In response to increasing global uncertainties and geopolitical risks, South Korea is advancing policies to strengthen its industrial sovereignty and resource security. President Lee Jae-myung highlighted the successful securing of 273 million barrels of crude oil and 2.1 million tons of naphtha through diplomatic missions to the Middle East and Central Asia. These efforts are aimed at minimizing economic and industrial disruptions during volatile periods. The government also reaffirmed its commitment to upholding global values such as peace, international norms, and human rights.
The new policies directly impact government agencies, public institutions, manufacturers, and technology sectors. Specific measures include expanding procurement of domestic products, tightening import certification to block unfair imports, and preventing the outflow of core technologies and talent. Support for logistics costs and facility investments to diversify oil import sources outside the Middle East was also discussed. The ‘Mother Factory’ initiative will foster public-private collaboration, with the public sector acting as the first buyer to stimulate demand for domestic products.
Implementation will proceed through inter-ministerial reviews, culminating in the announcement of the ‘Advanced Manufacturing and Supply Chain Transformation Strategy.’ Fiscal and financial support measures such as a domestic production promotion tax system, a strategic export finance fund, and a Korean sovereign wealth fund are under consideration. There is also a focus on AI and science policy, including support for domestic AI full-stack technology, GPU infrastructure, and the establishment of a national AI computing center. The government aims to provide bold support for critical technologies in energy, defense, and semiconductors, and to enhance cooperation between academia, industry, and research.
Frequently asked questions include: What is the ‘K-Industry Breakwater’? It is a set of measures to shield domestic industries from external threats and prevent the leakage of key capabilities. How will the ‘Mother Factory’ system work? Demand companies specify their needs, suppliers participate, and the public sector acts as the initial purchaser, creating a robust ecosystem for domestic manufacturing. What is the timeline for these changes? Detailed strategies will be finalized and announced following ministerial reviews, with phased implementation expected to begin in 2026.
South Korea’s policy response demonstrates a proactive and multifaceted approach to safeguarding its industrial and resource interests. The combination of diplomatic efforts to secure energy supplies, targeted support for domestic manufacturing, and investment in advanced technologies reflects a strong commitment to national resilience. The emphasis on public-private collaboration and supply chain transformation is particularly notable. If executed as planned, these initiatives could significantly enhance South Korea’s economic security and global competitiveness.