Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok, right, speaks during the inaugural meeting of private-public joint committee on supply chain management at Government Complex Seoul, Thursday. Yonhap

The government will launch a 5 trillion won ($3.59 billion) fund to support leading companies establishing a robust and secure supply chain for essential raw materials and products that Korea heavily depends on from overseas.

It will also include research and development (R&D) projects focused on technologies crucial for maintaining a stable supply chain among the eligible projects for tax credits.

These measures were introduced during the first meeting of a special committee launched, Thursday, to address heightened global supply chain risks that pose threats to national security.

Led by Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok, the committee consists of 19 government officials and six private experts.

The committee's mandate includes laying the groundwork for a three-year plan to manage a secure supply chain starting from next year.

“I expect the committee to serve as a helmsman of an aircraft carrier that gets through the rough seas of global supply chain risks,” Choi said as he resided over the committee meeting at Government Complex Seoul.

He emphasized the need to develop "highly practical measures" for industries such as high technology, food, logistics, and others that are vulnerable to supply chain disruptions.

The 5 trillion won fund, scheduled for implementation in the second half of this year, will provide loans at below-market rates to businesses that demonstrate significant progress in reducing their reliance on overseas sources for critical materials.

Among the eligible firms will be those diversifying import channels for essential materials or developing alternative technologies to enhance the competence of the domestic manufacturing industry.

The government will receive applications from firms interested in taking out the loans and finalize the list of eligible recipients by August. The chosen firms will receive benefits for a period of three to five years.

The government will add 100 new items to the current list of 200 "economic security-related items" from industries closely intertwined with the daily lives of the populace.

The targeted industries currently include manufacturing and defense, and will be expanded to logistics and cybersecurity.

For security reasons, the government did not specify which items will make the list of 100.

Meanwhile, industry sources speculate that urea water, lithium, and graphite will be included. They pointed out that Korea faced supply shortages of these three materials, which are primarily imported from China.

Manufacturers eligible for tax credits include those that reverse their decision to offshore "economic security-related items," as well as companies involved in overseas energy and natural resources development that relocate their production back to Korea.