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. 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 such as the provinces of North Chungcheong and Gangwon. The lack of profitability in operating these mines, as opposed to importing raw mineral materials for processing, led to most of them closing, particularly for metal mining. But with a global race underway to procure rare metals needed for semiconductors, batteries, and other technologies, there is renewed attention toward the domestic mining industry.
Minerals produced in South Korea
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 around 12 percent of the world's mine production of zeolites, commonly used as catalysts for the petroleum industry. Limestone makes up more than 70 percent of the country's mineral domestic production value. In terms of export value, around 80 percent comes from copper which has been further refined.Main trade partners for minerals
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. Until 2023, China had been an important source country for minerals alongside Australia. However, with trade restrictions in place, Chile replaced China as the second-largest supplier of non-coal minerals to South Korea that year. Unsurprisingly, coal is the most imported mineral into South Korea in terms of value given the country's overseas energy dependence. Indeed, global mineral trade has always been sensitive to geopolitical tensions and trade restrictions. Despite this, most of Korea's coal imports have continued to come from Australia and Russia.The future of South Korea’s mining industry
Adding to 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 in domestic mining is unlikely to wane anytime soon.
