Global Supply Chain Transformation Effects on Food Self-sufficiency

Abstract

Purpose: This study analyzes the impact of changes in the global supply chain on South Korea's food self-sufficiency rate under the IPEF, and explores strategies for future food security. Research design, data, and methodology: Analysis of the global supply chain's impact utilizes the GTAP model, assuming the effects of import price efficiency (AMS) and export tariffs (TXS) on the food sector, with the assumption of eliminating non-tariff barriers. Additionally, the estimation of medium- and long-term ripple effects is based on the assumption of mobility in production factors. Results: The analysis confirms that implementation of the IPEF could lower South Korea's food import prices and diversify the supply chain, providing advantages. However, it also highlights a drawback in which the self-sufficiency rate may decrease if non-tariff barriers are completely eliminated. Conclusions: The government should actively engage in IPEF negotiations while requiring a more sophisticated approach in order to adjust non-tariff barriers to an appropriate level.