SEOUL, December 05 (AJP) - South Korea has launched a national council to stabilize supplies of rare earth elements and expand strategic reserves, amid heightened global supply chain volatility.
The council, chaired by Trade, Industry and Energy Minister Kim Jeong-gwan, convened for the first time on Friday with vice-ministers from related ministries to review a comprehensive rare earth supply chain strategy.
The body will oversee the government's resource security policies, supported by an expert advisory group tasked with providing technical guidance on key commodities such as critical minerals, natural gas, and oil.
According to the energy ministry, the council laid out three core initiatives to strengthen resource security: operating an early warning system for potential disruptions, establishing a public–private crisis response mechanism, and ensuring stable procurement of essential resources.
“With intensifying U.S.–China competition over rare earths and rising demand for critical minerals driven by electric vehicles and batteries, we will strengthen national resource security in a systematic manner through the newly launched council,” Minister Kim said.
Using an integrated information platform, the government will centralize supply chain data to improve early detection capabilities. Major companies will be designated as key institutions required to report any disruptions or unusual price movements. So far, authorities have named 18 core supply institutions and 20 key demand institutions across sectors including critical minerals, energy, and uranium, the ministry said.
To mitigate external shocks, Seoul will expand reserves of critical minerals and crude oil and ease import restrictions on recycled materials while supporting investments in recycling technologies.
As part of efforts to safeguard advanced industries such as automotive, semiconductors, and batteries, the government will diversify rare earth import sources and boost domestic production. The existing rare earth task force will be expanded to monitor market conditions and coordinate emergency response, trade negotiations, overseas resource development, and R&D.
South Korea will also increase crude oil stockpiles and adjust the composition of reserves to reflect changes in domestic demand. Safety and protective systems at reserve facilities will also be upgraded.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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