The Bank of Korea said in a recent report that the risk of raw material procurement caused by the conflict between Russia and Ukraine and the rise of China is currently the biggest concern for South Korea's new growth industries. These industries include next-generation semiconductors, displays, electric vehicles, rechargeable batteries, biotechnology and healthcare.

According to BusinessKorea, the report said, “These industries are simultaneously facing supply chain vulnerabilities and raw material-related risks caused by the new crown epidemic.” “South Korea still relies heavily on imports for raw materials and intermediate products in the fields of semiconductor chips, electric vehicle batteries, and medical devices. , and there are very few countries that import, such as China.”

The report further states that due to geopolitical and other reasons, setbacks in global supply chains are likely to continue, and raw material procurement will become a growing problem. Companies in the above-mentioned industries may promote overseas production related to global value chains, which may adversely affect Korean domestic production, investment and exports.

"China and other countries are already closing the gap, and the presence of South Korean companies in the industry is likely to diminish." The gap in the industry is about three years, and in the auto industry the gap is less than one year.”