On top of the US-China strategic competition, the COVID-19 pandemic, climate crisis, and rising geopolitical risks have pushed economic security and supply chain policies to the forefront of policy dialogue in South Korea. This study examines the factors behind the growing importance of economic security and response measures from geo-economic and traditional economics perspectives, along with analyses of case studies in key sectors. The primary aim of this research is to identify strategies to enhance Korea's economic security.

The policy directions regarding Korea’s economic security presented in this study are as follows: First, Korea should build upon its manufacturing capabilities in advanced industries and actively foster related cutting-edge technologies to secure strategic advantages. To achieve this, industrial policies should be more closely integrated, and supply chain vulnerabilities should be mitigated particularly by reducing dependence on China.

Second, simple localization or domestication of intermediate goods suppliers should be avoided. Instead, the Korean government should actively participate in international joint investment and R&D cooperation to support private-sector investments for diversifying supply chains.

Third, the strategy of large enterprises sharing technological know-how with small and medium-sized enterprises (SMEs) with similar technological development goals has been a key driver of Korea’s high localization rate and international competitiveness in the display industry. Therefore, in promoting the localization of advanced strategic sectors, the government should enhance support for improving the technological capabilities of domestic supply chain firms. Moreover, industry associations should establish various mechanisms and channels to strengthen collaboration between advanced industries firms and supply chain firms.

Fourth, a stable supply of mineral resources urgently requires investment in R&D, international cooperation, and the mobilization of financial resources for large-scale investments. Expanding R&D in mineral resource development technologies and leveraging these efforts as a platform for international cooperation should be prioritized. Additionally, concrete strategies for securing financial resources to support large-scale investments should be explored.

Fifth, when supply chain crises in advanced strategic industries pose risks that can potentially escalate to national crisis level, it is critical to consider adopting the 'emergency acquisition flexibilities' strategy used in defense material procurement. To this end, existing systems should be restructured to enable rapid procurement and response, ensuring greater resilience in times of crisis.

Sixth, to enhance the competitiveness of advanced strategic industries, priority should be placed on expanding power generation capacity through targeted investments in energy infrastructure. Simultaneously, measures such as connecting and expanding power grids, developing smart grids, and diversifying energy resources to improve efficiency should be pursued. As for water resource infrastructure, ensuring quantitative stability requires the multipurpose use of existing infrastructure, the activation of alternative water resources, and the construction of new water resource infrastructure. Additionally, strengthening technological capabilities through localization efforts is essential to securing a stable supply of ultrapure water.

Last but not least, prompt establishment and implementation of a national logistics strategy is required to adapt to changes in the global logistics network. This strategy should focus on securing overseas networks and global logistics hubs, as well as fostering globally competitive logistics companies, and enhancing adaptability to shifts in the logistics environment.

Preface
Executive Summary

Chapter 1: General Overview Exploring Korea’s Economic Security Strategy (Jahyun Koo, Seunghyup Lee, Daehee Jeong)
　Section 1: Economic Security and Supply Chain Policies
　Section 2: Separation and Integration of Economy and Security
　Section 3: U.S.-China Foreign Strategies under Weaponized Interdependence
　Section 4: Directions for Korea's Economic Security and Foreign Strategy
　Section 5: Exploring Korea's Economic Security Strategy
　References

Chapter 2: Key Characteristics and Implications of Supply Chain Restructuring Policies in Major Economies (Jahyun Koo, Seunghyup Lee)
　Section 1: Introduction
　Section 2: Supply Chain Restructuring Policies in Major Economies
　Section 3: Korea’s Supply Chain Restructuring Policies
　Section 4: Characteristics and Comparison of Major Economies’ Supply Chain Policies
　Section 5: Conclusions and Implications for Supply Chain Policies
　References

Chapter 3: Macroeconomic Effects of Supply Chain Restructuring Policies (Heehyun Lim, Daehee Jeong)
　Section 1: Introduction
　Section 2: Global Input-Output Network Model
　Section 3: Data and Methods for Analysis
　Section 4: Model Analysis Results
　Section 5: Policy Implications
　Section 6: Conclusion
　References
　Appendix

Chapter 4: Domestic Procurement Status and Competitiveness Enhancement in the Display Industry (Sangjin Lee)
　Section 1: Characteristics and Current Status of the Display Industry
　Section 2: Domestic and Global Supply Chains in the Display Industry: Status and Competitiveness Analysis
　Section 3: Policy Tasks for Enhancing the Competitiveness of Supply Chain Firms
　Section 4: Conclusion
　References

Chapter 5: Policy Tasks for Securing Stable Supplies of Critical Minerals (Jinsu Kim)
　Section 1: Introduction
　Section 2: Risks of Resource Weaponization Amid Intensifying Geopolitical Conflicts
　Section 3: Korea’s Policies for Securing Critical Mineral Resources
　Section 4: Policy Tasks for Stable Procurement of Critical Minerals
　Section 5: Conclusion
　References

Chapter 6: Supply Chain Policies in National Crisis Situations Through Defense Procurement Policies (Sehoon Jeon)
　Section 1: Concept and Specifics of Defense Procurement
　Section 2: Recent Trends and Factors in Defense Procurement Policies of Major Economies
　Section 3: Strengthening Defense Procurement Policies: Trends and Case Studies
　Section 4: Conclusion
　References

Chapter 7: Energy Policies to Enhance the Competitiveness of Advanced Strategic Industries (Hongjong Cho, Hyojeong Koo)
　Section 1: Introduction
　Section 2: Current Status and Plans for Supporting Advanced Strategic Industries in Korea
　Section 3: Establishing Domestic Energy Infrastructure to Support and Activate Advanced Strategic Industries
　Section 4: Conclusion
　References
　Appendix

Chapter 8: Water Resource Policies for Enhancing Competitiveness of Advanced Strategic Industries (Moonhyun Ryu, Hanju Choi)
　Section 1: Production Activities of Advanced Industries and Water
　Section 2: Water Crises and Policy Responses
　Section 3: The Role of Water Resources in Korea’s Economic Growth
　Section 4: Securing Water Resources for National Advanced Strategic Industries
　Section 5: Institutional Enhancements for Stable Water Supply to Advanced Strategic Industries
　Section 6: Conclusions
　References


Chapter 9: Korea’s Logistics Policies Amid Global Supply Chain Restructuring (Sungwoo Lee)
　Section 1: Introduction
　Section 2: Relationship Between Global Supply Chain Restructuring and Logistics Networks
　Section 3: Trends in the Global Logistics Industry
　Section 4: Directions and Prospects for Global Logistics Network Restructuring
　Section 5: Korea’s Logistics Industry Responses and Policy Recommendations
　Section 6: Conclusion
　References
　Abstract