":\"https:\/\/koreapro.org\/#organization\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2024\/04\/ipef-supply-chain-agreement-takes-effect-in-south-korea-amid-uncertainties\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/04\/eb-13.png\",\"keywords\":[\"Business &amp; 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