(Bloomberg) -- South Korea plans to launch a 5 trillion won ($3.6 billion) fund to reduce its dependence on foreign supplies as it seeks to safeguard supply chains that have been increasingly disrupted by geopolitical tensions.

The fund will be used to support local companies that help develop alternatives to products that the country has tended to source via imports, the government said Thursday. It will also expand the monitoring of items considered necessary but difficult to procure at home, with the focus on materials for semiconductors and rechargeable batteries, it said in a statement.

The announcement marks the latest effort to reduce dependence on strategic items the trade-reliant country procures from abroad to keep its industries running and exports flowing. South Korea has announced a series of financial packages in support of local companies in recent years, including a 26 trillion won initiative for chipmakers earlier this month.

Trade is a main driver of South Korea’s economic growth. After a rivalry between the US and China became more fraught, and the coronavirus pandemic erupted along with Russia’s war on Ukraine, nations around the world are seeking to increase the resilience of their industries against trade protectionism and supply chain disruptions.

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