SEOUL– Lee Jae-myung, the presidential candidate of the ruling Democratic Party, said Sunday South Korea should consider sending a special delegation to China to tackle the supply shortage of urea water solution (UWS), a key material used in diesel vehicles to reduce emissions.
Calling the current crisis a “China risk,” Lee also urged party officials to review other materials that similarly have limited import channels and look into imposing price control, when necessary, to prevent acts cornering the market.
“To resolve this imminent, temporary supply shortage, we should come up with countermeasures, even by sending a special delegation to China,” he said during an emergency party meeting at the National Assembly in Seoul.
South Korea has been grappling with a lack of UWS and its soaring prices in recent weeks, especially in the logistics sector with freight vehicles, as China has restricted its shipments amid a trade conflict with Australia.
The country relies heavily on China for its supply of the agent. According to government data, a whopping 97.6 percent of the country’s imports of the material came from China during the first nine months of this year.
“Our import channel has been limited to China, and the dependency has grown so much that we are now in a situation where we can’t properly respond in this crisis,” Lee said. “Some also say it’s kind of a ‘China risk’ that happens when a supply chain is monopolized.”
Lee said South Korea should quickly seek getting more supplies from other countries that can provide the agent and mull establishing an infrastructure for its domestic production for the long-term.
Source: Yonhap News Agency