H. Yoo
Research expert covering South Korea
Mining in South Korea - statistics & facts
Little attention has historically been paid to South Korea’s mining industry, but recent events have brought the spotlight on the potential of the country’s untapped mineral resources, such as tungsten. The Korean peninsula has deposits of iron, limestone, and other raw materials that have allowed for the development of mines in the past in regions including the provinces of North Chungcheong and Gangwon. The lack of profitability in operating these mines, as opposed to importing raw materials for processing, led to most of them closing, particularly for metal mining. But with a global race underway to procure raw materials needed for semiconductors, batteries, and other technologies, there is renewed attention toward the domestic mining industry.
South Korea’s critical mineral strategy
Although South Korea is mainly known for its exports of technologically advanced products and pop culture, it also has a long history of mining that has not only built industry expertise but also has significantly influenced the country’s economic development. Domestically, non-metallic minerals are mined comparably more than metals. South Korea is responsible for 13 percent of the world's mine production of zeolites, commonly used as catalysts for the petroleum industry. Market developments, such as export restrictions on critical minerals needed to manufacture electronics and batteries by China, have caused South Korea to reassess its critical mineral procurement strategy. One such example is the reopening of mines containing deposits of tungsten, which is used as an alloy in the aerospace and automotive industries.The future of South Korea’s mining industry
Despite these changes, another hurdle in the procurement of critical minerals is South Korea’s labor shortage within the industry. The occupational hazard associated with mines has discouraged young workers from entering the field. To combat this, companies such as KT and LG U+ have started working with mining companies for innovative solutions to such concerns. One example is smart mining, which incorporates artificial intelligence and virtual reality to reduce costs, increase productivity and safety, and minimize environmental damage. Given the influence of the mining industry in the supply chain of other notable markets, such as the aerospace and automotive industries, this growing interest toward domestic mining is not likely to wane anytime soon.
