The Ministry of Trade, Industry and Energy has taken steps to diversify its supply chain to Central and South America, where the importance of production bases for entering the North American market is increasing, in order to reduce risks in the supply chain trend that is centered on the country.

On the 23rd, the Ministry of Trade, Industry and Energy held a 'Meeting for Companies Entering Central and South America' in the Core Minerals and Advanced Manufacturing Sectors at the Korea Chamber of Commerce and Industry.

The Central and South American region is a region that is gaining importance as a key mineral supplier and production base for entering the North American market due to the recent global supply chain crisis and the movement of major countries such as the United States to establish their own domestic supply chains.

This meeting was held to listen to the voices of our companies in the field, including their difficulties and suggestions, in the key mineral and advanced manufacturing sectors that have advanced into Central and South America.

At the meeting, KOTRA gave a presentation on ‘Strategies for Entering the Central and South American Market’ and explained strategies for entering the local supply chain using North American nearshoring, response measures for the renewable and eco-friendly sectors linked to energy transition demand, and shared the current status of major non-tariff barriers in the Central and South American region, such as restrictions on foreign equity investment, monopoly sectors such as electricity, and sanitary permits.

In addition, the Korea Institute for International Economic Policy reported in a presentation titled “Central and South America amidst US-China competition and supply chain restructuring” that our companies are diversifying their supply chains for advanced manufacturing industries such as electric vehicles to Central and South America and are working to ensure a stable supply of key minerals such as lithium.

He then went on to say that, like the case of lithium nationalization in Mexico, As countries are pursuing policies of prioritizing their own countries and strategically capitalizing on key minerals, the need for strategic advancement through public-private cooperation was emphasized, as individual companies' independent responses are limited.

Yoon Chang-hyun, director general of the Trade Policy Bureau of the Ministry of Trade, Industry and Energy, said, “In order to strengthen strategic trade cooperation with Central and South American countries in line with recent changes in the trade environment, the Ministry of Trade, Industry and Energy established the Central and South American and Oceanian Trade Division in December of last year,” and added, “First, to secure new momentum for cooperation, we will establish and activate government-to-government industry and resource cooperation channels by signing TIPFs with major Central and South American countries.”

He continued, “Through this channel, we plan to discover and discuss mutually beneficial cooperation projects in areas such as hydrogen, renewable energy, and digital technologies, and we will also actively work to resolve the difficulties faced by our companies in the Central and South American region.”

Meanwhile, the Ministry of Trade, Industry and Energy plans to hold relay meetings with companies advancing into Central and South America by industry, starting with the core mineral and advanced manufacturing sectors, and then moving on to digital, green, textiles and K-consumer goods, construction and plants in March.