According to Yonhap News,
South Korea plans to invest more than 55 trillion won (US$37.8 billion) over the next three years to reduce its heavy reliance on imports for key minerals amid prolonged geopolitical risks and anticipated global trade protectionism, the finance ministry said Thursday.
The government currently designates 300 types of materials, including oil and coal, that are critical to the country's key industries, such as semiconductors and batteries, as well as security, in order to ensure stable supplies.
However, the country's heavy dependence on imports for such minerals continually exposes the country to high risks, particularly with the anticipated rise in trade protectionism under the second Donald Trump administration, coupled with heightened geopolitical risks.
"The global supply chain uncertainty is intensifying due to the U.S.-China competition and high tariffs, among other protectionist trade measures in light of the incoming U.S administration," Finance Minister Choi Sang-mok said during a meeting with relevant ministers.
Under the initiative, the government aims to reduce its dependence on such key materials from specific countries from the current 70 percent to 60 percent in 2027 and ultimately to 50 percent by 2030.
To this end, the government plans to invest more than 25 trillion won in the research and development of relevant core technologies, along with 30 trillion won in the supply chain stabilization fund by 2027, the ministry said.
khj@yna.co.kr
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Source: Yonhap News (December 19, 2024)