Issue Policy task 2: strengthen the upstream supply chain from an economic security perspective

Summary

KISDI's second policy recommendation is to strengthen the upstream part of the supply chain from the standpoint of economic security. The report observes that Korea's materials, parts and equipment sectors are weaker than its finished products. It recommends systematic support for these upstream segments in order to expand domestic production capacity. It also proposes attracting global materials, parts and equipment companies that do not compete directly with Korean firms, so as to build a stable supply chain ecosystem at home. The recommendation responds to the institute's finding that supply chain restructuring and rising overseas production are eroding domestic output.