Rising exchange rates and raw material prices, supply chain disruptions, and the need to expand carbon-neutral infrastructure present numerous crises facing the domestic industry. In the domestic industry where manufacturing and import-export are core, voices from the field are calling for institutional improvements needed to resolve semiconductor supply instability and expand renewable energy infrastructure for domestic small and medium-sized enterprises.

The Korea Trade Association announced on the 19th that it delivered a policy recommendation report titled "Voices from the Export Field for the New Government" containing opinions from 342 CEOs of small and medium-sized trading companies nationwide to the Ministry of Trade, Industry and Energy.

According to the report, in particular, supply instability in general-purpose semiconductors is causing disruptions to finished product production in other industries. Company A, which manufactures semiconductor equipment, stated, "Even when ordering materials from global MCU (microcontroller unit) manufacturers at prices 30 times higher than before the pandemic, we receive only about 10% of the required quantity, and we can only obtain this after six months, causing difficulties in semiconductor equipment production."

Industry representatives emphasized with one voice, "As export environments are expected to worsen due to difficulties in sourcing raw and subsidiary materials and logistics challenges, rapid government support is needed in supply chains, logistics, marketing, business environment, and carbon neutrality response."

The Trade Association suggested regarding industry difficulties in sourcing raw and subsidiary materials, "It is necessary for the government to provide incentives to large companies so they can contribute to stabilizing raw and subsidiary material supply for small and medium-sized enterprises by leveraging their own networks." Additionally, it recommended expanding the VAT deferral system for imported raw materials for export and the application of import tariff quotas to ease the cost burden on trading companies.

The strengthening of carbon-neutral requirements by global large enterprises participating in RE100 toward companies in their supply chains was also identified as a major challenge. Automotive parts company B stated, "Finished vehicle manufacturers are requesting greenhouse gas reduction plans including renewable energy use, but not only is it difficult to secure renewable energy sources, but it is also challenging to measure enterprise-wide greenhouse gas emissions." In response, the association recommended that the government establish a foundation for quantitatively measuring carbon emissions and supplement systems to improve accessibility to renewable energy for small and medium-sized enterprises.

Additionally, the association also recommended "expansion of airline operations" and "exemption from negative confirmation submission upon return from overseas business trips" for the trading industry that needs to actively conduct face-to-face marketing activities after COVID-19, as well as "expanded budget support for logistics costs" and "establishment of a government-wide logistics control tower" to address logistics challenges.

Kim Byung-yoo, head of the Member Services Division at the Trade Association, stated, "We plan to conduct in-depth discussions with the Ministry of Industry to reflect the industry difficulties and recommendations contained in this report," adding, "We will continue to do our best to continuously receive trade-related regulations and difficulties through the regulatory reform task force (TF) and work to resolve them."