On Friday, it was confirmed that the Blue House held a private meeting with executives from major South Korean companies, including Hyundai Motor, to promote the recycling of rare earth elements. This move is seen as a preemptive measure to address potential supply chain risks originating from China.
According to sources from the Blue House and business circles, the administration convened a meeting on February 13 with representatives from major South Korean corporations, including Hyundai Motor, to discuss the recycling of rare earth elements.
The meeting, which focused on rare earth recycling, reportedly explored the actual demand from domestic companies, the feasibility of recycling initiatives, and current response strategies in light of China’s recent moves to control rare earth exports.
As China implements export restrictions on rare earths to Japan amid ongoing tensions, the government has recognized the need to address its own high dependence on Chinese supplies. In response, it has initiated preliminary assessments with major companies to explore ways to reduce this dependency and mitigate potential supply disruptions.
Earlier, on February 5, the administration unveiled a comprehensive strategy for the rare earth supply chain. This plan, the first of its kind, encompasses all aspects from resource acquisition to separation, refining, industrial use, and recycling. The government intends to invest approximately 1 trillion KRW (about 690 million USD) to establish a robust supply chain management system.
In a significant move, the administration has designated all 17 types of rare earths as critical minerals. This classification aims to strengthen the response system for short-term supply and demand crises. Additionally, the government plans to diversify trade cooperation channels to expand collaboration with key partner nations.
While acknowledging the current high dependency on China and the challenges of finding immediate alternatives, the administration is committed to gradually diversifying supply sources. This strategy is designed to prepare for potential emergency situations and reduce vulnerability to supply shocks.
Concurrently, the government is assessing the level of rare earth dependency among domestic materials, parts, and equipment manufacturers. To further reduce reliance on China, it is actively pursuing cooperation with countries in Southeast Asia and other regions.