H. Yoo
Research expert covering South Korea
Metal mining in South Korea - statistics & facts
The metal mining industry is the backbone of many other infrastructural and goods-related industries. For example, South Korean companies such as Samsung and SK Hynix rely on having certain strategic metals to make semiconductors, an indispensable component of the modern computer. But as demand for advanced computing technology continues to increase, the fight to secure the very resources needed to produce these devices becomes all the more strenuous. As of May 2023, South Korea had less than six and 20 days of lithium and silicon in reserves, respectively. Further, dependence on imports has lacked diversification, with South Korea receiving more than 30 percent of raw material imports for rare metals from China. But now, as China seeks to restrict exports of certain strategic minerals, such as gallium and germanium, South Korea may have no other option but to rethink its critical mineral supply strategy.
Which metals can be produced in South Korea?
Although not primarily known as a rare metal producer, South Korea has deposits of and produces tungsten, zinc, iron ore, and molybdenum, among other rare metals. The Sangdong mine in the South Korean province of Gangwon is home to one of the largest tungsten deposits in the world and is predicted to have enough tungsten to cover 10 percent of the global supply. The mine had closed in the mid-90s due to cheaper availability from China but is currently reopening. Despite this, resurrecting old mines and improving stockpiles domestically requires expertise and time, making immediate demand hard to meet. As such, companies and institutions alike have also sought to enhance the diversification of import countries and the possibility of resource extraction abroad.Global supply chains for South Korean companies
EV battery companies such as SK On and LG Energy Solutions have raced to secure access to the global supply chain, venturing toward countries like Chile, Australia, Canada, and Indonesia for access to lithium, nickel, and copper supplies. POSCO, one of the largest companies in the South Korean metal mining industry and globally, has successfully established joint ventures and subsidiaries abroad and purchased the rights to mine lithium in Argentina in 2018. Alongside company efforts, the South Korean government has worked to reach agreements with resource-rich countries for joint projects on resource exploration, most recently signing a memorandum with Mongolia earlier this year for rare metal mining.
