New government plan includes tariff cuts, tax incentives, and regulatory easing.
South Korea is ramping up its efforts to recycle critical minerals in a bid to strengthen supply security, according to a report by the Yonhap news agency. As early as 2023, the country announced its goal of increasing the recycling rate of ten critical raw materials, including lithium and several rare earth elements, to 20 percent by 2030.
To achieve this target, the government unveiled a new plan on Friday featuring tariff reductions, targeted industry support, and streamlined regulations. Despite the sector’s strong growth potential, technological and financial challenges have so far limited private-sector participation in the recycling of critical minerals, according to Yonhap, which cited government officials.
The plan also includes the creation of a dedicated task force for rare earths, as well as initiatives to boost investments in overseas resource projects, improve resource efficiency, and expand national reserves.
The initiative comes against the backdrop of mounting uncertainties in global raw material supply chains, driven by escalating geopolitical tensions and technological rivalries. Many critical materials, such as gallium, germanium, and certain rare earth elements, are currently subject to strict export controls by China, the world’s dominant producer. Resource-poor South Korea, one of the leading hubs of the global high-tech industry, remains heavily dependent on imports from the People’s Republic.
Photo: iStock/Jae Young Ju