Accelerating Critical Mineral Supply Chain Restructuring

The Ministry of Trade, Industry and Energy has embarked on a full-scale effort to stabilize the rare earth supply chain. Yeo Han-koo, Chief Trade Negotiator, presided over a meeting with major rare earth-related companies and relevant organizations at POSCO Tower in Songdo, Incheon on the 19th, announcing that the government will actively participate in global critical mineral supply chain restructuring discussions to support stable supply chain management and diversification for domestic companies.

This meeting was organized to strengthen the trade linkages of the first "Comprehensive Rare Earth Supply Chain Measures" announced by the Ministry in February and to proactively respond to supply chain instability amid signs of prolonged U.S.-Iran conflict. The global supply chain restructuring discussion has been accelerating, with the White House issuing a proclamation on critical minerals (January 15) and USTR Representative Jamieson Greer chairing a trade minister meeting (February 13).

Corporate Requests and Government Response

Companies attending the meeting, including POSCO International, emphasized that securing investment stability and enhancing institutional predictability are paramount in the supply chain restructuring process amid changing trade environments. POSCO International specifically requested the government's continued attention and policy support in pursuing overseas investment projects.

Chief Negotiator Yeo stated, "We will actively utilize trade channels to ensure strategic cooperation projects such as U.S. investment projects proceed smoothly, and will spare no necessary support in close cooperation with relevant ministries," expressing concrete support intentions. The plan is to leverage the critical minerals cooperation areas specified in the Korea-U.S. Free Trade Agreement (FTA) Memorandum of Understanding to support investment projects in the United States.

Why Korea Should Pay Attention

Rare earths are essential materials for Korea's key industries including electric vehicle batteries, semiconductors, and defense. However, with China currently controlling approximately 60% of global rare earth production and effectively dominating the supply chain, supply chain diversification has emerged as a core issue for Korea's industrial security.

Minister of Trade, Industry and Energy Kim Jung-kwan previously stated when announcing the comprehensive measures, "Our national competitiveness depends on industrial resource security, and the public and private sectors must closely cooperate in stable rare earth supply chain management," adding, "We will build a robust industrial structure that remains unshaken by external environmental changes."

The Ministry plans to continue reflecting field voices in policy through ongoing communication with the industry, and to concentrate policy capabilities so that domestic companies can emerge as key partners in the global critical mineral supply chain by utilizing bilateral and multilateral trade channels.