The South Korean government plans to reduce its dependency on specific regions for crude oil to below 50% by 2035 and stockpile critical minerals for up to one year. This initiative aims to strengthen supply chains in response to vulnerabilities exposed by the ongoing conflict in the Middle East.
On September 23, the Ministry of Trade, Industry and Energy held the 6th Resource Security Council in Seoul, chaired by Minister Kim Jung-kwan. The council reviewed and approved four key agendas, including the first basic plan for resource security, adjustments to the fifth oil stockpiling plan, the designation of critical minerals, and the first critical mineral stockpiling plan.
This basic plan for resource security is the first comprehensive, government-wide long-term strategy established since the implementation of the Special Act on National Resource Security in February of last year. The government identified the vulnerabilities in supply chains concentrated in specific regions and maritime routes during the response to the Middle East conflict, emphasizing the need to build a resilient resource security posture even in crisis situations.
To achieve this, the government aims to diversify the import routes, methods, and types of crude oil and natural gas, while also enhancing both public and private stockpiling capabilities.
Additionally, the government plans to expand its oil storage facilities, aiming to secure the capacity to store an additional 20 million barrels of crude oil by 2030. This will enable the government to increase its strategic reserves and collaborate with oil-producing countries on international stockpiling efforts. The government also intends to secure additional condensate to ensure stable domestic production of naphtha in emergencies, in conjunction with the petrochemical industry.
The management of critical minerals will expand from 38 to 51 types. Newly added minerals include ten rare earth elements such as samarium, europium, gadolinium, and praseodymium, as well as 13 other minerals like fluorite, phosphorus, and germanium. The government plans to designate these minerals as critical following a revision of the relevant regulations.
The list of critical mineral stockpiling items will also increase from 24 to 29 types. Notably, for minerals with high supply chain vulnerabilities, the stockpiling target will be raised from 180 days to a maximum of 365 days, with varying stockpiling days managed according to the supply and demand risks of each mineral.
In addition to public stockpiles, the concept of 'national total available inventory' will be introduced, encompassing private reserves and raw materials for recycling. This aims to comprehensively assess the available inventory that can be supplied to domestic industries in response to supply and demand crises.
The government will also focus on supporting ten strategic projects, considering the vulnerabilities in the supply chains of critical minerals and their impact on domestic industries. A new resource security fund will be established to create an investment base, and cooperation with major resource-holding countries and a government-wide crisis response system will be strengthened.
Minister Kim stated, "The experience of the Middle East conflict has reaffirmed that resource security is not merely a matter of securing cheap raw materials, but a matter of national survival that protects the lives of our citizens and industries. We must move beyond short-term and reactive responses during crises and fundamentally improve the structure of our resource supply chains through a long-term roadmap."
* This article has been translated by AI.
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