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Korea secures more than 4 months of urea in reserves

Published: 11 Dec. 2023, 13:28

KIM JU-YEON
[email protected]

A driver pours urea solution into his vehicle at a gas station in Seoul on Sunday. [YONHAP]

The government said Monday that the current prices and reserves of urea sold at gas stations are similar to the usual rate and more stable than they were during the 2021 urea crisis.

The announcement comes following concerns over urea supplies after Chinese customs authorities suspended clearance for shipments of the chemical compound, which is used as fertilizer and in making exhaust fluid for diesel engines, bound for Korea without explanation.

The government also said additional supplies of urea were secured Friday, increasing the total stock to 4.3 months' worth. The reserve as of Nov. 30 had been enough to use over three months.

The Finance Ministry said that it will establish a government-wide commission in charge of deliberating and implementing measures on the management of supply chains of major industry materials.

The government also plans to create a fund to secure critical items and support investment in relevant facilities as the country seeks to reduce dependence on China and other nations and to better brace for supply chain crises, the Ministry of Economy and Finance said.

The envisioned commission is scheduled to be established in around June and will bring together experts in the economy and security fields. The entity will finalize basic plans on how to boost stable supply chains next year.

The government is expected to designate raw materials and other items necessary for the economy and everyday lives of the people as "economic security items" and extend support for their supply chains.

Korea has been working to reduce its reliance on China and a handful of other nations in supplying essential materials by managing supplies of critical items and strengthening ties with resource-rich nations in the wake of a series of disruptions in supplies of major items.

BY KIM JU-YEON, YONHAP [[email protected]]