The government is pushing to create a 3 trillion won "Industrial Resource Security Fund" to address vulnerabilities in Korea's energy and resource supply chains exposed by the war in the Middle East. The plan aims to secure funding through a separate fund to stably pursue core resource security projects, such as expanding crude oil reserve facilities and upgrading oil refining equipment.
According to the Democratic Party of Korea on Sunday, the Ministry of Trade, Industry and Energy recently reported this plan to establish the Industrial Resource Security Fund to the party and requested related legislation. "The ministry proposed creating a separate fund so that it can stably pursue long-term projects to build the national foundation for resource security," a Democratic Party official said.
Through the fund, the ministry plans to expand crude oil reserve facilities and support refiners in converting facilities to produce light oil and upgrading equipment to increase the processing share of heavy and extra-heavy crude. The aim is to strengthen energy supply chain response capabilities in preparation for geopolitical risks such as conflicts in the Middle East. Trade Minister Kim Jung-kwan had earlier stated, "We are preparing measures to pursue a mid- to long-term resource security strategy that goes beyond the limits of single-year budgets."
The fund's resources will be secured by reorganizing resource security-related budgets currently dispersed across the Special Energy Account, the Climate Response Fund, and the Electric Power Industry Foundation Fund. The government is pushing to create the roughly 3 trillion won Industrial Resource Security Fund by adjusting the revenues and expenditures of existing special accounts and funds totaling 12 trillion won.
The Democratic Party plans to push for revisions to the National Finance Act and the Special Act on National Resource Security during this year's regular National Assembly session to establish the legal basis for creating the Industrial Resource Security Fund.
