SEOUL, April 16 (Yonhap) — President Lee Jae Myung called on Thursday for bold innovations and structural reforms to address the evolving geopolitical environment, against the backdrop of the war in the Middle East.
Lee made these remarks during a meeting with presidential advisors as the U.S. and Israel’s war against Iran entered its seventh week. The conflict has led to rising energy prices and disruptions in global supply chains, dealing a serious blow to the South Korean economy heavily reliant on exports and manufacturing.
“The global trade order is at a turning point, with declining free trade and increasing geopolitical risks,” said Lee. “For a country like ours with a strong dependence on manufacturing, we must embark on bold and transformative innovations to secure the country’s future.”
Lee instructed his administration to protect advanced technologies and associated talents, as well as to stimulate demand for innovative products through public-private initiatives. He also called for expediting preparations for the establishment of a sovereign fund.
“We must innovate the manufacturing capabilities of peripheral regions, establish an AI-based manufacturing ecosystem, and set up a sovereign fund for Korea,” he said.
The government announced plans to launch a sovereign fund for long-term investments in strategic industries in the first half of this year, drawing inspiration from similar funds in Singapore and Australia.
Lee also urged for more efforts to secure new arrivals of crude oil and raw materials to stabilize supply chains. The presidential chief of staff, Kang Hoon-sik, stated that South Korea currently has guarantees for delivery by the end of this year totaling 273 million barrels of crude oil and 2.1 million tons of naptha, through agreements made during visits to Oman, Saudi Arabia, Qatar, and Kazakhstan.
While the Middle East war poses challenges in terms of industrial restructuring and diversifying supply chains, Lee noted that it also provides an opportunity to reconsider the country’s diplomatic position and role on the international stage.
“The Republic of Korea has now emerged as a leading nation that attracts global attention,” he said. “It has a legitimate responsibility to uphold universal values such as world peace, respect for international standards, and protection of human rights.”
During the cabinet meeting, Lee also urged the countries involved in the Middle East war to take a courageous step towards peace, warning that the fragile ceasefire between the U.S. and Iran remains a risk and threat to the global economy.
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