Stop the "factor chaos."Government to review support resumption of domestic production

The government has decided to actively consider providing economic support to companies that resume domestic production to prevent the recurrence of the "factor number crisis."

At the 2nd Supply Chain Stabilization Committee held at the Government Complex Seoul yesterday (16th), the government decided to come up with a plan to support domestic production of urea for vehicles by the first quarter of next year.

In addition, the current policy of subsidizing half of the difference in logistics costs when importing elements from countries other than China will continue, and from next year, half of the difference in unit prices of element products will be subsidized when long-term contracts are made outside China.

The review of domestic production support is based on the judgment that fundamental measures are needed considering economic security, although the share of Chinese goods, which reached 90% last year due to the recent diversification of factor import lines, has fallen to around 30% this year.

The urea used as a raw material for vehicle urea water and as an agricultural fertilizer does not require high technology to make it, but it is not produced in Korea due to its low economic feasibility.

In the case of Japan, a significant amount of elements are produced in the country, so they are less affected by the Chinese supply and demand crisis.

The government is considering utilizing the Supply Chain Stabilization Fund, which was raised to 5 trillion won to finance domestic production support.