President Moon Jae-in held his first face-to-face meeting with the heads of 34 local business conglomerates since Japan announced new export curbs targeting South Korea earlier this month.
Also for the first time, the president called for full-scale countermeasures, saying that the situation could perhaps extend into the long-term.
"Despite the government's diplomatic efforts, we cannot rule out the possibility of the situation becoming prolonged. We must prepare for all possibilities."
The President also slammed the remarks by a Japanese politician, who said hydrogen fluoride exports to South Korea had made its way illegally into North Korea.
The President said the suspicions are "groundless" and added that Japan should refrain from making further claims.
President Moon also proposed a public-private emergency response system, which he first mentioned earlier in the week.
It refers to a network of regular communication channels connecting business CEOs to the country's top economic policymaker and the presidential chief of staff for policy.
It is aimed at allowing the government and the businesses to better coordinate their actions moving forward.
In the short run, the president promised to provide more support to expand domestic production of the restricted items and diversify their sources, to help minimize damages to local firms.
He also proposed measures to make South Korea more self-sufficient and less reliant on high-technology imports.
"We should take this opportunity to upgrade our core industries' use of domestic technology, components and materials and lower their level of reliance on foreign countries."
"To help local businesses, President Moon pledged his administration's support to help financing technological development of local firms, which will be included in the government's extra budget proposal a point of strong determination that the country will not give in to Japan's retaliatory measures.
Shin Se-min, Arirang News."