The South Korean trade minister warns that the Russia-Ukraine crisis may disrupt global supply chains.

• According to Trade Minister Yeo Han-koo, we are closely monitoring a spike in energy prices, with 92% of South Korea's needs being met by energy imports.
• The manufacturing sector's supply chains could face geopolitical risks, as some of them are exposed to potential threats, according to him.
• CNBC reported that South Korea is taking measures to manage its supply chain risks, including identifying critical raw materials and establishing an early warning system, as stated by Yeo.

The trade minister of South Korea stated that the country is closely monitoring the Russia-Ukraine crisis to evaluate its effects on energy prices and potential disruptions to supply chains.

According to Yeo Han-koo, South Korea is closely monitoring a spike in energy prices, with 92% of its needs being met through energy imports.

The manufacturing sector's supply chains could be exposed to geopolitical risks, and we are taking measures to mitigate this potential risk, as stated by him to CNBC's Chery Kang.

The buildup of Russian troops along its border with Ukraine has heightened tensions between the two countries in recent months.

Despite Russia's claim of a partial drawdown of its troops along the Ukrainian border, over 7,000 additional troops have joined the 150,000 already near the border in recent days, according to a senior Biden administration official.

The allegations that Russia may be preparing to invade the country have sparked concerns about a repeat of the Kremlin's illegal annexation and occupation of Crimea in 2014. Moscow has repeatedly denied these allegations.

On Thursday, both gas and oil prices decreased despite the ongoing tensions.

‘Early warning system’ for supply chains

The trade minister revealed to CNBC that his country is already taking measures to mitigate supply chain risks.

Other electronics, in addition to autos and chips, are among South Korea's significant exports.

The government is attempting to determine which critical raw materials may be at risk.

"We are attempting to determine all the essential raw materials that could disrupt our supply chain. For instance, if we rely heavily on one or two countries for a critical raw material, that makes us vulnerable," he stated.

An "early warning system" is being attempted by South Korea to detect risks to critical materials. As stated by the official, if any indications or warning signs are observed in the supply chain, an immediate response can be taken to address the potential risk.

Yeo suggested that a stockpiling system or a swap system with other countries could be implemented.

‘No one country’ owns chip supply chains

To address the ongoing global chip shortage, Yeo urged for international collaboration.

Samsung, a South Korean tech giant, and Taiwan's company jointly lead the global chip production.

Yeo stated that Korean companies are crucial in the semiconductor supply chain and that no single country can control the entire supply chain in the semiconductor or any other industry.

The shortage of chips has negatively impacted manufacturing in various sectors, including automobiles, home appliances, computers, and smartphones, all of which rely on semiconductors for operation.

Maintaining close international cooperation is crucial in managing the critical supply chain of semiconductors, batteries, or electric vehicles, according to Yeo. He also mentioned that South Korea is forming a "network of partnerships" in the semiconductor and other critical industrial supply chains.

The story has been corrected to show that Yeo Han-koo is South Korea's trade minister. An earlier version mistakenly stated his title.